Test 1 Econ

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Food and Resources

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Monserrat Garcia

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Test 1 Econ


Froggy Jumps Test 1 EconVersión en línea Food and Resources por Monserrat Garcia 1 To engage in economic reasoning, you must compare: a marginal cost and marginal benefit b total cost and total benefit c marginal cost, sunk cost, and total benefit 2 Which of the following would you expect to be the slope of a demand curve? a -4.5 b 4.5 c 0 3 You bought McDonald’s for $10, Coca-Cola for $15, and Pepto-Bismol for $20. Now they’re all worth $15. If you need $15 and there are no taxes and you can’t predict future performance, which stock should you sell? a It doesn't matter which one you sell b McDonald’s c Coca-Cola 4 Jerry is sitting in a bar drinking drinks that cost $1 each. According to the economic decision rule, he will quit drinking when the marginal: a benefit to him of an additional drink is less than $1. b cost to him of an additional drink is less than the marginal benefit c cost remains at $1. 5 Opportunity cost: a is the net benefit foregone by not undertaking the next best alternative b includes only monetary outlays c is nonexistent for some choices 6 Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that: a despite the increase in price, quantity demanded rose due to some other factor changing. b the law of demand is invalid c this situation has nothing to do with the law of demand 7 Which of the following would likely result in an increase in the demand for beef? a An increase in family incomes b A decrease in the supply of beef c An increase in the price of feed grains 8 To derive a market demand curve from individual demand curves, it would be necessary to: a sum the curves horizontally, adding quantities demanded at each price. b take the demand curve that is the furthest to the right as the market demand curve c Add individual quantities at each price to get the market quantity demanded 9 A higher equilibrium price with no change in market equilibrium quantity could be caused by a A decrease in supply and an increase in demand b supply shifting in and no change in demand c demand and supply both shifting in. 10 In general, the greater the elasticity the: a larger the responsiveness of quantity to changes in price b smaller the responsiveness of price to changes in quantity c larger the responsiveness of price to changes in quantity 11 If quantity demanded falls by 25 percent when price rises by 50 percent, demand is said to be: a inelastic b elastic c proportional 12 If the percentage increase in the quantity supplied increases by the same amount as the percentage increase in the price, the supply: a has unit elasticity. b is elastic. c is perfectly elastic 13 If Maria observed that higher hotdog prices lead to an increase in the demand for chili, she would most likely conclude that: a chili and hotdogs are substitutes b chili and hotdogs are complements. c chili and hotdogs are both inferior goods 14 A good whose consumption decreases when income increases is generally called: a an inferior good b a substitute good. c a complementary good 15 College students tend to eat more ramen noodles than do recent college graduates. A primary reason this is true is that a ramen noodles are an inferior good b ramen noodles are a normal good c ramen noodles and college students are close substitutes 16 What is the equilibrium price and quantity? a $3 and 150 b $3 and 100 c $4 and 150 17 Which graph shows the effect of a poor corn harvest on the corn market? a Graph c b Graph a c Graph b 18 Which graph shows the effect of higher consumer incomes on the caviar market? a Graph a b Graph b c Graph c 19 Which graph shows the effect of cheaper memory chips on the computer market? a Graph d b Graph c c Graph a 20 Refer to the graph above. A quantity restriction of QR will: a reduce quantity supplied to QR b have no effect on quantity supplied c create excess demand represented by Q2 - QR 21 Refer to the graph above. A quantity restriction of QR will: a raise market price P0 b raise market price to P1 c raise market price to P2. 22 Refer to the graph above. Given the quantity restriction of QR , a reduction in demand will: a lower the market price b raise equilibrium price c have no impact on market price 23 Refer to the graph above. Given the quantity restriction of QR, an increase in supply will: a have no impact on equilibrium quantity b raise equilibrium quantity c lower equilibrium quantity 24 What is the total world output of popcorn and peanuts if the countries don’t trade? a 175 bags of peanuts and 225 bags of popcorn b 250 bags of peanuts and 150 bags of popcorn c 350 bags of peanuts and 450 bags of popcorn 25 If each country specializes in its comparative advantage, what is total world output of each good? a 250 bags of peanuts and 300 bags of popcorn b 175 bags of peanuts and 225 bags of popcorn c 250 bags of peanuts and 150 bags of popcorn

Test 1 Econ

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Test 1 EconVersión en línea

por Monserrat Garcia

To engage in economic reasoning, you must compare:

Which of the following would you expect to be the slope of a demand curve?

You bought McDonald’s for $10, Coca-Cola for $15, and Pepto-Bismol for $20. Now they’re all worth $15. If you need $15 and there are no taxes and you can’t predict future performance, which stock should you sell?

Jerry is sitting in a bar drinking drinks that cost $1 each. According to the economic decision rule, he will quit drinking when the marginal:

Opportunity cost:

Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:

Which of the following would likely result in an increase in the demand for beef?

To derive a market demand curve from individual demand curves, it would be necessary to:

A higher equilibrium price with no change in market equilibrium quantity could be caused by

In general, the greater the elasticity the:

If quantity demanded falls by 25 percent when price rises by 50 percent, demand is said to be:

If the percentage increase in the quantity supplied increases by the same amount as the percentage increase in the price, the supply:

If Maria observed that higher hotdog prices lead to an increase in the demand for chili, she would most likely conclude that:

A good whose consumption decreases when income increases is generally called:

College students tend to eat more ramen noodles than do recent college graduates. A primary reason this is true is that

What is the equilibrium price and quantity?

Which graph shows the effect of a poor corn harvest on the corn market?

Which graph shows the effect of higher consumer incomes on the caviar market?

Which graph shows the effect of cheaper memory chips on the computer market?

Refer to the graph above. A quantity restriction of QR will:

Refer to the graph above. A quantity restriction of QR will:

Refer to the graph above. Given the quantity restriction of QR , a reduction in demand will:

Refer to the graph above. Given the quantity restriction of QR, an increase in supply will:

What is the total world output of popcorn and peanuts if the countries don’t trade?

If each country specializes in its comparative advantage, what is total world output of each good?