Question 21

Ceteris paribus, a change in the quantity demanded of Hamilton Beach coffee makers is:

a) directly related to the price of a Coffeemate coffee maker

b) directly related to the price of a Hamilton Beach coffee maker

c) directly related to the price of sugar and cream

d) directly related to changes in the income of coffee consumers

Question 22

In economics, the concept of opportunity cost is:

a) quantifiable only if the adjusted for inflation dollar prices of the goods and services you are giving up is known.

b) best illustrated by using marketing to figure out why consumers buy one good over another.

c) negated by a country practicing capitalism.

d) defined as the highest-valued alternative that must be forgone when a choice is made between two goods or services.

Question 23

During WWII, the United States's production possibilities frontier was separated into defense goods (tanks) and nondefense goods (cars), which of the following is NOT true?

a) and nondefense goods (cars), which of the following is NOT true? a. A production point outside the PPF may be attained if new sources of natural resources are discovered.

b) A production point outside the PPF may be attained by shifting resources from nondefence to defense goods.

c) all are answers

d) A production point outside the PPF may be attained by acquiring both new technology from another country and finding a new source of land resources.

Question 24

Which of the following is an example of capital?

a)A business cash flow report taken from a company's financial reports

b) Products such as sewing machines that are used in the production of T-shirts

c) The value of a company's stock, like Wal-Mart, on the New York Stock Exchange

d) The financial standing of a privately held corporation, like Disney

Question 25

When constructing a production possibility frontier for an economy, which of the following is assumed to be constant?

a) The price level

b) The money supply

c) Resources

d) The quantity of goods produced

Question 26

Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bill?

a) 18 toys

b) 12 toys

c) 8 toys

d) 4 toys

Question 27

If the demand for sirloin steak in the United States shifts to the left, the most likely explanation is that

a)The price of sirloin steak has fallen.

b) Cattle production in the United States has fallen.

c) Consumers expect the price of sirloin steak to decrease in the future.

d) The price of the grain fed to cattle has fallen.

Question 28

If an increase in the price of good E causes the demand curve for product J to shift to the right, then E and J are most likely to be which of the following?

a) Soft balls and soft ball bats

b) Shoes and socks

c) Peanut butter and Jelly

d) Chicken and Turkey

Question 29

When the price of bread rises, ceteris paribus, the supply of bread falls.

a) True

b) False

Question 30

Assume that England and Holland can switch between producing milk and oats at a constant rate.

	Number of Units Produced in an Hour
Milk	Oats
England	10	4
Holland	8	6

We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Holland.

a)the slope of Holland's PPF is 1.

b) the slope of England's production possibilities frontier would be 4/10 for milk and the slope of Holland's production possibilities frontier would be .75 for milk

c) we can't calculate opportunity cost with one point.

d) England's opportunity cost of milk is 2.5.