1. Consider the market of personal computers, what effect could increasing cost
ID: 1135634 • Letter: 1
Question
1. Consider the market of personal computers, what effect could increasing cost of electricity have?
Quantity supplied decreases.
Quantity supplied increases.
Supply curve shifts to the right.
2. Which of the following elements is not depicted in the circular flow model?
Governments
The labor market
Firms
3. Which statement below is incorrect?
Changes in seller expectations could shift a supply curve.
Oil supply decreases if oil prices are expected to rise in the future.
Production decisions are made based on facts, not expectations.
4. Which of the following cannot happen with an increase in demand, other things unchanged?
Equilibrium price increases.
Equilibrium quantity increases.
The demand curve shifts to the left.
5. Which of the following is NOT one of the main factors of production in an economy?
Artificial intelligence
Labor
Natural resources
6. Which of the following is most likely a question that macroeconomics tries to answer?
How much money should Netflix charge for a month's subscription?
How much money a worker should save each month?
How many new jobs are created in the US each month?
7. Which of the following is correct about technology?
It is considered a natural resource for the purpose of economic analysis.
It is an important factor of production.
It plays a crucial role in putting factors of production to work.
8. Which of the following is correct about opportunity cost?
It is the value of the best opportunity forgone in a particular choice.
It is not a real cost, so we do not need to consider it when making decisions.
It is the price at which you buy some item.
It is usually less than the amount of money spent on some choice.
9. In general, if a reduction in the price of one good increases the demand for another, the two goods are called ________?
complements
free goods
substitutes
10. Which of the following is the worst example, among the four, of a choice at the margin regarding water consumption?
Should we use more water to brush our teeth?
Should we consume water or not?
Should we take shorter showers?
11. Every economy must answer some fundamental questions. Which one of the following is NOT one of them?
How should goods and services be produced?
What should be produced?
At what price should goods be sold?
12. Which of the following statements is correct about a free good in economics?
The cost of it is less than the benefit one can get from it.
The cost of it is zero.
The choice of one use of it does not require that we give up another.
13. When supply and demand both increase, which of the following is certain to happen?
Equilibrium price increases.
Equilibrium quantity decreases.
Equilibrium quantity increases.
14. When the supply curve shifts to the right, what is least likely to happen?
Equilibrium price increases.
There is an increase in supply.
Equilibrium quantity increases.
15. A decrease in supply can be visualized on the graph by shifting the supply curve to the ________
left
right
down
16. Which of the following statement is incorrect?
Capital can be used to produce other goods.
Capital cannot be money.
Capital can be financial assets.
17. Which of the following is least likely to result in the formation of human capital?
Education
Experience
Training
Luck
18. In assuming that people pursue their self-interest, economists are
assuming that people are selfish.
assuming that people pursue satisfaction that cannot be simply measured by money.
most likely wrong.
(I know it's only suppose to be one question, but I only have one post left, and having trouble with these questions)
Quantity supplied decreases.
Quantity supplied increases.
Supply curve shifts to the right.
Explanation / Answer
Answer 1 - Personal computers and electricity are complementary goods. If cost of electricity increases then supply of electricity would fall, therefore quantity demanded for personal computers would also fall. The supply curve electricity would shift to the left thus quantity supplied would decrease in the market.
Option A is the correct answer.
Answer 2 - In the circular flow model, we depict household sector, business sector, government sector, foreign sector. We do not show the labour market in circular flow model.
Option B is the correct answer.
Answer 3 - The producer would increase supply of oil if it is expected that oil prices are going to rise in the future. The producer will not decrease in supply due to expected rise in oil prices.
Option B is the correct answer.
Answer 4 - keeping other things unchanged, if demand increase then equilibrium price of good and equilibrium quantity will rise. The demand curve will not shift to the left. Hence,
Option C is the correct answer
Answer 5 - Artificial intelligence is not main factor of production. Natural resources and labour are main factor of production. Technological change was studied as part of capital.
Option A is the correct answer.
Answer 6 - The macroeconomics deal s with aggregate variables for example, national income, inflation, unemployment, distribution of nation income among labour and capital. etc. 'How many jobs are created in US every month is the subject matter of macroeconomics. It is most likely that macroeconomics tries to answer how many jobs are created in US every month.
Option C is the correct answer.
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