MODULE 4
at a lower opportunity cost than any other producer
Comparative advantage means the ability to produce a good or service -at a lower opportunity cost than any other producer. -at a higher profit level than any other producer. -of a higher quality than any other producer. -at a lower selling price than any other producer.
Point B has more of both goods
Using Figure 3 and the production table above, point B is preferred to point D because -Point B has Dylan producing enchiladas and Justin producing tacos. -Point B has Dylan producing tacos and Justin producing enchiladas. -Point B takes into account Justin's absolute advantage in producing enchiladas. -Point B has more of both goods.
A and D; Requires taking into account comparative advantage and moves along line ABC, Is reflected in the fact that line ABC involves more production of both goods than line ADC
Using Figure 3, efficient production -Requires taking into account comparative advantage and moves along line ABC. -Requires taking into account both absolute advantage and comparative advantage and moves along line ABC. -Requires taking into account absolute advantage and moves along line ABC. -Is reflected in the fact that line ABC involves more production of both goods than line ADC. -A and D.
an "increase in supply'" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price
What is the difference between an "increase in supply" and an "increase in quantity supplied"? -An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. -There is no difference between the two terms; they both refer to a shift of the supply curve. -An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price. -There is no difference between the two terms; they both refer to a movement along a given supply curve.
self checkout lines
Which of the following is a process innovation? -self checkout lines -Lasik eye surgery -smartphones -airports
antibiotics
Which of the following is a product innovation? -self check-out lines -assembly lines -antibiotics -Kyle Field
Kyle Field
Which of the following is an example of capital? -smartphones -self checkout lines -Washington, D.C. -Kyle Field
horizontal
a perfectly elastic supply curve is -horizontal -vertical
vertical
a perfectly inelastic supply curve is -horizontal -vertical
the points along and inside the production possibility frontier.
The attainable production points on a production possibilities curve are -the points along and inside the production possibility frontier. -the points along the production possibilities frontier. -the horizontal and vertical intercepts. -the points outside the area enclosed by the production possibilities frontier.
a smaller quantity of GPS systems supplied.
A decrease in the price of GPS systems will result in -a larger quantity of GPS systems supplied. -a smaller quantity of GPS systems supplied. -a decrease in the demand for GPS systems. -an increase in the supply of GPS system
is a table that shows the relationship between the price of a product and the quantity of the product supplied
A supply schedule -is a table that shows the relationship between the price of a product and the quantity of the product supplied. -is the relationship between the supply of a product and the cost of producing the product. -is a curve that shows the relationship between the price of a product and the quantity of the product supplied. -is a table that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange.
Process Innovation
Assembly lines are an example of: -Capital investment -Process innovation -Product innovation -All of these
false
All else equal, as the price of a product falls, the quantity supplied increases. -true -false
a larger quantity of off-road vehicles supplied.
An increase in the price of off-road vehicles will result in -a larger quantity of off-road vehicles supplied. -a smaller quantity of off-road vehicles supplied. -an increase in the demand for off-road vehicles. -a decrease in the supply of off-road vehicles.
a larger quantity of pineapples supplied
An increase in the price of pineapples will result in -a decrease in the demand for pineapples. -an increase in the supply of pineapples. -a larger quantity of pineapples supplied. -a smaller quantity of pineapples supplied.
true
An increase in the quantity of a product supplied is caused by an increase in the price of the product. -true -false
there is a decrease in the supply of pool maintenance services
Danielle Ocean pays for monthly pool maintenance for her home swimming pool. Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals. How is the market for pool maintenance services affected by this? -There is a decrease in the supply of pool maintenance services. -There is an increase in the supply of pool maintenance services. -There is a decrease in the demand for pool maintenance services. -There is a decrease in the quantity of pool maintenance services supplied.
perfectly inelastic
If firms do not increase their quantity supplied when price changes, then supply is -perfectly elastic. -perfectly inelastic. -elastic. -relatively inelastic.
the supply of peaches has decreased
If in the market for peaches the supply curve has shifted to the left, - the supply of peaches has decreased. -the quantity of peaches supplied has increased. -the quantity of peaches supplied has decreased. -the supply of peaches has increased.
the supply curve would shift to the left
If the United States placed an embargo on Swedish products, what would happen in the U.S. market for Swedish furniture? -The supply curve would shift to the right. -The supply curve would shift to the left. -The demand curve would shift to the left. -The demand curve would shift to the right.
elastic
If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is -perfectly elastic. -relatively inelastic. -unit elastic. -elastic
the supply curve for oranges has shifted to the right
If, in the market for oranges, the supply has increased then -the supply curve for oranges has shifted to the right. -there has been a movement upwards along the supply curve for oranges. -the supply curve for oranges has shifted to the left. -there has been a movement downwards along the supply curve for oranges.
the supply curve shifts to the left.
In February, market analysts predict that the price of titanium will rise in March. What happens in the titanium market in February, holding everything else constant? -The quantity of titanium demanded and the quantity of titanium supplied both increase. -The supply curve shifts to the right. -The demand curve shifts to the left. -The supply curve shifts to the left
The supply curve shifted to the left.
In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the United States? -The demand curve shifted to the right. -The demand curve shifted to the left. -The supply curve shifted to the right. -The supply curve shifted to the left.
the supply curve shifts to the right
In October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant? -The supply curve shifts to the left. -The supply curve shifts to the right. -The quantity of platinum demanded and the quantity of platinum supplied both increase. -The demand curve shifts to the right.
inside
In a production possibilities frontier model, a point ________ the frontier is productively inefficient. -outside -at either intercept of -along -inside
a decrease in supply
Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced -a decrease in the quantity supplied. -an increase in the quantity supplied. -an increase in supply. -a decrease in supply.
the price of the good changes
One would speak of a change in the quantity of a good supplied, rather than a change in supply, if -prices of substitutes in production change. -the cost of producing the good changes. -supplier expectations about future prices change. -the price of the good changes.
how responsive suppliers are to price changes
Price elasticity of supply is used to gauge -how responsive suppliers are to changes in future prices. -how responsive suppliers are to price changes. -how responsive suppliers are to a change in demand. -how responsive sales are to a change in input prices.
true
Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price. -true -false
a decrease in the price of cattle
Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase? -an increase in the price of sheep feed -an increase in the demand for cattle -a decrease in the price of cattle -an increase in the price of sheep
1 1/3 necklaces
Refer to Table 2-6. What is Haley's opportunity cost of making a bracelet? (bracelets: 9, necklaces:12) -2 necklaces -1 1/3 necklaces -3/4 of a bracelet -3 bracelets
3/4 of a bracelt
Refer to Table 2-6. What is Haley's opportunity cost of making a necklace? (bracelets: 9, necklaces:12) -3/4 of a bracelet -3 bracelets -1 1/3 necklaces -2 necklaces
Supply is perfectly elastic
Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as they desire. If any firm tries to lower the wage rate to $19, it will not be able to hire any janitor. What does this indicate about the supply curve for janitorial services? -Supply is perfectly elastic. -Supply is unit-elastic. -Supply is relatively inelastic. -Supply is perfectly inelastic.
1.22
Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity supplied rises from 8,000 units to 10,000 units. Use the midpoint formula to calculate the price elasticity of supply. -1.22 -1.0 -0.82 -0.07
0.5
The opportunity cost for Justin to make a pair of pants is (shirts: 4, pants: 8) -2 -0.5 -8 -1.5 -4
4
The opportunity cost for Taylor to pick a bushel of cherries is (apples: 8, cherries: 2) - 0.25 -8 -0.5 -2 -4
positive
The price elasticity of an upward-sloping supply curve is always -positive. -greater than one. -negative. -impossible to determine.
the percent change in quantity supplied divided by the percent change in price
The price elasticity of supply is equal to -the value of the slope of the supply curve. -the percentage change in quantity supplied divided by the percentage change in price. -the percentage change in price divided by the percentage change in quantity supplied. -the change in quantity supplied divided by the change in price.
the producer who gives up the fewest enchiladas to make a taco
The producer with the least opportunity cost of making a taco is -the producer who gives up the fewest enchiladas to make a taco. -the producer who can make the most enchiladas per taco given up. -the producer who can make the most tacos. -the producer who can make the fewest enchiladas. -the producer who can make the most enchiladas per taco given up AND the producer who can make the most tacos
measures the opportunity cost of producing one more unit of a good
The slope of a production possibilities frontier -is always varying. -measures the opportunity cost of -producing one more unit of a good. -is always constant. -has no economic relevance or meaning.
shows the relationship between the price of watches and the quantity of watches supplied.
The supply curve for watches -is downward sloping. -shows the supply of watches consumers are willing and able to buy at any given price. -shows the relationship between the price of watches and the quantity of watches supplied. -shows the relationship between the quantity of watches firms are willing and able to supply and the quantity of watches consumers are willing and able to purchase.
Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product.
Which of the following statements is true? -Individuals who have never been the best at doing anything must have an absolute advantage in at least ones task. -Individuals who have never been the best at doing anything perform all tasks at a higher opportunity cost than others. -Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product. -Individuals who have never been the best at doing anything cannot have a comparative advantage in producing any product.
Increased demand
Which of the following was not mentioned in the video as a driver of economic growth? -Product innovation Process innovation Correct Increased demand Capital investment
an increase the price of a product that producers sell instead of milk
Which of the following would cause a decrease in the supply of milk? -an increase the price of a product that producers sell instead of milk -an increase in the price of cookies (assuming that milk and cookies are complements) -an increase in the number of firms that produce milk -a decrease in the price of milk
through technological advancement which enables more output with the same quantity of resources
Without an increase in the supplies of factors of production, how can a nation achieve economic growth? -by increasing the prices of factors of production -through technological advancement which enables more output with the same quantity of resources -by producing more high-value goods and fewer low-value goods -by lowering the prices of factors of production
can produce more of something at a lower opportunity cost than others
You have an absolute advantage whenever you -can produce something at a lower opportunity cost than others. -prefer to do one particular activity. -are better educated than someone else. -can produce more of something than others with the same resources.
