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19 Cards in this Set
- Front
- Back
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T/F if a binding price ceiling is imposed on a good, then a shortage of that good will occur
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T
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T/F when supply shifts rightward and demand shifts leftward at the same time, the equilibrium market price rises
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F
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T/F ther is an opportunity cost associated with any choice you make
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T
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T/F Moving from a point on the production possibilites curve to another point on the same curve implies a gain in production efficiency
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F
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T/F if demand is inelastic, the absolute value of the price elasticity of demand is between 0 and 1
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T
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If a new labor saving technology is discovered..
A- the PPC remains unchanged B- the PPC curve shifts inward C- there is mvt along the PPC D- society does not face a new set of tradeoffs E- points that were previously unattainable to society may now be attainable |
E
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Which of the following is NOT held constant when constructing a supply curve for a good...
A- # of firms producing the good B- P of a good C- P of inputs D- producers expectations E- the production technology |
B
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The public transportation system recently raised rates and was suprised to be faced with declining revenue. What can be accurately concluded?
A- nothing, not enough info B- Demand for public trans. system is inelastic C- Income elasticity of demand for public trans is > 1 D- Price ED for public trans is > 1. E- the demand curve for public trans is positively sloped |
D
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Suppose that a consumers' total benefit of consuming 2 cups of coffee is $9, and total benefit of consuming 3 cups is $13
the consumers TWTP for the 3rd cup of coffee is.. A- $0 B-$3 C-$4 D-$9 E-$13 |
C
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T/F If the demand for product X declines as the price of product Y increases, then X and Y are complements of each other
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T
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T/F A binding price floor imposed on a good will result in surplus of that good
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T
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T/F Moving from a point on the PPC to another point on the same curve implies a gain in production efficiency
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F
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T/F Bc there are a few substitutes for gas, we expect the demand for gas to be fairly elastic
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F
The more substitutes a good has, the more elastic demand is |
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T/F If demand is elastic, the absolute value of price elasticity of demand is larger than 1
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T
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According to the law of demand, if the price of CD's decreased, ceteris paribus..
A- the demand for CD's would decrease B- the QD for CD's would decrease C- the demand for CD's would increase D- the QD for CD's would not change E- The QD for CD's would increase |
E
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Which of the following causes a mvt along the demand curve for apples
A- consumers expect an increase in the price of apples B- consumer income decreases C- bad freeze destroys half of the apple trees D- the price of oranges decreases E- None |
C
bc supply is decreasing |
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A point lying inside the PPC
A- indicates resources are not being fully or efficiently used B- is never possible for an economy- economy is always on the curve C- requires more resources than are presently availabe D- represents an increases in resources E- is not an attainable combination |
A
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If the P of a product increases by 17%, and QD decreases by 9% then..
A- product has elastic demand B- product has elastic supply C- product has unit elastic demand D- producers should raise the price further to increase total revenue E- the product has many substitutes |
D
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Irene buys 1 soft drink a day regardless of price. Which of the following statements is correct with respect to Irene?
A- Demand for soft drinks is perfectly elastic B- Price elasticity of demand for soft drinks is zero C- Price ED for soft drinks is unit elastic D- Income ED for soft drinks is positve E- Price ED cannot be calculated with info given |
B
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