micro Econ exam 1

Aruba's opportunity cost of one cooler is

-a. 0.4 radio and Iceland's opportunity cost of one cooler is 0.25 radio. b. 0.4 radio and Iceland's opportunity cost of one cooler is 4 radios. c. 2.5 radios and Iceland's opportunity cost of one cooler is 0.25 radio. d. 2.5 radios and Iceland's opportunity cost of one cooler is 4 radios.

Assume that Aruba and Iceland each has 80 labor hours available. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of coolers increased by

-a. 20. b. 40. c. 60. d. 80.

boxes A and B of this circular flow diagram represent

-a.firms and households b. households and governments c. the markets for good and services and the markets for financial assets d. the markets for goods and the markets for services

Demand and supply- suppose the number of buyers in a marker increases and technological advancement occurs also. what would we expect to happen to the equilibrium price and quantity?

-price goes up and so does quantity. -price goes down and quantity goes up -so price is ambiguous, quantity goes up

\\Bintu has an absolute advantage in the production of

\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\a. bowls and Juba has an absolute advantage in the production of cups. b. cups and Juba has an absolute advantage in the production of bowls. c. both goods and Juba has an absolute advantage in the production of neither good. d. neither good and Juba has an absolute advantage in the production of both goods.

The equilibrium price and quantity, respectively, are

a. $2 and 50. b. $6 and 30. c. $6 and 60. d. $12 and 30.

assume for nambiba that the the opportunity cist of each hut is 200bowls. then which of these pairs of points could be on nambias production possibilities frontier

a. (200 huts, 30,000 bowls) and (150 huts, 35,000 bowls) b. (200 huts, 40,000 bowls) and (150 huts, 30,000 bowls) c. (300 huts, 50,000 bowl) and (200 huts, 60,000 bowls) -d. (300 huts, 60,000 bowls) and (200 huts, 80,000 bowls)

Aruba and Iceland would not be able to gain from trade if Iceland's opportunity cost of one radio changed to

a. 0 coolers. b. 0.25 coolers. -c. 2.5 coolers. d. Aruba and Iceland can always gain from trade regardless of their opportunity costs

If the law of demand applies to this good, then "?" could be

a. 0. b. 100. c. 200. d. 400.

Suppose Aruba decides to increase its production of radios by 10. What is the opportunity cost of this decision?

a. 0.25 coolers b. 2.5 coolers c. 4 coolers -d. 25 coolers

the opportunity cost of 1 bowl for bintu is

a. 1/4 cup. b. 1/2 cup. c. 2 cups. -d. 4 cups

The opportunity cost of 1 bowl for Juba is

a. 1/4 cup. b. 2/3 cc. 3/2 cups. d. 4 cups

the following table contains some production possibilities for an economy for a given month. if the production possibilities frontier is bowed outward the "?"could be

a. 100 b.150 c.200 -d.250

what is the opportunity cost to toy land if increasing the production dolls from 200 to 300

a. 100 fire trucks -b. 150 fire trucks c.200 firetrucks d. 350 fire trucks

if bintu and juda both spend all of their time making bowls then total production is .

a. 2 bowls. b. 3 bowls. c. 4 bowls. -d. 6 bowls.

if bintu must work 2 hours to make each cup then her production possibilities frontier is based on how many hours of work

a. 2 hours b. 4 hours c. 8 hours -d. 16 hours

Assume that Aruba and Iceland each has 80 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is

a. 28 coolers and 50 radios. b. 30 coolers and 9 radios. -c. 60 coolers and 18 radios. d. 120 coolers and 36 radios.

If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

a. 4 units b. 7.5 units c. 10 units d. 30 units

If these are the only four buyers in the market, then the market quantity demanded at a price of $1 is

a. 4 units. b. 7.75 units. c. 14 units. d. 31 units.

Whose demand does not obey the law of demand?

a. Aaron's b. Angela's c. Austin's d. Alyssa's

Which supply schedules obey the law of supply?

a. Firm A's only. b. Firm B's, Firm C's, and Firm D's. c. Firm A's and Firm C's. d. Firm B's and Firm D's

this economy cannot produce at at which points

a. J -b.J,L c.JLM d.L

efficient production is represented by which points

a. J,K,N b.K,M,N -c.K,N d.L,M

inefficient production is represented by which points

a. J,L b. J,L,M c.K,N -d.M

Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines

a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d

Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

a. Panel (a) b. Panel (b) c. Panel (c) -d. Panel (d)

At a price of $20, which of the following statements is not correct?

a. The market is in equilibrium. b. Equilibrium price is equal to equilibrium quantity. c. There is no pressure for price to change. d. The quantity of the good that is bought and sold is 600.

The movement from point A to point B on the graph shows

a. a decrease in demand. b. an increase in demand. c. a decrease in quantity demanded. d. an increase in quantity demanded.

The shift from D to D' is called

a. an increase in demand. b. a decrease in demand. c. a decrease in quantity demanded. d. an increase in quantity demanded.

The movement from point A to point B on the graph is caused by

a. an increase in price. b. a decrease in price. c. a decrease in the price of a substitute good. d. an increase in income

The movement from D to D' could be caused by

a. an increase in price. b. a decrease in the price of a complement. c. a technological advance. d. a decrease in the price of a substitute.

Bintu has a comparative advantage in the production of

a. bowls and Juba has a comparative advantage in the production of cups. b. cups and Juba has a comparative advantage in the production of bowls. c. both goods and Juba has a comparative advantage in the production of neither good. d. neither good and Juba has a comparative advantage in the production of both goods.

Aruba has a comparative advantage in the production of

a. coolers and Iceland has a comparative advantage in the production of radios. -b. radios and Iceland has a comparative advantage in the production of coolers. c. both goods and Iceland has a comparative advantage in the production of neither good. d. neither good and Iceland has a comparative advantage in the production of both goods.

Aruba has an absolute advantage in the production of

a. coolers and Iceland has an absolute advantage in the production of radios. b. radios and Iceland has an absolute advantage in the production of coolers. c. both goods and Iceland has an absolute advantage in the production of neither good. -d. neither good and Iceland has an absolute advantage in the production of both goods.

Aruba should export

a. coolers and import radios. -b. radios and import coolers. c. both goods and import neither good. d. neither good and import both goods.

If the price is $25, then there would be an

a. excess supply of 100 and price would fall. b. excess supply of 300 and price would fall. c. excess demand of 100 and price would fall. d. excess demand of 300 and price would fall

if the outer loop of this represents flows of dollars then the inner loop includes

a. flows of goods and services from households to firms -b.flows of inputs from households to firms c. flows of rent payment paid to owners of land d. flows of wages and salaries paid to workers

Boxes C and D represent

a. households and governments b.firms and govt c.the markets for goods and services and the markets for financial assets -d.the markets for goods and services and the markets for productions

At a price of $15,

a. quantity demanded exceeds quantity supplied. b. there is a shortage. c. there is an excess demand. d. All of the above are correct.

If the price were $8, a

a. shortage of 20 units would exist and price would tend to rise. b. surplus of 25 units would exist and price would tend to fall. c. shortage of 25 units would exist and price would tend to rise. d. surplus of 45 units would exist and price would tend to fall.

If the price were $4, a

a. surplus of 15 units would exist and price would tend to fall. b. shortage of 25 units would exist and price would tend to rise. c. surplus of 25 units would exist and price would tend to fall. d. shortage of 40 units would exist and price would tend to rise

which of the following statements is correct

a. the app cost of an additional 100 does is constant at 50 fire trucks b. the app cost of an additional 100 dolls is constant at 100 fire trucks c.toylands production possibilities frontier is a stragh downward sloping line -d. the opportunity cost of an additional 100 dolls increases as more dolls are produced

at which point is this economy producing its maximum possible quantity of tubas

a.J b.L c.M -d.N

if households are sellers in the markets represented by box d of the flow diagram

a.box d must represent the markets for factors of production b.box c must represent the market for goods and services c. firms are buyers in the markets represented by box d -d. all are correct

music compact discs are normal goods. what will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, CD players become cheaper, more firms start producing music CD and music lovers experience an increase in income?

if price goes down and quantity goes up price goes up and quantity goes up price goes down nd quantity goes up price goes ups nd quantity goes up. quantity goeoes up so price is ambiguous

Which of the following represents Iceland's production possibilities frontier when 100 labor hours are available

look at page 10

Which of the following represents Aruba's production possibilities frontier when 100 labor hours are available?

look at page 10 of review for the answer choices

suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. what would we expect to happen to the equilibrium price and quantity?

price goes up and quantity goes down then price goes down and quantity goes up so quantity is ambiguous and price goes down