Macro Final Hammock FSU Squarecap
d) opportunity cost. - ANS-4. The value of the best thing you give up to get something
is...
a) marginal cost.
b) sunk cost.
c) fixed cost.
d) opportunity cost.
14 - ANS-5. Suppose I buy a nice dinner for $15. I was willing to pay $25 for it, and the
restaurant would have been willing to sell it for as little as $11. What is the total gain to
both sides?
a) has the lowest opportunity cost of production. - ANS-6. A country with a comparative
advantage in producing a good...
a) has the lowest opportunity cost of production.
b) has the highest opportunity cost of production.
c) can produce more of the good than any other country.
d) will be poorer as a result of trading with its neighbors for other goods.
2 - ANS-7. If the opportunity cost of watching one episode of your favorite show on
Netflix is the $5 you would have earned from working for half an hour, then the
opportunity cost of working for an hour is... watching ______ episodes of your favorite
show on Netflix.
b) Chef Enzo prepares a meal for you for $8. - ANS-8. The opportunity cost for you to
prepare a decent meal is one hour of work, which would earn you $10. The opportunity
cost for Chef Enzo to prepare a decent meal is five minutes of work, which would earn
him $2. Which of the following terms of trade would benefit you and Chef Enzo?
a) Chef Enzo prepares a meal for you for $1.
b) Chef Enzo prepares a meal for you for $8.
c) Chef Enzo prepares a meal for you for $20.
d) You prepare a meal for Chef Enzo, who pays you $5.
d) Qualcomm has a comparative advantage in Processors, and Crucial has a
comparative advantage in memory. - ANS-9. Qualcomm and Crucial are two companies
making computing components: memory and processors. According to their production
possibilities frontiers above, which of the following is correct?
a) Qualcomm has a comparative advantage in memory.
,b) Crucial has a comparative advantage in processors.
c) Both businesses have a comparative advantage in processors.
d) Qualcomm has a comparative advantage in Processors, and Crucial has a
comparative advantage in memory.
d) quantity demanded will fall. - ANS-10. Suppose the price of tomato sauce is $4 per
jar, but then rises to $7 per jar. The Law of Demand states that...
a) demand will rise.
b) demand will fall.
c) quantity demanded will rise.
d) quantity demanded will fall.
a) The quantity of students who choose to attend FSU will rise. - ANS-11. Suppose the
administration of FSU decides to fire all advisors and administrators, leaving only
faculty, cleaning staff, and support staff, and by doing so it manages to cut costs
significantly. The price of one year's tuition at FSU falls from $6,500 to $4,000. Which of
the following will occur, ceteris paribus?
a) The quantity of students who choose to attend FSU will rise.
b) The quantity of students who choose to attend FSU will fall.
c) Other universities will lower their tuition.
d) Cars will become more fuel efficient.
37 - ANS-12. If you are willing to pay $40 for Squarecap access, but a guy in an alley
sells you a black market access code for $3, your consumer surplus is...
b) Demand for shoes will shift to the left. - ANS-13. If the surgeon general announces
that wearing shoes is bad for your posture, which of the following will occur?
a) Demand for shoes will shift to the right.
b) Demand for shoes will shift to the left.
c) Quantity of shoes demanded will rise.
d) The supply of shoes will fall.
a) chicken sandwiches are a normal good. - ANS-14. If a person's income goes up, and
that person buys more chicken sandwiches, then we can conclude that for this person...
a) chicken sandwiches are a normal good.
b) chicken sandwiches are an inferior good.
c) chicken sandwiches are substitutes.
d) chicken sandwiches are complements.
, a) the quantity supplied will fall. - ANS-15. Consider the supply curve for sour cream. If
the price of sour cream falls, then...
a) the quantity supplied will fall.
b) the quantity supplied will rise.
c) the supply will rise.
d) none of the above.
6 - ANS-16. In your spare time you drive for Uber. You pick up a passenger and take her
to Madison Social, for which you are paid $15. You would have been willing to drive her
there for $9. Your producer surplus is...
c) The carpet supply curve shifts to the left. - ANS-17. A tornado destroys several carpet
factories in North Georgia. Which of the following occurs?
a) The quantity of carpet supplied rises.
b) The price of carpet falls.
c) The carpet supply curve shifts to the left.
d) The carpet supply curve shifts to the right.
b) The supply of software will shift to the right. - ANS-18. A new program to teach
computer science more effectively graduates its first class of computer scientists,
resulting in a significant increase in the number of programmers and software engineers
available. Which of the following will occur?
a) The wages of programmers will rise.
b) The supply of software will shift to the right.
c) The supply of software will shift to the left.
d) The demand for software will shift to the left.
b) Supply will shift to the left, and price will rise. - ANS-19. If the price of chicken feed
(which is fed to chickens) goes up, which of the following will happen in the market for
chicken sandwiches?
a) Supply will shift to the right, and price will fall.
b) Supply will shift to the left, and price will rise.
c) Demand will shift to the right, and price will rise. d) Demand will shift to the left, and
price will fall.
a) Demand shifts to the right, price rises, quantity rises. - ANS-20. Suppose the market
for smartphones is in equilibrium. A new battery technology is invented which makes
phones last a week without needing to be recharged. What happens in the market for
smartphones?
a) Demand shifts to the right, price rises, quantity rises.
d) opportunity cost. - ANS-4. The value of the best thing you give up to get something
is...
a) marginal cost.
b) sunk cost.
c) fixed cost.
d) opportunity cost.
14 - ANS-5. Suppose I buy a nice dinner for $15. I was willing to pay $25 for it, and the
restaurant would have been willing to sell it for as little as $11. What is the total gain to
both sides?
a) has the lowest opportunity cost of production. - ANS-6. A country with a comparative
advantage in producing a good...
a) has the lowest opportunity cost of production.
b) has the highest opportunity cost of production.
c) can produce more of the good than any other country.
d) will be poorer as a result of trading with its neighbors for other goods.
2 - ANS-7. If the opportunity cost of watching one episode of your favorite show on
Netflix is the $5 you would have earned from working for half an hour, then the
opportunity cost of working for an hour is... watching ______ episodes of your favorite
show on Netflix.
b) Chef Enzo prepares a meal for you for $8. - ANS-8. The opportunity cost for you to
prepare a decent meal is one hour of work, which would earn you $10. The opportunity
cost for Chef Enzo to prepare a decent meal is five minutes of work, which would earn
him $2. Which of the following terms of trade would benefit you and Chef Enzo?
a) Chef Enzo prepares a meal for you for $1.
b) Chef Enzo prepares a meal for you for $8.
c) Chef Enzo prepares a meal for you for $20.
d) You prepare a meal for Chef Enzo, who pays you $5.
d) Qualcomm has a comparative advantage in Processors, and Crucial has a
comparative advantage in memory. - ANS-9. Qualcomm and Crucial are two companies
making computing components: memory and processors. According to their production
possibilities frontiers above, which of the following is correct?
a) Qualcomm has a comparative advantage in memory.
,b) Crucial has a comparative advantage in processors.
c) Both businesses have a comparative advantage in processors.
d) Qualcomm has a comparative advantage in Processors, and Crucial has a
comparative advantage in memory.
d) quantity demanded will fall. - ANS-10. Suppose the price of tomato sauce is $4 per
jar, but then rises to $7 per jar. The Law of Demand states that...
a) demand will rise.
b) demand will fall.
c) quantity demanded will rise.
d) quantity demanded will fall.
a) The quantity of students who choose to attend FSU will rise. - ANS-11. Suppose the
administration of FSU decides to fire all advisors and administrators, leaving only
faculty, cleaning staff, and support staff, and by doing so it manages to cut costs
significantly. The price of one year's tuition at FSU falls from $6,500 to $4,000. Which of
the following will occur, ceteris paribus?
a) The quantity of students who choose to attend FSU will rise.
b) The quantity of students who choose to attend FSU will fall.
c) Other universities will lower their tuition.
d) Cars will become more fuel efficient.
37 - ANS-12. If you are willing to pay $40 for Squarecap access, but a guy in an alley
sells you a black market access code for $3, your consumer surplus is...
b) Demand for shoes will shift to the left. - ANS-13. If the surgeon general announces
that wearing shoes is bad for your posture, which of the following will occur?
a) Demand for shoes will shift to the right.
b) Demand for shoes will shift to the left.
c) Quantity of shoes demanded will rise.
d) The supply of shoes will fall.
a) chicken sandwiches are a normal good. - ANS-14. If a person's income goes up, and
that person buys more chicken sandwiches, then we can conclude that for this person...
a) chicken sandwiches are a normal good.
b) chicken sandwiches are an inferior good.
c) chicken sandwiches are substitutes.
d) chicken sandwiches are complements.
, a) the quantity supplied will fall. - ANS-15. Consider the supply curve for sour cream. If
the price of sour cream falls, then...
a) the quantity supplied will fall.
b) the quantity supplied will rise.
c) the supply will rise.
d) none of the above.
6 - ANS-16. In your spare time you drive for Uber. You pick up a passenger and take her
to Madison Social, for which you are paid $15. You would have been willing to drive her
there for $9. Your producer surplus is...
c) The carpet supply curve shifts to the left. - ANS-17. A tornado destroys several carpet
factories in North Georgia. Which of the following occurs?
a) The quantity of carpet supplied rises.
b) The price of carpet falls.
c) The carpet supply curve shifts to the left.
d) The carpet supply curve shifts to the right.
b) The supply of software will shift to the right. - ANS-18. A new program to teach
computer science more effectively graduates its first class of computer scientists,
resulting in a significant increase in the number of programmers and software engineers
available. Which of the following will occur?
a) The wages of programmers will rise.
b) The supply of software will shift to the right.
c) The supply of software will shift to the left.
d) The demand for software will shift to the left.
b) Supply will shift to the left, and price will rise. - ANS-19. If the price of chicken feed
(which is fed to chickens) goes up, which of the following will happen in the market for
chicken sandwiches?
a) Supply will shift to the right, and price will fall.
b) Supply will shift to the left, and price will rise.
c) Demand will shift to the right, and price will rise. d) Demand will shift to the left, and
price will fall.
a) Demand shifts to the right, price rises, quantity rises. - ANS-20. Suppose the market
for smartphones is in equilibrium. A new battery technology is invented which makes
phones last a week without needing to be recharged. What happens in the market for
smartphones?
a) Demand shifts to the right, price rises, quantity rises.
