Question by Jason: [Economics] What are the answers to these questions?
1. A market comprised of a downward sloping demand curve that intersects an upward sloping supply curve is said to be stable because
A. price will never change
B. quantity will never change
C. demand will never change
D. at any price other than equilibrium, forces in the market move price towards the euilibrium
2. One observes that the equilibrium price of rice falls and the equilibrium quantity falls. Which of the following best fits the observed data?
A. An increase in demand with supply constant
B. An in crease in demand coupled with a decrease in supply
C. An increase in demand coupled with an increase in supply
D. A decrease in demand with supply constant
3. Economic surplus is
A. the benefit gained by taking an action
B. the price paid to take an action
C. the difference between the benefit gained and the cost incurred of taking an action
D. the wage someone would have to earn in order to take an action
4. Suppose Mary is willing to pay up to ,000 for a used Ford pick-up truck, but she finds one for ,000. Her_________ is ________.
A. benefit; $ 12,000
B. cost; $ 15,000
C. economic surplus; $ 3,000
D. economic surplus; $ 12,000
5. If a nation can produce a good more quickly than any other nation, that nation has a(n)
A. comparative advantage
B. absolute advantage
C. relative advantage
D. specialization advantage
6. “Holding all other relevant factors constant, consumers will purchase more of a good as the price falls.” This statement reflects the behavior underlying
A. the demand curve. B. an increase in demand. C. the supply curve. D. a dcrease in the demand curve
Table 1 Pizzas made per hour pizzas delivered per hour
Corey12 6
Pat 1015
7. Refer to the Table 1. The comparatve advantage for pizza production belongs to _____ and the comparative advantage for pizza delivery belongs to ___________.
A. Corey; Corey B. Pat; Pat C. Pat; Corey D. Corey; Pat
8. Larry has a comparative advantage in writing a term paper if he
A. can rite a paper faster than the other students in class.
B. has an absolute advantage in writing a term paper.
C. always earns an A on his papers.
D. has a low opportunity cost for writing a term paper.
9. Sellers tend to offer ____ for sale as price increases, and so the supply curve is ____ sloping
A. goods; not B. more; downward C. less;upward D. more; upward
10. Having a comparative advantage in a particular task means that
A. you are better at it than other people.
B. you give up more to accomplish that task than do others.
C. you give up less to accomplish that task than do others.
D. you have specialized in that task, while others have not.
11. A shortage occurs when
A. demand is greater than supply.
B. the equilibrium price is too high.
C. quantity demanded exceeds quantity supplied.
D. quantity supplied exceeds quantity demanded
Thank you very much !
Best answer:
Answer by Anewid
1 D
2. D
3 C (maybe)
4 C
5 B
6 A
7 D
8 D
9 D
10 C
11 A
Know better? Leave your own answer in the comments!
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