Art 1010 Final

Suppose Miller Beer Co. (MBC) can use its factory to produce either Miller's or Miller's Lite. The law of supply predicts that a decrease in the price of Miller's will cause MBC to produce:

more Miller's and Miller's Lite.

Compared to the U.S. economy, circa 1860 to 1960, both feudalism and mercantilism:

relied much less on the invisible hand to coordinate economic decisions

If the price of Pepsi falls and the price of Coke does not change, consumers will respond by:

substituting Pepsi for Coke.

Households are on the:

supply side of factor markets and the demand side of goods markets.

Adam Smith's Book, The Wealth of Nations

All of the above are correct

Which of the following are scarce?

All of the above are correct.

Adam Smith's book, The Wealth of Nations,

Argued in favor of allowing markets to allocate resources

Which of the following will shift the PPC out?

Both A and C are correct

Scarcity results in

Both B and C are Correct but not A

If both Utah and Colorado specialize in the good in which it has a comparative advantage and then trade with the other state,

Both B and C are correct

Which of the following is an example of the U.S. government's role as an actor?

Building a highway.

Specifically, California will have a comparative advantage in producing oranges since compared to Alaska,

California has a lower opportunity cost of producing oranges.

Consider Good X which has a compliment Good Y. The effect of an decrease in price of a Good Y will cause?

Decrease the Demand for Good X and increase the quantity demanded for Good Y

Which of the following is (are) sufficient) for two states to benefit from trade and specialization?

Differences in both goods and resources.

Which sequence is in the correct chronological order?

Feudalism, Mercantilism, publication of Wealth of Nations, U.S. Constitution

For which of the following social questions is there a relatively clear, objective correct answers?

For Whom to Produce

Consider Good X which has a substitute Good Y. The effect of an increase in price of a Good Y will cause?

Increase the Demand for Good X and decrease the quantity demanded for Good Y

Consider Good X which is a normal good. An increase in income will cause?

Increase the Demand for Good X.

Which of the following best describes the source of comparative advantage among individuals?

Individuals have different skills and different goods require different skills.

trade

Is based on voluntary exchange.

f you make decisions as assumed by economists, you are in college rather than working as a truck driver because you perceive the _____________ of a college degree as greater than the ________________ of a college degree.

Marginal Benefit; Marginal Cost

In Utah, which is used to determine the how many Country Music acts come and perform in the Spectrum?

Markets

In the United States, which is used to determine the wages of welders?

Markets

Which statement best summarizes the invisible hand theory?

Markets typically channel individual self-interest to achieve the common good.

In the United States, which is used to determine the wages of college football players?

Political forces

In the Utah, which is used to determine how many Men's Tennis matches are hosted on the campus of USU?

Political forces

According to the Invisible Hand Theorem, the market system will

Produce goods efficiently

Households (i.e., consumers):

Ultimately determine the answer to the question, What to produce?

Flu vaccinations of school children have the unintended effect of protecting the vulnerable elderly from contracting the virus. This is an example of a

external benefit.

Typically, as the opportunity cost of having children decreases,

family size grows.

The law of supply states that, other thing equal, as the price of a good goes:

up, the quantity supplied goes up.