Econ 203 test 1
attainable; inefficient
the figure above shows roger's production possibilities frontier. Point a is an _____ point and at that point production is _____
decrease because demand is inelastic in this range
the table above gives the demand schedule for snow peas. if the price of snow peas falls from $4.00 to $3.00 a bushel, total revenue will ______
must be producing on its production possibilities frontier
A country that must decrease production of one good in order to increase the production of another _____?
2
A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased from 150 to 100 per day. What is the price of elasticity of demand in this case?
can produce it at a lower opportunity cost than anyone else can
A person has a comparative advantage in producing a particular good if that person ____?
increases; falls
As a result of an increase in the supply of a good, the equilibrium quantity ______ and the equilibrium price _____?
good for which demand decreases when income increases
By definition, an inferior good is a _____?
consume at a point beyond their individual production possibilities frontiers
By specialization and trade, two individual can ___?
rise; decreasing
Demand is elastic when a price _____ results in total revenue _______?
the highest price consumers are willing and able to pay for that particular unit of a good
Each point on the demand curve reflects_____?
scarcity
Economics is best defined as the science of choice and how people cope with _____?
the quantity will increase but the price could either rise, fall or remain the same
If both demand and supply increase, what will be the effect on the equilibrium price and quantity?
a negative number
If peanut butter and jelly are complements, then their cross elasticity of demand must be ______?
increases with movements upward along the demand curve
If the demand curve is a downward sloping straight line, the price elasticity of demand always ______?
greater than 1
If the demand for a good is elastic, the price elasticity of demand is_____?
Brandon has a comparative advantage only in planting
In one day, Brandon can either plow 10 acres or plant 20 acres. In one day, Christopher can either plow 14 acres or plant 14 acres. Which of the following statements about the comparative advantage is true?
the highest-valued alternative that is given up to get something
Opportunity can can best be defined as?
substitutes
People buy more of good 1 when the price of good 2 rises. The goods are _____?
shortage of 3 points of chocolate chip cookies
The above table shows the demand schedule and supply schedule for chocolate chip cookies. If the price is $4.00 per pound, there is ______?
4 pounds, $5,00 per pound
The above table shows the demand schedule and supply schedule for chocolate chip cookies. what is the equilibrium quantity and equilibrium price for chocolate chip cookies?
if closer substitutes are available
The demand for a good is price elastic ___?
6,000 hours
The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $16 per hour, how many hours of students' labor are unemployed?
6,000 hours
The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $16 per hour, how many hours, how many hours do students work?
positive for a normal good and negative for an inferior good
The income elasticity of demand is____?
smaller is the quantity of the good demanded
The law of demand states that, other things remaining the same, the higher the price of a good, the ____?
price of furniture will decrease the quantity of furniture demanded by 1.3 percent
The price of elasticity of demand for furniture is estimated at 1.3. This value means a one percent increase in the ______?
a decrease in the price of a resource used to produce gasoline, such as crude oil
Which of the following shifts the supply curve for gasoline rightward?
there is a shortage of 200 units
at a price of $4 in the above figure, ____
it can be reached only after economic growth occurs
in the figure above, what can be said about point B?
