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Question
Refer to the above diagrams. Assume that prior to specialization and trade Italy and Greece preferred points I and G on their production possibilities curves. As a result of complete specialization according to comparative advantage, the resulting gains in output will be:
A. 5X and 15Y.
B. 10Y.
C. 15X and 5Y.
D. 25X.
Answer
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Related questions
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If the price of product L increases, the demand curve for close-substitute product J will:
A. shift downward toward the horizontal axis.
B. shift to the left.
C. shift to the right.
D. remain unchanged.
Q:
If two goods are complements:
A. they are consumed independently.
B. an increase in the price of one will increase the demand for the other.
C. a decrease in the price of one will increase the demand for the other.
D. they are necessarily inferior goods.
Q:
Which of the following would not shift the demand curve for beef?
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Q:
Which of the following will not cause the demand for product K to change?
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Drawing demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is:
A. price.
B. expectations.
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Q:
An increase in the price of a product will reduce the amount of it purchased because:
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Q:
In presenting the model of a demand curve, economists presume the most important variable in determining the quantity demanded is:
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Q:
Graphically, the market demand curve is:
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Q:
According to the text, what is the largest source of earned income for U.S. households?
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Q:
According to the text, U.S. corporations generate approximately what percentage of total sales revenue?
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Q:
In the circular economic flow diagram, households:
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Q:
Refer to the above figure. If box A represents businesses and box D represents the product market in this circular flow model, then money flow in the model would be represented by:
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Q:
Refer to the above figure. If flow (1) is the cost businesses pay to the resource market, then:
A. (2) is the flow of productive resources.
B. (4) is the flow of goods and services.
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Q:
Refer to the above figure. If box A represents businesses and flow (7) represents goods and services, then:
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B. box D is the product market and box B is households.
C. box B is the product market and box C is households.
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Q:
Refer to the above table. If demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be:
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Q:
Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect:
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Q:
An increase in demand means that:
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Q:
If consumers are willing to pay a higher price than previously for each level of output, we can say that the following has occurred:
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Q:
The term "quantity demanded":
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D. means the same thing as demand.
Q:
The quantity demanded of a product increases as its price declines because the:
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Q:
Suppose an excise tax is imposed on product X. We would expect this tax to:
A. increase the demand for complementary good Y and decrease the demand for substitute product Z.
B. decrease the demand for complementary good Y and increase the demand for substitute product Z.
C. increase the demands for both complementary good Y and substitute product Z.
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Q:
A decrease in the price of digital cameras will:
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Q:
Digital cameras and memory cards are:
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Q:
If there were a market for pollution rights established by a public agency that determined the amount of pollution that the atmosphere or a body of water can safely absorb, and the agency sold these rights to polluters, we could expect that:
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Q:
In a market economy with well-defined property rights, the potential threat of a lawsuit or a liability judgment against a firm will give firms an incentive to:
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B.increase negative externalities from production.
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D.turn to the government to provide public goods.
Q:
One condition for individual bargaining to occur, according to the Coase theorem, is that there must be:
A.clearly defined property rights.
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Q:
Refer to the above supply and demand graph. Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective. If government decides to correct this externality with a subsidy to consumers, then the:
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B.supply curve will shift from S1 to S2.
C.demand curve will shift from D1 to D2.
D.supply curve will shift from S2 to S1.
Q:
When producing a good generates negative externalities, the private market for that good tends to produce too:
A.much of the product at too low a price.
B.much of the product at too high a price.
C.little of the product at too low a price.
D.little of the product at too high a price.
Q:
In a free-market economy, a product that entails a spillover benefit will be:
A.overproduced.
B.underproduced.
C.produced at the optimal level.
D.associated only with goods and services provided by the government.