Macro 1 Test – Flashcards
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Which of the following is not one of the three central coordination problems of economy given in the book.
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Weather
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Alexandra has determined that studying am hour for her economics quizwill improve her score from 75 to 100. She also determined that this improvement is worth $20. In order to study for her economics quiz however, she will have to work one hour less at her job. Alexandra should...?
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Study for the quiz if her hourly wage rate is less that $20
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Mary buys cell-phone services from a company that charges $30 per month. For that 30, she is allowed 600 minutes of free calls and then pays 25 cents per minute for any call after 600 minutes. mary has used up 300 minutes so far this month. What is her marginal cost per minute of making two more calls at 10 minutes each?
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Zero
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Sunk Cost:
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are irrelevant to economic reasoning.
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The opportunity cost of attending college is likely to be highest for a high school graduate
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Who is capable of competing successfully in professional tennis
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The price mechanism that guides our action is called the:
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The invisible hand
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With resources available, you can make the combination of Ums and Umiesshown in the table. The opportunity cost of procucing 60 Umies instead of 30 Umies is:
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20Ums
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Because you can only get more of one good by giving up some of another good,the shape of a production possibility curve is.
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Downward Sloping
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Increasing marginal opportunity cost means that the production possibility curve is:
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bowed out so that for every additional unit of a good given up, you gain fewer and fewer units of the other good.
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If you move from a point inside the production posibility curve to a pont on the production possibility curve, it follows that efficiency is:
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increased because the economy is now on the production possibility curve
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Suppose the New Zealand uses one unit pg labor to produce kiwi and two units of labor to produce an apple. Suppose Austrailia uses two units of labor to produce kiwi and one unit of labor to produce an apple. In this case, New Zealand:
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has a comparative advantage in producing kiwis
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The production posibilities frontiers of Northland and Southland are given above. If these countries trade, which of the following points would be on their combined or joint production-possibilities frontier
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???
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John and Jane Smith are both economists who are deciding how to split household chores of cooking and cleaning. They discover that John has a comparative advantage in cooking. Does this discovery tell them anything about comparative advantage in cleaning?:
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Yes; Jane must have a comparative advantage in cleaning.
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Which of the following would likely result in an increase in the demand for beef?
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An increase in family incomes.
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Which of the followingis not held constant as you move along the demand curve
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the price of that good
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Which statement is not consistent with the law of supply?
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Quantity supplied of a good is inversely related to the good's price
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The more the current price exceeds the equilibrium price, the:
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greater the resulting surplus will be
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Suppose foreign shrimp prices drop by 32 percent and importers gain a 90 percent market share. From this information, what would economists strongly suspect about this industry?
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Foreigners have a comparitive advantage in shrimping
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countries can expect to gain from international trade as long as they:
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specialize according to their comparative advantage
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Assume that in Canada the opportunity cost of producing 1 television set is 2 bushels of wheat. Assume that in the U.S. the opportunity cost of producing 1 bushel of wheat is 2 television sets. All other things being equal:
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the U.S. should import wheat and export televisions.
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The loss of jobs due to international trade is often:
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more visible than the decline in consumer prices due to international trade.
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Suppose that the U.S. dollar buys 100 Japanese yen, gold costs $500 per ounce in New York, and gold costs 20,000 yen per ounce in Tokyo. What does the law of one price predict would happen?
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Traders would buy gold in Japan and sell it in the U.S.
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If the US dollar apreciates the Japanese Yen:
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Japanese goods will be cheaper in the United States
