11. If an economy has to sacrifice increasing amounts of good X for each unit of good Y produced, then its production possibilities curve is: (Points: 3)
bowed out from the origin. I PICKED THIS ONE
bowed in toward the origin.
a straight line.
a vertical line.
12. The fact that a society's production possibilities curve is bowed out or concave to the origin of a graph demonstrates the law of: (Points: 3)
increasing opportunity cost. I PICKED THIS ONE
decreasing opportunity cost.
constant opportunity cost.
concave opportunity cost.
13. If an economy is producing a level of output that is on its production possibilities curve, the economy: (Points: 3)
has idle resources.
has idle resources but is using resources efficiently.
has no idle resources but is using resources inefficiently.
has no idle resources and is using resources efficiently. I PICKED THIS ONE
14. Technological improvements will: (Points: 3)
leave the production possibilities curve unchanged.
shift the production possibilities curve inward.
shift the production possibilities curve outward. I PICKED THIS ONE
necessarily lead to increased unemployment.
15. When a nation experiences economic growth: (Points: 3)
its production possibilities curve shifts outward. I PICKED THIS ONE
its production possibilities curve shifts inward.
it has been able to reach full employment.
it has moved to a more consumer-oriented position on its production possibilities curve.
16. The current rate of unemployment of 5 percent is too high. This is an example of: (Points: 3)
a normative statement. I PICKED THIS ONE
a positive statement.
the circular-flow model.
none of the above.
17. The primary difference between a change in demand and a change in the quantity demanded is: (Points: 3)
a change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve.
a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve. I PICKED THIS ONE
both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
18. An announcement that smoking will harm your ability to think clearly will most likely result in: (Points: 3)
an increase in the quantity of cigarettes demanded.
a decrease in the demand for cigarettes. I PICKED THIS ONE
no change in smoking habits.
an increase in the price of cigarettes.
19. Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be: (Points: 3)
an increase in the demand for beef.
a decrease in the demand for beef. I PICKED THIS ONE
a decrease in the quantity of beef demanded.
no change in the demand for beef.
20. For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes. Such goods are known as: (Points: 3)
inferior goods.
direct goods.
normal goods. I PICKED THIS ONE
indirect goods.
21. If the price of a commodity increases, you would expect the: (Points: 3)
supply to increase.
quantity supplied to increase.
quantity supplied to decrease. I PICKED THIS ONE
supply curve to shift to the right.
22. If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price: (Points: 3)
is above the market equilibrium price.
will rise to clear the market.
will either rise or remain unchanged.
is below the market equilibrium price.
23. An increase in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price. (Points: 3)
an increase; an increase
an increase; a decrease
a decrease; an increase I PICKED THIS ONE
a decrease; a decrease
24. A decrease in supply, with no change in demand, will lead to ________ in equilibrium quantity and ________ in equilibrium price. (Points: 3)
an increase; an increase
an increase; a decrease I PICKED THIS ONE
a decrease; an increase
a decrease; a decrease
25. The government decides to impose a price ceiling on a good, because it thinks the market determined price is “too high.� If it imposes the price ceiling above the equilibrium price: (Points: 3)
consumers will respond to the higher price and therefore wish to purchase less of the good than at the equilibrium price.
producers will respond to the higher price and therefore offer fewer units for sale.
consumers will purchase less of the good after the price ceiling is imposed.
there will be no change to either the price of quantity in the market. I PICKED THIS ONE
26. A maximum price set below the equilibrium price is a: (Points: 3)
demand price.
supply price.
price floor.
price ceiling. I PICKED THIS ONE
27. Rent controls set a price ceiling below the equilibrium price and therefore: (Points: 3)
quantity supplied exceeds the quantity demanded.
quantity demanded exceeds the quantity supplied. I PICKED THIS ONE
a surplus of rental units will result.
poor people will obviously be helped.
28. Price controls: (Points: 3)
always increase economic efficiency.
always lead to more equitable results.
can result in inequitable outcomes.
are all of the above. I PICKED THIS ONE
29. Price elasticity of demand measures the responsiveness of the change in ______. (Points: 3)
quantity demanded to a change in price
price to a change in quantity demanded I PICKED THIS ONE
slope of the demand curve to a change in price
slope of the demand curve to a change in quantity demanded
I would appreciate so much help. thank you
30. Using the midpoint method of elasticity to calculate price elasticity of demand eliminates the problem of ______. (Points: 3)
different elasticities, depending on whether price decreases or increases I PICKED THIS ONE
different elasticities because price and quantity are inversely related on the demand curve
total revenue falling when price falls and demand is inelastic
total revenue increasing when price falls and demand is elastic
11. Agree
12. Agree
13. Agree
14. Agree
15. Agree
16. Agree
17. Agree
18. Agree
19. Agree
20. Agree
21. Not sure
22. I would say is above equilibrium, since below would have no bearing on the market.
23. I picked an increase; an increase. An increase in demand with no change to supply forces up and the qty up. At least that is what I found.
24. I picked a decrease; an increase.
25. I would say either of the first two answers.
26. Price Floor
27. Agree
28. I would say inequitable outcomes
29. quantity demanded to a change in price
30. Agree
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Gross Domestic Product (GDP) may be calculated as the sum of
how to calculate price elasticity of demand of $3.00 to a increase of $3.50
It seems like you have answered the questions correctly. However, to provide more context and assist you in understanding the concepts, here are explanations for each question:
11. If an economy has to sacrifice increasing amounts of good X for each unit of good Y produced, then its production possibilities curve is:
- The correct answer is "bowed out from the origin." When the production possibilities curve is bowed out, it indicates increasing opportunity cost. This means that as more of one good is produced, the economy must give up increasing amounts of the other good.
12. The fact that a society's production possibilities curve is bowed out or concave to the origin of a graph demonstrates the law of:
- The correct answer is "increasing opportunity cost." The bowed-out shape of the production possibilities curve reflects the concept of increasing opportunity cost. As more of one good is produced, the opportunity cost of producing additional units of that good increases.
13. If an economy is producing a level of output that is on its production possibilities curve, the economy:
- The correct answer is "has no idle resources and is using resources efficiently." When an economy is producing on its production possibilities curve, it means that it is fully utilizing all its resources and producing goods at the maximum potential.
14. Technological improvements will:
- The correct answer is "shift the production possibilities curve outward." Technological improvements enable an economy to produce more goods and services with the same amount of resources, thereby expanding its production possibilities curve.
15. When a nation experiences economic growth:
- The correct answer is "its production possibilities curve shifts outward." Economic growth refers to an increase in an economy's output over time. This expansion of output is represented by a shift of the production possibilities curve outward.
16. The current rate of unemployment of 5 percent is too high. This is an example of:
- The correct answer is "a normative statement." A normative statement expresses an opinion or judgment and involves subjective value judgments. In this case, stating that a 5% unemployment rate is too high is a subjective opinion.
17. The primary difference between a change in demand and a change in the quantity demanded is:
- The correct answer is "a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve." A change in quantity demanded refers to a movement along a given demand curve due to a change in price, while a change in demand refers to a shift of the entire demand curve due to factors other than price.
18. An announcement that smoking will harm your ability to think clearly will most likely result in:
- The correct answer is "a decrease in the demand for cigarettes." The announcement about the harmful effects of smoking is likely to reduce the willingness of consumers to purchase cigarettes, leading to a decrease in demand.
19. Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be:
- The correct answer is "a decrease in the demand for beef." As chicken and beef are substitute goods, a decrease in the price of chicken would make it more attractive relative to beef, causing consumers to switch to chicken and decrease their demand for beef.
20. For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes. Such goods are known as:
- The correct answer is "normal goods." Normal goods are goods for which demand increases as buyers' incomes increase and demand decreases as buyers' incomes decrease. These goods are considered to be a typical or "normal" part of consumer spending.
21. If the price of a commodity increases, you would expect the:
- The correct answer is "quantity supplied to decrease." When the price of a product increases, producers have an incentive to increase their supply, but in the short run, they may not be able to do so. Therefore, the immediate effect is a decrease in the quantity supplied.
22. If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:
- The correct answer is "is above the market equilibrium price." In this situation, with a surplus of housing, the existing price is higher than the price at which quantity demanded equals quantity supplied.
23. An increase in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.
- The correct answer is "an increase; a decrease." An increase in demand, with constant supply, will result in an increase in both equilibrium quantity and price. The increase in demand leads to a higher quantity demanded at each price, causing the price to rise.
24. A decrease in supply, with no change in demand, will lead to ________ in equilibrium quantity and ________ in equilibrium price.
- The correct answer is "a decrease; an increase." A decrease in supply, with constant demand, reduces the quantity supplied at each price. Consequently, equilibrium quantity decreases, while equilibrium price increases.
25. The government decides to impose a price ceiling on a good, because it thinks the market-determined price is "too high." If it imposes the price ceiling above the equilibrium price:
- The correct answer is "there will be no change to either the price or quantity in the market." When a price ceiling is set above the equilibrium price, it has no effect because the market is already operating below the price ceiling. Thus, there will be no change to the price or quantity in the market.
26. A maximum price set below the equilibrium price is a:
- The correct answer is "price ceiling." A price ceiling is a government-imposed maximum price set below the equilibrium price. It is designed to protect consumers by keeping prices lower than they would be in a free market.
27. Rent controls set a price ceiling below the equilibrium price and therefore:
- The correct answer is "quantity demanded exceeds the quantity supplied." When rent controls are implemented, the price cannot rise to the equilibrium level, resulting in excess demand or a shortage of rental units.
28. Price controls:
- The correct answer is "can result in inequitable outcomes." Price controls can have unintended consequences, such as creating shortages or surpluses, distorting market signals, and leading to inefficient allocations of resources. This can result in outcomes that are viewed as inequitable.
29. Price elasticity of demand measures the responsiveness of the change in ______.
- The correct answer is "quantity demanded to a change in price." Price elasticity of demand measures how sensitive the quantity demanded of a good or service is to changes in its price. It quantifies the percentage change in quantity demanded compared to the percentage change in price.