PLEASE HELP ME TO MARK THE RIGHT ANSWERS? ( TRUE OR FALSE)

T F 1. Opportunity cost is the lowest valued benefit that must be sacrificed as

the result of choosing an alternative.

T F 2. Scarcity denotes that our desire for a good exceeds the amount that is

freely available from nature.

T F 3. Economics is a social science concerned with satisfying man's unlimited

wants with limited resources.

T F 4. Joint output of individuals or nations will be maximized when goods are

exchanged between parties in accordance with the law of

"comparative advantage".

T F 5. The law of demand states that there is a direct relationship between

supply and demand.

T F 6. Equilibrium is a state of balance between supply and demand.

T F 7. Goods are scarce for both rich and poor.

T F 8. "The big corporations in this country, like ExxonMobil and GM, have

deep pockets and need to be hiring more people."This is

a positive statement about economic policy.

T F 9. The production possibilities frontier assumes that the level of technology

varies when applying the model.

T F 10. Excess demand in the market will cause the price of a product to decline.

T F 11. Demand is measured on the vertical axis and supply on the horizontal

axis.

T F 12. A change in quantity demanded is a movement along the same demand

curve.

T F 13. Microeconomics focuses on how the total economic activity of individual

micro units will affect the economy.

T F 14. A point inside the production possibilities frontier represents an economy

that is utilizing resources efficiently.

T F 15. An increase in consumer income will affect the supply of product A.

T F 16. As globalization and world trade proliferates, individual markets within

countries' economies become more competitive.

T F 17. "As the price of gasoline rises, consumer demand decreases.In addition,

the quantity demanded of compact cars increased, causing their price

to rise."This statement contains two errors:demand and quantity

demanded are confused twice.

T F 18. The "Law of diminishing returns" states that as any activity is extended,

it eventually becomes increasingly easier to pursue the activity further.

T F 19. For economies that rely on decentralized decision making, the most

important decisions are made by the government.

T F 20. A supply curve is negatively sloped, while a demand curve is positively

sloped.If given a graph of them both, that will be evidenced by computing

each curve's X axis divided by its Y axis when devising a 90-degree

angle.

T F 21. A substitute good is a determinant of supply.

T F 22. The law of supply states that there is a direct relationship between price

and quantity demanded.

T F 23. In the circular flow model, firms own economic resources, and households

buy the manufactured products and services.

T F 24. Households play a dual role of providing the factors of production while

purchasing the goods and services of firms.

T F 25. In the production possibilities frontier, a nation's boundary will shift

inward if they export more than they import, likely leading to inflationary

pressures in the economy.

T F 26. If the international oil price keeps rising, then we can expect the supply

curves of products using oil to shift inward to the left.

T F 27. The U.S. government banned cigarette advertising on the radio and TV

in the early 1970's.You would expect to find that, after the ban took effect,

the demand for magazine ads for cigarettes increased.

T F 28. Government actions, such as price floors and ceilings, can actually

reduce employment and raise market inefficiency.

Please answer the next four questions using the following PPF.

Y .A

D.

.E

.C

.B

0 X

T F 29. At point A, more "X" goods are being produced than at point E.

T F 30. At point B, almost all "X" goods are being produced and almost no

"Y" goods.

T F 31. Point C is unattainable.

T F 32. In the immediate term, Point D is unattainable.

The next 4 questions apply to the diagram below.

Price S

$10.00

$7.50

$5.00

D

0 Quantity

33. The price where there would be a shortage of this good is $_________.

34. A price where there would be a surplus is $___________.

35. If demand were to increase, we predict a(n) ___________ in Price and

a(n) ___________ in Quantity.

36. If supply were to decrease and demand decrease simultaneously, we

predict _____________ in Price and a(n) _______________ in Quantity.