01.09 Module One Exam – Flashcards
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Use the cost-benefit analysis table to answer the question: Should Mrs. Baxter allow her students to take an open-book test? Which of the following would best fill the blank space?
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Students will be happier with Mrs. Baxter.
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Jen is starting a nonprofit store. She plans to sell handmade African scarves and jewelry. Which economic question(s) would Jen still need to answer?
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For whom to produce?
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What would cause the overall demand for books to increase?
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A celebrity commercial encouraging reading
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Which situation would cause an increase in the overall supply of books?
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A decrease in the price of book-binding glue
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Felicia knits scarves and sells them to her friends. The first week, she knits four scarves and sells three for $50 each. The next week she buys her yarn at a discount, so she knits six scarves and is able to sell five for $40 each. Which number represents quantity demanded at $40?
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Five
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Use the above graph to answer the following question. What event is shown by line 2?
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An increase in demand
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If the x-axis is Quantity, and the y-axis is Price, what does line S1 represent?
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The supply of a product at time 1?
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Devon enters his poem in a nationwide contest, rather than joining his friends at a football game. Which would be a long-term benefit of his choice?
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Winning a scholarship for his writing
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Quantity demanded is the quantity
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people will purchase at a specific price
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The U.S. economy begins to slow, so the U.S. prints more currency. What is the risk of this action?
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The currency will lose value.
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Use the cost-benefit analysis table to answer the question: Should Duane buy a utility trailer? Duane has a small woodworking business and saves the money for college. He stores his tools in his apartment. Duane would like to buy a utility trailer for his tools. It will cost $2,800. He creates a cost-benefit analysis table to examine his choices. What statement would best complete the chart, and why?
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He will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.
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Based on the graph, what would happen if customers demanded 550 units of this product?
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The price would drop to 0.5.
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The supply and demand curves reflect the availability and cost of a new gaming system. The producer announces that the new system will be compatible with existing games under the same brand. Which change will most likely occur to the graph?
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Demand will shift right, raising the market price.
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A console game, ZOMBIES!, has come out recently. It sells for $60. Which of these might lower the price of the game?
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A negative article about the game from a well-known reviewer, causing sales to drop
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When you gave your friend a fifty-dollar bill for an iPod, you used money as a
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medium of exchange
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Costa Rica is a top exporter of coffee. The highest quality coffee is sold abroad, and the lower quality coffee is consumed by native Costa Ricans. Which of the following statements best describes the economic questions this paragraph addresses?
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For whom to produce? and What to produce?
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Economics is defined as a study of the
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ways people obtain their wants with limited resources
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Bria pays $30 to a nonprofit medical organization to provide vaccines to those in need. She makes the donation in her mother's name as a gift. Which statement best relates to Bria's economic activity?
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Money functions as a medium of exchange.
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A vendor makes a new smartphone and presells four thousand units for $300 each. The factory has the capacity to produce one thousand smartphones per month. Anticipated sales are five hundred units per month. Which of these would occur during the first few months of sales?
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Limited supply would increase the price.
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Based on the graph, how is quantity demanded related to price?
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Quantity demanded decreases as price increases.
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The supply and demand curves show data for trendy smartphone covers. How would the graph change if the producer hired a popular actor as spokesperson for the product?
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Add D2 to the right of D, showing an increase in demand and increase in equilibrium price.
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Lois promised to take her nephew to the zoo on Tuesday afternoon. On Tuesday, her boss hands her a new project, due by the end of the day. Which of these is an opportunity cost of Lois using Tuesday to work on her project?
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She and her nephew enjoy an afternoon at the zoo.
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The supply and demand curves reflect the availability and cost of a new gaming system. If the gaming system market is currently at Demand and Supply 1, which change to the graph would have to occur to increase equilibrium price while lowering equilibrium quantity?
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Add Supply 2 to left of Supply 1.
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Timothy, a cashier, is given a twenty-dollar bill at his store. He is suspicious of the customer and wants to make sure the currency is real. Which would be a clue that the currency is counterfeit?
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There is no change in the color of the bill's ink.
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Quantity demanded is the quantity
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people will purchase at a specific price
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Use the above graph to answer the following question. Pretend this graph represents the market for books. Which situation would cause the graph to shift from line 1 to line 2?
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A celebrity commercial encouraging reading
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A doctor at Boston University partnered with a professor at Northeastern University to create a virtual support program for patients recently discharged from the hospital. How would they answer the economic questions For whom to produce? and What to produce?
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Patients and a virtual support program
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Yao's Asian Market sells dragon fruit for $3 each. The store usually sells 20 dragon fruits a week. Dragon fruit is in season, and the market could maintain a steady delivery. The produce manager decides to have a sale on dragon fruit and reduces the price to $2 each. Which of these would happen?
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The quantity demanded would increase.
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If the x-axis is Quantity and the y-axis is Price, what does the 85 in point (85, 5) represent?
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The quantity supplied at time 1
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You go to the bank to trade a dirty dollar for a new, clean one. The cashier tells you the trade is not necessary because currency is
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stable in value
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Use the cost-benefit analysis table to answer the question: Should Philip customize his motorcycle? Philip is thinking about customizing his motorcycle. A paint job, saddlebags, and a radio would cost $600. His motorcycle is older, so he also knows that he will need to get another motorcycle sometime in the next two years. He creates a cost-benefit analysis table to examine his choices. What statement would best complete the chart, and why?
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He will temporarily have less money in his bank account.
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Which of the following addresses all three of the basic economic questions?
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You start your own lunch delivery service serving area businesses and featuring all organic meals baked in your home.
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When new technology for the more efficient production of peanut butter was implemented, the supply curve for peanut butter
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shifted to the right
