UNT ECON 1100 EXAM QUESTIONS AND
CORRECT ANSWERS | GRADE A+ GUARANTEE
In the market for used cars, a surplus of used cars would, ceteris
paribus: - Answer-put downward pressure on the price of used cars.
In the graph below, a shift from PPF1 to PPF2 will occur as a result of:
- Answer-an increase in the resources and technology used to produce
food and clothing.
Initially, assume Country A is producing and consuming 10 cars and 20
boats, while Country B is producing and consuming 20 cars and 40
boats. The two countries then decide to specialize according to
comparative advantage and engage in trade. The potential gains from
trade for both countries combined work out to be: - Answer-20 boats, to
be divided between the two countries.
Which of the following is an example of capital as a factor of
production? - Answer-Kitchen equipment for a new restaurant venture
The demand for a life-saving drug is likely to be: - Answer-inelastic
because the drug is a necessity.
, When wants and needs exceed the resources available to satisfy them: -
Answer-scarcity exists and decisions must be made about how to
allocate limited resources among competing uses
The ceteris paribus assumption is used to: - Answer-isolate the
relationship between two variables by holding other influences on the
relationship constant
For a normal good, an increase in consumer income leads to: - Answer-
an increase in demand and an increase in both equilibrium price and
quantity.
Which of the following pairs of goods is most likely to have a cross
elasticity of demand coefficient of 1.2? - Answer-bagels and toast
The primary difference between a change in supply and a change in the
quantity supplied is: - Answer-a change in quantity supplied is caused by
a change in the price of the good itself, and a change in supply is caused
by a change in a non-price determinant of supply
Which of the following will cause a decrease in the demand for
batteries? - Answer-An increase in the price of digital cameras, a
complement for batteries
Based on the information in the table below, the opportunity cost of
producing one clock in Mexico is:
CORRECT ANSWERS | GRADE A+ GUARANTEE
In the market for used cars, a surplus of used cars would, ceteris
paribus: - Answer-put downward pressure on the price of used cars.
In the graph below, a shift from PPF1 to PPF2 will occur as a result of:
- Answer-an increase in the resources and technology used to produce
food and clothing.
Initially, assume Country A is producing and consuming 10 cars and 20
boats, while Country B is producing and consuming 20 cars and 40
boats. The two countries then decide to specialize according to
comparative advantage and engage in trade. The potential gains from
trade for both countries combined work out to be: - Answer-20 boats, to
be divided between the two countries.
Which of the following is an example of capital as a factor of
production? - Answer-Kitchen equipment for a new restaurant venture
The demand for a life-saving drug is likely to be: - Answer-inelastic
because the drug is a necessity.
, When wants and needs exceed the resources available to satisfy them: -
Answer-scarcity exists and decisions must be made about how to
allocate limited resources among competing uses
The ceteris paribus assumption is used to: - Answer-isolate the
relationship between two variables by holding other influences on the
relationship constant
For a normal good, an increase in consumer income leads to: - Answer-
an increase in demand and an increase in both equilibrium price and
quantity.
Which of the following pairs of goods is most likely to have a cross
elasticity of demand coefficient of 1.2? - Answer-bagels and toast
The primary difference between a change in supply and a change in the
quantity supplied is: - Answer-a change in quantity supplied is caused by
a change in the price of the good itself, and a change in supply is caused
by a change in a non-price determinant of supply
Which of the following will cause a decrease in the demand for
batteries? - Answer-An increase in the price of digital cameras, a
complement for batteries
Based on the information in the table below, the opportunity cost of
producing one clock in Mexico is:
