Just want to see if i did good in my choices, thank you
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
11-20 I agreee
21) If the price of a commodity increases -- this is a movement along the supply or demand curves -- a change in quantity suplied. If price goes up, quantity supplied goes up.
22) You did not answer. draw an initial supply and demand graph. Find a price where Qd<QS --- at such a point price > quantity.
23) I disagree. Draw an initial supply and demand graph. Now increase demand (shift outward), What happens to price? to quantity?
24) I disagree, repeat the logic in 23.
25) I agree. (However, if Gov. thought price was too high, why would in install a ceiling above the current equilibrium price.)
26) I agree.
27) I agree.
28) I disagree. Price controls can be bad thins and lead to inequitable outcomes.
29) I agree
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Why is the production curve concave towards the point of
Based on your choices, it appears that you did well in answering the questions. Here is an explanation 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." This means that as a society produces more of one good, the opportunity cost of producing additional units of that good increases.
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." As mentioned in the previous explanation, as a society produces more of one good, 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." This means that the economy is utilizing all available resources in the most efficient way possible.
14. Technological improvements will: The correct answer is "shift the production possibilities curve outward." Technological improvements allow for more efficient production methods, which ultimately increase the potential output of an economy.
15. When a nation experiences economic growth: The correct answer is "its production possibilities curve shifts outward." Economic growth implies an increase in the potential output of an economy, which can be represented by a shift in the production possibilities curve.
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 a value judgment or opinion, rather than stating a fact.
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 the demand curve caused by a change in price, while a change in demand refers to a shift in the entire demand curve caused by a change in 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." This is because the announcement provides information that affects consumers' preferences and willingness to purchase cigarettes.
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." Substitutes are goods that can be used in place of each other, so if the price of one substitute decreases, consumers are likely to switch to the cheaper option, leading to a decrease in demand for the other substitute.
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 income increases, and demand decreases as income decreases.
21. If the price of a commodity increases, you would expect the: The correct answer is "quantity supplied to decrease." An increase in price provides an incentive for producers to supply more of a commodity, so the quantity supplied would decrease if the price increases.
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 below the market equilibrium price." When supply exceeds demand, it creates a surplus, which puts downward pressure on price.
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, without a corresponding increase in supply, leads to a shortage, which increases the equilibrium price but decreases the equilibrium quantity.
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, without a corresponding decrease in demand, leads to a shortage, which decreases the equilibrium quantity but increases the equilibrium price.
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." A price ceiling set above the equilibrium price has no effect since it does not interfere with the market price.
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 that restricts how high the market price can go.
27. Rent controls set a price ceiling below the equilibrium price and, therefore: The correct answer is "quantity demanded exceeds the quantity supplied." Rent controls create a situation where the quantity demanded exceeds the quantity supplied, leading to a shortage of rental units.
28. Price controls: The correct answer is "can result in inequitable outcomes." Price controls, including both price ceilings and price floors, can have unintended consequences and create inefficiencies in the market.
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 is to changes in price.
I hope this explanation helps you understand each question and why your answers were correct.