A restaurant manager has estimated that the price elasticity of demand for meals is 2. If the restaurant increases menu prices by the number of meals sold to decrease by _ _ and total revenue to A. 10%, increase O B. 2.5%; fall O C. 10%; fall OD.5%, stay constantWhen a chef prepares a dinner for a customer, which factor is physical capital? O A. the chef O B. the food ingredients O C. the oven O D. the chef's training and experienceQUESTION 3 In the market for canned pinto beans, will increase if income increases and if pinto beans are a(n) good. O A. supply; inferior O B. supply; normal O C. demand; inferior O D. demand; normalQUESTION 4 The price elasticity of demand along a demand curve with a constant slope: O A. is less than the slope. O B. is greater than the slope. O C. is equal to the slope. O D. decreases in absolute value as quantity demanded rises.The income elasticity of demand of an inferior good: O A. is equal to 0. O B. cannot be determined. O C. is less than 0. O D. is greater than 0.The income elasticity of demand of an inferior good: O A. is equal to 0. O B. cannot be determined C. is less than 0. O D. is greater than 0.Remaining Time: 1 hour, 13 minutes, 18 seconds. Question Completion Status: Inunad $1.50 1.40 1.30 1.20 S 1.10 1.00 0.90 0.80 0.70 0.60 0.50 D 0 75 6 7 8 9 10 11 12 13 14 15 Quantity (millions of pounds of butter) Reference: Ref 5-7 Figure: The Market for Butter (Figure: The Market for Butter) Use Figure: The Market for Butter. If a government price floor of $1.30 is imposed on this market, an inefficiency w result in the form of a of million pounds of butter. O A. surplus; 4.5 O B. shortage; 4.5 O C. shortage; 6.0 O D. surplus, 6.0QUESTION 7 Producers will sometimes lower the quality of a good when the government imposes: O A. a binding price ceiling O B. a binding price floor. O C. any price control. O D. an excise tax.The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price floor in the market at a price of $0.40 pe pound: O A. the price floor will not affect the market price or output. O B. quantity supplied will increase. O C. quantity demanded will decrease. O D. there will be a shortage of apples0.90 0.80 0.70 0.60 0.50 D 0 5 6 7 8 9 10 11 12 13 14 15 Quantity (millions of pounds of butter) Reference. Ref 5-7 Figure The Market for Butter (Figure: The Market for Butter) Use Figure: The Market for Butter. If a government price floor of $1.10 is imposed on this market, an inefficiency will result in the form of a of million pounds of butter. O A. shortage; 1.5 O B. surplus; 3 O C. shortage; 4 5 O D. surplus; 4.5The quota rent is the: O A. minimum rent that the owner of a building must receive before he or she is willing to rent out the building. O B. difference between the demand price and the supply price at the quota limit. O C. opportunity cost of using a quota-controlled service or of buying a good that is subject to an import quota. O D. rent received by landlords who own rent-controlled apartments.QUESTION 11 If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210 bags, then the price elasticity of demand (by the midpoint method) is: OA 1 O B. 2 O C. 0.5. O D.O.The university president believes that increasing student tuition by 5% will increase revenues. If the president is correct that revenues will Increase, then the tuition increase will _the number of students enrolling by _ %. A. increase; exactly 5 O B. reduce; less than 5 O C. increase; less than 5 O D. reduce; more than 5QUESTION 13 The BEST example of making a choice at the margin is whether to: O A. eat another slice of pizza. O B. attend college. O C. quit your job. O D. buy a new computer.If chicken and beef are substitutes, then a fall in the price of chicken will bring about: O A. no change in the demand for beef. O B. an increase in the quantity demanded of beef. O C. a decrease in the demand for beef. O D. an increase in the demand for beef.Suppose the government sets a price floor of $2.85 per bushel on corn when the current price is $2.55. This price floor will: O A. have no immediate effect on the price of corn. B. increase the supply of com. O C. cause a surplus of corn. O D. cause a shortage of com.Question Completion Status: a P1 C P2 P3 D 0 Q1 Q2 Q3 Quantity Reference: Ref 5-10 Figure. The Market for Hybrid Cars (Figure: The Market for Hybrid Cars) Use Figure: The Market for Hybrid Cars. What area represents deadweight loss if there is a binding price flo P1? O A.C OB.cte OCb+c+d+e O D. a + b + cRemaining Time: 1 hour, 05 minutes, 31 seconds. Question Completion Status: 0 20 40 60 80 100 0 20 40 60 80 100 Quantity of movie rentals per weekend Quantity of movie rentals per weekend (c) (d) Price of Price of online movie online movie rental rental $10 51 00 AO 2 D1 0 20 40 60 80 100 20 40 60 80 100 Quantity of movie rentals per weekend Quantity of movie rentals per weekend Reference: Ref 3-8 Figure Four Markets for Online Movie Rentals (Figure: Four Markets for Online Movie Rentals) Use Figure: Four Markets for Online Movie Rentals. Which of the graphs illustrates what may happen in the market for online movie rentals if Dj or Sj is the original curve and Dy or S2 is the new curve and if the cost to the firm of producing online movie rentals falls? OAB O B. C OC.D OD.A Click Save and Submit to save and submit. Click Sque All AnswersQuestion Completion Status: Guns (per period) A 18 Production B possibility 16 frontier 12 E H. 8 4 F 0 4 8 12 16 18 20 Butter (per period) Reference: Ref 2-2 Figure: Guns and Butter (Figure: Guns and Butter) Use Figure: Guns and Butter. If the economy is operating at point , producing 16 guns and 12 pounds of butter per period, decision to move to point E and produce 18 pounds of butter: O A. necessitates a loss of 4 guns per period. O B. makes it clear that this economy has decreasing opportunity costs.QUESTION 19 The income elasticity of demand for eggs has been estimated to be 0.57. If income grows by 5% in a period, all other things unchanged, demand will: A. increase by more than 5.7% O B. increase by about 2.9%. O C. decrease by less than 5.7%. O D. decrease by more than 5.7%Property rights are an important feature of an effective market because they: A. prevent harm to the environment from pollution. O B. are the basis for an equitable tax system. O C. lead to the development of government control over prices. O D. give owners of goods and services the right to use and dispose of those goods and services as they choose.QUESTION 21 Table: Supply of Lemonade Price of Number of Cups of Lemonade lemonade Supplied (per day) (per cup) Eric Molly Eli $0.50 0 5 10 0.75 10 15 25 1.00 25 25 40 1.25 40 35 55 1.50 60 45 70 Reference, Ref 3-3 Table: Supply of Lemonade (Table: Supply of Lemonade) Use Table: Supply of Lemonade. If the price of lemonade is $1 per cup, the total quantity of lemonade supplied will b _ cups per day. O A. 25 O B. 50 O C. 90 O D. 80 QUESTION 22Table: Market for Pizza Quantity of Quantity of Pizza Demanded Pizza Demanded Price (given income of (given income of (per pizza) $1,000 per month) $1,400 per month) $20 18 16 14 IWN=OOO4 12 10 Reference: Ref 6-5 Table: Market for Pizza (Table: Market for Pizza) When income changes from $1,000 to $1,400 per month, the income elasticity of demand for pizza, by the midpoint method, at a price of $14 per pizza is: O A. 1 O B. - 1. O C. 1.25 O D. 1.5.QUESTION 23 A men's tie store sold an average of 30 ties per day at $5 per tie. The same store sold 60 of the same ties per day at $3 per tie. In this case, the price elasticity of demand (by the midpoint method) is: O A. greater than 1 but less than 3. B. greater than zero but less than 1. O C. greater than 3. O D. equal to 1.QUESTION 24 Technological improvements will: O A. necessarily lead to increased unemployment. O B. leave the production possibility frontier unchanged O C. shift the production possibility frontier inward O D. shift the production possibility frontier outward.Suppose that the demand curve for good Z is downward sloping. If the price of good Z decreases because of a shift in supply, this will cause: O A. an increase in the demand for good Z. O B. fewer people to purchase good Z. O C. no effect on the quantity demanded of good Z. O D. a movement along the demand curve of good ZQUESTION 26 Specialization and trade usually lead to: O A. the exchange of goods and services in markets. O B. lower economic growth. O C. higher prices. O D. lower living standards.QUESTION 27 If two goods are complements, their cross-price elasticity of demand is: O A. less than 0. O B. greater than 0 O C. positive but almost equal to 0. O D. equal to OQUESTION 28 Dr. Colgate is a dentist who employs an assistant, Ms. Crest. If Dr. Colgate worked all day at the front desk, she could answer 40 phone calls. If she worked all day with patients, she could clean the teeth of 40 patients. If Ms. Crest worked all day at the front desk, she could answer 60 phone calls. If she worked all day with patients, she could clean the teeth of 20 patients._ has a(n) _advantage in O A. Ms. Crest; comparative, answering phones O B. Ms. Crest; absolute; cleaning patients' teeth O C. Dr. Colgate, comparative; answering phones O D. Dr. Colgate, absolute, answering phonesGoods A and B have a positive cross-price elasticity of demand. This means that goods A and B are: A. inferior. O B. normal O C. substitutes. O D. complements.QUESTION 30 Paolo owns a pizza shop. The price of pizza recently increased from $3 to $5 a slice. Paolo responded by increasing the quantity of slices he supplied from 100 to 150 slices per day. By the midpoint method, Paolo's price elasticity of supply is: O A. 0.8 O B. 0.75. O C. 1.25 O D. 2.5QUESTION 31 Nate and Dylan are brothers. They have to mow the lawn and clean their rooms before they can go to the high school football game. Nate mows the lawn and Dylan cleans up the rooms, and they make it to the football game on time. Which economic concept does this statement BEST represent? O A. There are gains from trade. O B. One person's spending is another person's income. O C. "How Much" is a decision at the margin. D. Markets usually lead to efficiency.YOUTION JZ Table: Willingness to Pay for Basketball Sneakers Consumer Willingness to Pay Jamichael $150 Corey 140 Rudy 120 Ray 100 Javon 80 Reference: Ref 4-1 Table: Willingness to Pay for Basketball Sneakers (Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for Basketball Sneakers shows each consumer's willingness to pay fo basketball sneakers. Assume that each consumer wants to buy at most, one pair of sneakers. If the price of basketball sneakers Is $145, which consumer will purchase sneakers? O A. Ray O B. Rudy O C. Jamichael O D. CoreyQUESTION 34 If a frost destroys much of the grapefruit crop, assuming a positively sloped supply curve and a negatively sloped demand curve, total surplus in the grapefruit market: A. will decrease. O B. will not change. O C. will increase. O D. may change, but we cannot determine the change without more information.QUESTION 35 Coworkers Yvonne and Rodney are washing dishes and sweeping the floors of the store. They know that to finish both tasks as quickly as possible, each of them should focus on just one task, but they don't know who should do what. Yvonne and Rodney should determine which one: A. has the production possibility frontier that is farthest from the origin in dishwashing. O B. can wash the dishes faster. O C. has the comparative advantage in dishwashing. O D. has the absolute advantage in both sweeping and dishwashingbutter (per pound) $1.50 1.40 1.30 1.20 S 1.10 1.00 E 0.90 0.80 0.70 0.60 0.50 D 0 5 6 7 8 9 10 11 12 13 14 15 Quantity (millions of pounds of butter) Reference: Ref 5-7 Figure. The Market for Butter (Figure: The Market for Butter) Use Figure: The Market for Butter. If a government price floor of $1.20 is imposed on this market, an inefficiency will result in the form of a _ of _ million pounds of butter. O A. shortage, 1.5 O B. shortage; 4.5 O C. surplus, 1.5Question Completion Status: Figure: Market for Hamburgers Price of hamburger $5.00 4.50 4.00 3.50 3.00 2.50 S1 2.00 1.50 1.00 0.50 D1 0 100 200 300 400 500 600 700 800 Quantity of hamburgers (per week) Reference: Ref 4-4 Figure. The Market for Hamburgers (Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the weekly market for hamburgers in Irvine, Kentucky. If the price of a hamburger is $1 and 200 hamburgers are supplied, producer surplus will equal: O A. $360. B. $60. O C. $50 On $65QUESTION 38 Figure: Market I Price $22.50 20 15 9 5 D 5 9 15 Quantity Reference: Ref 5-16 Figure. Market I (Figure: Market ]) Use Figure: Market I. A price floor at $15 would result in deadweight loss of: O A. $9. O B. $40.50. O C. $10. O D. $20IONS ion This test is 15% of your course grade and covers chapters 1-6 of your textbook. tions You have 75 minutes to answer 40 MC questions, you can use a calculator. Read the question carefully, and choose your answer option wisely. Test This test has a time limit of 1 hour and 20 minutes. Your remaining time is approximately 33 minutes, 03 seconds. r Setting This test will save and submit automatically when the time expires. e Completion Once started, this test must be completed in one sitting. Do not leave the test before clicking Save and Submit. e Date This Test is due on March 6, 2024 4:30:00 PM EST. u already opened the assessment in another window or tab, and must submit it in the same window or tab where you first opened it. If you closed it by mistake, contact you Select 'Cancel' to quit. hp