Micro exam 1.txt

  1. when calculating the opportunity cost of college, which of the following should your probably not include?



    D. the cost of rent for your off-campus apartment
  2. which of the following proases best captures the notion of efficiency?



    B. minimum waste
  3. high school athletes who skip college to become professional athletes



    D. understand that the opportunity cost of attending college is very high
  4. after much consideration, you have chosen Cancun over Ft. Lauderdale as your spring break destination this year. however, spring break is still months away, and you may reverse this decision. which of the following events would prompt you to reverse this decision?



    C. the marginal cost of going to Ft. Lauderdale decreases
  5. if the united states decides to trade with mexico, we know that



    C. mexico and the united states can both benefit
  6. the opportunity cost of obtaining more of one good is shown on the production possibiliies frontier as the



    C. amount of the other good that must be given up
  7. which of the following events could shift the demand curve for gasoline to the left?



    C. public service announcements run on television encourage people to walk or ride bicycles instead of driving cars
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    the opportunity cost of this economy moving from point A to point B is



    C. 10 toasters
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    if this economy devotes all of its resources to the production of tooth brushers, then is till produce



    B. 70 toothbrushes and 0 toasters
  10. assume that greece has a comparative adveantage in fish and germany has a comparative adveantage in cars. also assume that germany has an absolute advantage in both fish and cars. if these two countrises specialize and trade so as to maximize the benefits of specialization and trade, then



    D. all of the above
  11. if the demand for a product increases (i.e., the demand curve shifts right), then we would expect



    equilbrium price and equilbrium quantity both to decrease.
    C. equilbrium price and equilbrium quantity both to increase.
  12. mallory decides to spend three hours working overtime rather than watching a vider with her friends. shie earns $8 an hour. her opportunity cost of working is



    B. the enjoyment she woulld have recieved had she wathed the video
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    the movement from D to D' could be caused by



    C. a decrease in the price of a substitute
  14. a decrease in input costs to firms in a market will result in



    A. a decrease in equilibrium price and increase in equilibrium quantity
  15. of a surplus exists in a market, then we know that the atual price is



    A. above the equilibrium price and quantity supplied is greater than quantity demanded
  16. which of the following is an example of a normative, as opposed to positive, statement?



    C. the income taxes should be reduced
  17. the amount of goods and services produced from each unit of labor input os called



    B. productivity
  18. in economice, physical capital refers to



    C. building and machins used in the production process
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    which of the following events would explain the shift of the production possibilities fromtier from A to B
    a. the economy's citzens developed an enhanced taste for batteries
    b. the economy experienced a technological advence in the production of betteries
    more capital became available in the econom
    d. more labor bacame available in the economy
    b. the economy experienced a technological advance in the production of batteries
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    all else equal, a large number of people becoming vegetarians would cause a move



    A. from Da to Db
  21. unemployment would cause an economy to



    C. produce inside its production possibilities frontier
  22. a downward-sloping demand curve illistrates



    D. the law of demand
  23. economists believe that production possibilities frontiers



    A. often have a bowed shape
  24. a technological advence will shift the



    D. supply curbe to the right
  25. the basic principles of economics suggest the



    C. government should become involved in markets when those markets fail to produce
  26. production is efficient if the econom is producing at a point



    D. on the production possibilities frontier
  27. if Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then



    A. iowa has a comparative advantage in the production of corn
  28. beef is a normal good. you observe that both the equilitrium price and quantity of beef have fallen over time. which of the following explanations would be most consistent with this observation?



    C. new medical evidence has been released that indicates a negative correlation between a persons beef consumption and his or her longevity (i.e., overall health)
  29. which of the following is not a variable that shifts the demand curve for a particular good?



    D. the prices of the inputs used to produce the good
  30. the supply of a good or service is determined by



    C. those who sell the good or service
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    puneet has an absolute advantage in the production of
    a. purses and chirag has an absolute advantage in the production of walltes
    b. wallets and chirag has an absolute advantage in the production of purses
    b. both goods and chirag has an absolute advantage in the production of neither good
    d. neither good and chirag has an absolute advantage in the production of both goods
    b. both goods and chirag has an absolute advantage in the production of neither good
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    puneet has a comparative advantage in the production of
    a. purses and chirag has a comparative adcantage in the production of wallets
    b. wallets and chirag has an absolute advantage in the production of purses
    bother goods and chirag has an absiolute advantage in the production of neither good
    d. neither good and chirag has an absolute advantage in the production of both goods
    a. purses and chirag has a comparative adcantage in the production of wallets
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    if puneet and chirag switch from each person dividing his time equally between the production of purses and wallets to each person spending all of his time producing the god in which he has a comparative advantage, then total production of purses will increase by



    A. 3
Author
mdelliquadri
ID
2482
Card Set
Micro exam 1.txt
Description
micro econ chapter 1-2
Updated