Micro: exam 1 kahoot

The order in which you should apply the four core principles of economics is:

marginal, cost-benefit, opportunity cost, interdependence principle

Which shows what will happen in the market for bread if the price of what used in production falls?

the supply curve shifts to right

Tropicana produces OJ & lemonade. What will happen to the supply of Tropicana OJ when the price of lemonade rises?

the supply curve shifts to the left

If a seller expects prices to rise in the future:

the supply will decrease today

In the graph, the movement from point J to point K (on supply curve moves down, movement along supply curve) must have been caused by:

a fall in the price of the item

The figures show the market for warm socks. Which graph reflects the impact of a very cold winter?

the demand curve shifts to the right

A market is a:

setting that brings together potential buyers and sellers.

The opportunity costs of a decision may include each of the following types of costs except?

sunk costs

Which graph shows: A major technological advancement occurs, which leads to faster and more efficient trains.

supply curve shifts to right

The market supply curve is upward-sloping because a higher price implies that (i) individual sellers can increase the output supplied, (ii) more sellers can supply to the market, (iii) the government supplies goods and services to the market

(i) & (ii)

What happens to the equilibrium price and quantity when demand decreases and at the same time supply increases?

Price falls and the change in quantity is ambiguous

What will happen to the demand for upscale restaurants, if an economy goes into recession? Use the same graph as number 3.

The demand curve would shift to the left

Dell & Apple are competitors. Which graph (to the right) shows the effect of a rise in the price of Dell computers on the demand for Apple computers?

The demand curve would shift to the right

An equilibrium price is:

determined by the intersection of the demand and supply curves.

Which of the following market changes would lead to a shift of the supply curve from Old supply to New supply (old shifts to left/new)?

An increase in the price of an input used in production

You buy bread at a price set by the government. There's only 1 type f bread and the price never changes. This is a:

Centrally planned economy

Graphically, shortages will always occur:

at prices below the equilibrium price

Which of the following market changes would lead to a shift of the demand curve from Old demand to New demand (old shifts to left/new)?

A report is published noting that the product has adverse health effects

The marginal benefit of consuming an item is:

the additional benefit from buying one more unit of that item