ECON 1101 - Quiz 1 Study Guide PDF

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This is a quiz study guide and it focuses on the effects of Supply and Demand. It includes questions, charts and tables to understand the topic....

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NYC College of Technology Macroeconomics Study Quiz

Figure 1 1.

Refer to Figure 1. Which of the following combinations of points are both efficient and attainable for this economy? a. G, H b. F, I, L c. F, G, H, I, L d. J, K

ANSWER: 2.

b

Refer to Figure 1 Which of the following statements is true about point G for this economy? a. Point G is currently unattainable. b. Point G is efficient. c. At point G, more cakes are produced than cookies. d. There is unemployment at point G.

ANSWER:

d

3.

Refer to Figure 1. Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology? a. I, L b. G, H c. J, K d. F, G

ANSWER: 4.

c

Refer to Figure 1. One difference between points F and G is that a. Point G is unattainable with current resources, but point F is attainable. b. All resources are fully employed at point F but there is unemployment at point G. c. More output can be produced at point F but no additional output can be produced at point G. d. This economy produces more cookies at point G than at point F.

ANSWER:

b

Table 1

Corn (in bushels) 2000 1600 1200 800 400 0

Wheat (in bushels) 0 700 1300 1800 2200 2500

5. Refer to Table 1. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from 400 bushels to 800 bushels? a. 200 bushels of wheat b. 400 bushels of wheat c. 600 bushels of wheat d. 800 bushels of wheat

ANSWER:

b

6. Refer to Table 1. Table 2-5 shows one set of production possibilities. Which of the following statements is correct?

e. The opportunity cost of a bushel of corn does not depend on how many bushels of wheat are being produced. f. The opportunity cost of a bushel of corn increases as more corn is produced. g. The opportunity cost of a bushel of corn decreases as more corn is produced. h. The opportunity cost of a bushel of wheat decreases as more wheat is produced.

b

ANSWER:

7. A macroeconomist - as opposed to a microeconomist - would study a. the effects of rent control on housing in New York City. b. the effects of foreign competition on the US auto industry. c. the effects of borrowing by the federal government. d. the effects of raising the gasoline tax on transit ridership.

ANSWER:

c

Figure 2

8. Refer to Figure 2. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B? a. an increase in the availability a decrease in unemployment b. a technological advance in the consumer goods industries c. a general technological advance d. of capital-producing resources

ANSWER:

c

9. Refer to Figure 2 The shift of the production possibilities frontier from A to B can best be described as a. a downturn in the economy. b. economic growth. c. an enhancement of equality. d. an improvement in the allocation of resources.

ANSWER:

b

Figure 3 10. Refer to Figure 3. The movement from point A to point B on the graph shows a(n) a. decrease in demand. b. increase in demand. c. decrease in quantity demanded. d. increase in quantity demanded.

ANSWER:

d

11. Refer to Figure 3. The movement from point A to point B on the graph is caused by a(n) e. increase in price. f. decrease in price. g. decrease in the price of a substitute good. h. increase in income.

ANSWER:

b

12. Refer to Figure 3. It is apparent from the figure that the i. good is inferior.

j. demand for the good decreases as income increases. k. demand for the good conforms to the law of demand. l. All of the above are correct.

ANSWER:

c

Figure 4 13. Refer to Figure 4. The shift from Da to Db is called m. an increase in demand. n. a decrease in demand. o. a decrease in quantity demanded. p. an increase in quantity demanded.

ANSWER:

a

14. Refer to Figure 4. The shift from Db to Da is called q. an increase in demand. r. a decrease in demand. s. a decrease in quantity demanded. t. an increase in quantity demanded.

ANSWER:

b

15. Refer to Figure 4. If the demand curve for Good X shifts from Db to Da, then

u. firms would be willing to supply more of Good X than before at each possible price. v. people are willing to buy less of Good X than before at each possible price. w. people’s incomes must have increased. x. the price of Good X has increased.

ANSWER:

b

16. Refer to Figure 4. If the demand curve for Good X shifts from Da to Db, then y. firms would be willing to supply less of Good X than before at each possible price. z. people are willing to buy more of Good X than before at each possible price. aa. bb.

people’s incomes must have decreased. the price of Good X has decreased.

ANSWER:

b

Figure 5

17. Refer to Figure 5. In this market for watermelons, a severe drought occurs which affects the watermelon crop. The equilibrium price a. increases and the equilibrium quantity decreases. b. decreases and the equilibrium quantity is ambiguous. c. and quantity both increase. d. and quantity both decrease.

ANSWER:

a

18. If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right. a. True

b. False

ANSWER:

True

19. When an increase in the price of one good lowers the demand for another good, the two goods are called complements. c. True d. False

ANSWER:

True

20. A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied. e. True f. False

ANSWER:

False...