Econ

45問 • 2年前

Garrett Sutton

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問題一覧

Which of the following is true?

All of the above

free trade between the U.S. and Mexico will allow consumers in both countries to consume more goods. this is a

positive statement

assume the U.S. is considering to spend an additional $10 billion on national defense. also assume the US is considering to spend additional money hiring new teachers as $10 billion could purchase 2,500 teachers for the next 50 years at a salary $80,000 per year. if the US decides to spend an additional $10 billion on national defense, what is the opportunity cost of that decision?

the value of 2,500 teachers for the next 50 years at a salary of $80,000 per year

a point inside the production possibilities frontier is

feasible but not efficient

consider the production possibilities frontier for an economy that produces only cookies and ice cream, and assume production currently occurs at a point somewhere on the economy’s production possibilities frontier. if discovery of the remarkable health benefits of ice cream changes consumers preferences, we would expect

production to move to a different point on the production possibilities frontier

suppose a nation produces food and clothing. in terms of the nation’s production possibilities frontier, assume clothing on the x-axis, the food on the y-axis. an increase in immigration leading to an increase in the labor force would be illustrate by

the production possibilities frontier shifting out along both axes

suppose a nation produces food and clothing. In terms of the nation’s production possibilities frontier, assume clothing on the x axis, food on the y axis. an increase in technology used in the production of clothing would be illustrated by

the production possibilities frontier shifting out along the x axis

a production possibilities frontier that is a straight line indicates

constant costs of production

in an hour, Sligo can wash 4 cars or mow 8 lawns, Bruno can wash 3 cars or mow 1 lawn. who has the absolute advantage in car washing, who has the absolute advantage in lawn mowing?

Sluggo in washing cars, Sluggo in mowing lawns

In an hour, Sluggo can wash 8 cars or mow 8 lawns, Bruno can wash 3 cars or mow 1 lawn. Who has the comparative advantage in car washing, who has the comparative advantage in lawn mowing?

Bruno in washing cars, Sluggo in mowing lawns

when two countries produce efficiently and then make a mutally beneficial trade based on comparative advantage,

they both consume outside their production possibilities frontier

which goods will a nation typically import?

those goods in which other nations have a comparative advantage

suppose in an hour’s time, Japan can produce either 4 cars or 8 trucks; South Korea can produce either 3 cars or 2 trucks. Which of the following is true?

Japan’s opportunity cost of producing cars is 2 trucks per car

suppose in an hour’s time, Japan can produce either 4 cars or 8 trucks; South Korea can produce either 3 cars or 2 trucks. Which of the following is true?

Japan has the comparative advantage in trucks, South Korea has the comparative advantage in cars

suppose in an hour’s time, Japan can produce either 4 cars or 8 trucks; South Korea can produce either 3 cars or 2 trucks. Which of the following is true for both countries to gain from trade?

Japan should export trucks, South Korea should export cars

a change in which of the following will NOT shift the demand curve for coke?

the price of coke

Suppose that the price of computer chips, an input used in the production of laptops, decreases. According to our analysis of supply and demand, will this increase the demand for laptops?

No, not an increase in demand, an increase in quantity demanded

Suppose that hotdogs and hotdog buns are complements. If the price rises for hotdogs, what effect do we predict in the market for hotdog buns?

the equilibrium price of hotdog buns will be lower, the equilibrium quantity of hotdog buns will be lower

Suppose that the number of firms in the market selling cookies increases. What effect would we predict in the market for cookies?

an increase in supply

Which of the following would tend to increase the demand for Food Lion Cola?

a decrease in the income of consumers purchasing Food Lion Cola, assuming it is an inferior good

Suppose that the price of good A increasing causes the demand for good B to increase. What do we know about these goods?

these goods are substitutes

Suppose Famous Amos decides to use Godiva brand chocolate chips in their cookies, increasing demand. Assume though that using Godiva brand chocolate chips increases the price to produce Famous Amos cookies. What are the net effects on the equilibrium price and quantity of Famous Amos cookies?

an increase in the equilibrium price of cookies, while the effect on the equilibrium quantity of cookies is uncertain

What is the mechanism which causes efficiency in a free market?

a free-flowing price within that economy decided by consumers and firms

A 20% decrease in price causes the quantity demanded of a good to increase by 40 percent. The value for the price elasticity of demand is ___________, and demand is ____________.

-2, elastic

If the value of the price elasticity of supply is greater than 1, supply is ___________. If the elasticity of supply equals zero, supply is __________.

elastic, perfectly inelastic

If lettuce and olives have a cross elasticity of -3, and the price of lettuce increases by 10%, we would predict

olive sales to decrease by 30% as the two goods are complements

An increase in the supply of a good will increase the total revenue producers receive if

demand is elastic

What do we call a good with an income elasticity that is positive?

normal

If the cross elasticity of demand between pencils and laptops is 0, then the two goods are

unrelated

The price of a good rises from $8 to $12, and the quantity demanded falls from 110 to 90 units. Calculated with the midpoint method, the price elasticity of demand is

-1/2

Which of the following is an example of a government price control?

all of the above

A price ceiling set above the equilibrium price causes

no effect in the market

Which of the following would cause a surplus to exist in a market?

a price floor set above the equilibrium price

A powerful hurricane hits the NC coast causing a temporary decrease in the supply of gas. In order to help consumers not experience higher temporary prices for gas, the government imposes a price ceiling. What will be the result?

a temporary shortage of gas

Suppose the government decides the equilibrium wage for steel workers is too low, thus sets a minimum wage that is higher than the equilibrium wage. Using our analysis of supply and demand, what will be the result?

increased unemployment of steel workers

Suppose the government levies a tax on the market for avocados. Assuming a normal upward sloping supply curve and a normal downward sloping demand curve for avocados, the price for buyers will _______, price received by sellers will ______, and quantity sold will ______.

increase, decrease, decrease

Suppose our federal government wants to enact a tax that will cause a greater burden of expense to consumers purchasing that good, than the burden of expense to firms producing that good. Which would be optimal?

a good with a relatively inelastic demand, and relatively elastic supply

Suppose our federal government decides to reduce air pollution by reducing consumers' use of gas. In order to do this, they impose a tax on each gallon of gas sold. The tax will be more effective in reducing the use of gas by consumers if

demand is elastic

Homer sells cupcakes on Saturdays. He spends $50 for ingredients and sells $190 worth of cupcakes. If he didn't sell cupcakes, he could work at the local brewery on Saturday and earn $150. In his cupcake business, Homer has an accounting profit of _________ and an economic profit of ________.

$140, - $10

The table below shows the marginal product of labor for a shoe manufacturer. At what point does the law of diminishing marginal returns set in? Number of Workers Employed Marginal Product of Labor (Per Week) (Pairs of Shoes Per Week) 0 - 1 30 2 40 3 20 4 -10 5 -20

After the second worker is hired.

Suppose you operate a factory producing wrenches. Your current level of output is 1000 wrenches per week. Your weekly fixed cost is $40,000. If your weekly total cost is $100,000,

average variable cost of production is $60

If a higher level of production allows workers to specialize in particular tasks and be more productive, a firm will likely exhibit __________ of scale, and _________ average total costs,

economies, decreasing

A firm is producing 50 units of output at a total cost of $200. The firm's average fixed cost is $1 per unit. What is the firm's variable cost?

$150

The wrench factory is producing 1000 wrenches with an average total cost of $4 and a marginal cost of $5. Which of the following is true?

If production increases, we would expect average total cost to increase

The figure below shows the long-run average cost (AC) curve for a firm that produces radios, as well as four short-run average cost curves. Each of the short-run average cost curves corresponds to a different-sized plant--AC1 is associated with Plant 1, AC2 is associated with Plant 2, etc.

plant 2

Econ final

Garrett Sutton · 45問 · 2年前

Econ final

45問 • 2年前

Garrett Sutton

問題一覧

Which of the following is true?

All of the above

free trade between the U.S. and Mexico will allow consumers in both countries to consume more goods. this is a

positive statement

the value of 2,500 teachers for the next 50 years at a salary of $80,000 per year

a point inside the production possibilities frontier is

feasible but not efficient

production to move to a different point on the production possibilities frontier

the production possibilities frontier shifting out along both axes

the production possibilities frontier shifting out along the x axis

a production possibilities frontier that is a straight line indicates

constant costs of production

in an hour, Sligo can wash 4 cars or mow 8 lawns, Bruno can wash 3 cars or mow 1 lawn. who has the absolute advantage in car washing, who has the absolute advantage in lawn mowing?

Sluggo in washing cars, Sluggo in mowing lawns

In an hour, Sluggo can wash 8 cars or mow 8 lawns, Bruno can wash 3 cars or mow 1 lawn. Who has the comparative advantage in car washing, who has the comparative advantage in lawn mowing?

Bruno in washing cars, Sluggo in mowing lawns

when two countries produce efficiently and then make a mutally beneficial trade based on comparative advantage,

they both consume outside their production possibilities frontier

which goods will a nation typically import?

those goods in which other nations have a comparative advantage

suppose in an hour’s time, Japan can produce either 4 cars or 8 trucks; South Korea can produce either 3 cars or 2 trucks. Which of the following is true?

Japan’s opportunity cost of producing cars is 2 trucks per car

suppose in an hour’s time, Japan can produce either 4 cars or 8 trucks; South Korea can produce either 3 cars or 2 trucks. Which of the following is true?

Japan has the comparative advantage in trucks, South Korea has the comparative advantage in cars

suppose in an hour’s time, Japan can produce either 4 cars or 8 trucks; South Korea can produce either 3 cars or 2 trucks. Which of the following is true for both countries to gain from trade?

Japan should export trucks, South Korea should export cars

a change in which of the following will NOT shift the demand curve for coke?

the price of coke

Suppose that the price of computer chips, an input used in the production of laptops, decreases. According to our analysis of supply and demand, will this increase the demand for laptops?

No, not an increase in demand, an increase in quantity demanded

Suppose that hotdogs and hotdog buns are complements. If the price rises for hotdogs, what effect do we predict in the market for hotdog buns?

the equilibrium price of hotdog buns will be lower, the equilibrium quantity of hotdog buns will be lower

Suppose that the number of firms in the market selling cookies increases. What effect would we predict in the market for cookies?

an increase in supply

Which of the following would tend to increase the demand for Food Lion Cola?

a decrease in the income of consumers purchasing Food Lion Cola, assuming it is an inferior good

Suppose that the price of good A increasing causes the demand for good B to increase. What do we know about these goods?

these goods are substitutes

an increase in the equilibrium price of cookies, while the effect on the equilibrium quantity of cookies is uncertain

What is the mechanism which causes efficiency in a free market?

a free-flowing price within that economy decided by consumers and firms

A 20% decrease in price causes the quantity demanded of a good to increase by 40 percent. The value for the price elasticity of demand is ___________, and demand is ____________.

-2, elastic

If the value of the price elasticity of supply is greater than 1, supply is ___________. If the elasticity of supply equals zero, supply is __________.

elastic, perfectly inelastic

If lettuce and olives have a cross elasticity of -3, and the price of lettuce increases by 10%, we would predict

olive sales to decrease by 30% as the two goods are complements

An increase in the supply of a good will increase the total revenue producers receive if

demand is elastic

What do we call a good with an income elasticity that is positive?

normal

If the cross elasticity of demand between pencils and laptops is 0, then the two goods are

unrelated

The price of a good rises from $8 to $12, and the quantity demanded falls from 110 to 90 units. Calculated with the midpoint method, the price elasticity of demand is

-1/2

Which of the following is an example of a government price control?

all of the above

A price ceiling set above the equilibrium price causes

no effect in the market

Which of the following would cause a surplus to exist in a market?

a price floor set above the equilibrium price

a temporary shortage of gas

increased unemployment of steel workers

increase, decrease, decrease

a good with a relatively inelastic demand, and relatively elastic supply

demand is elastic

$140, - $10

After the second worker is hired.

Suppose you operate a factory producing wrenches. Your current level of output is 1000 wrenches per week. Your weekly fixed cost is $40,000. If your weekly total cost is $100,000,

average variable cost of production is $60

If a higher level of production allows workers to specialize in particular tasks and be more productive, a firm will likely exhibit __________ of scale, and _________ average total costs,

economies, decreasing

A firm is producing 50 units of output at a total cost of $200. The firm's average fixed cost is $1 per unit. What is the firm's variable cost?

$150

The wrench factory is producing 1000 wrenches with an average total cost of $4 and a marginal cost of $5. Which of the following is true?

If production increases, we would expect average total cost to increase

plant 2