Phần 2 Introduction to Economics

An increase in price causes an increase in total revenue when

• All of the answer are possible.
• Demand is unit elastic.
• Demand is inelastic.
• Demand is elastic.

An increase in technology for producing personal computers leads to

• A decrease in the supply of personal computers.
• A decrease in the demand for personal computers.
• An increase in the supply of personal computers.
• An increase in the demand for personal computers.

An uptick in the cost of imported coffee appears

• In the consumer price index, but not in the gdp deflator.
• In neither the consumer price index nor in the gdp deflator.
• In the gdp deflator, but not in the consumer price index.
• In the consumer price index and in the gdp deflator.

As a result of an increase in the supply of a good and no change in demand, the equilibrium quantity ______ and the equilibrium price ______.

• Increases; falls
• Increases; rises
• Decreases; rises
• Decreases; falls

Decreases; falls

• Increasing the demand for The Alley milk-tea and therefore the price of The Alley milk-tea.
• Decreasing the demand for The Alley milk-tea and therefore the price of The Alley milk-tea.
• Increasing the supply of The Alley milk-tea and therefore the price of The Alley milk-tea.
• Increasing the demand for The Alley milk-tea and therefore the supply of The Alley milk-tea.

Ben bakes bread, and Shawna knits sweaters. In which of the following cases is it impossible for both to benefit from trade?

• Both ben and shawna can benefit from trade in all cases.
• Ben is better than shawna at baking bread, and shawna is better at knitting sweaters.
• Ben is better at baking bread and knitting sweaters.
• Ben cannot knit sweaters, and shawna cannot bake bread.

Caroline sharpens knives in her spare time for extra income. Buyers of her service are willing to pay $2.95 per knife for as many knives as Caroline is willing to sharpen. On a particular day, she is willing to sharpen the first knife for $2.00, the second knife for $2.25, the third knife for $2.75, and the fourth knife for $3.50. Assume Caroline is rational in deciding how many knives to sharpen. Her producer surplus is

• $1.30.
• $0.95.
• $1.15.
• $1.85

Causes of market failure include:

• Externalities and market power.
• Externalities and foreign competition.
• Market power and incorrect forecasts of consumer demand.
• Incorrect forecasts of consumer demand and foreign competition.

Changes in real GDP reflect

• Both changes in prices and changes in the amounts being produced.
• Neither changes in prices nor changes in the amounts being produced.
• Only changes in prices.
• Only changes in the amounts being produced.

Consider an economy with the following data: Non-durable goods: 450; Durable goods: 650; Services: 550; Gross private domestic investment: 820; Government spending on goods and services: 1050; Exports: 80; Imports: 250; Depreciation: 100; NFI: 300 (Unit: Bil. USD). Calculate the value of net private domestic investment in billions of dollars.

• 820.
• 170.
• -170.
• 720.