Econ Test 1 example #34333

Comparative advantage is related most closely to which of the following? -output per hour -opportunity cost -efficiency -bargaining strength in international trade

The quantity demanded of a good is the amount that buyers are -willing to purchase -willing and able to purchase -willing able and need to purchase -able to purchase

A decrease in demand could be caused by -increase in price -decrease in the price of complement -technological advance -decrease in price of a substitute

Elastic demand is correlated with a -flat demand curve -steep demand curve

Using the midpoint method, the price elasticity of demand between point B and point C is -0.5 -0.75 -1.0 -1.3

Using the midpoint method, the price elasticity of demand between point A and point B is -1 -1.5 -2 -2.5

A decrease in the price of a good will a. increase demand. b. decrease demand. c. increase quantity demanded. d. decrease quantity demanded.

Which of the following might cause the supply curve for an inferior good to shift to the right? a. an increase in input prices b. a decrease in consumer income c. an improvement in production technology that makes production of the good more profitable d. a decrease in the number of sellers in the market

Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the

Which of the following events must cause equilibrium price to rise?

An increase in the price of a good will

Andia has a comparative advantage in the production of

Andia has an absolute advantage in the production of

At which of the following prices would both Andia and Zardia gain from trade with each other?

What is Andia's opportunity cost of producing one pound of beef?

Andia should specialize in the production of

What is Zardia's opportunity cost of producing one bushel of wheat?

When we move along a given demand curve,

Which of the following is an example of a market?

Which of the following is not a determinant of demand?

The rate of tradeoff between producing chairs and producing couches depends on how many chairs and couches are being produced in

When we move along a given supply curve,

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

What effect if price = $2

What price would generate a surplus of 450 units?

Calculate equilibrium price (Pe) and equilibrium quantity (Qe):

Specialization and trade are closely linked to

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded is referred to as

Which of the following is not a determinant of the price elasticity of demand for a good?

A supply curve slopes upward because

Suppose goods A and B are substitutes for each other. We would expect the cross-price elasticity between these two goods to be

When each person specializes in producing the good in which he or she has a comparative advantage, total production in the economy

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

Years ago, thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall. This behavior indicates

Last year, Shelley bought 6 pairs of designer jeans when her income was $40,000. This year, her income is $50,000, and she purchased 10 pairs of designer jeans. Holding other factors constant, it follows that Shelley

If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price results in a

New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public transportation becomes cheaper and more comfortable, auto-workers accept lower wages, and automobile insurance becomes more expensive?

Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible?

A production possibilities frontier is a straight line when

A movement upward and to the left along the demand curve is called a(n)

Which of the following is a valid expression for price elasticity of demand?

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

The opportunity cost of an item is

Demand is inelastic if the price elasticity of demand is

The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good,

The local bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price. If the owner is only interested in increasing revenue, she should

At a price of

Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States?

Collusion

Cartel

Nash Equilibrium

Prisoner's Dilemma

Dominant Strategy

Monopoly

Natural Monopoly

price discrimination

Oligopoly

monopolistic competition