Which of the following is not one of the four broad categories of resources?
government
The opportunity cost of attending college is
the highest valued alternative one forfeits to attend college
It usually takes less time to buy a six-pack of 7-up, a loaf of bread, and a half gallon of ice cream at a small convenience store than at a large, full-service grocery store. Which of the following persons is most likely to buy these items at a convenien
a person with high opportunity cost of time
Which of the following is an example of a positive economic statement?
if you drop a ball from the top of a building, it will fall to the ground
Microeconomics is the branch of economics that deals with
human behavior and choices as they relate to relatively small units - an individual, a firm, an industry
Which of the following is a positive microeconomics statement?
ford motor company's new advertising campaign ended up hurting General Motor's sales
What is the most prominent rationing device you will likely find at your campus bookstore?
dollar price
Opportunity cost is the value of
the best (or most highly valued) forfeited alternative
Which of the following is a positive economic statement?
the temperature is 105 degrees today
In economics, scarcity implies
choice
All sellers may be tempted to raise the price of what they sell, but a negative unintended effect of raising the price could be ______ in units sold large enough to ______ their total revenue earned.
a decrease; lower
A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than
137,500
The branch of economics that studies he decisions of individuals and firms is called
microeconomics
Amy's opportunity cost of going to the movies is
the price of the ticket plus the value to Amy of what she would have chosen to do with her time had she not chosen to go to the movies
In an interview an economist states, "This problem should be of greater concern to the federal government." We can explicity put this statement in the category of
normative goods
If variable X goes up as variable Y goes down, then X and Y are
inversely related
A person goes into a store and buys a computer for $1,210. In this case, price is acting as a
rationing device
How is scarcity related to competition?
competition is an effect of scarcity
Which of the following statements is false?
Positive and normative economics both address what should be
How are changes in opportunity cost predicted ti affect behavior?
b and c
Variable X rises as a result of variable Y rising. Variables X and Y are
directly related
In general, there is a _____ relationship between the number of hours spent studying for a test and the grade earned on the test.
direct
The answer is, "This is principally used to exhibit changes in data over time." The question is,
what is a line graph
To an economist, utility means
satisfaction
Many people buy one newspaper per day, but rarely do they buy two of the same newspapers on the same day. What is the economic justification for this behavior?
the marginal cost of purchasing the second newspaper exceeds the marginal benefit f purchasing that paper
A theory is
a,b,andc
If an economist says, "the higher the price of oranges, the fewer oranges individuals will buy, ceteris paribus", this means that
as the price of oranges rises, individuals preferences do not change, nor does anything else, but individuals buy fewer oranges in response to the higher price of oranges
The condition often used in economics to isolate the relationship between two variables is
ceteris paribus
The coordinates of point A are 300 units of X and 40 units of Y. The coordinates of point B are 280 units of X and 30 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between point A and B is
+0.50
Points inside (or below) the PPF are
attainable but productive inefficient
An increase in the quantity of resources
shifts the PPF rightward
Which of the following statements is true?
Productive inefficiency implies that it is possible to produce more of one good and no less of another, even w/out additional resources
A productive efficient society
all of the above
The law of increasing opportunity costs states that as
more of a good is produced, the higher the opportunity costs of producing that good
What is the reason for the law of increasing opportunity costs?
Resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce if before resources with higher opportunity costs produce it
If an economy is operating on its production possibilities frontier (PPF), are there any unemployed resources in the economy?
No, because if there were any unemployed resources the economy would be producing below its PPF
Which of the following is not true about production possibilities frontiers?
unemployment of resources is shown by shifting the PPF inward
The PPF between goods X and Y will be a downward-sloping
straight line if constant opportunity costs exist
An increase in the number of buyers in a particular market will result in a
rightward shift in the demand curve
If people begin to favor science fiction novels to a greater degree than previously, the demand curve for science fiction novels
shifts rightward
A rightward shift in the demand curve for tennis balls could be caused by
a fall in the price of tennis rackets
Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogurt would be predicted to do all of the following except
increase the supply of ice cream
A decrease in the expected price of corn would likely do the following to the current supply and demand for corn
increase the supply, but decreased the demand
An "increase in demand" means that
the demand curve has shifted to the right
Which of the following pairs of goods would be most likely to be substitutes?
butter and margarine
As Jamal's income rises, his demand for DVD rentals does not change. It follows that, for Jamal, DVD rentals are
neutral good
Jerry has $50000 in his savings account and the average new car price is $23000. Does Jerry have a demand for a new car?
not necessarily Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car
If the price a buyer pays for a good is $50 and the maximum price should would be willing and able to pay is $53, then ______ is ________.
consumers' surplus; $3
If the maximum price a person is willing and able to pay for a good is $50, and consumers' surplus is $20, then it follows that the price the buyer paid for the good is
$30
One can determine the consumers' surplus if the _____ is known
b and c
A price ceiling is a government-mandated
maximum price above which legal trades cannot be made
Which of the following is true?
buyers prefer lower prices to higher prices, ceteris paribus
If the minimum wage is set above the equilibrium wage, then
there will be fewer labor hours purchased by employers than at the equilibrium wage
The minimum wage is an example of a
price floor
The higher the price of medical care in general, the lower the _____ medical care and the ______ specific items that make up medical care.
quantity demanded of; lower the demand for