Q&A Hero

Q: Refer to the accompanying diagram for the following questions.If consumers expect the price of a good to decrease in the future and all else is held constant, we would assume that the demand curve woulda. shift from D1 to D3. b. remain at D1. c. shift from D1 to D2.d. shift from D2 to D1.e. shift from D2 to D3.

Q: Refer to the accompanying diagram for the following questions.An increase in the number of buyers would cause the demand curve toa. shift from D1 to D3. b. remain at D1. c. shift from D1 to D2.d. shift from D2 to D1.e. shift from D2 to D3.

Q: Refer to the accompanying diagram for the following questions that follow.As the life expectancy in the United States increases, which of the following could likely happen to the demand curve for items such as health care, cancer treatments, and nursing facilities, holding all else constant, and why?a. There would be a decrease because individuals are healthier.b. There would be an increase because the cost of these items is falling.c. There would be an increase because there will be more buyers in these markets.d. There would be a decrease because Social Security benefits are running out.e. They will stay the same because these changes would affect the supply curve and not the demand curve.

Q: Refer to the accompanying diagram for the following questions that follow.As more people migrated West during the gold rush, what happened to the demand curve in most western markets, holding all else constant?a. The demand curve shifted to the right.b. The demand curve shifted to the left.c. There was no shift, but there was an increase in quantity demanded.d. There was no shift, but there was a decrease in quantity demanded.e. There was no shift, nor any increase or decrease in quantity demanded.

Q: Refer to the accompanying diagram for the following questions that follow.Which of the following scenarios would explain the change in equilibrium shown in the accompanying figure?a. an increase in an input priceb. a decrease in the number of buyers in a marketc. an increase in the price of a substitute goodd. an increase in the expected future pricee. a negative technological change

Q: Refer to the accompanying diagram for the following questions that follow.The demand curve shift shown in the figure was caused by a(n)a. increase in the input cost of the good.b. increase in the price of a substitute of the good.c. decrease in the number of firms selling the good.d. decrease in the number of buyers in the market for the good.e. expectation that the future price of this good will be higher than it is currently.

Q: Changes in population can a. alter the supply of a good or service in an area. b. shift the supply curve of a good or service in an area. c. cause the price of a good or service to increase in an area but cannot cause the price to decrease. d. cause the price of a good or service to decrease in an area but cannot cause the price to increase. e. shift the demand curve of a good or service in an area.

Q: Katarina drives past the same gas station every day. She realizes that the gas station always changes its prices on Tuesdays but keeps the price steady the rest of the week. On Saturday, Katarina turns on the news and hears a report projecting that the price of gasoline is going to increase. Holding all else constant, what do you think would happen to Katarinas demand for gasoline on Monday? a. Her demand would shift to the right. b. Her demand would shift to the left. c. We would see a movement down on her demand curve but no shift. d. We would see a movement up on her demand curve but no shift. e. We would see nothing happen to her demand curve until the price changed on Tuesday.

Q: The demand curve for a good will shift to the right if, holding all else constant, a. consumers expect future prices to decrease. b. an input cost of the item goes up. c. consumers expect future prices to increase. d. the price of the good goes down. e. the price of a substitute good goes down.

Q: An expectation of a lower price in the future will a. increase current demand. b. decrease current demand. c. not change demand. d. cause demand to stay the same but increase the quantity demanded. e. cause demand to stay the same but decrease the quantity demanded.

Q: Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series?PriceQuantity Demanded $8.00200$10.00175$12.00150$14.00100$16.00 50a.d.b.e.c.

Q: Which of the following will cause the demand curve for burgers to shift to the right? a. The price of burgers decreases. b. The price of burgers increases. c. The price of burger buns increases. d. A study is published by the National Association for Burger Research that says eating burgers can reduce the risk for bad acne. e. The price of steak decreases.

Q: Companies use advertising to shift consumer demand. On which of the following demand shifters do advertisers most often rely? a. changes in income b. the price of related goods c. changes in tastes and preferences d. the number of buyers e. expectations regarding the future price

Q: What would we expect to happen to the price and quantity of Pepsi if the price of Coke increases and Pepsi develops a new technology that makes its production process more efficient? a. The equilibrium price will go up and the equilibrium quantity will go up. b. The equilibrium price will be indeterminate and the equilibrium quantity will go up. c. The equilibrium price will go down and the equilibrium quantity will be indeterminate. d. The equilibrium price will be indeterminate and the equilibrium quantity will go down. e. The equilibrium price will go up and the equilibrium quantity will be indeterminate.

Q: In March 2012, the state of California started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-MI) be clearly labeled with a cancer warning. Because of this, both Pepsi and Coke changed their formula to eliminate 4-MI as an ingredient. If Pepsi and Coke did NOT change their formula, holding all else constant, what would have happened to the demand for these goods, assuming Pepsi and Coke were in a competitive market? a. The demand curves for both Pepsi and Coke would have shifted to the right, causing the price of both products to decrease and the profits for the companies to fall. b. The demand curves for Pepsi and Coke would have remained unchanged, but the price of both products would have decreased and the profits for the companies would have fallen. c. The demand curves for Pepsi and Coke would have decreased, but the prices and profits would not have changed. d. The demand curve for only one of them would change because Pepsi and Coke are substitutes. e. The demand curves for Pepsi and Coke would have shifted to the left, causing the price of both products to decrease and the profits for both companies to fall.

Q: Pepsi and Coke are considered substitute goods. Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we would see a. the demand curve for Coke shift to the right. b. the demand curve for Coke shift to the left. c. no change in the demand for Coke. d. the demand curve for Pepsi shift to the right. e. the demand curve for Pepsi shift to the left.

Q: If the price of a good increases, holding all else constant, a. the demand for all of that goods substitutes will decrease. b. the quantity demanded for that good will increase. c. the demand for all of that goods complements will increase. d. the demand for all of that goods substitutes will increase. e. the demand curve will shift to the left.

Q: The price of Good X increases by 25 percent, causing the quantity consumed of Good Y to decrease by 10 percent. If everything else is held constant in the economy, we can say with certainty that Good X and Good Y area. substitutes. b. inferior. c. complements.d. normal.e. unrelated.

Q: Two goods that are used together are calleda. complements. b. inferior.c. Giffin.d. substitutes. e. normal.

Q: Which of the following would cause the demand curve to shift to the right? a. Income decreases for an inferior good. b. Income decreases for a normal good. c. Tastes and preferences decrease. d. The price of a substitute decreases. e. The price of a complement increases.

Q: Something is an inferior good if the demand for the good a. increases as the consumers income increases. b. increases as the consumers income decreases. c. decreases as the price of a complement increases. d. decreases as the price of a substitute increases. e. decreases as the consumers income decreases.

Q: Which of the following would cause a normal goods demand curve to shift to the left?a. Income decreases. b. Income increases. c. The price increases.d. The price decreases.e. The input prices increase.

Q: Something is a normal good if the demand for the good a. increases as the consumers income increases. b. increases as the consumers income decreases. c. decreases if the price of a substitute good increases. d. increases if the price of a complement good increases. e. decreases as the income of the consumer increases.

Q: If the price of pants increases, what would you expect would happen in the market for pants? a. There would be a movement to the right along the demand curve. b. There would be a movement to the left along the demand curve. c. There would be a shift to the left of the demand curve. d. There would be a shift to the right of the demand curve. e. There is both a movement along and a shift of the demand curve.

Q: At the price of $3 a pound of pork, Jason buys 8 pounds of pork and Noelle buys 10 pounds of pork. When the price rises to $5 a pound, Jason buys 5 pounds of pork and Noelle buys 7 pounds of pork. What is the market demand at $5?a. 5 b. 7 c. 25d. 12e. 18

Q: How does the market demand reflect the law of demand? a. As the price increases, each and every buyer purchases a larger quantity of the product. b. As the price decreases, each and every buyer purchases a larger quantity of the product. c. As the price increases, each and every buyer initially purchases a larger quantity of the product but eventually purchases less. d. As the price decreases, each and every buyer initially purchases a larger quantity of the product but eventually purchases more. e. The market demand curve does not reflect the law of demand.

Q: What is market demand? a. the subtraction of the individual quantities demanded by each buyer in a market at each price b. the addition of the individual prices of the price at each level of quantity c. the multiplication of the prices of each product by the individual quantities demanded by each buyer in a market d. the division of the total spending by an individual buyer with the prices paid for the product e. the addition of the individual quantities demanded by each buyer in a market at each price

Q: Refer to the table below:Price of iPhonesChristyu2019s DemandLoriu2019s Demand$700.00 00$650.00 10$500.00 11$450.00 21$300.00 42$275.00 53$250.00 64$100.00 74 $50.00105Assume that the market for iPhones has only two consumers: Christy and Lori. According the table above, if the price of an iPhone is $285, the market will demand ________ iPhones.a. 8 b. 6 c. 5d. 28e. 45

Q: According to the figure below, at the price of $5,a. the equilibrium quantity is 500. b. the quantity demanded is 500. c. the demand is 500.d. there is a surplus.e. there is a shortage.

Q: When the price of an hour of tutoring increases, a. the demand for tutoring decreases. b. the demand for tutoring increases. c. the demand curve for tutoring shifts. d. the quantity demanded for tutoring increases. e. the quantity demanded for tutoring decreases.

Q: Annabelle typically drives her car to work. But she only lives one mile from work and is willing to ride her bike instead. If the price of a bike falls, what would happen in the market for cars? a. The demand for cars will increase. b. The demand for cars will decrease. c. The quantity demanded of cars will increase. d. The quantity demanded of cars will decrease. e. Both the demand and quantity demanded of cars will increase.

Q: When the price for computers is expected to fall in the future, what happens? a. The demand for computers decreases. b. The demand for computers increases. c. The quantity demanded of computers decreases. d. The quantity demanded of computers increases. e. Both the demand and quantity demanded increases.

Q: When the price falls, what happens? a. There is an increase in the quantity demanded. b. There is an increase in demand. c. There is a decrease in the quantity demanded. d. There is a decrease in demand. e. There is no change in the quantity demanded or demand.

Q: After Sushmita lost her job, she found that she was going to the movies less often. How would she describe this to an economist? a. Movies are a normal good and, as my income decreased, my demand curve shifted to the right. b. Movies are an inferior good and, as my income decreased, my demand curve shifted to the right. c. Movies are a normal good and, as my income decreased, my demand curve shifted to the left. d. Movies are an inferior good and, as my income decreased, my demand curve shifted to the right. e. Attending movies is a necessity.

Q: As a government official, Nolan wants fewer people to smoke. He has decided to use taxes to discourage people from smoking. How would he describe his decision to an economist? a. If I increase taxes on cigarettes, there will be an increase in demand, which means fewer people are smoking. b. If I decrease taxes on cigarettes, there will be a decrease in demand, which means fewer people are smoking. c. If I decrease taxes on cigarettes, there will be an increase in quantity demanded, which means fewer people are smoking. d. If I increase taxes on cigarettes, there will be a decrease in demand, which means fewer people are smoking. e. Taxes will have no effect on demand for cigarettes.

Q: A demand schedule a. is a curve representing the relationship between the price of a good or service and the quantity demanded. b. is a list of goods and services demanded at different prices. c. is a table representing the relationship between the price of a good or service and the quantity demanded. d. can only be used to analyze the individuals demand for a good or service. e. can only be used to analyze the entire markets demand for a good or service.

Q: According to the law of demand, all other things being equal, a. the quantity demanded falls when the price falls, and the quantity demanded rises when the price rises. b. the quantity demanded falls when the price rises, and the quantity demanded rises when the price falls. c. the demand falls when the price falls, and the demand rises when the price rises. d. the demand falls when the price rises, and the demand rises when the price falls. e. price and quantity are always positively correlated.

Q: Imperfect markets a. do not exist in democracies. b. always result in supply exceeding demand. c. always result in demand exceeding supply. d. occur when the buyer or seller has an influence on the price. e. cant occur if there are many buyers and many sellers.

Q: A monopoly a. exists when either the buyer or the seller has the ability to influence the market price. b. exists when there are so many buyers and sellers that each has only a small impact on the market price and output. c. exists when a single consumer demands the entire market for a particular good or service. d. can have many sellers but only one buyer. e. exists when a single company supplies the entire market for a particular good or service.

Q: Which of the following scenarios would represent a monopoly? a. In a city, there are five hotels for visitors to stay. b. In a city, there are 1,300 different restaurants. c. In a city, there are 10 different carpet cleaning companies. d. In a city, there is one Ethiopian restaurant. e. In a city, there are two taxi cab companies.

Q: In a small city, it is not unusual that a single place exists to buy or sell a car. How would we expect the owner of this car dealership to behave? a. The owner would lower prices on cars because the dealership lacks market power. b. The owner would lower prices on cars because the dealership has market power. c. The owner would raise prices on cars because the dealership has market power. d. The owner would raise prices because the dealership has no market power. e. The price of cars would be unaffected by the dealerships market power.

Q: There is often only one major league baseball team in a city. What is the consequence of this in terms of ticket prices? a. Ticket prices will be lower because each team is a monopoly in the city. b. Ticket prices will be higher because each team is a monopoly in the city. c. Ticket prices will be lower because each team lacks market power. d. Ticket prices will be higher because each team is faced with strong competition. e. Ticket prices are unaffected by the number of teams in a city.

Q: Kimberlys sister would like to start a business with her brother selling simple T-shirts that are green in color at all stores in the area. Her brother disagrees and thinks that the shirts should have a special logo on them and should be sold only at specific stores. As the deciding vote, what should Kimberly choose and why? a. selling green T-shirts because prices will be higher as the number of stores increases b. selling green T-shirts because prices will be higher as the shirt becomes more commonplace c. selling shirts with a special logo because prices will be higher as the shirts becomes more unique d. selling shirts with a special logo because prices will be higher as the shirts are sold in fewer stores e. both C and D

Q: Dawns family runs a business selling white paper used in photocopiers. Dawn notices that she is under intense pressure to lower prices. Why is this occurring? a. Prices are falling because fewer people are photocopying. b. Prices are falling because although there are many companies that make and sell paper, there are only a few customers that purchase large amounts of paper. c. Prices are falling because there are only a few companies that sell and make paper, but there are many different kinds of customers who buy paper. d. Prices are falling because there are many companies who make and sell paper and different kinds of customers for this paper. e. Prices are falling because some companies make and sell more paper than others.

Q: As electric cars have become more acceptable to drivers, more companies are building and selling such cars. What would we expect to see happen to prices of electric cars in the future? a. Prices for electric cars will rise in the future as more companies produce these cars. b. Prices for electric cars will rise in the future as more consumers are willing to purchase these cars. c. Prices for electric cars will rise in the future if rental car companies buy more electric cars in bulk. d. Prices for electric cars will fall in the future as more companies produce these cars. e. Prices for electric cars will be unaffected by their growing popularity.

Q: If someone searches for a flight between Los Angeles and Chicago, he or she will find different airlines offering flights at similar prices. Why does this occur? a. This occurs because one airline offers more flights at more convenient times than other airlines. b. This occurs because the flights are filled primarily with workers from the largest 10 companies in each of the cities. c. This occurs because there are many airlines and many different kinds of customers. d. This occurs because the cities are far away from each other and not many would choose to drive between the two cities. e. This occurs because passengers only pick those airlines where they collect frequent flyer miles.

Q: When a new movie is released, typically every theater offers the movie on the same day. What would someone expect the difference in movie ticket prices to be across theaters? a. The difference in prices across theaters will be small because no single theater has market power. b. The difference in prices across theaters will be large because no single theater has market power. c. The difference in prices across theaters will be small because the movie is new and can only be seen at a movie theater. d. The difference in prices across theaters will be large when a movie becomes more popular. e. The difference in prices across theaters will be small when a movie becomes less popular.

Q: Layla attends the farmers market in her hometown of Bakersfield every Sunday. She notices that all of the oranges sold by the many different farmers at the market have roughly the same price, as do most other products that are alike. Which statement best explains why the prices are so similar? a. The farmers market in Bakersfield is an imperfect market, so prices are set by the producers. b. The farmers market in Bakersfield is a monopoly because it is the only place to buy fresh fruit on Sundays. c. The farmers market in Bakersfield is a competitive market, so prices are set by the consumer. d. The farmers market in Bakersfield is a competitive market, so neither the consumer nor the producer has a large influence on the price, allowing for the market to set the price. e. The farmers market in Bakersfield is an imperfect market where Laylas decision whether to purchase an orange will not change the price of an orange.

Q: CHAPTER 3: The Market at Work: Supply and DemandFor a market to be competitivea. each buyer and seller is small, relative to the whole market; no single decision maker has any influence over the market price.b. sellers must produce goods and services that are different from their competitors.c. sellers should have substantial pricing power.d. all you need are many buyers and many sellers.e. the price must be a fair price.

Q: The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the following questions.What is Gibbss opportunity cost of solving a crime?a. 20 solved crimes b. 30 solved crimes c. 5 solved crimesd. 1/20 of a boate. 1/10 of a boat

Q: Refer to the following table to answer the following questions. New York PizzasPhilly CheesesteaksJay-Z40120Solange50125Suppose that Solange and Jay-Z could each make either New Yorkstyle pizza or Philly cheesesteaks. Given an eight-hour workday, which of the following would permit them to consume outside their respective production possibilities frontiers (PPFs)?a. a decrease in technologyb. a decrease in resourcesc. specialization and traded. efficient use of all their productive resourcese. an Empire State of mind

Q: The ability of one producer to create more of a good than another producer using the same quantity of resources is calleda. comparative advantage. b. absolute advantage. c. a positive-sum game.d. gains from trade.e. the law of increasing relative cost.

Q: When one producer can create more of a good than another producer using the same quantity of resources, the first producer hasa. a zero-sum game. b. gains from trade. c. an absolute advantage.d. a comparative advantage.e. increasing relative costs.

Q: One has an absolute advantage in producing something whenever a. one enjoys producing that good. b. one can produce more of it than someone else using the same quantity of resources. c. ones opportunity cost is constant. d. ones opportunity cost is lower than that of other producers. e. one has specific training in the production of that good.

Q: Specialization and trade allow individuals to a. consume outside their own production possibilities frontiers (PPFs). b. shift their PPFs outward. c. produce more goods with less technology. d. eliminate scarcity. e. produce fewer goods with less technology.

Q: If Monica and Chandler decide to specialize in order to maximize their combined output, who should produce what? a. Chandler should specialize in making pies because he has an absolute advantage. b. Monica should specialize in making pies and Chandler should specialize in making bread. c. Chandler should specialize in making pies and Monica should specialize in making bread. d. Monica should specialize in making bread and pies because she has a comparative advantage in both. e. Monica should not specialize because she is better at producing both.

Q: Consider the following scenario to answer the following questions: Two friends, Monica and Chandler, enjoy baking bread and making apple pies. Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie.What is Monicas opportunity cost of baking 1 pie?a. 2 pies b. 1 pie c. 1 loaf of breadd. 1/2 loaf of breade. 2 loaves of bread

Q: Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the following questions.A B. C. D. E. Suppose a new generation of baby boomers is entering the workforce. Which graph best depicts how this would affect the PPF?a. Graph A b. Graph B c. Graph Cd. Graph De. Graph E

Q: Refer to the following figure to answer the following questions.This society could reach point F when there is a(n)a. increase in the monetary price of white rice.b. credible new study that shows eating pasta reduces the risk of heart attacks.c. new technology that makes the storage and transport of both rice and pasta more efficient.d. new tax on the sale of both rice and pasta.e. increase in the monetary price of macaroni.

Q: Refer to the following figure to answer the following questions.We can see that the opportunity cost of moving from point D to point E is different from the opportunity cost of moving from point D to point C becausea. growing rice requires more water than growing wheat for pasta does.b. the slope of the production possibilities frontier (PPF) is different in each of the two segments.c. they are all efficient points.d. they are all attainable points.e. the opportunity cost is constant along the PPF.

Q: A town on the Gulf Coast is battered by a massive hurricane that destroys most of its productive resources. The communitys production possibilities frontier (PPF) would show ana. inward shift of the PPF. b. outward shift of the PPF. c. outward rotation along the x axis.d. outward rotation along the y axis.e. increase in opportunity cost.

Q: An increase in the labor force would be reflected in a societys production possibilities frontier (PPF) by ana. increase in opportunity cost. b. inward shift of the PPF. c. outward shift of the PPF.d. outward rotation along the x axis.e. outward rotation along the y axis.

Q: Economic growth is represented on a production possibilities frontier (PPF) by the PPFa. getting steeper. b. getting flatter. c. shifting inward.d. shifting outward.e. rotating downward.

Q: Refer to the following figure for the following questions.An increase in general resources that affects the production of both goods on a production possibilities frontier (PPF) would cause ana. inward shift of the PPF. b. outward shift of the PPF. c. outward rotation along the x axis.d. outward rotation along the y axis.e. increase in opportunity cost.

Q: Refer to the following figure for the following questions.Economic growth can be depicted on a production possibilities frontier (PPF) as ana. inward shift of the PPF. b. outward shift of the PPF. c. inward rotation along the x axis.d. inward rotation along the y axis.e. increase in opportunity cost.

Q: Refer to the following figure for the following questions.According to the figure, a new technology that makes it easier to peel, core, and prepare apples will causea. the entire production possibilities frontier (PPF) to shift outward.b. the entire production possibilities frontier (PPF) to shift inward.c. the production possibilities frontier (PPF) to rotate outward to a larger maximum quantity of apple pies with no change in maximum blueberry pies.d. the production possibilities frontier (PPF) to rotate outward to a larger maximum quantity of blueberry pies with no change in maximum apple pies.e. the production possibilities frontier (PPF) to stay exactly the same because there is no change in resources.

Q: Refer to the following figure for the following questions.As we move from points N to M to L, the opportunity cost of additional apple piea. decreases due to the law of increasing relative cost.b. increases due to the law of increasing relative cost.c. decreases due to the law of normative economics.d. increases due to the law of marginal analysis.e. decreases due to enhancements in technology.

Q: Refer to the following figure for the following questions.The opportunity cost of increasing production of blueberry pies from 7 to 11 pies is ________ pies.a. 2 blueberry b. 14 apple c. 7 blueberryd. 4 applee. 2 apple

Q: If Bo and Kenzi were to specialize and trade, at what exchange rate would they find some quantity of trade to be mutually beneficial?a. 3 pizzas for 1 stromboli b. 1 pizza for 1 stromboli c. 10 pizzas for 2 strombolid. 1 pizza for 1/2 strombolie. 1 pizza for 1/4 stromboli

Q: Based on the figure, which statement about comparative advantage is true? a. Bo has a comparative advantage in the production of stromboli because her opportunity cost is lower. b. Bo has a comparative advantage in the production of stromboli because her opportunity cost is higher. c. Bo has a comparative advantage in the production of pizzas because her opportunity cost is lower. d. Bo has a comparative advantage in the production of pizzas because her opportunity cost is higher. e. Bo has a comparative advantage in the production of both pizzas and stromboli.

Q: Which statement best describes the absolute advantage as shown in the graphs? a. Kenzi has an absolute advantage in the production of both. b. Bo has an absolute advantage in the production of both. c. Bo has an absolute advantage in the production of pizzas, and Kenzi has an absolute advantage in the production of stromboli. d. Kenzi has an absolute advantage in the production of pizzas, and Bo has an absolute advantage in the production of stromboli. e. They both have an absolute advantage in the production of stromboli.

Q: Mikhail and Stefan are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the following questions. SculpturesPaintingsMikhail105Stefan 62Based on the table, does Mikhail or Stefan have a comparative advantage?a. Yes, Mikhail has a comparative advantage in both sculptures and paintings.b. Yes, Stefan has a comparative advantage in both sculptures and paintings.c. Yes, Mikhail has a comparative advantage in paintings, and Stefan has a comparative advantage in sculptures.d. Yes, Mikhail has a comparative advantage in sculptures, and Stefan has a comparative advantage in paintings.e. No, neither has a comparative advantage.

Q: The movie Saving Private Ryan is about a military mission to find and recover a particular soldierPrivate Ryan. The movie is predominantly about how much was given up in an effort to save this one particular soldier. The main economic theme of the movie isa. absolute advantage. b. opportunity cost. c. normative analysis.d. comparative advantage.e. positive advantage.

Q: Suppose someone finds a production possibilities frontier (PPF) that is shaped like a straight line. What can one determine about the production of the two goods? a. Production of the two goods is subject to decreasing relative cost. b. Production of the two goods is subject to increasing relative cost. c. Production of the two goods is subject to constant opportunity cost anywhere along the PPF. d. One producer must have an absolute advantage in production. e. More resources will not cause the PPF to shift.

Q: Opportunity cost is evident on the production possibilities frontier (PPF) graph a. as we move from one point on the frontier to another point on the frontier. b. as we move from the origin to any inefficient point. c. as we move from one unattainable point to an efficient point on the frontier. d. as we move from an inefficient point to the origin. e. at any one single point on the graph.

Q: Suppose someone is studying a production possibilities frontier (PPF) that has a bowed-out shape relative to the origin. What causes this shape?a. economic growth b. the law of increasing relative cost c. absolute advantaged. normative economicse. more resources

Q: As we move from one efficient point on the production possibilities frontier (PPF) to another efficient point on the PPF, we experiencea. decreasing relative cost.b. opportunity cost. c. macroeconomics.d. unlimited resources.e. unattainable combinations.

Q: When the opportunity cost of producing a good rises as someone produces more of it, one experiencesa. normative economics. b. increasing relative costs. c. downward-sloping demand.d. inferior goods.e. increasing marginal utility.

Q: The ________ states that the opportunity cost of producing a good always rises as one produces more of it.a. law of increasing relative costb. law of positive economicsc. law of demandd. production possibilities frontier (PPF) modele. zero-sum game

Q: Refer to the accompanying figure to answer the following questions.Given the current resources, one would need even more hours in each day in order to attaina. point A. b. point B. c. point C.d. point D.e. point E.