Econ test 1 (ch 1,2,3 quizzes)

bowed outward

A production possibilities frontier with a​ ________ shape indicates increasing opportunity costs as more and more of one good is produced.

she should purchase the period fabric, complete the task and then sell the quilt

Cassie's Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What should she do?

$200

Cassie's Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. what is the marginal cost of completing the task?

marginal benefit equals marginal cost

Economists use the word "marginal" to mean an extra or additional benefit or cost of a decision. An optimal decision occurs when

switzerland has the comparative advantage in watches

For each watch that Switzerland​ produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces. Which of the following is true about the comparative advantage between the two​ countries?

$15000

Suppose your expenses for this term are as​ follows: tuition:​ $9,000, room and​ board: $1,500, books and other educational​ supplies: $1,000.​ Further, during the​ term, you can only work partminus−time and earn​ $3,000 instead of your fullminus−time salary of​ $8,000. What is the opportunity cost of going to college this​ term, assuming that your room and board expenses would be the same even if you did not go to​ college?

4 machine made cigars

The Stogie Shop, a cigar store in the mall, sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each. What is the opportunity cost of buying a hand-rolled cigar?

opportunity cost

The principle of​ ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

A (any level of the two products that the economy produces is currently possible)

The production possibilities frontier model assumes all of the following except ______ A. any level of the two products that the economy produces is currently possible. B. ​labor, capital, land and natural resources are fixed in quantity. C. the level of technology is fixed and unchanging. D. the economy produces only two products.

attainable

The​ ________ production points on a production possibilities frontier are the points along and inside the production possibilities frontier.

product market

When you purchase a new surfboard you do so in the _____

C (the janitor at the local elementary school)

Which of the following is a factor of​ production? A. a sofa produced by a furniture manufacturer B. 20 shares of Microsoft stock C. the janitor at the local elementary school D.​$500 in cash

he should finish the restoration and then sell the weather vane

Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a 1920s era weather vane which he expects to restore and sell for $500 once the work is completed. After having spent $125, Zane realizes that he will need to spend an additional $200 on materials to complete the restoration. Alternatively, he can sell the weather vane without restoring it for $200. What is his marginal benefit if he sells the weather vane without restoring it?

marginal analysis

______ involves undertaking an activity until its marginal benefits equal marginal costs

the term market in economics refers to

a group of buyers and sellers of a product and the arrangement by which they come together to trade

factor market

a worker is hired in a

marginal revenue

an office supply store sells a ream of paper at a fixed price of $4.50. which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper

false

as population declines, scarcity eventually disappears

$488,160

at a recent company meeting, geraldine erwin, sales manager of dastoria, a flavored beverage producer announced, "we have increases our sales by 8 percent in just six months." Suppose six months ago, its sales amounted to $452,000, what is the value of its sales today?

choices; scarce

economics is the study of the ______ people make to attain their goals, given their ____ resources

respond to economic incentives

economists assume that rational people

80 percent

if the price of milk was $1.25 a gallon and it is now $2.25 a gallon, what is the percentage change in price?

24 percent

in 2015, smileytown consumes 50,000 tubes of toothpaste. in 2016, toothpaste consumption rose to 62,000 tubes. calculate the percentage change in toothpaste consumption

If the production possibilities frontier is​ linear, then

opportunity costs are constant as more of one good is produced

economists assume that

optimal decisions are made at the margin

households

purchase final goods and services in the product market

every choice involves an opportunity cost

scarcity is central to the study of economics bc it implies that

unlimited wants exceed limited resources

scarcity refers to the situation in which

firms

sell goods in the product market

there is a negative relationship between hybrid automobile prices and quantities purchases by consumers

suppose when the price of hybrid automobiles rises, consumers buy fewer hybrid automobiles. this implies that ______

comparative advantage means

the ability to produce a good or service at a lower opportunity cost than any other producer.

3/5 of a gallon of milk

the farm factory a booth at the local farmers market sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. what is the opportunity cost of buying a dozen eggs?

opportunity cost is defined as

the highest valued alternative that must be given up to engage in an activity

The production possibilities frontier shows

the maximum attainable combinations of two products that may be produced in a particular time period with available resources.

Increasing marginal opportunity cost implies that

the more resources already devoted to any​ activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.

economic efficiency and economic equity

there is often a trade off between

an outward shift of

​________ a​ nation's production possibilities frontier represents economic growth.

an additional or extra

what does the term "marginal" mean in economics

what determines the unemployment rate?

which of the following is macroeconomics question?

all resources are fully utilized

If society decides it wants more of one good and​ ________, then it has to give up some of another good and incur some opportunity costs.

the banks must have weighed the cost of installing bandit barriers against the benefits and decided that they have "no interest in ever putting in the barriers"

In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. The New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called "bandit barriers." The police were surprised the bank did not take their advice. According to a deputy commissioner of police, "Commerce does very little of what we recommend. They've told our detectives they have no interest in ever putting in the barriers." It would seem that Commerce bank would have a strong incentive to install "bandit barriers" to deter robberies. Why wouldn't they do it?

some factors of production are not equally suited to producing both goods or services

Increasing opportunity cost along a​ bowed-out production possibilities frontier occurs because _____

A (Producers are buyers in the factors market.)

Which of the following statements is true about a simple circular flow​ model? A. Producers are buyers in the factors market. B. Producers are neither buyers nor sellers in the product market. C. Households are neither buyers nor sellers in the input market. D. Households are sellers in the product market.

through an increase in supplies of factors of production

Without technological​ advancement, how can a nation achieve economic​ growth?

C (a curved line has slope values that change at every point)

which of the following statements is true? A. a direct relationship has a negative slope values B. a straight line has a slope of one C. a curved line has slope values that change at every point D. an inverse relationship has a positive slope value