Unit 4 Quizzes

If, in the market for oranges, the supply has increased then A. there has been a movement upwards along the supply curve for oranges. B. there has been a movement downwards along the supply curve for oranges. C. the supply curve for oranges has shifted to the right. D. the supply curve for oranges has shifted to the left.

C. the supply curve for oranges has shifted to the right.

Suppose a 4 percent increase in price results in a 2 percent increase in the quantity supplied of a good. Calculate the price elasticity of supply and characterize the product. A. 50%; The product is inelastic. B. 0.2; The product is inelastic. C. 2; The product is elastic. D. 0.5; The product is inelastic.

D. 0.5; The product is inelastic.

An increase in the quantity of a product supplied is caused by an increase in the price of the product. True False

True

All else equal, as the price of a product falls, the quantity supplied increases. True False

False

Product & Production per week: Producer Shirts Pants Dylan 12 9 Justin 4 8 16 17 The opportunity cost for Dylan to make a shirt is A. 0.75 B. 1.33 C. 0.5 D. 9 E. 12

A. 0.75

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. A. 1.22 B. 1.0 C. 0.82 D. 0.07

A. 1.22

Production per day (Bushels): Pickers Apples Cherries Taylor 8 2 Jeff 6 3 14 5 Jeff has A. A comparative advantage and an absolute advantage in picking cherries. B. A comparative advantage but not an absolute advantage in picking cherries. C. A comparative advantage and an absolute advantage in picking apples. D. A comparative advantage but not an absolute advantage in picking apples. E. None of these.

A. A comparative advantage and an absolute advantage in picking cherries.

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. A decrease in supply. B. A decrease in the quantity supplied. C. An increase in the quantity supplied. D. An increase in supply.

A. A decrease in supply.

An increase in the price of pineapples will result in A. A larger quantity of pineapples supplied. B. An increase in the supply of pineapples. C. A decrease in the demand for pineapples. D. A smaller quantity of pineapples supplied.

A. A larger quantity of pineapples supplied.

A decrease in the price of GPS systems will result in A. A smaller quantity of GPS systems supplied. B. A decrease in the demand for GPS systems. C. An increase in the supply of GPS systems. D. A larger quantity of GPS systems supplied.

A. A smaller quantity of GPS systems supplied.

What is the difference between an "increase in supply" and an "increase in quantity supplied"? A. 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. B. There is no difference between the two terms; they both refer to a shift of the supply curve. C. 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. D. There is no difference between the two terms; they both refer to a movement along a given supply curve

A. 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.

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? A. The supply curve shifted to the left. B. The demand curve shifted to the left. C. The demand curve shifted to the right. D. The supply curve shifted to the right.

A. 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? A. The supply curve shifted to the left. B. The demand curve shifted to the right. C. The demand curve shifted to the left. D. The supply curve shifted to the right.

A. The supply curve shifted to the left.

Harvey Rabbitt pays for monthly cable TV service. Last week the cable company informed Harvey that his monthly cable price would go down because the city council has granted approval for three new cable companies to service his area. How is the market for cable TV services affected by this? A. There is an increase in the supply of cable TV service. B. There is a decrease in the quantity of cable TV service supplied. C. There is a decrease in the supply of cable TV service. D. There is a decrease in the demand for cable TV service.

A. There is an increase in the supply of cable TV service.

Product & Production per week: Producer Shirts Pants Dylan 12 9 Justin 4 8 16 17 Dylan has a A. a comparative advantage and an absolute advantage in making shirts. B. a comparative advantage but not an absolute advantage in making shirts. C. a comparative advantage and an absolute advantage in making pants. D. a comparative advantage but not an absolute advantage in making pants. E. none of these

A. a comparative advantage and an absolute advantage in making shirts.

A supply schedule A. is a table that shows the relationship between the price of a product and the quantity of the product supplied. B. is a curve that shows the relationship between the price of a product and the quantity of the product supplied. C. is the relationship between the supply of a product and the cost of producing the product. D. 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.

A. is a table that shows the relationship between the price of a product and the quantity of the product supplied.

A supply schedule A. is a table that shows the relationship between the price of a product and the quantity of the product supplied. B. is the relationship between the supply of a product and the cost of producing the product. C. 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. D. is a curve that shows the relationship between the price of a product and the quantity of the product supplied.

A. is a table that shows the relationship between the price of a product and the quantity of the product supplied.

The price elasticity of an upward-sloping supply curve is always A. positive. B. greater than one. C. negative. D. impossible to determine.

A. positive.

The principle of opportunity cost is that A. the economic cost of using a factor of production is the alternative use of that factor that is given up. B. taking advantage of investment opportunities involves costs. C. in a market economy, taking advantage of profitable opportunities involves some money cost. D. the cost of production varies depending on the opportunity for technological application.

A. the economic cost of using a factor of production is the alternative use of that factor that is given up.

One would speak of a change in the quantity of a good supplied, rather than a change in supply, if A. the price of the good changes. B. the cost of producing the good changes. C. prices of substitutes in production change. D. supplier expectations about future prices change.

A. the price of the good changes.

Production per day (Bushels): Pickers Apples Cherries Taylor 8 2 Jeff 6 3 14 5 The producer with the least opportunity cost of picking cherries is A. the producer who gives up the fewest apples to pick a bushel of cherries. B. the producer who can pick the most apples per bushel of cherries given up. C. the producer who can pick the most cherries. D. the producer who can pick the fewest apples. E. the producer who can pick the most apples per bushel of cherries given up AND the producer who can pick the most cherries.

A. the producer who gives up the fewest apples to pick a bushel of cherries. B. the producer who can pick the most apples per bushel of cherries given up.

Product & Production per hour: Cooks Tacos Enchiladas Bree 12 6 Will 4 16 16 22 The producer with the least opportunity cost of making a taco is A. the producer who gives up the fewest enchiladas to make a taco. B. the producer who can make the most enchiladas per taco given up. C. the producer who can make the most tacos. D. the producer who can make the fewest enchiladas. E. the producer who can make the most enchiladas per taco given up AND the producer who can make the most tacos.

A. the producer who gives up the fewest enchiladas to make a taco.

Product & Production per week: Producer Shirts Pants Dylan 12 9 Justin 4 8 16 17 The producer with the least opportunity cost of making a shirt is A. the producer who gives up the fewest pants to make a shirt. B. the producer who can make the most pants per shirt given up. C. the producer who can make the most shirts. D. the producer who can make the fewest pants. E. the producer who can make the most pants per shirt given up AND the producer who can make the most shirts.

A. the producer who gives up the fewest pants to make a shirt.

Production per day (Bushels): Pickers Apples Cherries Taylor 8 2 Jeff 6 3 14 5 The opportunity cost for Jeff to pick a bushel of apples is A. 0.25 B. 0.5 C. 3 D. 6 E. 2

B. 0.5

The supply curve for watches A. 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. B. Shows the relationship between the price of watches and the quantity of watches supplied. C. Shows the supply of watches consumers are willing and able to buy at any given price. D. Is downward sloping.

B. Shows the relationship between the price of watches and the quantity of watches supplied.

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. a decrease in the quantity supplied. B. a decrease in supply. C. an increase in supply. D. an increase in the quantity supplied.

B. a decrease in supply.

able 2-2 Production choices for Billie's Bedroom Shop Choice Quantity of Pillows Produced Quantity of Blankets Produced A 36 0 B 27 7 C 18 14 D 9 21 E 0 28 Assume Billie's Bedroom Shop only produces pillows and blankets. A combination of 5 pillows and 21 blankets would appear A. along Billie's production possibilities frontier. B. inside Billie's production possibilities frontier. C. outside Billie's production possibilities frontier. D. at the vertical intercept of Billie's production possibilities frontier.

B. inside Billie's production possibilities frontier.

Product & Production per hour: Cooks Tacos Enchiladas Bree 12 6 Will 4 16 16 22 The opportunity cost for Will to make an enchilada A. 16 B. 4 C. 0.25 D. 2 E. 0.5

C. 0.25

Product & Production per week: Producer Shirts Pants Dylan 12 9 Justin 4 8 16 17 The opportunity cost for Justin to make a pair of pants is A. 4 B. 8 C. 0.5 D. 1.5 E. 2

C. 0.5

The price elasticity of supply for umbrellas is 2. Suppose you're told that following a price increase, quantity supplied increased by 30 percent. What was the percentage change in price that brought this about? A. 6.7 percent B. 60 percent C. 15 percent D. impossible to determine without additional information

C. 15 percent

An increase in the price of off-road vehicles will result in A. A smaller quantity of off-road vehicles supplied. B. An increase in the demand for off-road vehicles. C. A larger quantity of off-road vehicles supplied. D. A decrease in the supply of off-road vehicles.

C. A larger quantity of off-road vehicles supplied.

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? A. Supply is perfectly inelastic. B. Supply is unit-elastic. C. Supply is perfectly elastic. D. Supply is relatively inelastic.

C. Supply is perfectly elastic.

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? A. There is a decrease in the demand for pool maintenance services. B. There is a decrease in the quantity of pool maintenance services supplied. C. There is a decrease in the supply of pool maintenance services. D. There is an increase in the supply of pool maintenance services.

C. There is a decrease in the supply of pool maintenance services.

Increasing opportunity cost is represented by a ________ production possibilities frontier. A. bowed in B. linear C. bowed out D. vertical

C. bowed out

An outward shift of a nation's production possibilities frontier represents A. an impossible situation. B. a situation in which a country produces more of one good and less of another. C. economic growth. D. rising prices of the two goods on the production possibilities frontier model.

C. economic growth.

If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is A. perfectly elastic. B. relatively inelastic. C. elastic. D. unit elastic.

C. elastic.

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? A. There is a decrease in the quantity of pool maintenance services supplied. B. There is an increase in the supply of pool maintenance services. C. There is a decrease in the demand for pool maintenance services. D. There is a decrease in the supply of pool maintenance services.

D. There is a decrease in the supply of pool maintenance services.

Harvey Rabbitt pays for monthly cable TV service. Last week the cable company informed Harvey that his monthly cable price would go down because the city council has granted approval for three new cable companies to service his area. How is the market for cable TV services affected by this? A. There is a decrease in the quantity of cable TV service supplied. B. There is a decrease in the demand for cable TV service. C. There is a decrease in the supply of cable TV service. D. There is an increase in the supply of cable TV service.

D. There is an increase in the supply of cable TV service.

Price elasticity of supply is used to gauge A. how responsive sales are to a change in input prices. B. how responsive suppliers are to a change in demand. C. how responsive suppliers are to changes in future prices. D. how responsive suppliers are to price changes.

D. how responsive suppliers are to price changes.

If in the market for peaches the supply curve has shifted to the left, A. the supply of peaches has increased. B. the quantity of peaches supplied has increased. C. the quantity of peaches supplied has decreased. D. the supply of peaches has decreased.

D. the supply of peaches has decreased.

Production per day (Bushels): Pickers Apples Cherries Taylor 8 2 Jeff 6 3 14 5 The opportunity cost for Taylor to pick a bushel of cherries is A. 0.5 B. 0.25 C. 8 D. 2 E. 4

E. 4