Practice Eco Test 1

If the demand for computers shifts to the right as consumers' incomes rise, computers are:

If a market is in equilibrium and demand increases while supply decreases, the change in the equilibrium price is _____ and the change in the equilibrium quantity is _____.

Dean decided to play golf rather than prepare for tomorrow's exam in economics. One can infer that

Shelly purchases a leather purse for $400. One can infer that:

If the consumers cannot switch to a close substitute when the price of a good increases, the demand for that good is likely to be:

If the demand for a good is inelastic, that good is likely to have:

The productions possibilities curve shows:

If the price elasticity of demand for pineapple is .75, a 4% increase in the price of pineapple will lead to a:

In general, when the supply curve shifts to the left and demand is constant then:

If the slope of the demand curve is -1.4, price is $5 and quantity demanded is 13 units, the price elasticity of demand is

Relative to a person who earns minimum wage, a person who earns $30 per hour has:

"holding all other relevant factors constant, consumers will purchase more of a good as the price falls." This statement reflects the behavior underlying

Having a comparative advantage in a particular task means that:

A shortage occurs when:

Tony Notes that an electronics store is offering a flat $20 off all prices in the store. Tony reasons that if he wants to buy something with a price of $50, it is a good offer, but if he wants to buy something with a price of $500, it is not a good offer. This is an example of:

Jeans in general have fewer close substitutes than any specific brand of jeans. Therefore, the demand for jeans in general would be _____ than the demand for a specific brand of jeans:

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered larry an annual $10,000 scholarship. Larry values attending state College at $40,000 per year. No Name U costs $20,000 per year, and offered larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year.

Larry Maximizes his surplus by attending:

The percentage change in quantity demanded that results from the percentage change in price is known as the:

When the price of a good is below its equilibrium value:

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered larry an annual $10,000 scholarship. Larry values attending state College at $40,000 per year. No Name U costs $20,000 per year, and offered larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year.

The opportunity cost of attending Elite U is:

Jenne decides to see a movie that costs $7 for the ticket and has an opportunity cost of $20. After the movie, she says to one of her friends that the movie was not worth it. Apparently:

If the price of computers increases and the demand for monitors decreases as a result, then:

Price elasticity of demand is often expressed as a positive number because:

The Cost-benefit principle indicates that an action should be taken:

If the slope of the demand curve is equal to infinity, the price elasticity of demand will be:

The fundamental reason the production possibilities curve has a downward slope is:

If leslie can produce two pairs of pants in an hour while Eva can make one pair an hour, then it must be the case that:

Amy is thinking about going to the movies tonight. A ticket costs $7 and she will have to cancel her dog-sitting job that pays $30. The cost of seeing the movie is:

Microeconomics is distinguished from macroeconomics in that microeconomics focuses on:

The demand for a good is inelastic with respect to price, if the price elasticity of demand is:

Big-ticket items such as refrigerators have a(n) ______ price elasticity of demand compared to low budget ties such as paper towels.

As the price of a good rises:

What might cause a demand function to shift to the right?

A movement along a demand curve from one price-quantity combination to another is called:

According to the principle of increasing opportunity cost, expanding production requires using resources in which order?

If the market for sport utility vehicles has excess supply, then one can say that:

The Central Concern of economics is