Question

ONLY ANSWER PLEASE!

Assume the income elasticity of a car is 0.75. If consumer income increases by 5%, the quantity demanded would _______ by _______.
a) increase 5.75%
b) increase, 3.75%
c) increase, 1.33%
d) decrease, 3.75%
e) increase, 4.25%

The cross-price elasticity of demand between butter and margarine is 2.45. This indicates that the two goods are substitutes.
a) True
b) False

Assuming nothing else changes, when the cost of an input decreases, a firm’s per-unit profit _______ and the firm will offer _______ amounts for sale at every price.
a) increases, decreased
b) decreases, increased
c) increases, increased
d) decreases, decreased

A price ceiling causes the actual number of units of a good bought and sold to decrease compared to the equilibrium quantity. A price floor causes the actual number of units bought and sold to increase compared to the equilibrium quantity.
a) True
b) False

Which of the following explains why the Ford Motor Company decided to focus on producing trucks and sport utility vehicles (SUVs) instead of automobiles?
a) There was a decline in productivity in the factories making trucks and SUVs.
b) The government increased tax rates on Ford.
c) The cost of inputs used in making trucks increased.
d) The price of a substitute in production decreased.

Which of the following is true regarding the production possibility frontier model? There is more than one correct answer to this question. You must mark all of the correct answers to receive full credit for this question.
a) Resource use is efficient in producing all of the combinations shown on a PPF.
b) The PPF always slopes down because resources are limited.
c) If resources are not specialized, the PPF will be a straight, downward-sloping line.
d) The principle of increasing marginal opportunity cost only applies in cases when resources are specialized.
e) Using only the PPF model, it is not possible to state that any one combination on a frontier is superior to any other combination on the same frontier.

Which of the following would cause a definite leftward shift of the demand curve?
a) an expectation by consumers of a lower price and an increase the price of a complement
b) a decrease in the number of consumers and a decrease in income (assume an inferior good)
c) a decrease in income and a positive change in consumer tastes
d) an expectation by consumers of lower income and an increase in the price of a substitute

While an increase in the price of a substitute causes the _______ curve to shift _______ an increase in the price of a substitute in production causes the _______ curve to shift _______.
a) demand left, supply, right
b) demand, right, supply, right
c) demand, right, supply, left
d) demand, left, supply, left

A former student of mine had four job offers upon graduation. The salaries of these four positions were $54,000, $58,000, $62,000, and $68,000. He decided to go with the job that paid $62,000. What was the opportunity cost of his decision?
a) $4,000
b) $180,000
c) $68,000
d) $54,000
e) $0

Which of the following will result in a definite decrease in equilibrium quantity but an uncertainty regarding any change that might occur in the equilibrium price?
a) a decrease in demand and an increase in supply
b) an increase in demand and a decrease in supply
c) an increase in demand and an increase in supply
d) a decrease in demand and a decrease in supply

Answer 1

In question 9 the correct option is 1,80000. Option b is correct