micro

Check docs What is the equilibrium price of coats? $120 $100 $60 $80

$100

Suppose the price ratio of two goods is 3/4 and Jason has a budget of $100. If Jason's budget increases to $150 and the prices of the two goods stay the same, what is the new price ratio? 3/2 3/4 1/4 1/2

3/4

An economy is efficient when: 1. all opportunities to make some people worse off without making other people better off have been taken 2. output is distributed equitably 3. the problem of scarcity is eliminated 4. all opportunities to make some people worse off without making other people worse off have been taken

4. all opportunities to make some people worse off without making other people worse off have been taken

In much of the country, homeowners choose to heat their houses with either natural gas or home heating oil both of which are normal goods. which of the following could cause an increase in demand for natural gas to change? A) An increase in consumer income B) A decrease in price of natural gas C) An increase in the price of natural gas D) A decrease in price of heating oil

A) An increase in consumer income

There are several close substitutes for Bayer aspirin but fewer substitutes for a complete medical examination. Therefore, all other things equal, you would expect the demand for... A) Bayer aspirin to be more price-elastic than the demand for medical examination B) Bayer aspirin to be more perfectly price-inelastic C) Medical examinations to be more price-elastic that the demand for Bayer aspirin D) the two to be equally price-elastic.

A) Bayer aspirin to be more price-elastic than the demand for medical examination

Sometimes the government varies its spending, depending on the needs of the country. Which economic principle does this statement best represent? A) Government policies can change spending. B) The true cost of something is its opportunity cost. C) Resources should be used efficiently to achieve society's goals. D) When markets don't achieve efficiency, government intervention can improve society's welfare.

A) Government policies can change spending.

Use the table: the utility of macaroni and cheese. Carmen loves eating macaroni and cheese on thanksgiving. Carmen's marginal utility from eating macaroni becomes negative at the ___ serving A) Sixth B) Second C) First D) Fifth

A) Sixth

according to the article "competition. survival of the fittest. could the pandemic leave market more concentrated? A) The more digitized a market, the more likely it is to become concentrated. B) The more digitized a market, the more likely it is to become fragmented C)T he more digitized a market, the less likely it is to become concentrated D) The less digitized a market, the more likely it is to become concentrated

A) The more digitized a market, the more likely it is to become concentrated.

If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quantity demanded change, and in what direction? A) The quantity demanded decreases by 2% B) The quantity demanded remains the same C) The quantity demanded decreases by 20% D) the quantity demanded increases by 2%

A) The quantity demanded decreases by 2%

A consumer is willing to pay $11 for his first beer, $7 for his second beer, $4 for his third beer $2 for his fourth beer, and 1 for his fifth beer. if the price is $2 his total consumer surplus is... A) $18 B) $16 C) $22 D $20

B) $16

The US imposed an excise tax on the sale of domestic airline tickets. Let's assume that in 2010 the total excise tax was $6.10 per airline ticket (consisting of the $3.60 flight segment tax plus the $2.50 September 11 fee). According to the data from the Bureau of Transport Statistics, in 2010, 630 million passengers traveled on domestic airline trips at an average price of $337 per trip. What is the government tax revenue in 2010 from the excise tax? A) $21.231 million B) $3.843 million C) $1.575 million D) $2.268 million

B) $3.843 million

What is the deadweight loss if the government were to limit sales to 2? check the document A) $6 B) $9 C) $8 D) $7

B) $9

A marginal rate of _____ means that, from the conusmer's point of view, 15 more units of good Y is as good as 10 more units of Good X A) ⅔ B) 1.5 C) 1 D) 15

B) 1.5

Suppose after paying bills and setting aside some money for retirement, Joana has $130 dollars left to spend on just two goods: concerts and books. For simplicity, we'll assume concert tickets cost $55 and books cost $10. Which of the following combination of goods could possibly be her utility-maximizing bundle? A) 3 concert tickets and 2 books B) 2 concert tickets and 2 books C) 1 concert ticket and 2 books D) 1 concert ticket and 10 books

B) 2 concert tickets and 2 books

The price of popcorn is $0.50 per box and the price of peanuts is $0.25 per bag. You have $10 to spend on both goods. The maximum number of bags of peanuts that you can purchase is: A) 20 B) 40 C) 5 D) 10

B) 40

Which one of the following goods is excludable? A) None of the Above B) A City Bus C) An Atmosphere D) Protection from the police force.

B) A City Bus

Use figure: demand of coconuts. if coconuts are a normal good and consumers believe that the price of coconuts will rise significantly in the near future it will be represented in the figure as A) A movement from point B to A B) A shift from D1 to D2 C) A shift from D1 to D3 D)A movement from point B to E

B) A shift from D1 to D2

What would best describe the paradox of choice? A) None of them B) More is less. C) More is more. D) Less is less.

B) More is less.

If a change in price cause demand to change in the same proportion in an opposite direction, we can conclude that the demand is... A) Zero Elastic B) Price Unit Elastic C) Price Inelastic D) Price Elastic

B) Price Unit Elastic

when demand increases what happens to price and quantity in equilibrium? A) Price and quantity decrease B) Price and quantity both increase C) price decreases and quantity increases D) Price increases and quantity decreases

B) Price and quantity both increase

Suppose you learned that growing political instability in Chile (the world's largest producer of copper) would greatly reduce the productivity of its mines in two years. Ignoring all other factors, which curve (supply or demand) will shift in which direction (left or right) in the market for copper two years from now? A) Supply curve will increase, that is a, shift to the right (down) B) Supply curve will decrease that is, a shift to the left (up) C) Demand curve will decrease that is a shift to the left (down) D) Demand will increase, that is, a shift to the right(Up)

B) Supply curve will decrease that is, a shift to the left (up)

A price celling, is a... A) Minimum price that is in fact charged in a competitive market. B) legally established maximum price that can be charged for a good C) Legally established minimum price that can be charged for a good D) Maximum price that is in fact charged in a competitive market

B) legally established maximum price that can be charged for a good

Economic Analysis implies that the government should... A)prohibit activities that cause pollution. B) use taxes to discourage activities that cause pollution. C) require polluters to install equipment that stops all pollution. D) not interfere with markets for pollution-causing products.

B) use taxes to discourage activities that cause pollution.

Which Characteristics below best describe the demand curve that you as an individual seller of Google stock face? A) A perfectly inelastic demand curve. B) A unit elastic demand curve. C) A perfectly elastic demand curve. D) A semi-elastic demand curve.

C) A perfectly elastic demand curve.

If we learn today about promising future energy sources, today's price of energy will _______, and today's quantity of energy will __________. A) Rise, rise B) Rise, fall C) Fall, rise D) Fall, fall

C) Fall, rise

check doc A) Panal A B) Panal C C) Panal B D) Panal D

C) Panal B

When Supply decreases, what happens to price and quantity in equilibrium? A) Price and Quatity both increase. B) Price Decrease and Quatity increases C) Prices increases and Quatity Decreases D) Price and Quatity both decrease.

C) Prices increases and Quatity Decreases

Considering the original market for pizza in college town illustrated in the accompanying table, collegetown official's deiced to impose an excise tax on pizza of $4 per pizza. What is the quantity of pizza bought and sold after the imposition of the tax? What is the price paid by consumers? What is the price received by producers A) Quantity of pizza 2, consumers pay $8 and producers to receive $4. B) Quantity of pizza 1, consumers pay $7, and producers receive $3. C) Quantity of pizza 1, consumers pay $9 and producers receive $5. D) Quantity of pizza 3, consumers pay $6, and producers to receive $2.

C) Quantity of pizza 1, consumers pay $9 and producers receive $5.

To internalize a positive externality, an appropriate government policy would be to ... A) Produce the good until the value of an additional unit is zero B) Tax the good C) Subsidize the good D) Bna the good that creates an externalities

C) Subsidize the good

You notice that the price of Blu-Ray players falls and the quantity of Blu-Ray players sold increase. You suspect that____ Blu-Ray players shifts to the___. A) Demand for ; right B) Supply of ; left C) Supply of ; right D) Demand of ; right

C) Supply of ; right

Harry is lucky enough to get a rent-controlled apartment for $300 per month. The market rent on such an apartment is $3,000 per month. Harry himself values the apartment at $2,000 per month, and he'd be quite happy with a regular, $2,000-per-month New York apartment. If he stays in the apartment, how much if he stays in the apartment, how much consumer surplus does he enjoy? A) ndeterminate given the information B) $2100 per month C) $2400 per month D) $1700 per month

D) $1700 per month

An increase in consumer's income will NOT... A) Shift the budget line away from the origin B) Increase the horizontal intercept C) Increase vertical intercept D) Change the slope of the budget line

D) Change the slope of the budget line

What is the term for economic output lost due to a price floor or ceiling? A) Producer loss B) Producer surplus C) Consumer surplus D) Deadwieght loss

D) Deadweight loss

Circa 1200 BCE, the decreasing supply of tin due to wars and teh breakdown of trade led to a drastic increase in the price of bronze in the Middle East and Greece (tin being necessary in production). It is around the time that blacksmiths developed iron-steel-making techniques (as substitutes for bronze). What does the increasing price of bronze signal? A) It tells people that the price bubble forming around bronze and that people are overvaluing the price of bronze. B) It tells people that the wars in the Middle East and Greece are coming close to being resolved because of bronze scarcity. C) It tells people to buy more bronze because it is going to be more valuable in the future. D) It tells people that bronze is getting harder to find and its higher price will signal consumers to conserve ut more or seek substitutes.

D) It tells people that bronze is getting harder to find and its higher price will signal consumers to conserve ut more or seek substitutes.

The Market price of airline flights increased recently. Some economist suggest that the price increased because several airlines went out of business. They believe that, in the market for flights, ... A) Supply Increased B) Demand Increased C) Demand Decreased D) Supply Decreased

D) Supply Decreased

Which value best describes the amount of utility that is gained by spending an additional dollar on yogurt? A) The Total Utility of a tub of yogurt divided by the price of a yogurt tub. B) The value equal to the price of the related good. C) The average utility of yogurt divided by the price of the yogurt tub. D) The Marginal Utility of one tub of yogurt divided by the price of yogurt tub.

D) The Marginal Utility of one tub of yogurt divided by the price of yogurt tub.

You have $1 to spend on a vending machine snack. A bag of chips will cost you $1 and a candy bar will also cost you $1. If you choose the bag of chips the Opportunity Cost of buying Chips is ... A)$1 B) $1 plus the enjoyment you would have received from the candy bar C) $2 minus the enjoyment you received from the bag of chips. D) The enjoyment you would have received from the candy bar.

D) The enjoyment you would have received from the candy bar.

If a product creates a negative externality, then .. A) The free-market equilibrium quantity is the efficient one B) The Marginal Benefit of an additional unit of the production is increased. C) The Social cost of production is lower than the marginal cost. D) The free-market equilibrium output of the product exceeds the efficient level.

D) The free-market equilibrium output of the product exceeds the efficient level.

What happened in Vernon Smith experiment about market equilibrium? A) The price and quantity were far from equilibrium but gains from trade were close to the maximum B) The price and quantity were far from equilibrium but gains from trade were close to the maximum C) The price and quantity were far from equilibrium but gains from trade were close to the maximum D) The price and quantity were far from equilibrium but gains from trade were close to the maximum

D) The price and quantity were far from equilibrium but gains from trade were close to the maximum

For consumers, pizza and hamburgers are substitutes. A rise in the price of pizza causes a ____ in the equilibrium price of hamburgers and am ___ in the equilibrium quantity of hamburgers Rise ; decrease Rise; Increase Fall ; Increase Fall; Decrease

Rise; Increase