EC 500 - Quiz 1 ( Economics Q&A 2023
Update A+
A production possibilities frontier is bowed outward when - ANSWER-the rate of tradeoff
between the two
... [Show More] goods being produced depends on how much of each good is being
produced.
The rate of tradeoff between producing product x and producing product y is constant in
- ANSWER-a graph that shows a straight line and not a curve.
The most obvious benefit of specialization and trade is that they allow us to - ANSWERconsume more goods than we otherwise would be able to consume.
The opportunity cost of an item is - ANSWER-what you give up to get that item.
The producer that requires a smaller quantity of inputs to produce a certain amount of a
good, relative to the quantities of inputs required by other producers to produce the
same amount of that good, - ANSWER-has an absolute advantage in the production of
that good.
If Shawn can produce donuts at a lower opportunity cost than Sue, then - ANSWERShawn has a comparative advantage in the production of donuts.
"Other things equal, when the price of a good rises, the quantity demanded of the good
falls, and when the price falls, the quantity demanded rises." This relationship between
price and quantity demanded is referred to as - ANSWER-the law of demand.
A rightward shift of a demand curve is called a(n) - ANSWER-increase in demand.
The demand curve for coffee shifts - ANSWER-when a determinant of the demand for
coffee other than the price of coffee changes.
Each of the following is a determinant of demand except - ANSWER-production
technology.
"Other things equal, when the price of a good rises, the quantity supplied of the good
also rises, and when the price falls, the quantity supplied falls as well." This relationship
between price and quantity supplied - ANSWER-is referred to as the law of supply.
A improvement in production technology will shift the - ANSWER-supply curve to the
right.
In general, elasticity is a measure of - ANSWER-how much buyers and sellers respond
to changes in market conditions.
Demand is said to be price elastic if - ANSWER-buyers respond substantially to
changes in the price of the good.
The price elasticity of demand measures how much - ANSWER- Continues... [Show Less]