Which of the following is TRUE? O a. Trade based on absolute advantage can always benefit all countries involved. O b. Trade based on comparative advantage usually benefits some countries and hurts others. O c. Trade based on comparative advantage only benefits countries that also have an absolute advantage. O d. Trade based on comparative advantage can always benefit all countries involved. If the supply for a certain good decreases (shifts to the left), what happens next? O a. The price falls and then the quantity demanded falls O b. The price rises and then the quantity demanded falls O c. The price falls and then the quantity demanded rises O d. The price rises and then the quantity demanded rises A model is a theory: O a. that has been simplified to a story, a graph, or a math problem. b. that has not yet been empircally tested. O c. that has been proven to be true. O d. that does not apply to the real world. Which of the following best describes your demand for shares of a certain stock if you will buy 10 shares at a price of $20 and you will buy 8 shares at a price of $25? O a. Perfectly Elastic O b. Unit elastic O c. Inelastic O d. Elastic$21 A $12 B $2 C Q 50 In the diagram above, there is of total surplus at the market equilibrium. O a. $225 O b. $250 O C. SO O d. $475 Which of the following is in the CORRECT chronological order? O a. A change in demand, a change in price, a change in quantity supplied O b. A change in demand, a change in quantity supplied, a change in price O c. A change in price, a change in demand, a change in quantity supplied O d. A change in price, a change in quantity supplied, a change in demand If the demand for a good increases (shifts to the right), what happens next? O a. The price falls and then the quantity supplied falls O b. The price rises and then the quantity supplied rises O c. The price falls and then the quantity supplied rises O d. The price rises and then the quantity supplied falls Suppose you choose to eat 3 slices of pizza for dinner. An economist who is using marginal thinking to analyze your decision would be most interested in the answer to which of the following questions? O a. Why did you eat more than 1 slice of pizza? O b. Why did you have pizza instead of a salad? O c. Why didn't you eat 5 slices of pizza? D d. Why did you eat 3 slices of pizza instead of 4