econ 102 amani sample test 1
the table above shows the marginal benefit cost of pizza and the marginal cost of pizza in cans of soda forgone. the allocatively efficient quantity of pizza is _________ pizzas per day
$40
suppose that the government of NY state promises to decrease taxes to a firm.....
1. an incentive 2. marginal benefit exceed the marginal cost
Markets...
1. coordinate price info between buyers and sellers 2. allow traders to enjoy gains from trade 3. facilitate trade ALL OF THE ABOVE
pres. obama has proposed a goal that everyone complete at least one year of formal education or training beyond high school. this policy would _______ the production of current consumption goods and services and _______ the future production of consumption goods and services
1. decrease 2. increase
suppose that the govt is trying to decide between allocation its resources........
1. decreases 2. increases
marginal benefits curves slop ____ and marginal cost curves slope______
1. downward 2. upward
in march a factory used new technology to produce its output. then in august a fire half the factory. the new technology shifted the factory's PPF __________ and the fire shifted_______
1. outward 2. inward
if the price of a hot dog is $2 and the price of a hamburger is $4 then the relative price of a hot dog is...
1/2 of a hamburger per hot dog
suppose that in an hour joe can prepare 10 sandwiches or 5 pizzas. the OC of joe producing one sandwich is ...
1/2 pizza
the above table shows production combinations in a country's PPF. what is the opportunity cost of 1 unit of Y when the production of good Y increases from 16 to 28 units
1/4 unit of good x per unit of good y
at one point along the PPF 40 tons of wheat are produced while 80 tons of ride are produced......
10 tons of rice
in the figure above, jill is producing at point A. Jills opportunity cost producing one pair of pant is
2 shirts per pair of pants
led had an exam score of 50% points.... he values the...
20% points more than the 10 hours of his time
the table above represents different points a long a curve. what is the marginal cost of moving from 2 bushels to 3 bushels of beans?
3 bushels of carrots per bushel of beans
in the figure above, suppose that mac and izzy specialize and trade to reach point C, mac sends izzy...
6 computers in exchange for 6 tvs
the table above represents the marginal cost and the marginal benefit associated with pizza (in terms of movies). what quantity of pizza should be produced if resources are to be used efficiently?
7 pizzas
in the figure above, an economy would grow fastest if it produces at point....
A
molly just graduates from high school. figure shows her possibilities frontier. if molly goes to college, she will move from point M to K. In terms of consumption good, mollies opportunity cost of going to college is.....
LM
a change in which of the following alters buying plans for cars but does not shift the demand curve for cars...
a 20% increase in the price of a car
the law of demand implies that if nothing else changes, there is
a negative relationship between the price of a good and the quantity demanded
when people's incomes increase, the demand for a good increases, the good is called...
a normal good
the statement "peach ice cream is better than chocolate ice cream" is....
a normative statement
because we face scarcity, every choice involves
a opportunity cost
the marginal benefit is the....
additional gain from one more limit of an activity
if the marginal cost of an activity exceeds the marginal benefit, then...
an increase action will be selected
consider the demand curves for soft drinks shown in the figure above. A movement from point A to point C represents...
an increase in quantity demanded
markets are best defined as...
arrangements where buyers and sellers get together to buy and sell
the law of demand implies that other things remaining the same...
as the price of a cheeseburger, the quantity of cheeseburgers demanded will decrease
suppose joe can prepare 20 sanwhiches or 10 pizzas in an hour and beth can produce 36 sanwhiches or 27 pizzas, the concept of comparative advantage concludes that...
beth should produce pizza and joe should produce sanwhiches
misty has the option of purchasing one of three projects: brand A, B, or C. Each costs like $10. if she decided that brand A meets her needs best then the opportunity cost of this decision is...
brand B or C, depending on which is considered the highest value alternative forgone
agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour...
brenda has an absolute advantage in the production of X and Y
a person has a compararuce advantage in producing a particular good if that person...
can produce it at a lower opportunity cost than anyone else can
economic growth comes from.....
capital accumulation and technological advance
jill, and economics student, has already spent 5 hours cleaning her room. in deciding whether or not to continue cleaning for another hour, sheappxlies the economic principle of....
choosing at the margin
by specialization and trade two individuals can...
consume at a point beyond their individual PPF
entrepreneurs directly do all of the following except....
decide for whom goods and services are produced
making a choice at the margin means....
deciding to do a little bit more a little bit less of an activity
a decrease in the price of bowling shifts the..
demand curve for bowling balls rightward
if consumers but not producers expect that the price of soda will ride november, the....
demand for soda in october will increase
if tom and Di specialize in producing the goods in which he and he have a comparative advantage and the exchange goods, the...
each will gain because each can consume a combination of goods that is outside her/his PPF
macroeconomics is with....
economy wide variables
as an economy capital stock increases, the economy ....
experiences economic growth
the price of a dvd rental is $1.50 and the price of a downloaded movie is $1.00. if the price of a DVD rental increases by $0.50, the relative price of a downloaded movie...
falls
the figure above shows the demand for fruit snacks. which movement reflects an increase in the price of a complement for fruit snacks?
from point A to point C
refer to the PPF figure above. which of the following movements requires the largest opportunity cost, in terms of good X forgone, per extra unit of Y?
from point b to point a
a society that is producing on its PPF is...
fully utilizing all of its productive resources
A country that has an absolute advantage in producing all goods will...
have comparative advantage in some goods but not all
opportunity cost is defined as...
highest value alternative given up
when china builds a dam using few machines and a great deal of labor, it is answering the _______ part of the two big economic questions
how
all economics questions are about....
how to cope with scarcity
refer to the PPF in the figure above. more of good X must be given up per unit of good Y gained when moving from point b to point A then when moving from point c to point b, this fact.....=
illustrates increasing opportunity cost
when an economist talks of scarcity, the economist is referring to the....
inability of society to satisfy all human wants because of limited resources
the quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis. as you move down toward the right along the PPF, the marginal cost of shoes.....
increase
when the opportunity cost of producing more of a good is increasing, the marginal cost of producing more of the good is....
increasing
which is an example of a positive statement?
increasing the minimum wage results in more unemployment
the law of demand states that the quantity of a good demanded varies...
inversely with its price
a normative statement is....
is about what ought to be
tom takes 20 min to cook an egg and 5 min to make a sandwich. Jerry takes 15 min to cook an egg and 3 min to make a sanwhich. Both individuals will be better off if...
jerry trades sanwhiches in exchange for eggs
a natural resource such as fishing terrorizes is considered an example of ....
land only
in the figure above, suppose that mac and izzy trace and reach point C , then...
mac should produce at point b and izzy should produce at point d
macroecon differs from microecon in that.....
macroecon focuses on the national economy and the global economy
if the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively efficiently....
more resources should be used to produce computer
in the figure above, suppose that mac and izzy trade and reach point c. then...
neither mac nor izzy produce outside of their PPF
a nation can produce at a point outside its PPF....
never
statements about what ought to be are called....
normative statements
people must make choices because...
of scarcity
an economic model includes...
only details considered essential
economic growth is the result of all the following except...
opportunity cost
when the govt fires people to serve in the army, these people are no longer available to do other work. this choice illustrates the concept of...
opportunity cost
fundamental economic problems basically arise from...
our wants exceeding our schedule resources
entrepreneurs do all of the following except....
own all the other resources used in the production process
in the above figure, an increase in the quantity demanded is represented by a movement from point a to...
point a
positive and normative statements differ in that.....
positive statements can be tested whereas normative statements cannot
the rights of an owner to use and exchange property are
property rights
the social arrangement that gives john grisham, the writer of best selling novels, the ownership of his novels is...
property rights
the opportunity cost a hot dog in terms of hamburgers is the ...
ratio of the money price of a hot dog to the money price of a hamburger
the opportunity cost of good A in terms of good B is equal to the ...
ratio of the money price of good A to the money price of good B
when graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the...
relative price of corn
vicky currently produces at point A in the figure above. If vicky moves from point A to point B to point C, her opportunity cost of a modern.......
remains the same
the price of a dvd rental is $2.50 and the price of a downloaded movie is $1.00. if the price of a DVD rental falls by $0.50, the relative price a downloaded movie...
rises
the largest part of what the united states is produces today is _____ such as ______
services and trade/health care
an increase in the nations capital stock will...
shift the PPF outward
economic growth can be pictured in a production possibilities frontier diagram by....
shifting the PPF outward
an increase in the number of consumers
shifts the demand curve rightward
economic models....
simplify reality
when producing goods and services along a PPF, tradeoffs exist because.....
society has only a limited amount of productive resources
if an economy is operating at a point inside the PPF, then......
society resources are being inefficiently utilized
the bowed outward shape of the production possibilities frontier in the above figure indicates that....
some resources are better suited for producing computers
which of the following is a normative statement?
states should require all motorcycle riders to wear helmets to reduce the number of riders killed
from 8 P.M. to 10 P.M, susan can attend a movie, study, or talk with friends... the opportunity cost of attending the movie is....
talking with friends
the production possibilities frontier shifts as....
technology changes
which of the following does NOT help organize trade?
the PPF
a student is studying for an exam 2 hours a day and is debating whether to study an extra hour, the student's marginal benefit is....
the benefit the student receives from studying the extra hour
economics is the study of.....
the choices we make because of scarcity
an opportunity cost of economic growth is.....
the decrease in production of consumption goods in the present time period
in part, microecon is concerned with the study of...
the effect give regulation has on the price of a product
laura is a manager for HP. when laura must decide to produce a few additional printer, she is choosing at the margin when she compares....
the extra revenue from selling a few additional printers to the extra costs of producing the printers
opportunity cost is best defined as ....
the highest valued alternative that is given up to get something
the opportunity cost of attending college includes the cost of...
the highest valued alternative to attending college plus the cost of tuition
the opportunity cost of something you decide to get is...
the highest valued alternative you give up to get it
an example of a question that might be explored in microeconomics is to determine....
the number of workers employed by intel
a marginal benefit curve shows.....
the quantity of one good that people are willing to forgo to get another unit of another good
the relative price is ...
the ratio of one price to another price
human capital....
the skill and knowledge
which of the following statements is correct....
the united states produces more services than goods
in terms of dollars, the marginal benefit of working 5 days a week instead of 4 days a week is....
the wages received for the fifth day of work
in economics, normative statements are about...
the way things ought to be
the problem of scarcity applies ....
to all economic systems regardless of their level of development
which of the following describes comparative advantage?
to produce bushel of wheat farmer john must give up 2 bushels of corn, where as farmer ben must give up 3 bushels of corn
a lawn service is deciding whether to add an additional employee to its summer crew. the marginal cost of hiring this worker depends on the....
total amount paid to only the new worker
when a farmer decides to raise hogs instead of cattle, the farmer is answering the ____ part of one of the two big econ questions....
what
resource use is allocatively efficient.....
when marginal benefit = marginal cost
which of the following is a positive statement
when the national unemployment rate is 9% the unemployment rate for inner city youth is often close to 40%
the fact that some people can afford to live in beautiful home while other are homeless, is most directly an example of an economy facing the _____ part of the two big economic questions
whom
which of the following is not part of the first big economic question?
why do incentives affect only marginal costs?
on saturday morning, you rank your choices in the following order: go to the library, work out at the gym, have breakfast with friends and sleep late, suppose you decide to go to the library, your opportunity cost is....
working out at the gym
suppose that for the past 2 months, you have studied economic one hour a day. you now decide to study economic two hours a day. For the past two months....
your marginal benefit from studying economics an hour must have been greater than its marginal cost