ECO 162 (BEGINNER)

Microeconomics is the study of how

• scarce resources are used to satisfy unlimited human wants.

• we choose to use unlimited resources.

• unlimited resources are used to satisfy scarce wants.

• society uses abundant resources to satisfy unlimited desires.

Which of the following will result to an inward shift of the production possibilities curve?

• Technological advancement.

• Discovery of new resources.

• A decline in population.

• Economic growth.

When the market for goods is in equilibrium:

• the quantity supplied exceeds quantity demanded.

• the quantity demanded exceeds quantity supplied.

• there will be surplus of goods and services in the economy.

• the quantity demanded equals quantity supplied.

If the cross elasticity of demand between chicken chop and lamb chop is 2.5, then a 6% increase in the price of chicken chop will result in

• a 10% increases in the quantity demanded of lamb chop.

• a 20% increases in the quantity demanded of lamb chop.

• a 15% increases in the quantity demanded of lamb chop.

• a 4% increases in the quantity demanded of lamb chop.

If the price elasticity of demand for a good is unitary elastic, an increase in the price of the good will cause the total revenue to

• increase.

• decrease.

• increase and eventually declining.

• constant.

If the price elasticity of supply for washing machine is 2.0, this means

• a 20% increase in price, leads to 200% decrease in quantity supplied.

• a 2% decrease in price, leads to 20% increase in quantity supplied.

• a 7% decrease in price, leads to 17.5% increase in quantity supplied.

• a 2% decrease in price, leads to 4% decrease in quantity supplied.

If toothbrush and toothpaste are complementary goods, a decrease in the price of toothbrush will result in

• an increases in the demand for toothpaste.

• a decrease in the demand for toothpaste.

• an increase in the quantity demanded for toothpaste.

• a decreases in the quantity demanded for toothpaste.

When quantity supplied and quantity demanded is equal

• surplus
• shortage
• equilibrium
• law of demand

Tags

CCSS.HSF-IF.C.7A

The diagram represents a

• increase in demand
• decrease in demand
• change in quantity demand
• none of the above

Which of the following is likely to increase the demand for peanut butter?

• Fewer children in the population
• News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
• A big increase in the price of jelly.
• A report from the Surgeon General of the United States that eating peanut butter makes people nutty.