Quiz CH 1-3

Based on their comparative advantage, Kate should specialize in making ______ while Julia should specialize in making ______ A. both pies and cakes; neither pies not cakes B. pies; cakes C. cakes; pies D. neither pies nor cakes; both pies and cakes

pies; cakes

If the government imposed a price ceiling of $40, what would happen in this market: A. the price ceiling would have no effect B. There would be excess supply C. there would be excess demand D. The equilibrium quantity would fall

the price ceiling would have no effect

As coffee becomes more expensive, Joe starts drinking tea instead of coffee. This is called: A. the income effect of a price change B. a decrease in demand C. a decrease in reservation price D. the substitution effect of a price change

the substitution effect of a price change

Refer to the accompanying table. The marginal cost of the 3rd unit of this activity is: A. $30 B. $20 C. $10 D. $25

$20

Kendall is thinking about going to the movies tonight. A movie ticket costs $15, and she'll have to cancel a $20 dog-sitting job that she would have been willing to do for $10. Kendall's opportunity cost of going to the movies is: A. $35 B. $25 C. $30 D. $45

$25

The opportunity cost of producing one bushel of corn is: A. 250 bushels of wheat B. 2 bushels of wheat C. 500 bushels of wheat D. 1/2 bushels of wheat

2 bushels of wheat

Kate's opportunity cost of making a pie is: A. 5/6 of a cake B. 4/3 of a cake C. 3/4 of a cake D. 6/5 of a cake

3/4 of a cake

If Aaliyah can produce 3 pairs of shoes per hour, while Bahjat can produce 2, then _______ has a(n) ________ advantage in producing shoes A. Bahjat; absolute B. Aaliyah; comparative C. Aaliyah; absolute D. Bahjat; comparative

Aaliyah; absolute

Consider the original supply and the original demand curve. If the government imposes a price ceiling of $1 on a cup of coffee, the there would be: A. a new equilibrium at a price of $1 per cup and a quantity of 50 cups per hour B. an excess demand for coffee C. an excess supply of coffee D. a short-term excess demand for coffee, followed by an increase in the equilibrium price

an excess demand for coffee

It is efficient for this farmer to: A. grow 500 bushels of wheat and 250 bushels of corn B. grow 500 bushels of wheat and 500 bushels of corn C. grow 1000 bushels of wheat and 500 bushels of corn D. grow 250 bushels of wheat and 500 bushels of corn

grow 500 bushels of wheat and 250 bushels of corn