Anh Phan Hoang Minh 

Dashboard  My courses  BACHELOR  BBUS 12  PE_S1(2021-2022)DH47ISB-1  Tutorial In-class quizzes  In-class Quiz
1&2

Started on Wednesday, 13 October 2021, 10:42 AM

State Finished
Completed on Wednesday, 13 October 2021, 11:08 AM
Time taken 26 mins
Marks 14.00/20.00
Grade 7.00 out of 10.00 (70%)

Question 1 Correct Mark 1.00 out of 1.00

On a bowed production possibilities frontier, as you move down along the curve

a. more of one good must be given up to receive one unit of the other good.
b. the opportunity cost increases.
c. All of the above are correct. Correct

d. the available production technology does not change.

The correct answer is: All of the above are correct.

Question 2 Correct Mark 1.00 out of 1.00

Suppose the government imposes a $40 tax on the buyers of refrigerators. The tax would

a. raise the equilibrium price by $40.

b. create a $20 tax burden each for buyers and sellers.
c. discourage market activity. Correct

d. shift the demand curve downward by less than $40.

The correct answer is: discourage market activity.

Question 3 Correct Mark 1.00 out of 1.00

The idea that only the government can organize economic activity in a way that promotes economic well-
being for a country as a whole

a. was promoted by the economist Adam Smith in a well-known 1776 book.

b. is a basic principle regarding individual decision-making.
c. supports the idea that the "invisible hand" should guide economic activity.
d. amounts to a denial of one of the basic principles regarding interactions among people. Correct

The correct answer is: amounts to a denial of one of the basic principles regarding interactions among people.
Question 4 Correct Mark 1.00 out of 1.00

You have just been hired as a business consultant to determine what pricing policy would be appropriate to
increase the total revenue of a bakery. The first step you would take would be to

a. determine the price elasticity of demand for the bakery's products. Correct

b. determine the price elasticity of supply for the bakery's products.

c. look for ways to cut costs and increase profit for the bakery.
d. increase the price of every loaf of bread in the store.

The correct answer is: determine the price elasticity of demand for the bakery's products.

Question 5 Correct Mark 1.00 out of 1.00

The most obvious benefit of specialization and trade is that they allow us to

a. work more hours per week than we otherwise would be able to work.
b. consume more goods than we otherwise would be able to consume. Correct

c. consume more goods by forcing people in other countries to consume fewer goods.
d. spend more money on goods that are beneficial to society, and less money on goods that are harmful to
society.

The correct answer is: consume more goods than we otherwise would be able to consume.
Question 6 Correct Mark 1.00 out of 1.00

Which of the following is correct concerning opportunity cost?

a. Except to the extent that you pay more for them, opportunity costs should not include the cost Correct
of things you would have purchased anyway.
b. Opportunity costs and the idea of trade-offs are not closely related.
c. Rational people should compare various options without considering opportunity costs.
d. To compute opportunity costs, you should subtract benefits from costs.

The correct answer is: Except to the extent that you pay more for them, opportunity costs should not include the
cost of things you would have purchased anyway.

Question 7 Correct Mark 1.00 out of 1.00

Table 3-24

Assume that England and Spain can switch between producing cheese and producing bread at a constant
rate.

Refer to Table 3-24. England has a comparative advantage in the production of

a. both goods and Spain has a comparative advantage in the production of neither good.
b. bread and Spain has a comparative advantage in the production of cheese.
c. neither good and Spain has a comparative advantage in the production of both goods.
d. cheese and Spain has a comparative advantage in the production of bread. Correct

The correct answer is: cheese and Spain has a comparative advantage in the production of bread.
Question 8 Incorrect Mark 0.00 out of 1.00

A tradeoff exists between a clean environment and a higher level of income in that

a. efforts to reduce pollution typically are not completely successful.

b. laws that reduce pollution raise costs of production and reduce incomes.
c. studies show that individuals with higher levels of income pollute less than low-income Incorrect
individuals.
d. employing individuals to clean up pollution causes increases in employment and income.

The correct answer is: laws that reduce pollution raise costs of production and reduce incomes.

Question 9 Incorrect Mark 0.00 out of 1.00

In a certain economy, jam and bread are produced, and the economy currently operates on its production
possibilities frontier. Which of the following events would allow the economy to produce more jam and
more bread, relative to the quantities of those goods that are being produced now?

a. The economy puts its idle capital to work producing jam and bread.
b. Unemployed labor is put to work producing jam and bread. Incorrect

c. The economy experiences economic growth.

d. All of the above are correct.

The correct answer is: The economy experiences economic growth.

Question 10 Correct Mark 1.00 out of 1.00

If the price elasticity of supply for a window manufacturer is 1.5,

a. a 10% increase in the price of windows results in a 15% increase in the quantity of windows Correct
supplied.
b. the manufacturer is likely operating very near capacity.
c. All of the above are correct.
d. supply is considered to be inelastic.

The correct answer is: a 10% increase in the price of windows results in a 15% increase in the quantity of windows
supplied.

Question 11 Correct Mark 1.00 out of 1.00

Table 3-1
Assume that John and Jane can switch between producing bread and wine at a constant rate.

Refer to Table 3-1. Assume that John and Jane each work 24 hours. What happens to total production if
instead of each person spending 12 hours producing each good, Jane spends 21 hours producing wine and
3 hours producing bread and John spends 3 hours producing wine and 21 hours producing bread?

a. The total production of bread rises and the total production of wine falls.
b. The total production of bread and wine each rise. Correct

c. The total production of bread and wine each fall.

d. The total production of bread falls and the total production of wine rises.

The correct answer is: The total production of bread and wine each rise.
Question 12 Incorrect Mark 0.00 out of 1.00

Figure 5-1

Refer to Figure 5-1. For prices above $8, demand is price

a. inelastic, and total revenue will rise as price rises.

b. elastic, and total revenue will rise as price rises. Incorrect

c. elastic, and total revenue will fall as price rises.

d. inelastic, and total revenue will fall as price rises.

The correct answer is: elastic, and total revenue will fall as price rises.
Question 13 Correct Mark 1.00 out of 1.00

Figure 6-1
The vertical distance between points A and B represents the tax in the market.

Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

a. $16.
b. $24.
c. $6.
d. $10. Correct

The correct answer is: $10.

Question 14 Correct Mark 1.00 out of 1.00

Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run. If an increase
in the demand for cheese causes the price of cheese to increase by 15%, then the quantity supplied of
cheese will increase by

a. 9% in the short run and 21% in the long run. Correct

b. 25% in the short run and 10.7% in the long run.

c. 0.4% in the short run and 4.6% in the long run.
d. 1.7% in the short run and 0.7% in the long run.

The correct answer is: 9% in the short run and 21% in the long run.

Question 15 Incorrect Mark 0.00 out of 1.00

Unemployment would cause an economy to

a. experience an inward shift of its production possibilities frontier. Incorrect

b. produce on its production possibilities frontier.

c. produce outside its production possibilities frontier.
d. produce inside its production possibilities frontier.

The correct answer is: produce inside its production possibilities frontier.
Question 16 Correct Mark 1.00 out of 1.00

Billie Jean has $120 to spend and wants to buy either a new amplifier for her guitar or a new mp3 player to
listen to music while working out. Both the amplifier and the mp3 player cost $120, so she can only buy one.
This illustrates the basic concept that

a. rational people think at the margin.

b. people face trade-offs. Correct

c. decisions made at the margin are not particularly important.

d. trade can make everyone better off.

The correct answer is: people face trade-offs.

Question 17 Correct Mark 1.00 out of 1.00

The presence of a price control in a market for a good or service usually is an indication that

a. an insufficient quantity of the good or service was being produced in that market to meet the public's need.
b. policymakers believed that the price that prevailed in that market in the absence of price Correct
controls was unfair to buyers or sellers.
c. policymakers correctly believed that price controls would generate no inequities of their own once imposed.
d. the usual forces of supply and demand were not able to establish an equilibrium price in that market.

The correct answer is: policymakers believed that the price that prevailed in that market in the absence of price
controls was unfair to buyers or sellers.
Question 18 Correct Mark 1.00 out of 1.00

Suppose that corn farmers want to increase their total revenue. Knowing that the demand for corn is
inelastic, corn farmers should

a. contribute to a fund that promotes technological advances in corn production.

b. increase spending on fertilizer in an attempt to produce more corn on the acres they farm.
c. reduce the number of acres on which they plant corn. Correct

d. plant more corn so that they would be able to sell more each year.

The correct answer is: reduce the number of acres on which they plant corn.

Question 19 Incorrect Mark 0.00 out of 1.00

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

a. The price of the jerseys increases by $15. Incorrect

b. The Green Bay Packers make it to the Super Bowl.

c. The cost of the fabric used to make the jerseys increases.
d. The technology of sewing machines use to make the jerseys improves.

The correct answer is: The cost of the fabric used to make the jerseys increases.
Question 20 Incorrect Mark 0.00 out of 1.00

You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been
wiped out by drought and that this will cause the price of peanuts to double by the end of the year. As a
result, your demand for peanut butter

a. will increase but not until the end of the year.

b. increases today.
c. decreases as you look for a substitute good. Incorrect

d. shifts left today.

The correct answer is: increases today.

◄ PS11 Jump to...

In-class Quiz 3 ►