MacroEconomic Quiz #1

The market demand for singing dolls is initially made up of 50 buyers. Suppose there is a decrease in the number of buyers by 10. Holding everything else constant, one would expect

After graduation from college, you might have an increase in your income from a new job. If, as a result, you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger would be considered

Margo spends $10,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is:

Which of the following is a reason for governments imposing or maintaining price controls?

If a country has the comparative advantage in producing wooden furniture, then with free trade

If a country's price in the absence of trade is lower than the price with trade, then the domestic quantity supplied with trade is ________ the domestic quantity demanded.

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. If the price of good Y is $12

If a country has the comparative advantage in producing cloth, we would predict that in the market for cloth, the autarky price would be  the world price and the country would choose to cloth

According to this week's The Economist article, many firms are adopting a China plus one strategy. What does that mean?

Assume that a tariff is imposed on Chinese imports into the United States. This tariff is likely to

Suppose due to TTIP the U.S government removes a binding quota on the number of German- made cars allowed into the U.S. We would expect the price of German cars to  and the price of U.S. made cars to

Which of the following will not cause an increase in the supply of cornflakes in the short run?

Which of the following statements is true about positive economics?
I. Positive economics is about how the world should work
II. Positive economics is about how the world works
III. Positive economics is descriptive

According to the infant industry argument for import protection, such protection is needed because

When we are forced to make choices,we are facing the concept of:

Consumers in Fairbanks consider houses and apartments to be substitutes. There is an increase in the prices of houses in Fairbanks and at the same time three new apartment buildings are opened in Fairbanks. In the market for apartments in Fairbanks

The ISDS (investor-state dispute settlement) is part of the Transatlantic Trade and Investment Partnership and allows foreign investors to monopolize

Scarcity in economics means:

n a single year, Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips. In the same growing season, Venezuela can raise 50 tons of beef or produce 750 boxes of tulips. When the two countries begin trading beef for tulips, we would expect the price of beef in Argentina

The invention of a new technology enhances the production of bicycles. At the same time journalist all over the world publish articles promoting the great health benefits or riding your bike to work every morning. This will result in

The dictator of a small country restricts the price of cars to an amount less than or equivalent to $1,200 (a price below the equilibrium price for cars). Such a policy would be an example of a

If the United States imposes a quota on French wines, the result in the short run is likely to be ________ profits for American wine producers and ________ profits for French wine producers

The Transatlantic Trade and Investment Partnership is an agreement between

If Japan levies tariffs on U.S. goods entering Japan, this will tend to

A beneficial technological change enhances the production of cranberries. At the same time, scientists discover the health benefits of cranberries. This will result in

A country that is relatively labor-abundant and relatively land-scarce opens to international trade. As a result, it will find that wages

A quota limit imposed on a market

If the Chinese government removes a binding price floor

High-fructosecornsyrup,whichisderivedfromcorn,isanimportantingredientinthe production of many soft drinks. If the price of corn increases, one would expect:

The effect of an increase in productive inputs such as labor and capital can be shown by

The law of demand states that the quantity demanded is an inverse function of its price. This means that

If a country removes a tariff on imported shoes, we expect the domestic price of shoes to BLANK and the quantity of shoes consumed in the domestic market to BLANK

Which of the following is an example of marginal analysis?

If the supply and demand curves intersect at a price of $47, then any price above that would result in

Which of the following is not a determinant of supply?

A minimum wage, which is set below the equilibrium wage, is an example of

Assume that the United States imposes a quota on Scottish wool suits. Relative to the equilibrium price that would exist in the absence of quotas, the equilibrium price of suits in the United States will most likely ________ and the equilibrium price of suits in Scotland will most likely ________

If a country has the comparative advantage in producing wooden furniture, then with free trade

All of the following would result in an increase in the supply of a good except

The market equilibrium is found at the

For which of the following decisions would marginal analysis be most relevant?