Econ set 1

refer to figure; which contry has a comparative advantage in the production of cotton

indonesia

refer to figure; at a price of $15 the quantity bought

is 2 units

the highest valued alternative that must be given up to engage in an activity is the definition of

opportunity cost

refer to figure;what is the value of the deadwight loss at a price of $18

$100

refer to figure: what is the value of the producer surplus transferred to the consumer at a price of $13

$200

refer to figure: what is the value of consumer surplus after the imposition of the ceiling?

$230,000

refer to table: what is lydia's marginal benefit if she decides to stay open for two hours instead of one hour?

$25

lucinda buys a new gps system for $250

$325

refer to figure: how much of the tax is paid by buyers

$5

figure above shows the production possibilities frontier for mendonca..................

1 1/3 pounds of vegetables

last year the pottery place supplied 8,000 ceramic pots at $40 each

a decrease in supply

an inward shift of a nation's production possibilities frontier can occur due to

a natural disaster like a hurricane or bad earthquake

refer to figure; if the current market price is $10 the market will achieve equilibrium by

a price increase increasing the quantity supplied and decreasing the quantity demanded

"an inquiry into the nature and causes of the wealth of nations" published in 1776 was written by

adam smith

which of the following would cause both the equilibrium price and equilibrium quantity of cotton to increase

an increase in consumer income

if an increase in income leads to a decrease in the demand for popcorn, then popcorn is

an inferior good

assume that both the demand curve and supply curve for mp3 players shift

both the equilibrium price and quantity of mp3 players will increase

the____demonstrates the roles played by households and firms in the market system

circular flow model

which of the following generates productive efficiency

competition among sellers

if more insurance companies decide to cover part of the price of voluntary laser eye surgery

demand and supply will both increase

_____ is maximized in a competitive market when marginal benefit equals marginal cost

economic surplus

which of the following is a positive economic statement

if the price of iphones falls, a larger quantity of iphones will be purchased

refer to figure; one segment of the circular flow diagram in the figure shows the flow of labor services from market k to economic j

k= factor markets; J=firms

in a city with rent-controlled apartments, all of the fallowing are true except

landlords have an incentive to rent more apartments than they would without rent control

if the production possibilities frontier is-_______ then opportunity costs are constant as more of one good is produced

linear

economist reason that the optimal decision is to continue any activity up to the point where the

marginal benefit equals the marginal cost

the production possibilities frontier shows the_____combinations of two products that may be produced........

maximum attainable

to affect the market outcome a price ceiling

must be set below the equilibrium price

all of the following are part of an economic model except

opinions

in economics, choices must be made because we live in a world of

scarcity

allocative efficiency is achieved when firms produce goods and services

that consumers value most

marginal cost is

the additional cost to a firm of producing one or more unit of a good or service

consumer surplus in a market for a product would be equal to __ if the market price was zero

the area under the demand curve

if the price of automobiles was to increase then

the demand for gasoline would decrease

the income effect of a price change refers to the impact of a change in

the price of a good on a consumer's purchasing power

a change in all of the following variables will change the market demand for a product except

the price of the product

who receives the most of what is produced in a market economy

those who are willing to buy them

society faces a trade-off in all the following situations except

when some previously unemployed workers find jobs

refer to figure: if the economy is currently producing y......

zero