Answer Page--Unit One

(Mahsa Poorak)

1. Which of the following is a determinant of demand?
E) Consumer income

(Mahsa Poorak)
2. Which of the following would correspond with the shift in the graph shown above?
B) An increase in taxes

(Mahsa Poorak)
3. A luxury good is
A) More elastic than a necessity good

(Mahsa Poorak)
4. The Law of Diminishing Marginal Benefits states that
D) Each successive unit of a product provides less utility

(Mahsa Poorak)
5. Which of the following is an example of a price ceiling?
C) Rent Controls

(Mahsa Poorak)
6. The opportunity cost of eating at Chik Fil A for lunch is
B) Lunch at another restaurant

(Mahsa Poorak)
7. Which of the following limits options and necessitates that an economy make choices?
A) Scarcity

(Mahsa Poorak)
8. The right mix of goods and services for our economy is
E) Allocative efficiency

(Mahsa Poorak)
9) Which of the following would cause the shift demonstrated in the above graph?
D) A surplus

(Mahsa Poorak)
10) On a production possibility curve, outside of the curve is
B) Possible, but not sustainable

(Ryan Cox)
11. Scare economic resources that are considered to be
I. Cheap
II. Limited
III. Common
B) II only

(Ryan Cox)
12. Which of these items would be considered scarce?
I. Diamonds
II. Fruit
III. Gold
D) I and III

(Ryan Cox)
13. is defined as the value of the best alternative foregone when a decision is made.
C) Opportunity Cost

(Ryan Cox)
14. What are the money payments called made to entrepreneurs, owners of land, owners of labor, and owners of capitol? (The order of the answer needs to match the question)
E) Profits, Rent, Wages, and Interest

(Ryan Cox)
15. In Spain, The opportunity cost for obtaining the first two units of food is how many units of cars?
C) 8

(Ryan Cox)
16. A caller to a TV show says that large corporations are “extremely greedy exploiters of the poor.” This is an example of:
C) Loaded Terminology

(Ryan Cox)
17. Macroeconomics if the study of
E) The entire economy

(Ryan Cox)
18. The Market System has which of the following fundamental characteristics?
E) Property rights

(Ryan Cox)
19. Refer to the graph above. The Economy will experience the most unemployment at which point
D) Point D

(Ryan Cox)
20. The demand curve needs to have (a) _ so that wheat prices decrease
B) Left shift

21. The slope of a typical production possibilities curve reflects…
a. increasing opportunity cost
(Alex Walters)

22. If George can make 2 paper airplanes and 3 origami cranes in a minute and Paul can make 4 paper airplanes and 2 origami cranes in a minute, then…
d. George has a comparative advantage in origami cranes
(Alex Walters)

23. One country enjoys a comparative advantage over another in producing wheat when…
a. It has more wheat than the other country.
(Alex Walters)

24. If the cost of flour rises and flour is a major ingredient in cake, then the cake…
b. Supply curve shifts to the left.
(Alex Walters)

25. Which of the following is imposed when the government wants sellers to receive some minimum reward for their goods and services?
c. Price floor
(Alex Walters)

26. Graph A illustrates while Graph B illustrates .
c. Elastic demand/ Inelastic demand
(Alex Walters)

27. Which of the following is NOT a factor determining elasticity?
d. Inflation
(Alex Walters)

28. A decrease in income should…
b. Shift demand for an inferior product inwards
(Alex Walters)

An economy may operate outside the Production Possibility Frontier if…
e. It is trading with other economies
(Alex Walters)

30. Resources in an economy…
d. Are limited at any moment in time
(Alex Walters)

(Kyle Speed)
31. What is the opportunity cost of corn in Brazil?
A. 2/5 Wheat

(Kyle Speed)
32. PPF (Production Possibilities Frontier) is?
E. the combinations of two goods that can be produced if the economy uses all of its resources fully and efficiently

(Kyle Speed)
33. All the following are determinates of demand except?
B. subsidies

(Kyle Speed)
34. The range of output over which smaller and smaller additional units of output are produced as successive equal increments of a variable input are added to fixed quantities of other inputs in the short run is the law of ?
D. diminishing marginal benefit

(Kyle Speed)
35. What line on the graph shows a price ceiling?

(Kyle Speed)
36. Which statement is true about dead-weight loss?
C. Dead-weight loss is the loss to society in the form of a reduction of consumer surplus from a competitive norm beyond any surplus reduction from a monopoly profit

(Kyle Speed)
37. Price elasticity of demand or supply which has a numerical coefficient >1 is?
A. elastic

(Kyle Speed)
38. All the following are determinants of Supply except?
D. consumer income

(Kyle Speed)
39. The channeling of resources (land, labor, capital, entrepreneurial ability) to their most productive and desired uses is?
E. a locative efficiency

(Kyle Speed)
40. Which letter represents a consumer surplus?
B. B

external image ch03_pq_q17_18.gif

(john Fleming)
41. In What why could country A maximize its productivity?
c. Produce computer chips and trade them to Country B for shirts

(John Fleming)

42. What are the reasons for specialization
c. Specialization saves time by allocating resources properly

(John Fleming)

43. When the best decision is chosen over a list of alternatives including the next best alternative this refers to the concept of?
d. Opportunity cost

(john Fleming)

44. In theoretical conjection the ideals and economic theorems are absolute, then why is applying economic strategy’s so difficult in real life application?
d. Allocation of resources properly

(john Fleming)

45. What are scarce resources?
I. Land
II. Capital
III. Labor
IV. Entreneurial abilites
b. I, II, III and IV
external image ppf.gif

(John Fleming)

The Graph above represents the production possibilty Frontier, what products would this country currently be able to produce?

b. A,B,C

47. The piping for the water supply in New York City is very old and outdated, some of the pipes are made out of lead. The reason for the inhabitants of New York being willing to pay for the reconstruction of the water pipes would be an example of? (John Fleming)
e. Marginal benefits out weighning marginal costs
(John Fleming)
48. On the elastic demand curve if price decreases by 20%, the quantity will most likely
a. Increase by more then twenty percent
(John Fleming)
49. What is the scenario when country A has absolute advantage over country B?
b. when a country A can produce both items of exchange more efficiently

(john Fleming)
50. Macroeconomics is the study of economics the pays attention to the aspects of
d. The economy as a whole