Microeconomics pt 4

Which of the following changes in the supply and demand of a good will likely increase the good's equilibrium price?

• A decrease in demand or an increase in supply
• No change in demand or supply
• An increase in demand and an increase in supply

• An increase in both demand and supply

Producers tend to specialize in one particular good or service due to which of the following?

• Opportunity cost produces a trade-off when considering other goods.

• perfect competition
• absolute disadvantage
• monopoly power

Which of the following describes the Law of Demand?

• As the price of a good or service increases, the quantity demanded decreases, and vice versa.

• The Law of Demand does not apply to services.
• The Law of Demand only applies to luxury goods.
• As the price of a good or service increases, the quantity demanded increases, and vice versa.

Which of the following is a term given to the potential loss of resources or experience following a person's decision to pursue an alternate activity or make a different choice?

• Fixed cost
• Marginal cost
• Opportunity cost
• Sunk cost

Assume that with the same amount of resources, the country of Artan can produce 500 pairs of shoes and 200 leather jackets, whereas the country of Nebdin can produce 250 pairs of shoes and 450 leather jackets. Artan and Nebdin would both:

• Both produce only shoes
• Artan produces both shoes and leather jackets, while Nebdin produces only shoes
• Benefit from trade, if Artan specializes in shoes and trades 1 pair of shoes for 1 leather jacket.

• Both produce only leather jackets

Assume that the apparel company, One One Six, can produce 300 pairs of jeans or 160 sweatshirts, whereas another company, Meyer & Co., can produce 250 pairs of jeans or 340 sweatshirts using the same amount of resources. The companies will benefit from specialization and trade if:

• 
  One One Six specializes in jeans and trades one pair of jeans for one sweatshirt.

• One One Six specializes in sweatshirts and trades one sweatshirt for one pair of jeans.

• 
  both companies produce both products and do not trade.

• Meyer & Co. specializes in jeans and trades one pair of jeans for one sweatshirt.

The copyright to a popular series of romance novels expires later this year, and a number of publishing houses have plans to release their own editions of the series. As a result, the price of the novels will:

• 
  decrease due to an increase in supply.

• increase due to a decrease in supply.

• 
  decrease due to a decrease in demand.

• increase due to an increase in demand.

What are the traditionally recognized factors of production?

• Land, labor, capital, and resources
• Land, labor, capital, and entrepreneurship

  (LLCE)

• Land, labor, capital, and technology
• Land, labor, capital, and innovation

Economic scarcity is best understood as the recognition that:

• Economic scarcity is not a real concept.
• Resources are unlimited and can satisfy all human wants and needs.
• Human wants and needs are limited and can be satisfied by resources.
• Resources are limited and cannot satisfy all human wants and needs.

Which of the following is not a type or categorization of industrialized economy?

• 
  market

• mixed

• trade

• command