Econ Final
Which of the following statements best describes the concept of consumer surplus?
"I was going to pay $200 for new sunglasses that I had seen at the Oakely store but I ended up paying only $140 for the same sunglasses"
The price elasticity of demand for heart transplants is perfectly inelastic. The price elasticity for heart transplants is
0.0
Which of the following would cause both equilibrium price and equilibrium quantity of barely (assume that barely is an inferior good) to increase?
A decrease in consumer income
Which of the following would likely cause an increase in the supply of single-serve coffee makers?
A decrease in the cost of manufacturing single-serve coffee makers
Which of the following would shift a nation's production possibilities frontier inward?
A law requiring workers to retire at age 50
Which of the following goods would have the largest elasticity of demand
An all-inclusive vacation in Fiji
Which of the following is an example of a normative economic statement?
An increase in social security benefits will increase the welfare of all economic agents.
Which of the following does NOT shift the demand curve for broccoli?
An increase in the cost of fertilizer used to grow broccoli
If the marginal cost of seeing an additional client is $300, then the lawyer should make the appointment
As long as the marginal benefit she receives is just equal or greater than $300
Which of the following is NOT a source of a country's comparative advantage?
Domestic prices of goods and services
If a small percentage in the price brings a very large percentage change in the quantity supplied, then the supply is almost perfectly __ and the supply curve is almost __
Elastic, horizontal
Product Z has a price elasticity of demand of 2.5 this means that
If the price of product Z increases, the total amount spent on the good will decrease
George and Michael may not gain from exchange (trade)
If they have the same opportunity costs
Issuing tradable permits to polluting firms
Incentivized the firms to find the lowest cost alternative to reduce pollution
Which of the following statements is true?
It is possible to have a comparative advantage in producing a good or service without having an absolute advantage
Why is efficiency desirable?
It makes the best use of the available resources
Scarcity can be eliminated through
None of the above because scarcity cannot be eliminated
Which of the following is a positive externality?
People who do not attend college will benefit from others who receive a college education
The income elasticity of demand for electricity is 1.90. Suppose the economy improved and incomes are expected the increase by 10 percent. This means that
Power companies can expect too sell 19 percent more electricity
As more of a good, such as a printer, is produced, the opportunity cost of producing it increases. This most likely occurs because
Resources are not equally well suited to producing all goods, and as more of a good is produced it is necessary to use resources less well suited to produce that good
Economists assume that individuals
Respond to incentives and make decisions based on information available at that time
Which of the following questions is a macroeconomic issue?
Should the government be concerned about the low U.S unemployment rate?
Which of the following is motivated by an efficiency concern?
The Organ Donation Network decides to prioritize young patients over elderly ones for kidney transplant in order to get more life out of donated organ
Suppose the current unemployment rate is 15 percent. If it rises to 20 percent
The economy will operate farther inside the production possibilities curve
Which of the following is the best example of scarcity?
The local market's buy-one-get-one-free sale on strawberries results in more people wanting the berries than producers are able and willing to supply
By imposing a tax in the producer of a negative externality
The polluting producer is forced to internalize the external cost of the pollution
Which of the following is a reason for resistance to international trade?
There are loses due to trade such as domestic producers having to compete with imported goods and workers being displaced when their company moves offshore There are human and workers right issues including child labor There are environmental concerns from countries producing at lower costs because they do not treat toxic wastes
Which of the following is NOT directly related to human capital?
an MRI machine
Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that
both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie
The tax incidence on sellers is higher if ________.
the buyers are more sensitive to price changes than the sellers
Papayas and grapefruit are substitute goods. A drought in California destroyed a good portion of the grapefruit crop. Ceteris paribus,
the price of both papayas and grapefruit will increase.