Question

An economic model___. An example of a model is___.

A. is as complicated as the reality that is describes; a roadmap

B. describes fine aspect of economic world and includes only those features needed for the purpose at hand; a weather map

C. always looks for correlation; a weather map

D. is based on two economies that are similar; a blueprint

The opportunity cost of economic growth ____.

A. is human capital

B. is capital consumption

C. is zero

D. is greater the faster we make our production grow

Films are institutions that organise ___ of goods and services.

A. exports

B. the consumption

C. the production

D. imports

If the cross elasticity of demand for pasta with respect of the price of a pizza is positive, then pasta and pizza are ___.

A. inferior goods

B. normal goods

C. substitutes

D. complements

If the cross elasticity of demand for ski trips with respect to the price of a ski jacket is negative, then ski trips and ski jackets are ___.

A. normal goods

B. inferior goods

C. substitutes

D. complements

Which of the following statements is an example of elasticity of supply?

A. A 10 percent fall in the price of turkey with no other change decreases quantity supplied by 12 percent.

B. The quality of fruits sold by Safeway is getting better.

C. Farmers increase their supply of potatoes when the price of onions rises.

D. A 20 percent discount at all Old Navy stories is drawing large crowds.

The money price is a box of ramen noodles is $0.20 and the money price of a half gallon of mild is $0.60.

The opportunity cost of a half gallon of milk is___.

A. $0.60, the price of a half a gallon of milk

B. 0.33 half gallons of milk

C. $0.20, the money price of a box of ramen noodles.

D. 3.00 boxes of ramen noodles, which is the relative price of a half gallon of milk

The relative price of a half gallon of milk is an opportunity cost because___.

A. The relative price tells us how many half gallons of milk we must give up to get a box of ramen noodles

B. It is expressed as a money price

C. It is constant

D. The relative price tells us how many boxes of ramen noodles we must give up to get a half gallon of milk

A demand curve that illustrates the law of demand____.

A. Shows that the quantity demanded increases as the price falls.

B. Shows that the quantity demanded remains the same when the price falls

C. Shows that the quantity demanded decreases as the price falls

D. Slopes downward to a minimum, and then slopes upward

Answer 1

1) B. describes fine aspect of economic world and includes only those features needed for the purpose at hand; a weather map . ( An economic model is developed to describe the aspects of an economy , and to predict of describe the outcomes of a particular economic situation )

2) D. is greater the faster we make our production grow ( opportunity cost refers to the things we forgo achieve another thing . The opportunity costs of growth in the economy may be sustainability or development etc . So faster the ecnomic growth occurs more is the cost )

3) C. the production ( firms produce goods and services with the help of factors of production )

4) C. substitutes ( A positive cross-price elasticity value indicates that the two goods are substitutes . If price of pizza rise , demand for pasta rises )

5) D. complements (Two goods that complement each other have a negative cross elasticity of demand: as the price of good Y rises, the demand for good X falls.)