Q1W10 - Name Test Form A Economics 1 Quiz 1 True-False...

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Name Test Form A Economics 1 Quiz 1 January 29, 2010 True-False Questions: Fill in Bubble A for True, Bubble B for False. 1. If a series of trades yields positive profits for each of the buyers and sellers participating in those trades, the trades result in an efficient outcome. 2. The Law of Supply holds that a decrease in the price of a good will decrease the quantity of the good supplied. 3. A supplier’s reservation price for a good is the lowest price at which he or she is willing to sell the good. 4. Assume the supply curve for a good shifts in (less supplied at every price) and the demand curve for the good does not change. If the total revenue of suppliers falls as a result of this shift, then the demand for the good is inelastic. 5. The facts that the price of a good is lower in November than July and that more of the good is sold in November than July is best explained by a shift in the supply curve of the good between November and July. Multiple Choice Questions 6. Last week, Gabriella purchased a ticket to a concert. The price of the ticket was $10, and the concert is tonight. Just as Gabriella is about to leave for the concert, her sister calls offering her a babysitting job for the evening. Her sister would pay Gabriella $50 to babysit, but her sister has many other friends who she can call on if Gabriella decides to go to the concert. It is too late in the evening for Gabriella to find someone to whom she could give or sell the concert ticket. What is Gabriella’s opportunity cost of attending the concert? (a) $10 (b) $50 (c) $60 (d) $0
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Economics 1 2 7. In the market for potatoes, 6 sellers have a Seller Cost of $5 for a sack of potatoes, and 8 sellers have a Seller Cost of $10 for a sack of potatoes. Sellers can sell either one sack of potatoes or no potatoes at all. In a graph where the quantity of potatoes is on the horizontal axis, the price of potatoes is on the vertical axis, and the point ( x,y ) represents a quantity of x and a price of y, what is the supply curve for sacks of potatoes in this market? (a)
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This note was uploaded on 12/12/2011 for the course ECON 1 taught by Professor Bergstrom during the Fall '07 term at UCSB.

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Q1W10 - Name Test Form A Economics 1 Quiz 1 True-False...

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