ECON 201 - Ch3,4

Assume that cars and gasoline are complementary goods. If the government lowers the import duties on cars, then describe the effects on demand for gasoline.

• The price of gasoline would move down the demand curve

• The price of gasoline would move up the demand curve

• The demand curve for gasoline would shift to the left

• The demand curve for gasoline would shift to the right

• The demand for gasoline would not be affected

If incomes rise in a market, what would you expect to happen to demand?

• Demand for all goods would rise

• Demand for all goods would fall

• Demand for normal goods would rise and fall for inferior goods

• Demand would rise for inferior goods and fall for normal goods

At Aeon mall, you can assume that movie tickets and bowling are substitute goods. What effects to demand would you predict if the bowling alley start offering more promotions and having influencers post about the fun of bowling?

• Demand for both bowling and movie tickets would increase

• Demand for both bowling and movie tickets would decrease

• Demand for bowling would increase and movies would stay the same

• Demand for bowling would increase and movies would decrease

• Demand for bowling would decrease and movies would increase.

Which of the following shift the demand curve for an item?

• Changes in income

• Changes in taste/preferences

• Changes in price

• Changes in the number of buyers

• Changes in expectations

in a competitive market buyers and sellers have low or limited market power, that means they will all become price ______

Assume Soriya is working for a full day. His daily PPF indicates that he can produce either 42 invitations to a company party or 3 short reports. What is his opportunity cost for producing 1 report?

Improvements in productivity technology will have what affects on a PPF curve?

• No effect

• The PPF will move closer to the origin point

• The PPF will move further from the origin point

• The PPF will get more steep

• The PPF will get more flat

Sophal can produce either 5 fish or 15 coconuts in a day.

Solisa can produce either 3 fish or 10 coconuts in a day.

Which of the following are true?

• Solisa has no absolute advantage

• Sophal has no absolute advantage

• Solisa has no comparative advantage

• Sophal has no comparative advantage

• Both Solisa and Sophal have a comparative advantage

Sophal can produce either 5 fish or 15 coconuts in a day.

Solisa can produce either 3 fish or 10 coconuts in a day.

Who should specialize in producing fish?

Sophal can produce either 5 fish or 15 coconuts in a day.

Solisa can produce either 3 fish or 10 coconuts in a day.

Who should specialize in producing coconuts?