econ 1301 test 1

In the​ figure, ________ will shift in the demand curve from D to D1.

a scientific article published that demonstrates eating pizza is good for one's health

There are five hundred buyers in the market for cheese. If we know each​ individual's demand​ curves, to find the market​ demand, we must

add the quantities that each buyer will purchase at every price.

Consider the market for smart phones. Which of the following shifts the demand curve​ rightward?

an increase in the price of land-line phone service, a substitute for smart phones

Which of the following results in a movement upward along the supply curve for movies in​ theaters?

an increase in the price of movie tickets

The table above gives four production possibilities for airplanes and cruise ships. In possibility​ A, how many resources are devoted to the production of cruise​ ships?

0

In the table​ above, how many jackets must Mary forgo for every dress she​ makes?

1 1/2 jackets

The table above presents the production possibilities frontier for a nation. Using the information in the​ table, when moving from possibility C to​ D, the cost of 1 unit of a capital good in terms of the consumption goods forgone is​ ________ consumption goods per capital good.

10

Which of the following BEST describes​ macroeconomics?

It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments.

Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of​ soda, then the

demand for hot dogs decreases.

A bowed out production possibility frontier shows that the

opportunity cost of a good increases as more of the good is produced.

Of the​ following, the largest source of revenue for the federal government is the

personal income tax.

Suppose that tattoos gained immense popularity with retired people as well as college students. This gain in popularity best reflects which of the following influences on buying​ plans?

preferences

When the demand curve shifts rightward and the market moves to a new​ equilibrium, then the

quantity supplied increases.

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the​ nation's production possibilities​ frontier?

The production possibilities frontier would shift inward.

Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as

U.S. exports of goods and services.

As an economy increasingly specializes in producing one​ good, the opportunity cost of that good increases. The opportunity cost increases because

resources are not equally productive in all activities.

In a housing market with a rent ceiling set below the equilibrium​ rent,

some people seeking an apartment to rent will not be able to find one.

hour review session for microeconomics instead of working at his job. His job pays him​ $10 per hour.​ Ali's opportunity cost of attending the review session is

the $10 he could have earned at his job.

​Entrepreneurship, as a factor of​ production, refers to

the human resource that organizes labor, land, and capital.

​Capital, as a factor of​ production, refers to

the physical goods used to produce other goods and services.

When a surplus of rice​ occurs,

the price of rice falls.

In the above​ figure, Jack's opportunity cost of producing 1 gallon of bottled water is​ ________ of soda.

​1/2 of a gallon

The graph shows the labor market for teenagers in Atlanta. If the government sets a minimum wage of​ $6 an​ hour, the number of teenagers employed is​ ________.

​3,000

Which of the following is a microeconomic​ topic? i. Gas prices increase after a hurricane hits the gulf coast. ii. Xavier starts a new business designing web pages. iii Abby decides to practice an extra hour of soccer instead of studying.

​i, ii and iii

Economists classify energy and water as part of which factor of​ production?

land

If x increases whenever y​ decreases, then x and y are

negatively related.

The figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point D to E​?

3000 bottles of wine

Which of the following statements is​ true?

Both A and B are correct.

Aaron locked himself out of his house and had to pay​ $40 to​ Brianna, who works for Lucky​ Locksmith, to open his door. Based on this transaction in the economy and using concepts from the circular flow​ model, which of the following is​ true?

Brianna earned income from supplying her labor services.

New technology for producing plywood is developed. Which of the figures above best illustrates this​ change?

Figure D

For country​ North, the opportunity cost incurred when 3 tractors are produced is 21 watches. For country​ South, the opportunity cost incurred when 5 tractors are produced is 100 watches. Which country has the comparative advantage in the production of​ tractors?

North

Based on their current production​ points, relative to​ India, which is​ France's most likely future PPF​?

PPF2 with India on PPF1.

The question of​ "How are goods and services​ produced?" most closely addresses which of the following​ issues?

Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs?

Increasing income tax rates will solve the​ "social security time bomb​ issue" is an example of

a positive economic statement.

If the marginal benefit of getting a college degree​ rises, rational people will

attend college in greater numbers.

A price floor is a price

below which a seller cannot legally sell.

The circular flow model shows that goods and services flow from

businesses to households.

Scarcity forces people to

choose among available alternatives.

The figure above shows the production possibilities frontier for a country. In order for it to produce at point ​E, the

country would need to acquire more resources and/or more advanced technology.

Consider a production possibility frontier with books and tables. A combination of 1000 books and 500 tables is on the frontier. Which of the following are​ true? ​i) Production of 700 books and 400 tables is attainable but inefficient. ​ii) Production of 1000 books and 600 tables is unattainable. ​iii) Production of 500 books and 1000 tables is inside the frontier.

i and ii

Rational choice

is a choice that uses the available resources to best achieve the objective of the person making the choice.

A price ceiling

is the maximum price that can legally be charged.

If a minimum wage is introduced that is above the equilibrium wage​ rate,

job search activity increases.

Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming

just the third hamburger.

A demand schedule shows

the quantities that people plan to buy at each different price when all other influences on buying plans remain the same.

Suppose the city of Chicago imposes a rent ceiling that fixes rents at​ $400 below the equilibrium rent. With this plan

the quantity of apartments demanded will increase.

Because of the high cost of​ fuel, railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight. This change means that the

the supply curve for hauling freight has shifted leftward.

In the​ figure, if point ​"a​" represents the original equilibrium and point ​"b​" the new​ equilibrium, then

there has been an increase in supply.

The table above shows the situation in the gasoline market in​ Tulsa, Oklahoma. If the price of a gallon of gasoline is​ $2.30, then

there is a surplus of gasoline in Tulsa.