Question 2

(01.06 HC)

Consumer tastes shift toward an increased preference for a good at the same time that the government subsidizes production of it. After this, the equilibrium quantity would ____ and the equilibrium price would ________.

decrease; increase decrease; decrease increase; decrease increase; be indeterminate decrease; be indeterminate

Question 3

(01.05 MC)

If a producer is equally able to make Good A or Good B, and the market price for Good B increases, the producer will increase the quantity supplied of Good B and decrease the quantity supplied of Good A. This is an example of the

law of diminishing marginal utility law of supply law of demand income effect substitution effect

Question 4

(01.05 MC)

If the price of some land factor used in the production of a manufactured good decreases, ceteris paribus, what will happen to the market for that good?

The demand curve will shift right. The supply curve will shift right. The demand curve will shift left. The supply curve will shift left. The good's market will not be impacted.

Question 5

(01.03 HC)

Country Alpha takes 4 hours to produce a unit of jet fuel and 2 hours to produce a unit of butter. Country Omega takes 9 hours to produce a unit of jet fuel and 3 hours to produce a unit of butter. Based on this, what range of jet fuel for every 60 units of butter would be mutually beneficial?

Between 0.33 and 0.5 units of jet fuel Between 2 and 3 units of jet fuel Between 4 and 9 units of jet fuel Between 20 and 30 units of jet fuel Between 120 and 180 units of jet fuel Distractor

Question 6

(01.03 LC)

When comparing two countries' production possibilities of a certain good, _____ is the ability to simply produce more of it, while _____ is having a lower opportunity cost to produce it.

efficiency; absolute advantage comparative advantage; absolute advantage absolute advantage; comparative advantage efficiency; comparative advantage economic growth; absolute advantage

Question 8

(01.01 LC)

The foundational problem underlying the study of all economics is

scarcity maximizing profit the fairest distribution of resources efficiency the law of supply

Question 9(Multiple Choice Worth 3 points)

What feature of a free market equalizes the quantity demanded and quantity supplied?

The determinants of demand The determinants of supply Price Advertising Marginal utility

Question 10

(01.03 HC)

Use the PPCs below to answer the following question.

Which of the following statements about these countries' productions is accurate?

The Dominican Republic has an absolute and comparative advantage in consumer good production. Cuba has a comparative advantage in the production of consumer goods. These countries cannot mutually benefit from trade. Cuba's opportunity cost for converting resources is constant while the Dominican Republic's is increasing. The Dominican Republic must have more total resources.

Question 11

(01.06 MC)

What would happen to the equilibrium price and quantity for a good if an innovative production technique decreased the cost of making it?

The equilibrium price would decrease, and the equilibrium quantity would decrease. The equilibrium price would decrease, and the equilibrium quantity would increase. The equilibrium price would increase, and the equilibrium quantity would decrease. The equilibrium price would increase, and the equilibrium quantity would increase. There would be no change in either equilibrium price or quantity.

Question 12

(01.06 MC)

If businesses are decreasing production and lowering their prices, what situation is being eliminated in the market for that good?

A surplus Scarcity A shortage A dysfunctional coordinating mechanism Equilibrium

Question 13

(01.02 LC)

Which of the following would illustrate a recession on a production possibilities curve?

Producing all of one good or the other Production outside of the curve Increasing opportunity cost for production Producing anywhere but the midpoint of the curve Production inside of the curve

Question 14

(01.04 MC)

The price of a video game console decreases, ceteris paribus. As a result, demand will _______ and quantity demanded will _______.

be constant; increase be constant; decrease increase; be constant decrease; be constant depend on its determinants; increase

Question 15

(01.04 MC)

Which of the following events would cause the demand curve to shift left?

The price of the good increases. The price of the good decreases. The buyers in the market expect the good's price will soon increase. The good is inferior and the number of buyers in the market increases. The good is inferior and consumer incomes increase.

Question 16

(01.01 LC)

Which of the following is an example of a factor of production being used as a capital good?

Ice cream being consumed by a child on a hot day Toilet paper in a suburban household Lettuce for salads in a restaurant A poster on a teenager's bedroom wall A stuffed toy used by a parent to calm a toddler