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Macro - Exam 1 Review Flashcards | StudBud
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Macro - Exam 1 Review
Macro - Exam 1 Review
23 terms
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Shift in Demand #demand #communitycollege #economics #supply #equilibrium
Flashcards
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Questions
23
Answers
1
Opportunity cost
is the same for everyone.
is based on comparative advantage.
is the highest valued alternative not chosen.
never changes.
2
Using production possibilities listed below, which country has absolute advantage in Beef?
Brazil
Argentina
Not enough information
3
How do producers know when they should increase the price?
When there is a surplus
When demand increases
When cost of inputs increase
When there is a shortage
4
What will happen if producers and consumer expect the price to be higher in the future?
Demand will stay the same; Supply will stay the same
Demand shifts right; Supply shifts left
Demand shifts left; Supply shifts right
Demand shifts right; Supply will stay the same
5
For generic mac and cheese, as people's income increases we would expect...
supply to increase
quantity demanded to decrease
quantity supplied to increase
demand to decrease
6
Which of the following variables is easiest to observe?
Demand curve
Eqbm quantity
Eqbm Price
Supply Curve
7
What will happen if producers and consumer expect the price to be higher in the future?
eqbm quantity will depend on which shift is larger
eqbm price will depend on which shift is larger
eqbm quantity will increase
eqbm price will fall today
8
If demand is increasing, which of the following will be true:
quantity is ambiguous
quantity will increase
price will decrease
Supply will increase
9
A binding price ceiling...
increases consumer surplus
is set above eqbm price
creates a surplus
is set below eqbm price
10
Xavier is willing to pay $85, Yolanda $75 and Zeph $60. If the price is $65, ...
Consumer Surplus = $35
Consumer Surplus = $30
Producer Surplus = $130
Consumer Surplus = $40
11
Which country has the comparative advantage in producing Maple Syrup?
Not enough informatio
Canada
Denmark
12
Decision making "at the margin" means making a choice based on __________ of a decision.
total benefits
total costs
comparing the total benefits to total costs
comparing the additional benefits to additional costs
13
Which of the following is true about trade restrictions?
Domestic consumers benefit from restricting trade.
Domestic producers benefit from restricting trade.
No one benefits from restricting trade.
Foreign producers benefit from restricting trade.
14
Comparative advantage emerges because of the presence of:
scarcity
trade
different access to resources
different opportunity costs
15
What is the opportunity cost of 1 jar of Maple Syrup for Canada?
37
21
25
44
16
Which of the following will increase Supply of vegetables?
Price of fertilizer decreases
Firms exit the industry
Producers expect the price to be higher in the future
Minimum wage is increased
17
Using production possibilities listed below, what is Brazil's opportunity cost of 1t Beef?
19t Mangoes
18t Mangoes
1/18 t Mangoes
1/19 t Mangoes
18
As price increases....
quantity demanded decreases
supply increases
quantity supplied decreases
demand decreases
19
If Supply is decreasing, which of the following is true:
Price is decreasing
Quantity cannot be determined
Producers entered the industry
Quantity is decreasing
20
The difference between price received and lowest price willing to provide is...
Total Surplus
Deadweight Loss
Consumer Surplus
Producer Surplus
21
Deadweight Loss occurs when
...total surplus is not maximized
...there is a non-binding price control enacted
...trade restrictions are lifted
...employers fire useless employees
22
If the price milk increased, we would expect that in the market for cookies....
demand of cookies will increase
supply of cookies will decrease
eqbm price increases
eqbm quantity decreases
23
Using production possibilities listed below, which country has comparative advantage in Beef?
Not enough information
Brazil
Argentina
