ECN 211 Exam 1

* the effects of borrowing by the federal government.

A macroeconomist - as opposed to a microeconomist - would study

The price of the good or service that is being supplied

A movement along the supply curve might be caused by a change in

raises the price that buyers effectively pay and lowers the price that sellers effectively receive

A tax on a good

Increases/increases

After an increase in income, the equilibrium price of tablet computers ____ and equilibrium quantity of tablet computers ____

The supply of coffee drinks increases

As a result of a decrease price of roasted coffee beans,

* the enjoyment he would have received if he had watched TV with his friends.

Hamid spends an hour studying instead of watching TV with his friends. The opportunity cost to him of studying is

Increase, and the quantity sold in the market will increase

If the government removes a binding price ceiling from a market, then the price paid by buyers will

All of the above are correct

In response to a shortage caused by the imposition of a binding price ceiling on the market,

4

Mary is willing to pay $23 for a hat that is $ 19 . Her consumer surplus is =

9

Max is willing to sell his hats for 15 dollars each. The market price for hats is 24. His producer surplus (per hat) =

* the enjoyment she would have received had she gone to the park.

Melody decides to spend three hours working overtime rather than going to the park with her friends. She earns $20 per hour for overtime work. Her opportunity cost of working is

A rise in the price of gluten-free food offered for sale and increase in quantity consumed

Recently, a gluten free diet has gained popularity among those looking to eat healthily and lose weight. The supply and demand model in class predicts

* economic growth.

Refer to Figure 2-11. The shift of the production possibilities frontier from A to B illustrates

* a positive correlation.

Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

* Q, S

Refer to Figure 2-4. This economy cannot produce at which point(s)?

* None of the above; the economy cannot move from point D to point C.

Refer to Figure 2-5. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is

* 40 engines and 0 tvs.

Refer to Figure 2-7. If this economy devotes all of its resources to the production of engines, then it will produce

* N, O, P

Refer to Figure 2-7. Unemployment could cause this economy to produce at which point(s)?

* 20 engines

Refer to Figure 2-7. What is the opportunity cost of moving from point L to point M?

A surplus of 20 units

Refer to Figure 6-13. If the government imposes a price floor of $7 on this market, then there will be

$6

Refer to Figure 6-13. Which of the following price floors would be binding in this market?

Binding price floor that creates a surplus

Refer to Figure 6-4. A government-imposed price of $12 in this market is an example of a

Decreases by an amount equal to B+ C

Refer to Figure 7-3. When the price rises from P1 to P2, consumer surplus

Deadweight loss due to the tax

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by I+Y represents the

producer surplus before the tax.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by L+M+Y represents

* The opportunity cost of an additional 200 shoes increases as more socks are produced.

Refer to Table 2-3. Which of the following statements is correct?

* 400 bushels of wheat

Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from 400 bushels to 800 bushels?

B

Refer to the figure above. Suppose apple farmers decide to sell some of their orchard land for housing developments. What best describes the effect in the market for fresh apples?

D

Refer to the figure above. Which of the following best describes the change in the market for pizzas after an increase in the number of pizza producers?

Inferior goods

Some consumer goods, like consented soups and boxed dinners, are considered "recession proof". The quantity of these goods sold actually increases during periods when income declines. These types of goods are

Traditional landline phones become more expensive

Suppose the government has imposed a price for on cellular phones. Which of the following events could transform the price floor from one that is binding to win that is not binding?

* the value of the best opportunity a student gives up to attend college.

The opportunity cost of going to college is

The ticket price is below the equilibrium price

The universities football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

There is a decrease in the quantity supplied of apples in a movement down along the supply curve for fresh apples

When the price of fresh apples falls,

Increase in quantity demanded of gasoline in a movement down along the demand curve for gasoline

When the price of gasoline falls there is a

* they tend to move in opposite directions.

When two variables have a negative correlation,

As the price falls, the quantity demanded increases while the quantity supplied decreases

Which of the following correctly describes how price adjustments eliminate a surplus?

Dave buys more donuts at $.25 per donut then at $.50 per donut, other things equal

Which of the following demonstrates the law of demand?

Demand and supply both increase

Which of the following events must cause equilibrium quantity to rise?

* Dani must decide between going to Florida or Brazil for spring break.

Which of the following statements best represents the principle represented by the adage, "There is no such thing as a free lunch"? Andrea must repair the tire on her bike before she can ride it to class. Michelle can attend the concert only if she takes her sister with her. Dani must decide between going to Florida or Brazil for spring break. Michael is hungry and homeless.

An increase in the price of phone and data services that run on smart phones

Which of the following would lead to a leftward shift in the demand curve for smart phones ( a normal good )?

Supply of bicycles will shift to the left

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

1,323

a = 26 b = 12 c = 7 d = 189 Refer to the market above. Consumer surplus in this market =