Question 1

Which of the following statements is a positive economic statement?

Accepted Answer

"Raising taxes on gasoline will lead to a decrease in gasoline consumption."

Question 2

Suppose a country can produce either 100 units of wheat or 200 units of corn using all its resources. What is the opportunity cost of producing 1 unit of wheat?

Accepted Answer

$$2$$ units of corn

Question 3

Which of the following best describes the law of demand?

Accepted Answer

As the price of a good increases, the quantity demanded decreases, ceteris paribus.

Question 4

A country can produce either 10 cars or 20 computers with its resources. Another country can produce either 5 cars or 15 computers. Which country has the comparative advantage in producing computers?

Accepted Answer

The second country

Question 5

If the price of coffee increases, what is most likely to happen to the demand for tea, assuming tea is a substitute for coffee?

Accepted Answer

The demand for tea will increase.

Question 6

Which of the following is an example of a price ceiling?

Accepted Answer

A government-imposed maximum price for rental apartments.

Question 7

Suppose the government sets a price floor above the equilibrium price in the wheat market. What is the most likely result?

Accepted Answer

A surplus of wheat

Question 8

Which of the following best illustrates the concept of ceteris paribus?

Accepted Answer

Assuming all other factors remain constant when analyzing the effect of price on quantity demanded.

Question 9

If a new technology reduces the cost of producing smartphones, what will happen to the supply curve for smartphones?

Accepted Answer

It will shift to the right.

Question 10

Which of the following is NOT a characteristic of a market economy?

Accepted Answer

Central planning by the government

Question 11

A market is in equilibrium when:

Accepted Answer

Quantity demanded equals quantity supplied.

Question 12

If the demand for a normal good increases as income rises, which of the following is also true?

Accepted Answer

The good is a normal good.

Question 13

Suppose the market for gasoline experiences a sudden decrease in supply due to a natural disaster. What is the most likely immediate effect on equilibrium price and quantity?

Accepted Answer

Equilibrium price increases, equilibrium quantity decreases.

Question 14

Which of the following best describes the concept of bounded rationality?

Accepted Answer

Individuals make decisions with limited information and cognitive ability.

Question 15

If the government imposes an import quota on foreign cars, what is the most likely effect on the domestic car market?

Accepted Answer

The price of domestic cars will increase.

Question 16

Which of the following is an example of an economic good?

Accepted Answer

Bottled water in a desert

Question 17

Suppose the demand for public transportation increases due to a rise in gasoline prices. What will happen to the equilibrium price and quantity of public transportation rides?

Accepted Answer

Equilibrium price will increase and equilibrium quantity will increase.

Question 18

Which of the following best explains why division of labor increases productivity?

Accepted Answer

It allows workers to specialize and become more efficient at specific tasks.

Question 19

If a market experiences a sudden increase in demand and supply remains unchanged, what will happen to the equilibrium price and quantity?

Accepted Answer

Equilibrium price and equilibrium quantity will both increase.

Question 20

Which of the following best describes the economic way of thinking?

Accepted Answer

Using an analytical framework to evaluate costs, benefits, and alternatives.

Microeconomics Exam 1 Study Guide: Step-by-Step Guidance

Guida di studio - Domande di pratica

Study guide - Flashcard