Micro-Economics Quiz #1
NAME:_____________________________________________________________
Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question.
____
1. In economics, the cost of something is:
a.
b.
c.
d.
the dollar amount of obtaining it.
always measured in units of time given up to get it.
what you give up to get it.
usually higher than people think it will be.
Use the accompanying table to answer the following questions:
Table 1
England
Spain
____
Amount produced in 40 hours
Cheese
Bread
40
20
20
5
2. Refer to Table 1. England and Spain could benefit by England specializing in:
a.
b.
c.
d.
____
Labor hours needed to make one
unit of
Cheese
Bread
1
2
2
8
bread and Spain specializing in cheese.
cheese and Spain specializing in bread.
Both goods and Spain specializing in neither good.
neither good and Spain specializing in both goods.
3. Suppose that a worker in Boatland can produce either 5 units of wheat or 25 units of fish per year, and a
worker in Farmland can produce either 25 units of wheat or 5 units of fish per year. There are 10 workers in
each country. No trade occurs between the two countries. Boatland produces and consumes 25 units of wheat
and 125 units of fish per year while Farmland produces and consumes 125 units of wheat and 25 units of fish
per year. If trade were to occur, Boatland would trade 100 units of fish to Farmland in exchange for 100 units
of wheat. If Boatland no longer grew any of its own wheat, how many units of fish could it now consume
along with the 100 units of imported wheat?
a.
b.
c.
d.
25 units
75 units
150 units
250 units
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____
4. When evaluating differences or similarities between an increase in supply and an increase in quantity supplied
we know that:
a.
b.
c.
d.
True/False:
the former is a shift of the curve and the latter is a movement along the curve.
the former is a movement along the curve and the latter is a shift of the curve.
Both are shifts of the supply curve.
Both are movements along the curve.
Indicate whether the sentence or statement is true or false.
____
5. Mark is a computer company executive, and earns $200 per hour managing the company and promoting its
products. His daughter Regan is a high school student, and earns $6 per hour helping her grandmother on the
farm. Mark's computer is broken. He can repair it himself in one hour. Regan can repair it in 10 hours. Mark
has a comparative advantage repairing the computer.
____
6. Quantity demanded is equal to quantity supplied, at the equilibrium price.
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Short Answer
7.
a.
What is the difference between a "change in supply" and a "change in quantity supplied"?
Graph your answer.
"Change in Quantity Supplied"
Price
"Change in Supply"
Price
Quantity
b.
Quantity
For each of the following changes, determine whether there will be a change in quantity
supplied or a change in supply.
1
i.
a change in the resource cost will cause a
b
.
ii.
a change in producer expectations will cause a
c
.
iii.
a change in price will cause a
d
.
iv.
a change in technology will cause a
v.
the number of sellers will cause a
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