Which of these resources is considered land?
Bicycle
Air
Bill Gates
Going to school
construction working
Which of the following is not an example of resource scarcity?
There is a finite amount of petroleum in the world
Farming communities are experiencing droughts
There are not enough physicians to satisfy all health care needs
Cassette tapes are nolonger being produced
Teachers would like to have more instructional technology
Which of the following is more evident in command economy than it is in market economy?
property rights for individuals
private sector owning most of the factors of production
plenty of incentives to motivate firms to produce
very high unemployment
decision making slowed down by bureaucracy
The production possibilities curve will certainly be straight if
making more of one good means that less of the other good can be made.
no resources are specialized for the production of either good.
the opportunity cost of making each good increases as more is made.
it costs a lot of time, effort and money to convert resources when more of a good is needed.
the good is both being produced efficiently.
The fundamental problem with command economies is a lack of
central authority
workers
incentives
land
opportunity cost
Which of the following will occur if consumers expect the price of a good to fall in the coming months?
The quantity demanded will rise today.
The quantity demanded will remain the same today.
Demand will increase today.
Demand will decrease today
Price will decrease today.
Which of the following will not cause the demand curve for athletic shoes to shift?
Widespread advertising campaign for athletic shoes.
Forecast shows that price of athletic shoes will drop.
The government decreases income tax.
Many people leave the country due to an epidemic of bird flu.
Athletic shoes become more expensive.
What is opportunity Cost?
The value of your choice.
The dollar value of all your choices combined.
The dollar and non-dollar value of all your choices.
The value of your next best alternative.
The value of all your alternatives
In a day Nigel can make three placemats or one gallon of maple syrup, and Pauline can make two placemats or two gallons of maple syrup. Which statement is true?
Nigel has absolute advantage in making maple syrup.
Paulines' opportunity cost of making a placemet is two gallons of maple syrup.
Nigel has comparative advantage making placemats.
Pauline has absolute advantage making placemats.
Nigel's opportunity cost of making a gallon of maple syrup is one placemat.
In a day Nigel can make 3 placemats or 1 gallon of maple syrup, and Pauline can make 2 placemats or 2 gallons of maple syrup. Which trade is mutually beneficial
Nigel trades one placemat for half a gallon of maple syrup from Pauline.
Pauline trades one placemat for half a gallon of maple syrup from Nigel.
Nigel trades one placemat for two gallons of maple syrup from Pauline.
Pauline trades one placemat for two gallons of maple syrup from Nigel.
Nigel trades one placemat for a quarter of a gallon of maple syrup.
Apple growers are using pesticides to kill apple eating pests and at the same time the price of pears decreases. What happens to the market for apples?
price rises but quantity is ambiguous.
price falls but quantity is ambiguous.
price is ambiguous but quantity rises.
price is ambiguous but quantity falls.
both price and quantity is ambiguous.
Suppose you can paint a room or clean 5 rooms in 2 hours. Your friend John can paint a room in one hour. To have a comparative advantage in painting, John must
clean less than 10 rooms in two hours.
clean more than 10 rooms in two hours.
clean exactly 10 rooms in two hours.
have absolute advantage in painting.
Not enough information
Suppose butter and margarine are substitutes. Assume the price of milk, an input in the production of butter, increases. What happens in the margarine market?
The supply shifts right.
The supply shifts left.
The demand shifts right.
The demand shifts left.
Neither demand nor supply shifts.
Which of the following statements is FALSE?
The opportunity cost of a bushel of rice in Germany is 1.4 bushels of soybeans.
Germany has absolute advantage in producing rice.
Nigeria has a comparative advantage in rice.
If they specialize and trade, a one-to-one trade would be mutually beneficial.
If they specialize and trade, Germany should import soybeans and Nigeria should import rice.
Which of these statements is TRUE?
The law of supply says when price decreases then supply also decreases.
Free market economy has more economic security and economic equity than command economy.
Scarcity of inputs is a result of quantity demanded of resources being greater than the quantity supplied of resources.
Two societies producing the good they have the lowest opportunity cost in means they mutually benefit from trading.
None of them are true.