| A production possibilities frontier is bowed outward when
A. a the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. B. b. the rate of tradeoff between the two goods being produced Is constant C. c. the rate of tradeoff between the two goods being produced depends on how much of each good is being produced. D. d. an economy is self-sufficient instead of interdependent and engaged in trade. |
| For any country. if the world price of zine is higher than the domestic price of zine without trade, that country should
A. Export zinc, since that country has a comparative advantage in zinc. B. Import zinc, since that country has a comparative advantage in zinc C. Neither export nor import zinc, since that country cannot gain from trade. D. Neither export nor import zinc, since that country already produces zinc at a low cost compared to other countries. |
| The scientific method is
A. the use of modern technology to understand the way the world works. B. the use of controlled laboratory experiments to understand the way the world works C. the dispassionate development and testing of theories about how the world works. D. the search for evidence to support preconceived theories about how the world works. |
| Which of the Ten Principles of Economics does welfare economics explain more fully?
A. The cost of something 1S what you give up to get it. B. Markets are usually a good way to organize economic activity. C. Trade can make everyone better off. D. A country’s standard of living depends on its ability to produce goods and services. |
| Which of the following economic activities are included in the subject matter of Economics?
A. Economic activities related to Unlimited wants B. Economic activities related to Limited resources C. Both a and b D. None of the above |
| Expansion is demand occurs due to:
A. Rise in price of given commodity B. Falls in Price of given commodity C. Rise in the price of substitute goods D. Fall in the price of complementary goods |
| The goal of rent control is
A. Facilitate controlled economic experiments in urban areas. B. Help landlords by assuring them a low vacancy rate for their apartments. C. Help the poor by assuring them an adequate supply of apartments. D. Help the poor by making housing more affordable. |
| Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay €30 for one, buyer 2 is willing to pay €25 for one, and buyer is willing to pay €20 for one If the price is €25, how many vases will be sold and what is the value of consumer surplus in this market?
A. Three vases will be sold and consumer surplus is €80 B. One vase will be sold and consumer surplus is €5. C. One vase will be sold and consumer surplus is €30. D. Two vases will be sold and consumer surplus is €5. |
| Which of the following is an example of a normative statement
A. Higher interest rates will cause people to borrow and invest less. B. The government should increase spending during recessions, so that the economy recovers quickly. C. When the price of a good increases, consumers respond by reducing the quantity of that good they want to purchas D. Over the past 50 years, the number of women who participate in the labor force has increased dramatically. |
| Goods which can alternatively be used are called:
A. Complementary goods. B. Substitute Goods C. Comfort goods D. None of the these |
| Illustrates the
market for chocolate bars has the following demand and supply schedules: Price Quantity Demande Quntity supplied $3 111 26 $4 100 53 $5 80 80 $6 64 92 $7 51 111 $8 37 120
a. Graph the demand and supply curves. What is the equilibrium price and quantity 11 this market? b.If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? |
If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?
