Question 1

1 out of 1 points

Scarcity is correctly described by which of the following statements?

I. Scarcity exists if there are more uses for resources than can be satisfied at one
time.
II. Scarcity exists if decisions must be made about alternative (other) uses for
resources.
III. Scarcity would not exist in a society in which people wanted to help others
instead of themselves.

Question 2
1 out of 1 points

The cross elasticity of demand measures the responsiveness of the quantity

demanded of a particular good to changes in the prices of

Question 3
1 out of 1 points

An increase in subway fares in New York City will boost your expenditures
(spending) on subway rides if

Question 4
0 out of 1 points

(Table: Coffee and Salmon Production Possibilities) The table shows the maximum
amounts of coffee and salmon that Brazil and Alaska can produce if they just
produce one good.
The opportunity cost of producing 1 unit of salmon for Alaska is:

Question 5
1 out of 1 points

If the quantity supplied in a market exceeds the quantity demanded in a market,

we would expect prices to:

Question 6
1 out of 1 points

Which of the following is an example of a normative statement?

Question 7
1 out of 1 points

Which of the following situations would necessarily lead to an increase in the

price of peaches?

Question 8
1 out of 1 points

If the cross elasticity of demand between goods A and B is positive,

Question 9
1 out of 1 points

The primary difference between a change in demand and a change in the

quantity demanded is:

Question 10
1 out of 1 points

The fallacy of composition is evident in which of the following statements?

Question 11
1 out of 1 points

(Figure: Market for DVD Rentals) Four possible outcomes in the market for rentals

of DVDs are shown in the figure provided.

An increase in the fee charged for DVD rentals would result in a change in DVD
rentals illustrated by:

Question 12
1 out of 1 points

When the economy suffers a downturn, vacationers are more likely to take car
trips than to fly. Which of the following provides the most reasonable explanation
for thins phenomenon?

Question 13
1 out of 1 points

The market for corn is currently in equilibrium. Which of the following is most
likely to increase the equilibrium price of corn?

Question 14
1 out of 1 points

A newspaper story recently reported that the price of new cars has decreased,
and the quantity of new cars sold has dropped. The price and quantity changes
were probably caused by:

Question 15
1 out of 1 points

The demand for a good is elastic if:

Question 16
1 out of 1 points

(Figure: Tom's Production Possibilities)

In the figure, which point or points would represent (an) inefficient
combination(s) of coconuts and fish if Tom made that choice?

Question 17
1 out of 1 points

If an economy has to sacrifice increasing amounts of good X for each unit of good
Y produced, then its production possibility frontier is:

Question 18
1 out of 1 points

In the soft drink market, an increase in the price of sugar, a necessary ingredient
for soft drinks, and an increased concern about tooth decay caused by the
consumption of soft drinks will

Question 19
1 out of 1 points

An increase in supply is caused by:

Question 20
1 out of 1 points

Which of the following is NOT one of the Five Powers of Economic Thinking?

Question 21
1 out of 1 points

Which of the following is NOT true about consumer surplus?

Question 22
1 out of 1 points

If people demand more of product A when the price of B falls, then A and B are:

Question 23
1 out of 1 points

Which of the following is not a factor of production?

Question 24
1 out of 1 points

A college student is faced with a difficult decision of how to spend one hour
tonight. She could babysit her professor's child at an hourly wage of $7, she
could work at the college library at a wage of $6, or she could finish her
economics homework assignment. If she chooses to complete her homework
assignment, she has incurred an opportunity cost equal to:

Question 25
1 out of 1 points

A positive statement is

Question 26
1 out of 1 points

(Figure: Consumer and Capital Goods)

The movement from Curve 1 to Curve 2 indicates:

Question 27
1 out of 1 points

Consider the market for corn. What happens if there is an increased demand for
corn tortillas and, at the same time, a new corn seed becomes available that
increased the per-acre yield dramatically?

Question 28
1 out of 1 points

Suppose a rise in the price of peaches from $5.50 to $6.50 per bushel decreases
the quantity demanded from 12,500 to 11,500 bushels. The price elasticity of
demand is closest to which answer?

Question 29
1 out of 1 points

(Figure: Tom's Production Possibilities)

In the figure, which point or points would represent (an) efficient combination(s)
of coconuts and fish that Tom could choose to produce?

Question 30
1 out of 1 points

Free trade between countries:

Question 31
1 out of 1 points

Which of the following was the focus of the first scroll in The Greatest Salesman
in the World?

Question 32

1 out of 1 points

(Table: Coffee and Salmon Production Possibilities) The table shows the maximum
amounts of coffee and salmon that Brazil and Alaska can produce if they just
produce one good.
The opportunity cost of producing 1 unit of coffee for Brazil is:

Question 33
1 out of 1 points

Assume a consumer finds that his total expenditure on compact discs stays the
same after the price of compact discs declines. Which of the following is true for
this price change?

Question 34
1 out of 1 points

Alison has a linear production possiblity frontier in the production of bracelets

and necklaces. In one hour, she can produce 5 braceletes or 10 necklaces. What
is the opportunity cost for her to make one necklace?

Question 35
1 out of 1 points

(Figure: Market for DVD Rentals) Four possible outcomes in the market for rentals
of DVDs are shown in the figure provided.
An increase in the price of DVD players (because of an increase in production
costs) would result in a change in DVD rentals illustrated by:

Question 36
1 out of 1 points

Nara has gone to three movies already this week. She has some extra money so
she decides to go to another. This statement best represents the economic
concept of:

Question 37

1 out of 1 points

Which of the following is assumed constant along the demand curve for gasoline?

Question 38
1 out of 1 points

You are not surprised that it has started to rain. After all, an hour ago you just
finished washing your car. Your reasoning is an example of

Question 39
1 out of 1 points

(Figure: Consumer and Capital Goods)

Point Z:

Question 40
1 out of 1 points

(Figure: Market for DVD Rentals) Four possible outcomes in the market for rentals
of DVDs are shown in the figure provided.
An increase in the price of movie tickets (a substitute for renting DVDs) would
result in a change in DVD rentals illustrated by: