Microeconomics

In a recent article it was suggested that a new machine designed to pick strawberries in Florida could be faster and less expensive than human strawberry pickers. This is an example of what?

• A change in the process used to produce strawberries

• The substitution of relatively inexpensive capital for relatively expensive labor

• A change in technology

• All of these

• None of these

"The unemployment rate is 4.2%" is a what?

• Normative statement

• Positive statement

• Rhetorical statement

• None of these

Chris eats lunch at a local restaurant by herself every day. One day friends offer to pay for Chris’s lunch if Chris join them uptown.  In this case Chris’s lunch is costless.  True or false?

• False, Chris must give up having lunch by themself

• False, the price of lunch is not a factor

• True, the price of lunch is always important

• True, Chris was going to have to pay for lunch otherwise

What is economics?

• The study of the allocation of limited resources across unlimited wants

• The allocation of limited wants across unlimited resources

• The study of how to run a business

• All of these

• None of these

Computers are capital. True or false?

• True, computers are technology and capital is another form of resource

• True, capital is a resource and computers are technology

• False, technology is the same thing as computers

• False, it is more efficient to use technology than capital as they are complements

• None of these are correct

Which of the following is an example of land?

• Fish in the ocean

• A dirt road

• A dam on a river

• All of these

• None of these

Farmer Avery and Farmer Brown have farms right next to one another. One raises wheat and the other raises dairy cows. This is an example of what?

• Absolute advantage

• Comparative advantage

• Decreasing opportunity cost

• Technological change

The PPC can shift out...

• if the amount of our inventory of technology decreases

• never, as we assume the PPC is always fixed

• tomorrow if we increase the amount of resources produced today

• today with an increase in amount of capital produced today

• today with less unemployment today

Money is a resource. True or false?

• True

• False

• Uncertain

Changes in technology will...

• change the quantity demanded

• shift the PPF

• shift demand to the left

• all of these

• none of these