ECON 102, Finals Review
you decide to take a vacation and the trip cost you $1,000. While you are on vacation you do not report to work where you could have earned $550. The opportunity cost off the vacation is____
$1,550
Dakota is willing to pay $20 to see Independence Day for the 4th time he finds a theater showing Independence Day for $5 Dakota's consumer surplus is
$15
If the price of a burger decreases by 5% and as a result the quantity of burgers demanded increase by 8% the price elasticity of demand equals:
1.60
which of the following definitely causes a fall in the equilibrium price
A decrease in demand combined with the increase in Supply
which of the following factors will make the demand for a product more elastic:
A long time period has elapsed since the product's price changed
a price control which is below the equilibrium point results in
A shortage
The following question is not a microeconomic question?
Can the Federal Reserve keep income growing by cutting interest rates
Assume that beef and pork are substitutes for consumers. There is a drought in the cattle grazing area. The drought will cause the
Demand curve for pork the shift rightward
The more elastic the demand for a good, the:
Less a sales tax raises the price paid by the buyers.
Pizza and hamburgers are substitutes for consumers. A fall in the price of pizza____ the price hamburger and____ the quantity of hamburgers
Lowers; decreases
the price of pork is $5 per pound while the price of beef is $10 per pound the relative price of per pork in terms of beef is (change in pork/change in beef)_____
One and a half
Suppose that there is an increase in input (resources) prices. We would expect:
Supply to decrease
a good apple harvest Jeep in good weather leads to a lower price of apples. this happens because
The Apple Supply shifted to the right
The supply of oil is more elastic than the demand for oil. If oil is taxed $10 per barrel, how will the tax be divided between the buyers and the sellers?
The buyers will pay more of the tax than the sellers
over the past decade technological improvements that have lowered the cost of producing an automobile have increased
The supply but not the demand for automobiles
a good with vertical demand curve implies a change (shift) in Supply
Will not affect the equilibrium quantity
in the market for books the supply of books will decrease if any of the following occur except:
a decrease in the price of a book
in a free market system____
all resources applications are guided by the market price
if the demand curve for orange is downward sloping straight line, the price elasticity of demand will increase the:
higher the price of oranges
the quantity of cars that people plan to buy this month depends on all of the following except:
how much car dealers pay their sales people
Which of the following is a positive statement
increase in gas prices leads people to carpool more
an increase in the number of fast food restaurants_____
increase the supply of fast food meals
which of the following is the most accurate statement about production possibilities: an economy can produce at any point on or inside the production possibilities Frontier but not
outside the frontier
a shortage causes the
price to rise
which of the following topics would be studied in microeconomics course
rent ceilings impact the supply of apartments.
a technological Improvement lowers the cost of producing coffee. at the same time consumers preference for coffee increases. The equilibrium price of coffee will____
rice fall or stay the same depending on the relative size of the shift in the demand and supply curve
The entire market demand curve is
the horizontal sum of all consumers demand
a fall in the price of a good causes producers to reduce the quantity of a good they are willing to produce. This fact illustrates
the law of supply
in a market economy people decides whether to produce and exchange goods based on____
the price of the good
which of the following does not hold constant while moving along the supply curve
the price of the good itself
if both demand and Supply increase what will be the effect on the equilibrium price and the quantity:
the quantity will increase but the price could either rise fall or remain the same
The rising price of oil lead to higher oil revenues for oil-producing Nations. This suggests that___
the world demand for oil is inelastic
there is no rent control in Last Vegas apartment Market what will happen if local government imposes a rent control__
there will be a shortage of apartments
a good with horizontal supply curve implies that a change or shift in demand:
will not affect the equilibrium price
a good with horizontal demand curve has a demand
with a price elasticity of demand equals infinity
increase in Subway fares in New York City will boost your expenditure or spending on subway rides if:
your demand for Subway rides is inelastic
