Mirco 1

Serena Haley Bracelets 8 9 Necklaces 16 12 This table shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. What is Haley's opportunity cost of making a necklace?

3/4 of a bracelet

Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity. What happens in the market for walnuts if the Centers for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower the chances of catching Covid-19? A) D increases, S no change, P and Q increase B) D no change, S increases, P decreases, Q decreases C) D and S increase, P and Q decrease D) S increases, D no change, P decreases, Q increases

A

In recent years the cost of producing wines in the U.S. has increased largely due to rising rents for vineyards. At the same time, more and more Americans prefer wine over beer. Which of the following best explains the effect of these events in the wine market?

D) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.

Which of the following is a normative economic statement?

The price of gasoline is too high.

According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana." On the basis of this information, how would you describe alcohol and marijuana?

The two goods are complements in consumption.

Economists assume that individuals

are rational and respond to incentives.

The law of demand implies, holding everything else constant, that

as the price of bagels increases, the quantity of bagels demanded will decrease.

Chuck Stake never eats vegetables, although he can afford to buy them. According to the economic way of thinking, Chuck

believes the additional benefits from eating vegetables are outweighed by the additional costs.

When a 13-year-old girl consents to babysit John's children for $5 per hour, economists assume

both parties were made better off.

Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply curve. As a result,

both the equilibrium price and quantity of DVD players will decrease.

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve. As a result,

both the equilibrium price and quantity of MP3 players will increase.

Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to $5,000 for the old automobiles. These consumers who did trade in their old automobiles to take advantage of the government offer would be exemplifying the economic idea that

people respond to economic incentives.

When Mother Teresa used her $190,000 Nobel Peace Prize to construct a leprosarium, she was

pursuing her self interest.

In economics, choices must be made because we live in a world of

scarcity.

Lisa decided to give up being on the soccer team for piano lessons. Her opportunity cost of pursuing piano lessons is

the satisfaction Lisa had enjoyed by being on the soccer team.

Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline,

the supply curve shifted to the left resulting in an increase in the equilibrium price.