question
if you have to give up some amount of a good to produce more of another, you are operating at an efficient point on the production possibilities curve.
answer
true
question
if goods a and b are perfect substitutes, the consumer's indifference curves will be lines that form right angles.
answer
false
question
if all prices increased 5%, there would be an income effect and a substitution effect
answer
false
question
a giffen good is an inferior good
answer
true
question
typically, the price elacticity of demand will vary from one point on the demand curve to another
answer
true
question
the price elasticity of deman for salt is 0.2. a decrease in price would lower revenue from salt
answer
true
question
if unexpected bad weather decreases the supply of oranges, the demand for oranges will decrease.
answer
false
question
if the government followed proper economic policy, scarcity would be eliminated
answer
false
question
the larger the time period over which consumers can adjust, the more elastic the demand
answer
true
question
if there is no diminishing marginal utility, the indifference curve will be a straight line
answer
true
question
which one of the following represents an economic, but not an accounting, cost of owning a restaurant?
answer
the interest foregone by the owner on the personal savings invested in the restaurant
question
which of the following is generally considered to be a microeconomics question?
answer
the relationship between productivity of workers and wages received by them
question
the opportunity cost of traffic congestion includes
answer
longer communting time to work
question
the relative price of a good
answer
reflects its price compared to prices of other goods
question
which of the following is likely to shift the demand for chocolates to the left?
answer
medical reports suggesting increased risk of memory loss due to high chocolate consumption
question
which of the following is held constant along a given demand curve
answer
the consumer's income
question
which of the following is an example of price ceiling
answer
a cap on the automobile insurance rate charged in some states
question
the price elasticity of demand for a good is equal to
answer
the percentage change in quality demanded divided by the percentage change in price
question
if, at the initial price, there is a shortage, the price will rise. as a consequence, the demand curve shifts down since people buy less at a higher price, and the supply curve shifts up because producers find it profitable to supply more output at a higher price. price will continue to adjust until there is no excuse demand. which of the following is true about this statement?
answer
the quotation confuses movements along curves with shifts in curves
question
suppose 100 pretzels are demanded at a given price. if the price of pretzels rises by 5% and the number of pretzels demanded falls to 92, it can be concluded that.
answer
the demand for pretels in the price range is elastic
question
which of the following will lead to a corner solution?
answer
the first unit of one good is not worth its cost
question
convexity of indifference curves implies that
answer
the marginal utility of a good decreases as the consumer moves along the indifference curve
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