Microeconomics

50問 • 7ヶ月前

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What is the opportunity cost?

The value of the next best alternative forgone

Lissa has $100 to spend and can either buy a new pair of shoes or buy a ticket to a concert. She chooses to buy the shoes. What is the cost of Lissa’s decision?

The ticket to the concert she did not buy

A company has decided to invest in building a new factory instead of expanding its research department. What is the opportunity cost of this decision?

The potential benefits from the expanded research department

In a small village, a farmer can grow corn or wheat on a piece of land. If the farmer chooses to plant corn, what is the opportunity cost?

The potential yield of wheat that could have been grown

Students can study for an exam or go out with friends. She decides to study. What is the opportunity cost of her decision?

The enjoyment of spending time with friends

The Production Possibility Frontier (PPF) illustrates the concept of:

All of the above

Which of the following is true about the shape of the Production Possibility Frontier (PPF)?

The PPF is typically a curve, showing increasing opportunity costs

If the economy is operating inside the Production Possibility Frontier, it indicates that:

The economy is facing unemployment or underutilization of resources

Which of the following would cause the Production Possibility Frontier (PPF) to shift outward?

A technological advancement that improves production efficiency

A point on the Production Possibility Frontier (PPF) represents:

A combination of goods that can be produced using all available resources efficiently

Which of the following factors would cause an increase in the demand for a product?

A decrease in price of a substitute good

The law of demand states that:

As the price of a good rises, demand decreases

Which of the following would cause a leftward shift in the demand curve for a normal good?

A decrease in consumer income

Which of the following is an example of a shift in demand rather than a change in quantity demanded?

A new advertising campaign that makes consumers more interested in a product

What does a downward-sloping demand curve represent?

As price decreases, demand increases

Which of the following would cause a movement along the demand curve rather than a shift of the curve itself?

A change in the price of the good itself

On a typical demand curve, if the price of a good increases, what happens to the quantity demanded?

It decreases

Which of the following would most likely lead to an increase in supply?

Technological advancements in production

If the price of a good increases, what typically happens to the quantity supplied, according to the law of supply?

It increases

What is a common factor that can cause the supply curve to shift to the left?

An increase in the price of raw materials

If the cross-price elasticity between two goods is positive, what does this indicate about the relationship between the goods?

The goods are substitutes

When the price of a product increases, and the quantity supplied also increases significantly, the supply is said to be:

Elastic

If a product has a PED of –2, it means that:

A 1% increase in price will lead to a 2% decrease in quantity demanded

Which of the following factors typically leads to a more elastic demand?

A good with many substitutes

If the price elasticity of demand for a good is greater than 1, then the demand is:

Elastic

A company finds that when the price of product A increases by 10%, the quantity demanded of product B decreases by 5%. What is the cross-price elasticity of demand between product A and product B?

–0.5

Goods X and Y have a cross-price elasticity of demand of –0.8. If the price of X increases by 10%, the quantity demanded of Y will:

Decrease by 8%

The price of a product increases from $10 to $12, and as a result, the quantity demanded decreases from 100 units to 80 units. What is the price elasticity of demand?

–1.0

If the price elasticity of demand for a product is –2.5, and the price of the product decreases by 5%, by how much will the quantity demanded change?

Increase by 12.5%

If the income elasticity of demand for a good is 2, and the income of consumers increases by 5%, what is the expected percentage change in the quantity demanded for that good?

10%

A consumer product has an income elasticity of demand (IED) of 1. What type of good is it?

Normal good

In the case of perfectly inelastic supply (PES = 0), the supply curve is:

Vertical

What does the price elasticity of supply (PES) measure?

The percentage change in the quantity supplied of a good in response to a price change

A shortage in the market happens when:

The price is below the equilibrium price

If a market is experiencing a surplus, what is the most likely response from sellers?

Decrease the price of the good

What happens when the price is set above the equilibrium price?

A surplus will occur because the quantity supplied exceeds the quantity demanded

What occurs when the market price is above the equilibrium price?

There is a surplus of goods, leading to downward pressure on prices

Suppose new technology improves production efficiency in the smartphone market. What happens to the equilibrium price and quantity of smartphones?

The equilibrium price decreases, and the equilibrium quantity increases

If the income elasticity of demand for a good is positive, what does this imply?

The good is normal

A person’s income increases by 15%, and the quantity demanded for a certain good decreases by 5%. What is the income elasticity of demand?

–0.33

What does the cross-price elasticity of demand (CPED) measure?

The responsiveness of quantity demanded for one good to a change in the price of another good

Which of the following goods is likely to have the most inelastic demand?

Gasoline

If the income elasticity of demand for a good is negative, the good is considered:

Inferior good

Which of the following scenarios describe perfectly elastic demand?

A horizontal demand curve

What does it mean when the supply is elastic?

The quantity supplied changes by a larger percentage than the price change

When the price elasticity of demand is less than 1, we say that demand is:

Inelastic

A decrease in the supply of oranges increases the price from $2.00 per kilogram to $2.50 per kilogram. The quantity of oranges demanded decreased from 150 kilograms to 120 kilograms. The price elasticity of demand for oranges is:

–0.8

The price of gasoline rises from $3.00 per gallon to $3.50 per gallon. The quantity demanded decreases from 500 to 450 gallons per day. The price elasticity of gasoline demand is:

0.6

The price of movie tickets decreases from $15 to $12. The number of tickets sold increased from 1,000 to 1,300. The price elasticity of demand for movie tickets is:

1.5

A decrease in the price of coffee from $5.00 per cup to $4.50 per cup leads to an increase in quantity demanded from 200 cups to 230 cups. The price elasticity of demand for coffee is:

1.5

Plumbing Arithmetic Terms 5

ユーザ名非公開 · 68問 · 13日前

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