Reference no: EM133289228

Assignment:

1) The scarcity principle implies that to have more of one thing it usually means

a) Increasing the need for another

b) Behaving oneself

c) Having less of another

d) Fighting for it

2) If for some reason, average weather in a country becomes cooler, what happens to the ice-cream market in that country

a) Both price and quantity exchanged in equilibrium decline

b) Price declines but quantity remains the same as the supply is not changed

c) Supply declines as companies leave the market

d) Price increases but quantity may increase or decrease

3) As the price of personal computers continues to fall, demand increases this headline is inaccurate because

a) A change in the price of personal computers shifts the demand curve

b) The statement is backwards: increased demand leads to lower prices

c) Falling prices for personal computers raise quantity demanded not demand

d) A change in the price of personal computers leads to an upward movement over the supply curve

4) Ceteris paribus, which of the following would cause the demand for labor curve to shift leftward

a) an improvement in the training and education of potential workers

b) An increase in market demand

c) An increase in the productivity of the workers

d) A decrease in the productivity of the workers

5) Which of the following is not an input of production

a) Entrepreneurial ability

b) Labor

c) Land

d) Shares

6) For a given good, while keeping everything else constant, the law of demand implies that

a) As income rises, the quantity demanded of the good will increase if the good is an inferior good

b) Once the price of the good in question increases, the quantity demanded of that good decreases

c) As income declines, the quantity demanded of the good will increase if the good is an inferior good

d) As the demand for the good increases, the price of the good will fall

7) Absolute advantage refers to

a) Someone who has higher opportunity costs

b) Lower opportunity costs

c) The fact that one has lower production costs

d) Comparative advantage

8) Benefits from trade increase when

a) One party s PPC is as flat as possible whereas the other s is as steep as possible

b) Each party acts in accordance with his or her absolute advantage

c) Trading partners have similar opportunity costs

d) Each party s PPC is very similar

9) When is it rational to hire outside help rather than fo a task by oneself

a) When ones own opportunity cost is greater than the opportunity cost of the hired

b) If one is a professor

c) When one does not have the absolute advantage over the hired

d) When ones own opportunity cost is less than the opportunity cost of the hired