Question 1 (4 points) E Listen (Figure: Shifts in Demand and Supply III) Use Figure: Shifts in Demand and Supply III. The figure shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating cucumbers slows the aging process. Which panel BEST illustrates how this finding will affect the market for cucumbers? (a) (b) Price Price S S1 X 52 D2 D1 D Quantity Quantity (c) (d) Price Price 52 S 51 X D1 D D2 Quantity Quantity\fQuestion 2 (4 points) all (Table: Supply of Matcha Tea) Use Table: Supply of Matcha Tea. If the price of matcha tea is $0.75 per cup. the total quantity of matcha tea supplied will be cups per day. Question 3 (4 points) ) Listen It is certain that the equilibrium price will fall when: a) supply is greater than demand. ( b) supply and demand both increase. c) the quantity supplied is greater than the quantity demanded. (d) the supply curve shifts to the left, and the demand curve shifts to the left.Question 4 (4 points) MI! The price of microchips used to produce iPads rises. As a result, the equilibrium price of iPads the equilibrium quantity . and O 3) falls; decreases O b) rises; decreases O C) rises; increases 0 d) falls; increases Question 5 (4 points) () Listen Which factor will lower the price of bacon? ( a) a shift to the right of the demand curve for bacon O b) a decrease in the number of bacon buyers (c) a decrease in the number of bacon suppliers (d) a shift to the right of the supply curve for baconQuestion 6 (4 points) () Listen One day, Kiera wakes up and in frustration yells, "Decisions, decisions, decisions! Why do I have to make decisions about everything?" Kiera's frustrations stem from the fact that: (a) like all economic agents, she faces constraints and cannot have everything she wants. (b) the decisions she makes result in efficient allocations. (c) she doesn't realize she can have everything she wants; she just needs to prioritize. O d) she really doesn't want anything.Question 7 (4 points) Listen Savannah's grandparents are excited about finally paying off their car because, as they say, "Our cost of driving is now zero." Savannah should explain to them the economic concept of: (a) efficiency: if their cost of driving is now zero, they should let Savannah and her sisters drive the car whenever they want. Savannah is better off, and her grandparents aren't hurt. (b) equity: it is unfair that some people are still paying their car loans, while others are not. (c) marginal analysis: if the additional cost of driving is zero, then their additional benefit is also zero. ( d) opportunity cost: by driving the car, they are giving up the opportunity to sell it, buy a smaller one, and pocket the difference.Question 8 (4 points) Listen The cost of postponing the Tokyo Olympics to 2021 in the wake of the Covid-19 virus outbreak an opportunity cost of hosting the 2020 Olympic Games (a) is; if the costs of the Tokyo postponement are equal to a significant percentage of the total amount spent by Tokyo taxpayers to host the 2020 Olympics (b) is; if the cost of postponing the Tokyo games would not occur unless Tokyo was hosting the 2020 Olympic games. (c) is not; because few people attending the 2020 Olympics will spend much time outside Olympic venues (d) is not; because the cost of postponing the Tokyo Olympics is a necessary expenseQuestion 9 (4 points) () Listen Fresh water is considered a scarce good because: ( a) most fresh water is hard to access. O b) it is mostly privately owned. () not enough of it is available to meet all needs. d) it has limited uses.Question 10 (4 points) mu If the value of homes in Seattle increases, and as a result. the people of Seattle spend more, incomes in Seattle will: 0 a) be ma'ected. O to increase. 0 C) increase and decrease by the same amount. leaving overall income unchanged. 0 d) decrease. Question 11 (4 points) ) Listen As long as people have different everyone has a comparative advantage in something. ( a) benefits O b) levels of utility ( c) direct costs O d) opportunity costsQuestion 12 (4 points) emu The fact that two variables always move together over time: Q a) proves that one variable is dependent on the other. 0 b) proves that changes in one variable cause changes in the other. 0 C) does not prove that one variable is dependent on the other. 0 d) is often illustrated using either a pie chart or a bar chart. Question 13 (4 points) I: (Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II. If the economy is producing at alternative C, the opportunity cost of producing at D instead of C is cell phones per period. Table: Production Possibilities Schedule II Alternatives A B C D E Computers 0 1 2 3 4 Cell hones 20 18 14 3 0 0330 Ob)\" Question 14 (4 points) I: The circular-ow diagram shows how: 0 3) banks receive money from households and lend it to rms. O b) money, goods and services, and factors of production ow through the economy. 0 C) education and training of the work forces raises labor productivity. 0 d) the government redistributes taxes to individuals and other levels of government to meet the needs of society. Question 15 (4 points) Listen (Table: Price, Quantity of Cookie Dough Demanded, and Quantity of Cookie Dough Supplied) Use Table: Price, Quantity of cookie dough demanded, and Quantity of cookie dough supplied. A linear relationship exists between: Table: Price, Quantity of Cookie Dough Demanded, and Quantity of Cookie Dough Supplied Price + IN 3 5 Quantity of Cookie Dough 16 N Demanded Quantity of Cookie Dough 3 Vi 7 9 Supplied 11 ( a) the quantity of cookie dough demanded and the quantity of cookie dough supplied. ( b) the price and the quantity of cookie dough supplied. ( c) the price and the quantity of cookie dough demanded. ( d) the price and the quantity of cookie dough demanded minus the quantity of cookie dough supplied.Question 16 (4 points) an Assume gasoline and cars are complements in consumption. If the price of gasoline rises, the producer surplus of auto manufacturers: O a) may change. but we cannot determine the change without more information. O b) will increase. 0 C) will not change. Q C\" will decrease. Question 17 (4 points) () Listen Which of the following factors is key to a well-functioning market? O a) greater government involvement to maximize efficiency (b) a reduced role for government in market activities (c) outcomes that are equitable for both consumers and producers (d) a right of individuals and firms to use and dispose of their private property as they see fitQuestion 18 (4 points) ) Listen Which of the following statements is TRUE? (a) When the efficient quantity is produced, consumer surplus is minimized. (b) When supply is greater than demand, producer surplus is less than consumer surplus. (c) When the efficient quantity is produced, producer surplus is minimized. (d) A competitive market pushes the quantity produced to its efficient level.Question 19 (4 points) () Listen Jedidiah is willing to pay $100 for the first pair of shoes, $80 for the second pair, $50 for the third, and $30 for the fourth. If shoes cost $50, and assuming Jedidiah buys shoes when he's indifferent about buying a given pair, Jedidiah will buy pairs of shoes, and his total consumer surplus will be O a) four; $80 b) four; $110 O c) three; $80 O d) three; $230Question 20 (4 points) I: Rebecca is willing to sell her used Ford Focus but not for less than $2,300. For Rebecca, the value of this used car is $2,300. O a) There is not enough information to answer the question. O '3) equal to O C) more than 0 d) Iessthan Question 21 (4 points) MI: The government is considering implementing a price ceiling in the market for new apartment rentals. Should the government go ahead with such a plan if there is evidence that a price ceiling would help in a market where rents should be to best help those in need? O 5\" consumers; higher 0 b) consumers; lower 0 C) producers; lower Q d) producers; higher Question 22 (4 points) () Listen Which of these would illustrate a price floor? ( a) a rent-controlled apartment Ob) a maximum legal price that could be charged for taxi rides. ()a government decree that capped the price of milk after a massive surge in prices in the aftermath of a devastating hurricane O d) the minimum wageQuestion 23 (4 points) I: (Figure: The Market for Popeyes Sandwiches) Use Figure: The Market for Popeyes Sandwiches. Suppose a quantity restriction is set at 8 Sandwiches per week. At this quantity, the quota rent for Popeyes would be equal to . Price $15 8 10 Quantity Question 24 (4 points) Listen (Table: The Market for Lyft Rides in New York City) Use Table: The Market for Lyft Rides in New York City. If the government imposes a quota limit of 9 million rides, the quota rent that will accrue to the Lyft owner will be per ride, and there will be a total missed opportunity (inefficiency) to consumers and producers of million rides. Table: The Market for Lyft Rides in New York City Price per es ride (fare) QD $17.00 6 14 16.50 7 13 16.00 8 12 15.50 9 11 15.00 10 10 14.50 11 9 14.00 12 8 13.50 13 13.00 14 6 Op-quantity demanded (millions of rides per year) s quantity supplied (millions of rides per year) O a) $1; 1 O b) $3; 3 O c ) $4 ; 4 O d) $2; 2Question 25 (4 points) Listen (Figure: Supply and Demand in the Market for Cappuccinos) Use Figure: Supply and Demand in the Market for Cappuccinos. A binding price ceiling is represented by: Price of cappucinos D 6 D E 6 7 9 Quantity of cappuccinos per week a) a price of $6. O b) point C. O c) a price of $5. ( d) a price of $4