Question 30

Which of the following is true regarding the production possibility frontier model?There is more than one correct answer to this question.You must mark all of the correct answers to receive full credit for this question.

Group of answer choices

Using only the PPF model, it is not possible to state that any one combination on a frontier is superior to any other combination on the same frontier.

Points that are inside a PPF can be produced with the currently available resources and technology.

The PPF always slopes down because resources are always specialized.

Any curvature in the PPF results from resources being specialized.

Resource use is efficient in producing all of the combinations shown on a PPF.

Question 31

Assume there is a simultaneous decrease in the number of consumers, an increase in income (assume an inferior good), and an expectation by consumers of a lower price.Which of the following statements is correct?

Group of answer choices

The equilibrium price will decrease, and the equilibrium quantity will increase.

The equilibrium price will decrease, and the equilibrium quantity will decrease.

The equilibrium price will increase, and the equilibrium quantity will increase.

The equilibrium price will increase, and the equilibrium quantity will decrease.

More information is needed to answer this question.

Question 32

What is the term used to describe the difference between how much a consumer is willing to pay for the total amount of a good or service consumed and the amount actually paid?

Group of answer choices

consumer surplus

marginal utility

total utility

marginal revenue product

marginal product

Question 33

When demand and supply move in the opposite directions, where is the uncertainty?

Group of answer choices

There is no uncertainty.

There is uncertainty regarding any change in equilibrium quantity.

There is uncertainty regarding any change in equilibrium price.

Question 34

In a graph of a production possibility frontier, the axes are labeled with quantities of a good or service.

Group of answer choices

True

False

Question 35

Which of the following would cause a definite leftward shift of the supply curve?

Group of answer choices

an increase in the cost of an input and an expectation by firms of a lower price

a decrease in the price of a complement in production and a decrease in productivity

an increase in taxes and an increase in the number of firms

an increase in the price of a substitute in production and a decrease in the cost of an input

Question 36

A pizza place increased the selling price on its pizza by 12% and noticed a 16% decrease in the number of pizzas it sold.The demand for pizzas in this case is _______.

Group of answer choices

perfectly inelastic

inelastic

elastic

unit elastic

Question 37

Assume you are told there is an increase in the demand for electric cars.Based on this information, what would you predict in the market for electric cars?

Group of answer choices

The equilibrium price will increase, and the equilibrium quantity will increase.

The equilibrium price will increase, and the equilibrium quantity will decrease.

The equilibrium price will decrease, and the equilibrium quantity will decrease.

The equilibrium price will decrease, and the equilibrium quantity will increase.

Question 38

An employee of Amazon observes that when consumer income increases by 5%, the quantity demanded for a certain good decreases by 4%.The income elasticity of demand for this item is _______ and the good is a(n) _______ good.

Group of answer choices

-1.25, normal

-1.25, inferior

0.8, normal

-0.8, inferior

Question 39

Hammers, drills, and other construction equipment are examples of capital goods.

Group of answer choices

True

False

Question 40

According to the general rule in marginal analysis, an activity should continue as long as the marginal benefit the marginal cost.

Group of answer choices

True

False