ECON 200 Exam 1 2020 latest

• Airlines have nowhere to store all the child seats and strollers so many flights are delayed. • Airplanes can only show G-rated movies. • Many families with infants now choose to drive instead of fly. • With all the in ...

• Airlines have nowhere to store all the child seats and strollers so many flights are delayed. • Airplanes can only show G-rated movies. • Many families with infants now choose to drive instead of fly. • With all the infants in diapers on the flights, the smell is terrible. • Which issue comes from microeconomics? • Unemployment. • Inflation. • Foreign trade. • Grocery Shopping. • Which issue comes from MACROeconomics? • The price of the buffet at Cici’s Pizza is $4.99. • The national unemployment rate increased from 4.7 to 5.0% last month. • New hybrid cars save thirty percent more gas than conventional vehicles. • Many wine customers from Arizona choose to buy their favorites wines from vendors outside of Arizona in order to avoid high state taxes on alcohol. • Identify the normative statement? • Tickets to see the upcoming Fergie concert at McKale Centercost $35. • Being able to see Fergie perform live for $35 is a good deal. • Fergie’s favorite Black Eyed Peas song to perform is "Let's Get It Started." • Fergie’s debut solo album, The Dutchess, went platinum in both America and Japan. • Which of the following is a positive economic statement? • Tim Berg is the top DJ in the world. • Fade into Darkness is Avicii’s best song. • Levels has over 25,000,000 views on YouTube. • “Oh oh sometimes I get a good feeling” is the best part of Levels. • What is ceteris paribus? • It occurs when some of the endogenous variables in your model are incorrect. • It is when you fail to account for the effects of the exogenous variables. • It is when you leave out crucial endogenous variables. • It is when the variables that are not mentioned remain constant. • This term refers to the specific components that are left out of (not determined within) a model. • endogenous • exogenous • caveat emptor • ceteris paribus • Which one of these is NOT scarce? • A Selena Gomez autographed t-shirt • Gravity • Drinking water • Armadillos • When incentives don’t work as designed this is known as . • absolute advantage • comparative advantage • unintended consequences • absolute disadvantage Chapter 2 • The graph below shows the PPF for computers and cheese in the USA. Suppose some of the US dairy farmers decide to migrate to Switzerland. Draw a new PPF that reflects this change. Computers Cheese • In the film, A Knight’s Tale, the peasants decide to reinvest 13 silver coins in training to become better at jousting. This reinvestment is known as what kind of good? • consumer good • an inferior good • a capital good • It is not a good, it is a bad. • If society decreases its savings rate, the current production possibilities curve will • remain the same. • shift out, more than in the past. • shift out during expansions, and in during contractions. • shift in. • If a nation has a high unemployment rate, what will happen to the production possibilities frontier? • The nation will slide down along the curve. • The curve will shift in. • The curve will shift out. • None of the above is correct. • The Production Possibilities Frontier is bowed out because of • the Law of Decreasing Relative Cost • the fact that every point on the PPC is efficient • the Law of Increasing Relative Cost • the fact that it is easier to be inefficient in production • When someone wishes to invest in more capital goods, it is usually true that • there will be fewer consumer goods available to her in the future • there are no opportunity costs involved in this • she must give up some consumer goods in the present • she will operate inefficiently. • A production possibilities frontier graphically represents the maximum quantities of two products produced when all resources in the economy are being used efficiently. If an economy operates at a point inside its production possibilities frontier • it lacks the resources necessary to produce at full employment. • it is utilizing some resources inefficiently. • it does not confront the problem of scarce goods relative to unlimited wants. • it does not exist in the real world since it is impossible for an economy to operate inside its production possibilities curve.