Question

7. The price of wheat has decreased. Farmers observe this and react. what is the most likely outcome?

a. a decresed supply of corn

b. a increased supple of corn

c. a increased supply of wheat

d. a decreased supply of cows

8. Trade makes people worse off when

a. industrialized countries trade with developing countries

b.a country with an absolute advantage trades with a country that lacks any absolute advantage.

c. low productivity countries trade with high productivity countries

d. Societies are always better off with trade than without trade

9. which of the following is an application of marginal analysis?

a. dave performs a financial analysis to determine if his landscaping business should remain open

b. scott weighs the benefits of running an extra mile against how much work he has to do after his run

c. billy determines the average cost of building a dog house

d. carlos calculate the total cost necessary to open a farmers' market

10. Which of the following illustrates opportunity cost?

a. an additional gallon of gasoline costs $1.99.

b. taking a new job requires you to give up playing rec league softball

c. the set of drill bits that go with a new cordless drill cost $19.99

d. a torn pair of dress pants can be fixed for $7.50 or replaced for $35.00

11. A tariff on imports will

a. increase domestic production

b. decrease imports

c. produce government revenue

d. ...

Answer 1

Q-7 :: ANSWER :: (C) A increased supply of wheat

=> Explanation :  

When Price Of Wheat decrease So People Demand More Wheat At Decreased Price So Farmer Have To Increase The Supply to Fulfill The Demand In The Market

Q-8 :: ANSWER :: (B) A country with an absolute advantage trades with a country that lacks any absolute advantage.

=> Explanation ::

Trade makes people worse off when A country with an absolute advantage trades with a country that lacks any absolute advantage. That kind Of Trade Make People Worse Off.

Q-9 :: ANSWER :: (D) carlos calculate the total cost necessary to open a farmers' market

=> Explanation ::

There Are Four Application of marginal analysis Which (1) Output Expansion (2) Capital Expenditure (3) Make-or-Buy (4) Contraction Decisions. Here Carlos calculate the total cost necessary to open a farmers' market Which Is Capital Expenditure.

Q-10 :: ANSWER :: (B) Taking a new job requires you to give up playing rec league softball

=> Explanation ::

Opportunity cost Is The Cost Which Is Applicable When One Can Give Up One Alternative To chose The Other Alternative. So Here Taking A New Job Require to Give Up Playing Rec League Softball. So Playing Rec League Softball Is Opportunity Cost.

Q-11 :: ANSWER :: (A) Increase domestic Production

=> Explanation ::

When Tariff Is Imposed On Import So It Increase The Price Of Imported Good. So People Increase The Demand For Domestic Goods So It Increase The Domestic Production.