Reference no: EM13860639
1. Demand is measured on the vertical axis and supply on the horizontal axis.
True
False
2. Opportunity cost is the lowest valued benefit that must be sacrificed as the result of choosing an alternative.
True
False
3. "The big corporations in this country, like ExxonMobil and GM, have deep pockets and need to be hiring more people." This is a positive statement about economic policy.
True
False
4. The smaller percentage of one's net budget one has to allocate money to a particular product, the more price inelastic will be the demand for that product.
True
False
5. The law of demand states that there is a direct relationship between supply and demand.
True
False
6. In the production possibilities frontier, a nation's boundary will shift inward if they export more than they import, likely leading to inflationary pressures in the economy.
True
False
7. A point inside the production possibilities frontier represents an economythat is utilizing resources efficiently.
True
False
8. Households play a dual role of providing the factors of production whilepurchasing the goods and services of firms.
True
False
9. Excess demand in the market will cause the price of a product to decline.
True
False
10. Antiques would tend to have highly price inelastic supply curves.
True
False
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Cost of pollution control differs widely
: Suppose an environmental regulation requires all polluters to reduce emissions by 50%, even though the cost of pollution control differs widely from one polluter to another. Why might this be inefficient, using the definition of efficiency developed ..
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Pecans or walnuts
: Smith likes cashews better than almonds and likes almond better than walnuts. He likes pecans equally as macadamia nuts and prefers macadamia nuts to almonds. Pecans or walnuts?
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The marginal cost pricing model
: The marginal cost pricing model calculates a markup over marginal costs using estimates of the price elasticity of demand. Will any other pricing strategy result in higher profits?
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Equilibrium is state of balance between supply and demand
: A substitute good is a determinant of supply. Government actions, such as price floors and ceilings, can actually reduce employment and raise market inefficiency. Equilibrium is a state of balance between supply and demand. For economies that rely on..
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Demand is measured on the vertical axis
: Demand is measured on the vertical axis and supply on the horizontal axis. The law of demand states that there is a direct relationship between supply and demand. Excess demand in the market will cause the price of a product to decline. Antiques woul..
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Accordance with the law of comparative advantage
: Joint output of individuals or nations will be maximized when goods are exchanged between parties in accordance with the law of "comparative advantage". An increase in consumer income will affect the supply of any given product. The production possib..
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Hours of typing on horizontal axis-hours of filing vertical
: Draw a graph with “hours of typing” on the horizontal axis and “hours of filing” on the vertical. Do your indifference curves slope upward or downward? Why? Suppose you currently type for 3 hours a day and file for 5, but you’d be just as happy typin..
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Illustrate the bullys effect on your budget line
: Your income is $10 and you buy sodas for $1 apiece. One day a local bully starts demanding that you buy him a soda for every soda you buy yourself. Therefore, it now costs you $2 to get a soda. In these circumstances, you choose to buy 3 sodas a day...
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Which state has comparative advantage in corn-shucked oyster
: A worker in Rhode Island can produce 1 pound of corn in 15 minutes and 1 pound of shucked oysters in 10 minutes. A worker in South Carolina can produce 1 pound of corn in 20 minutes and 1 pound of shucked oysters in 60 minutes. Which state has a comp..
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