Economics 2 Quiz
1. A legal maximum on the price at which a good can be sold is called a? price ceiling.
2. Which of the following is likely to have the most price elastic demand? Breakfast cereal, corn flakes
3. A reduction in a country 's barriers to trade? benefits some citizens of the importing country but does not benefit the domestic producers in the importing country.
4. The amount of a good that buyers are willing and able to purchase is quantity demanded.
5. Suppose a market in which demand is more elastic than supply. The incidence of a tax will? fall more heavily on sellers than buyers.
6. Suppose there is a frost that destroys much of the strawberry crop and the price of blueberries, a substitute for strawberries, increases. What would we expect to happen in the market for strawberries? The price of strawberries increases and the direction of the change in the equilibrium quantity of strawberries cannot be determined from the information given.
7. Which of the following changes will not shift the demand for ice cream to the right? a decrease in the price of ice cream
8. If price elasticity of demand is greater than one? demand is elastic.
9. If Tom Brady can earn $20,000 filming a commercial in the time it takes him to mow his lawn, he gains from trade? as long as he pays less than $20,000 for someone to mow his lawn
10. Suppose the income elasticity for good X is 0.8. Good X? has inelastic demand, is an inferior good
11. Sue can produce 4 dozen cookies or 2 dozen cupcakes in one hour. David can produce 6 dozen cookies or 4 dozen cupcakes in one hour. Sue 's opportunity cost of 1 dozen cookies is? 2 dozen cupcakes and David 's opportunity cost of 1 dozen cookies is 1. 5 dozen cupcakes, 2 dozen cupcakes and David 's opportunity cost of 1 dozen cookies is 2/3 dozen cupcakes.
12. The market for agricultural products has experienced advances in technology but has relatively inelastic demand. The combination of these two effects is an increase in supply, a large
2. Which of the following is likely to have the most price elastic demand? Breakfast cereal, corn flakes
3. A reduction in a country 's barriers to trade? benefits some citizens of the importing country but does not benefit the domestic producers in the importing country.
4. The amount of a good that buyers are willing and able to purchase is quantity demanded.
5. Suppose a market in which demand is more elastic than supply. The incidence of a tax will? fall more heavily on sellers than buyers.
6. Suppose there is a frost that destroys much of the strawberry crop and the price of blueberries, a substitute for strawberries, increases. What would we expect to happen in the market for strawberries? The price of strawberries increases and the direction of the change in the equilibrium quantity of strawberries cannot be determined from the information given.
7. Which of the following changes will not shift the demand for ice cream to the right? a decrease in the price of ice cream
8. If price elasticity of demand is greater than one? demand is elastic.
9. If Tom Brady can earn $20,000 filming a commercial in the time it takes him to mow his lawn, he gains from trade? as long as he pays less than $20,000 for someone to mow his lawn
10. Suppose the income elasticity for good X is 0.8. Good X? has inelastic demand, is an inferior good
11. Sue can produce 4 dozen cookies or 2 dozen cupcakes in one hour. David can produce 6 dozen cookies or 4 dozen cupcakes in one hour. Sue 's opportunity cost of 1 dozen cookies is? 2 dozen cupcakes and David 's opportunity cost of 1 dozen cookies is 1. 5 dozen cupcakes, 2 dozen cupcakes and David 's opportunity cost of 1 dozen cookies is 2/3 dozen cupcakes.
12. The market for agricultural products has experienced advances in technology but has relatively inelastic demand. The combination of these two effects is an increase in supply, a large