Lab Test 1 Questions - Lab Questions Test One 1. Given the...

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Lab Questions Test One 1. Given the production possibilities frontier shown below, point p is _____ & _____ for Amanda. a. Inefficient and attainable b. Efficient and unattainable c. Inefficient and unattainable d. Efficient and attainable 2. The opportunity cost of producing one more pie at point m is _______ the opportunity cost of producing one more pie at point k. (use above graph) a. Less than b. Equal to c. Greater than 3. Hungary is said to have the __________ over Romania if Hungary can produce more of the good/worker/hour than Romania can. a. Comparative advantage b. Absolute advantage 4. Romania is said to have the ___________ over Hungary in producing a good if Hungary has a higher opportunity cost of producing the good than does Romania. a. Comparative advantage b. Absolute advantage 5. A decrease in market demand causes a ______ which will be eliminated as the price ______, everything else held constant. a. Shortage; increase b. Shortage; decrease c. Surplus; increase d. Surplus; decrease 6. Suppose that worker productivity is decreasing in the yellow rubber ducky industry. Which side of the rubber ducky market is directly affected? a. Buyer b. Seller 7. Suppose that worker productivity is decreasing in the ducky industry. How will seller behavior change as a result of this decrease? a. Sellers will want to sell less b. Sellers will want to sell more c. Sellers will do nothing 8. Suppose that worker productivity is decreasing in the ducky market. Everything else held constant, what will be the result? The equilibrium price of duckies will ______ and the equilibrium quantity transacted will ______. a. Decrease; decrease b. Increase; increase c. Increase; decrease d. Decrease; increase 9. Suppose milk is the main input in the production of cream cheese. If the price of milk decreases, everything else held constant, the ______ of cream cheese will ______.
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a. Supply of; increase b. Supply of; decrease c. Demand for; increase d. Demand for; decrease 10. If the price of milk decreases, the equilibrium price of cream cheese will ______ and the equilibrium quantity of cream cheese transacted will ______. a. Decrease; increase b. Increase; decrease c. Decrease; stay the same d. Increase; stay the same 11. Suppose ice cream and puddings are substitutes in consumption. Everything else held constant, an increase in the price of ice cream will cause _______ in the _______ pudding. a. A decrease; demand for b. An increase; supply of c. A decrease; supply of d. An increase; demand for 12. Everything else held constant, an increase in the price of ice cream will cause ______ in the equilibrium quantity of pudding transacted. a. No change b. A decrease c. An increase 13. Suppose both buyers of a commodity and sellers of it expect the market price of it to increase in the future. This will case the supply of it to _______ and the demand for it to ______ TODAY.
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Lab Test 1 Questions - Lab Questions Test One 1. Given the...

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