Microeconomics Exam 1 Multiple Choice

In economics, we assume that our wants and needs are ___________ our ability to satisfy them

Which of the following best describes what economists assume is true about human behavior?

Most college students work outside of school, but they typically work at jobs unrelated to their future career plans, i.e. at restaurants or other part-time jobs. Those students delay the beginning of their careers in order to attend college. For those students, what is the opportunity costs of attending college?

Which of the following is not a fundamental economic question that all societies must answer?

In the US, what is the primary resource allocation mechanism?

Which of the following sets of factors determine the production possibilities frontier for a given country over a given period of time?

If the production possibilities frontier for a given country increased (i.e. shifted up and to the right), what would this mean?

If a country is producing at a point on its production possibilities frontier and it wanted to produce more of one good, it must also

In 2008, farmers in the US began to grow more corn, in response to rising corn prices. The opportunity costs of this decision was

All points above and to the right of a production possibilities frontier are considered to be

All points underneath a production possibilities frontier are considered to be

The market consists of the interaction of __________ and __________

Which of the following statements about the market is not true?

The demand curve is downward sloping because

Which of the following events would tend to cause an increase in demand for economics textbooks?

In question 15, economic textbooks and economics classes are considered to be

If a good is considered inferior, we know that a(n) ____________ in income will cause a(n) __________ in demand for that good

According to the Law of Supply, an increase in ___________ will cause an increase in ____________

Which of the following events would cause the supply of economic textbooks to increase?

Which of the following events would cause the supply of corn to decrease?

The difference between the minimum price that a firm must receive in order to produce a good and the market price is also known as

Assume that you are willing to pay as much as $12 to see the remake of "Robocop," which hits theaters later this month. You decide to see the movie with two friends who are willing $10 and $9, respectively, to see the movie. If a ticket to the movie costs $8, what is the total consumer surplus for all three of you?

Holding supply and demand constant, an increase in the price of a good will tend to ___________ consumer surplus and __________ producer surplus

Which of the following is not true when a market is in equilibrium?

When the market price is set __________ equilibrium price, firms will experience a ___________, which creates an incentive for them to _________ prices.

If the demand for some good increases, the demand curve will shift

If the demand for some increases, this will tend to cause the price of that good to _______ and quantity of that good to _______

If the supply of some decreases, this will tend to cause the price of that good to _________ and quantity of that good to _________

If the supply of some good decreases, the supply curve will shift

During the fall of each year, starting just after Labor Day, the price of gasoline tends to decrease, and fewer gallons of gasoline are sold. This is most likely due to

If the supply for cotton increased and price did not adjust accordingly, which of the following would happen as a result?

If the actual quantity of some good that is bought and sold is less than the equilibrium quantity, the result is

If the actual quantity of some good that is bought and sold is greater than the equilibrium quantity, the result is

A change in _________ will cause the quantity demanded of a good to change

The existence of a shortage creates an incentive for firms to