Azaam test 1 answers and review

Azaam test 1 answers and review - Review Questions for exam...

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Review Questions for exam 1 eco 2301 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) How are the fundamental economic decisions determined in Cuba? A) The government decides because Cuba is a centrally planned economy. 2) If a commercial dairy farm wants to raise funds to purchase feeding troughs, it does so in the B) factor market. 3) Several studies have shown promising links between green tea consumption and cancer prevention. How does this affect the market for green tea? A) The green tea demand curve shifts to the right because of a change in tastes in favor of green tea. TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 4) Scarcity is a problem that will eventually disappear as technology advances. F MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Table 2-3 One Digital Camera Wheat (per pound) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2-3 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. 5) Refer to Table 2-3. What is South Korea's opportunity cost of producing one digital camera? A) 20 pounds of wheat 6) Refer to Table 2-3. South Korea has a comparative advantage in A) digital camera production. 7) Refer to Table 2-3 . Does either China or South Korea have an absolute advantage and if so, in what product? A) South Korea has an absolute advantage in both products. 8) Refer to Table 2-3. China has a comparative advantage in D) wheat production. 9) Which of the following statements is false about an entrepreneur? B) sells his entrepreneurial services in the output market 10) Economists assume that rational people do all of the following except B) undertake activities that benefit others and hurt themselves. 11) Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family, A) hamburgers and hot dogs are substitutes.
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Table 3-1 Loose leaf Tea Price per lb. (dollars) Sunil's Quantity Demanded (lbs) Mia's Quantity Demanded (lbs) Rest of Market Quantity Demanded (lbs) Market Quantity demanded (lbs) $8 4 0 30 6 7 2 40 5 9 3 51 4 12 5 64 3 15 8 90 12) Refer to Table 3-1 . The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demanded in the market would be B) 63 lbs 13) Refer to Table 3-1 . The table above shows the demand schedules for loose-leaf tee of two individuals (Sunil and Mia) and the rest of the market. If the price of loose-tea raises from $3 to $4 the market quantity demanded would B) decrease by 32 pounds. 14) Ted quits his $60,000-a-year job to be a stay -at-home dad. What is the opportunity cost
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Azaam test 1 answers and review - Review Questions for exam...

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