Midterm Exam 1tested questions and answers solution docs 2020

Midterm Exam 1tested questions and answers solution docs 2020 Question 1 3 / 3 pts When an economist talks about scarcity, he or she is referring to IncorrectQuestion 2 0 / 3 pts Which of the following i ...

Midterm Exam 1tested questions and answers solution docs 2020 Question 1 3 / 3 pts When an economist talks about scarcity, he or she is referring to IncorrectQuestion 2 0 / 3 pts Which of the following is a positive statement? Question 3 3 / 3 pts A statement of economic theory that abstracts from the nuances of reality is IncorrectQuestion 4 0 / 3 pts You can either go to a movie, go to a concert, or go out to eat tonight. You decide that your first choice is going to a concert, second choice is going out to eat, and third choice is going to a movie. So, you go to a concert. The opportunity cost of this decision is Question 5 3 / 3 pts Your opportunity cost of cutting hair at your barbershop is $20 per hour. Electricity costs $6 per hour, and your weekly rent is $250. You normally stay open nine hours per day. What is the marginal cost of staying open for one more hour? Question 6 3 / 3 pts Consider the following table which shows the yield per acre of cotton and wheat in two countries, USA and Mexico: In Mexico, the opportunity cost of producing 24 units of wheat is YIELD PER ACRE USA Mexico Cotton 8 9 Wheat 5 12 Question 7 3 / 3 pts Mark can produce 50 baseballs in a month and Katie can produce 60 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. ______________has the absolute advantage in the production of bats, and _____________ has the comparative advantage in the production of bats. Question 8 3 / 3 pts The law of increasing opportunity costs arises because Question 9 3 / 3 pts Assume Oklahoma and South Dakota each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: Suppose the two states decide that they want to produce 600 total units of wheat. What is the maximum amount of corn that they could produce? South Dakota Oklahoma Wheat 5 2 Corn 6 3 Question 10 3 / 3 pts Assume Oklahoma and South Dakota each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: What is the marginal rate of transformation between wheat and corn in South Dakota? South Dakota Oklahoma Wheat 6 8 Corn 12 12 1/2. Question 11 3 / 3 pts The price of a cookie at bakeries increases from $1.30 to $1.50. The law of supply predicts that Question 12 3 / 3 pts In the above figure, a technological development would be represented by IncorrectQuestion 13 0 / 3 pts In the above figure, a shortage will occur in the market at a price of IncorrectQuestion 14 0 / 3 pts Which of the following will tend to increase the equilibrium price of a good and increase the equilibrium quantity of a good? IncorrectQuestion 15 0 / 3 pts What happens to the equilibrium price and quantity of deli ham when the price of deli turkey decreases? (Assume that deli ham and deli turkey are consumed in place of each other). Question 16 3 / 3 pts If a demand curve is vertical, the slope is ______ and the price elasticity is______. Question 17 3 / 3 pts When the price of a slice of pizza rises by 22%, the quantity demanded for pizza slices declines by 32%. The demand for pizza can be described as Question 18 3 / 3 pts The cross price elasticity of demand measures Question 19 3 / 3 pts You own a business that creates handmade rocking chairs and you believe that the demand for your rocking chairs is inelastic. If you would like to raise your business’s total revenue, you should Question 20 3 / 3 pts Suppose Demand is given by Q = 64 -8P. What is the price elasticity of demand when P = 1? Quiz Score: 45 out of 60