ecomonic I
(B)1. The bowed shape of the production possibilities frontier can be explain by the fact that (A)all resources are scarce. (B)the opportunity cost is increasing. (C)economic growth is occurring. (D)to get one more must get the other less
(B)2. A statement describing how the world should be (A)is a positive statement. (B)is a normative statement. (C)would only be made by an economist employed by the government. (D)would only be made by an economist speaking as a scientist.
(A)3. Which of the following would produce an increase in equilibrium quantity and an inderminate change in equilibrium price?(DD=Demand, SS=supply) (A)An increase in DD and SS (B)An increase in DD and a decrease in SS (C)a decrease in DD and SS (D)A decrease in DD and an increase in DD
(C)4. If the price falls from $8 to $7, the quantity of demanded rises from 4 to 6, then total revenue (A)increase, and demand is inelastic.(B)decrease, and demand is elastic (C)increase, and demand is elastic. (D)decrease, and demand is inelastic
(A)5. Milk has an inelastic demand, and beef has an elastic demand. Soppose that a mysterious increase in bovine infertility decrease both the population of dairy cows and the population of beef cattle by 50 percent. Then the change in equilibrium price will be (A)greater in the milk than in the beef market. (B)the same in these two markets. (C)greater in the beef than in the milk market. (D)no change at all.
(B)2. A statement describing how the world should be (A)is a positive statement. (B)is a normative statement. (C)would only be made by an economist employed by the government. (D)would only be made by an economist speaking as a scientist.
(A)3. Which of the following would produce an increase in equilibrium quantity and an inderminate change in equilibrium price?(DD=Demand, SS=supply) (A)An increase in DD and SS (B)An increase in DD and a decrease in SS (C)a decrease in DD and SS (D)A decrease in DD and an increase in DD
(C)4. If the price falls from $8 to $7, the quantity of demanded rises from 4 to 6, then total revenue (A)increase, and demand is inelastic.(B)decrease, and demand is elastic (C)increase, and demand is elastic. (D)decrease, and demand is inelastic
(A)5. Milk has an inelastic demand, and beef has an elastic demand. Soppose that a mysterious increase in bovine infertility decrease both the population of dairy cows and the population of beef cattle by 50 percent. Then the change in equilibrium price will be (A)greater in the milk than in the beef market. (B)the same in these two markets. (C)greater in the beef than in the milk market. (D)no change at all.