1.The law of demand tells us precisely how much more or less consumers will buy when the price of a good or service changes.
A) False
2.The portion of your income given up to buy something is a factor influencing its price elasticity of demand.
A) True
3.Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?
A) international trade
4.When defining “opportunity cost,” the podcast emphasizes:
A) The most highly valued opportunity that is forgone when a choice is made.
5.When defining “opportunity cost,” the podcast emphasizes:
A) The most highly valued opportunity that is forgone when a choice is made.
6.A 25 percent decrease in the price of breakfast cereal leads to a 20 percent increase in the quantity of cereal demanded. As a result:
A) total revenue will decrease.
7.A situation where you incur no monetary cost, such as tweeting and texting friends at no additional charge to your phone plan, means there is no economic cost involved.
A) False
8.If a society chooses to use a piece of land for a housing development, the opportunity cost is limited to the environmental impact of not using it as a park.
A) False
9.The opportunity cost of attending university is likely to include all except which of the following?
A) the cost of haircuts received during the school term
10.A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:
A) the supply curve.
11.When quantity demanded decreases in response to a change in price:
A) there is a movement up along the demand curve.