Exam 1 Fall 2024 Version 2 Quiz PDF

12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 exam_1_Fall_2024_Version_2 Results for John Ray Score for this quiz: 15 out of 40 Submitted Sep 18 at 1:35pm This attempt took less than 1 minute.  Question 1 0 / 1 pt...

12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 exam_1_Fall_2024_Version_2 Results for John Ray Score for this quiz: 15 out of 40 Submitted Sep 18 at 1:35pm This attempt took less than 1 minute.  Question 1 0 / 1 pts Suppose that you own a house. What is the opportunity cost of living in the house? You Answered There is no opportunity cost because you own the house. There is no opportunity cost unless you could set up a business in the house. Correct Answer The opportunity cost is the rent you could have received from a tenant if you didn't live there. The opportunity cost is the cost of your monthly mortgage payment plus bills.  Question 2 0 / 1 pts The principle that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity, is known as the: Correct Answer marginal principle. You Answered principle of opportunity cost. principle of diminishing returns. spillover principle.  Question 3 1 / 1 pts Chris currently produces 29 units of output per day. He can sell as many units of output as he can make for $5 per unit. His total costs, including his fixed costs, are $200 to produce the 29 units of output. The marginal cost of producing the 29th unit is $5 and the marginal cost of the 30th unit is $6. In the short run, the marginal principle says he should: produce 31 units per day. produce 30 units per day. https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 1/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Correct! produce 29 units per day. produce 32 units per day.  Question 4 1 / 1 pts Microeconomics is best described as Correct! the study of the choices made by individual households, firms and governments, and their interaction in markets the study of the nation's economy as a whole the study of how markets interact in the aggregate economy the study of very small issues the study of very large issues  Question 5 0 / 1 pts The production possibility curve is negatively sloped due to the principle of diminishing returns. Correct Answer the principle of opportunity cost. You Answered the marginal principle. the reality principle. none of the above  Question 6 0 / 1 pts The opportunity cost of producing an additional unit of a product increases as we move down the production possibilities curve because You Answered society has fixed amounts of productive resources it is more aesthetically pleasing to draw a curved shape the curve is negatively sloped Correct Answer resources are not perfectly adaptable it is less and less costly to produce each additional space mission in a year  https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 2/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Question 7 1 / 1 pts Which of the following is not assumed to be held fixed on a production possibilities curve? the amount of labor available the amount of capital available the level of technology Correct! All of the above are fixed on the production possibilities curve.  Question 8 0 / 1 pts Use the following diagram to answer questions (8) to 10). Point D on the graph is Correct Answer Possible Impossible Efficient both possible and efficient You Answered both impossible and efficient  https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 3/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Question 9 1 / 1 pts Use the following diagram to answer questions (8) to (10). Which of the following points on the graph are efficient? Point A Point B Correct! Point C Point D All of the above are correct  Question 10 1 / 1 pts Use the following diagram to answer questions (8) to (10). https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 4/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Which of the points on Figure 1.1 are attainable and are points where it is impossible for the society to produce more of both goods? Point A Point B Correct! Point C Point D All of the above are correct  Question 11 0 / 1 pts Mike has his own business driving clients to airports and other destinations in a limousine which he owns. Which of the following is an example of an implicit cost in his business? purchases of gasoline tolls and parking fees car insurance You Answered All of the above Correct Answer None of the above  Question 12 0 / 1 pts https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 5/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 The principle of diminishing returns implies that if all but one factor of production are held constant, if that one factor is doubled then eventually output will most likely: You Answered double too. Correct Answer less than double. more than double. None of the above.  Question 13 1 / 1 pts Use the table below to answer the following question. Number of Output workers 1 12 2 25 3 40 4 53 5 63 6 71 Diminishing returns occurs: Between the first and second worker Between the second and third worker Correct! Between the third and fourth worker Between the fourth and fifth worker https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 6/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Between the fifth and sixth worker  Question 14 0 / 1 pts The period of time over which all factors of production can be change is You Answered the period of diminishing returns the period of marginal costs the short run the period of variable production Correct Answer the long run  Question 15 0 / 1 pts The principle of diminishing returns cannot occur: Correct Answer in the long run. in the short run. either in the short run or the long run. You Answered when at least one factor of production is held fixed.  Question 16 0 / 1 pts When one person or nation can produce a good at a lower opportunity cost than another, it is said to have You Answered a market advantage Correct Answer a comparative advantage an absolute advantage a specialization advantage none of the above  Question 17 0 / 1 pts https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 7/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 An individual or country that has a comparative advantage in the production of one good You Answered must have an absolute advantage in the good's production must not have an absolute advantage in the good's production Correct Answer may or may not have an absolute advantage in the good's production must have a comparative advantage in the production of all goods  Question 18 1 / 1 pts The two markets where exchanges occur in the simple circular flow model are the labor market and the capital market Correct! the input/factor market and the output market the input/factor market and the capital market the labor market and the output market none of the above  Question 19 1 / 1 pts In the circular flow model, households Correct! translate payment for inputs into payment for products translate inputs supplied into products demanded translate inputs for production into products supplied translate monetary costs into revenue from selling products none of the above  Question 20 0 / 1 pts In the circular flow model, firms translate payment for inputs into payment for products You Answered translate inputs supplied into products demanded Correct Answer translate inputs for production into products supplied https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 8/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 translate monetary costs into revenue from selling products none of the above  Question 21 0 / 1 pts Use the table below to answer the following question. Country A Country B Toys 30 per day 20 per day Ships 2 per day 1 per day Which country has the comparative advantage in producing toys and which country has the comparative advantage in producing ships? You Answered Country A has the comparative advantage in producing both toys and ships. Country B has the comparative advantage in producing both toys and ships. Country A has the comparative advantage in producing toys and country B has the comparative advantage in producing ships. Correct Answer Country B has the comparative advantage in producing toys and country A has the comparative advantage in producing ships. Need information on exchange rates to answer the question.  Question 22 1 / 1 pts Consider two individuals, Hamilton and Charlie, who produce peaches and cream. Hamilton and Charlie’s hourly productivity are as follows: Peaches/hour Cream/hour Hamilton 16 per hour 8 per hour Charlie 21 per hour 3 per hour Which of the following is true? Correct! Charlie has an absolute advantage in producing peaches but not cream. https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 9/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Charlie has an absolute advantage in producing cream but not peaches. Charlie has an absolute advantage in producing both goods. Charlie has an absolute advantage in producing neither good.  Question 23 1 / 1 pts Consider two individuals, Hamilton and Charlie, who produce peaches and cream. Hamilton and Charlie’s hourly productivity are as follows: Peaches/hour Cream/hour Hamilton 16 per hour 8 per hour Charlie 21 per hour 3 per hour Charlie's opportunity cost of producing one peach is: 2/3 unit of cream. Correct! 1/7 units of cream. 7 units of cream. 3 units of cream.  Question 24 1 / 1 pts Consider two individuals, Hamilton and Charlie, who produce peaches and cream. Hamilton and Charlie’s hourly productivity are as follows: Peaches/hour Cream/hour Hamilton 16 per hour 8 per hour Charlie 21 per hour 3 per hour Charlie's opportunity cost of producing one unit of cream is: 2/3 peach 1/7 peaches. Correct! 7 peaches. 3 peaches. https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 10/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2  Question 25 0 / 1 pts Consider two individuals, Hamilton and Charlie, who produce peaches and cream. Hamilton and Charlie’s hourly productivity are as follows: Peaches/hour Cream/hour Hamilton 16 per hour 8 per hour Charlie 21 per hour 3 per hour Hamilton's opportunity cost of producing one cream is: 8 unit of peach. You Answered 1/2 unit of peach. Correct Answer 2 units of peach. 3 units of peach.  Question 26 0 / 1 pts Consider two individuals, Hamilton and Charlie, who produce peaches and cream. Hamilton and Charlie’s hourly productivity are as follows: Peaches/hour Cream/hour Hamilton 16 per hour 8 per hour Charlie 21 per hour 3 per hour Which of the following is true? You Answered Hamilton has an absolute advantage in cream but a comparative advantage in peach production. Hamilton has both an absolute and comparative advantage in peach production. Correct Answer Hamilton has neither an absolute nor a comparative advantage in peach production. Hamilton has neither an absolute nor a comparative advantage in cream production.  https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 11/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Question 27 0 / 1 pts Figure 4.1 illustrates the supply and demand for sweaters. If the actual price of a sweater is $35, there is excess demand of 40 sweaters You Answered excess supply of 40 sweaters Correct Answer excess demand of 20 sweaters excess supply of 50 sweaters  Question 28 0 / 1 pts https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 12/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Figure 4.1 illustrates the supply and demand for sweaters. If the actual price of a sweater is $45, there is You Answered excess demand of 40 sweaters Correct Answer excess supply of 40 sweaters excess demand of 20 sweaters excess supply of 50 sweaters  Question 29 0 / 1 pts https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 13/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Figure 4.1 illustrates the supply and demand for sweaters. If the actual price of a sweater is $45, we would expect the price of sweaters to ______, the quantity demanded of sweaters to ___________ and the quantity supplied of sweaters to ___________ increase; increase; increase You Answered increase; decrease; increase Correct Answer decrease; increase; decrease decrease; decrease; increase  Question 30 1 / 1 pts Judy demands more peanuts as her income increases. From this, we can conclude that Peanuts are a inferior good Correct! Peanuts are an normal good Peanuts are a complementary good Peanuts are a substitute good Not enough information to answer the question  https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 14/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Question 31 0 / 1 pts Lettuce and spinach are substitute goods. All else equal, if a spinach beetle destroys half of the nation's spinach crop, we predict that the equilibrium price of lettuce will _________ and the equilibrium price of spinach will ____________. Correct Answer rise; rise You Answered rise; fall fall; rise fall; fall  Question 32 0 / 1 pts Suppose that the price of fertilizer, an input in the production of corn, rises. We would predict that the equilibrium quantity of corn will __________ and the equilibrium price of corn will ___________. rise; rise You Answered rise; fall Correct Answer fall; rise fall; fall  Question 33 0 / 1 pts Suppose that people expect that the price of orange juice will rise next month. We would predict that the equilibrium quantity of orange juice will __________ and the equilibrium price of orange juice will ___________ this month. Correct Answer rise; rise You Answered rise; fall fall; rise fall; fall  Question 34 1 / 1 pts https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 15/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Suppose that the demand for DVD’s can be written as Q = 40 - P and the supply of DVD’s can be written as Q = P - 10. If the price of DVD’s is $30, which of the following is true? Correct! There will be a surplus of 10 DVD’s There will be a shortage of 10 DVD’s There will be a surplus of 20 DVD’s There will be a shortage of 20 DVD’s None of the above are correct  Question 35 0 / 1 pts Suppose that the demand for pizza can be written as Q = 35 - 3P and the initial supply of pizza can be written as Q = 6P - 10. Suppose the supply equation changed to Q = 6P – 19. What could have lead to this change in the supply equation? Technological improvement in pizza production. The government gave pizza firms a production subsidy. You Answered The price of flour (an input for pizza) fell. Correct Answer The price of flour (an input for pizza) rose. The price of beer (a complement to pizza) rose.  Question 36 0 / 1 pts Suppose that the initial demand for pizza can be written as Q = 35 - 3P and the supply of pizza can be written as Q = 6P - 10. Suppose the demand equation changed to Q = 26 - 3P. What could have lead to this change in the demand equation? Technological improvement in pizza production. Correct Answer The price of beer (a complement to pizza) rose. Consumer income rose. The price of flour (an input for pizza) rose. You Answered None of the above.  Question 37 1 / 1 pts https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 16/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 Suppose that in October the price of a cup of caffe latte was $2.00 and 200 lattes were consumed. In November the price of a latte was $1.50 and 400 lattes were consumed. What might have caused this change? The price of tea (a substitute for caffe lattes) fell The price of tea (a substitute for caffe lattes) rose The price of coffee beans (an input of production of caffe lattes) rose Correct! The price of coffee beans (an input of production of caffe lattes) fell  Question 38 0 / 1 pts Suppose that in 1996, 10 million cars were purchased at $15,000 each, while in 1997, 8 million cars were purchased at $12,000 each. What might have caused this change? Correct Answer The price of airplane tickets (a substitute for cars) fell The price of airplane tickets rose You Answered Automobile manufacturing technology increased. Automobile manufacturing technology decreased All of the above  Question 39 0 / 1 pts Suppose that a freeze in California reduces the supply of avocados. Avocados are an input in the production of guacamole, and guacamole is in turn a substitute for salsa. What should happen? You Answered The quantity of guacamole decreases and the quantity of salsa decreases Correct Answer The quantity of guacamole decreases and the quantity of salsa increases The price of guacamole decreases and the price of salsa increases The price of guacamole decreases and the price of salsa decreases None of the above are correct  Question 40 1 / 1 pts Fish and Chicken are substitutes. When the price of Fish rises, and a technological advance in Chicken production occurs at the same time, https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 17/18 12/11/24, 12:01 AM John Ray's Quiz History: exam_1_Fall_2024_Version_2 The price of Chicken rises and the quantity of Chicken falls Correct! The price of Chicken is ambiguous and the quantity of Chicken rises The price of Chicken falls and the quantity of Chicken rises The price of Chicken falls and the quantity of Chicken is ambiguous None of the above is correct Quiz Score: 15 out of 40 https://k-state.instructure.com/courses/161215/quizzes/483524/history?version=1 18/18