ECON 2103 EXAM ONE – Flashcards

the overriding reason why households and societies face many decisions is that

what term refers to the property that society has limited resources and therefore cannot produce all the goods and services people wish to have?

the opportunity cost of an item is

the adage, "there is no such thing as a free lunch," means

which of the following statements best represents the principle represented by the adage, "there is no such thing as a free lunch"?

efficiency

when calculating the cost of college, which of the following should you probably include?

for which of the following individuals would the opportunity cost of going to college be highest?

the invisible hand refers to

which of the following is a principle concerning how people interact?

economic models

in the circular-flow diagram, which of the following is not a factor of production

in the market for goods and services in the circular-flow diagram

which of the following concepts cannot be illustrated by the production possibilities frontier?

which of the following is not correct

if the production possibilities frontier is bowed outward, then "?" could be

when economists are trying to help improve the world they are

normative statements are

assume that andrea and paul each has 480 minutes available. if each person divides his time equally between the production of wheat and beef then total production is

which of the following combinations of wheat and beef could andrea produce in one 8-hour day

if iowa's opportunity cost of corn is lower than oklahoma's opportunity cost of corn, then

assume for brazil that the opportunity cost of each cashew is 100 peanuts. which of these pairs of points could be on brazil's production possibilities frontier

if korea is capable of producing either shoes or soccer balls or some combination of the two, then

the principle of comparative advantage does not provide answers to certain questions. one of those questions is

the producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good,

which of the following statements about comparative advantage is not true?

which of the following changes would not shift the demand curve for a good

an increase in demand

which of the following would cause the demand curve to shift to the right in the market for movie theaters in the united states

suppose that the federal government is concerned about drug-related crime in the united states. congress is considering two policy options. one would focus on interdiction where government prohibits supply of drugs. the other would focus on educational campaign with the objective of informing the citizenry about the negative consequences of drug addiction. if the educational campaign is successful, we could illustrate the policy as producing a movement from

which of the following demonstrates the law of supply

which of the following would cause the supply curve to shift to the left in the market for latte

suppose that demand for a good decreases and, at the same time, supply of the good decreases. what would happen in the market for the good?

which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity

the current price of neckties is $30, but the equilibrium price of neckties is $25. as a result,

when a shortage exists in a market, sellers

the flatter the demand curve through a given point, the

suppose the price of potato chips decreases from $1.45 to $1.25 and, as a result, the quantity of potato chips demanded increases from 2,000 to 2,200. using the midpoint method, the price elasticity of demand for potato chips in the given price range is

when the price of a good A is $50, the quantity demanded of good A is 500 units. when the price of good A rises to $70, the quantity demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is

mary purchases 10 movie tickets per year when her annual income is $5,000 and 15 baskeball tickets when her annual income is $6,000. mary's income elasticity of demand for movie ticket is

last month, sellers of good Y took in $100 in total revenue on sales of 50 units of good Y. this month sellers of good Y raised their price and took in $120 in total revenue on sales of 40 unites of good Y. at the same time, the price of good X stayed the same but sales of good X decreased from 40 units to 20 units we can conclude that goods X and Y are

if a price floor is not binding then

price ceiling will be binding only if it is set

if the government removes a $2 tax on buyers of cigars and imposes the same $2 tax on sellers of cigars, then the price paid by buyers will

how is the burden of tax divided

suppose the government imposes a 20-cent tax on the sellers of artificially sweetened beverages the tax would shift