\"\"Please answer with simple explanation\"\"\"\"Please answer with simple expla
ID: 2506187 • Letter: #
Question
""Please answer with simple explanation""""Please answer with simple explanation""""Please answer with simple explanation""""Please answer with simple explanation""""Please answer with simple explanation""""Please answer with simple explanation""
16. Which would not be considered as capital (or an economic resource) by an economist?
a. A share of corporate stock issued by General Motors
b. An automobile used by General Electric
c. A crane used by a building contractor
d. A razor used by a barber
17. The basic economic challenge confronting street entertainers is a :
a. Principal-agent problem
b. Free-rider problem
c. Monopoly problem
d. Taxation problem
18. When society overallocates resources to the production of a product it means that the:
a. Investment in the product is declining
b. Opportunity cost of the product is decreasing
c. Marginal benefit is greater than the marginal cost
d. Marginal benefit is less than the marginal cost
41. In a linear equation for price and quantity supplied, the value of the vertical intercept is 16 and the slope of the line is 5. If price is $296, the quantity supplied is:
a. 144
b. 150
c. 56
d. 24
43. Price Quantity supplied Quantity demanded
$10 100 295
$11 150 275
$12 190 250
$13 220 220
$14 245 180
$15 265 135
Refer to the above table. A technological advance lowers production costs such that the quantity supplied increase by 60 units of this product at each price. As a result of this technological change, equilibrium output in this market:
a. Decreased by 60 units
b. Increased by 60 units
c. Increased by 30 units
d. Decrease by 30 units
44. A and B are substitute goods, but A and C are complementary goods. If the costs of production of A decrease, then the demand for:
a. both B and C will decrease
b. both B and C will increase
c. B will increase and the demand for C will decrease
d. B will decrease and the demand for C will increase
48. Seller A was willing to sell 400 units of a commodity at a prices of $5 per unit. Seller A is now willing to sell the same number of units at a prices of $4 per units. Evidently, seller A has experiences a(n):
a. increase in supply
b. decrease in supply
c. increase in demand
d. decrease in demand
Explanation / Answer
16. Which would not be considered as capital (or an economic resource) by an economist?
a. A share of corporate stock issued by General Motors
b. An automobile used by General Electric
c. A crane used by a building contractor
d. A razor used by a barber
Reason- Typically resources are materials, services, staff, or other assets that are transformed to produce benefit and in the process may be consumed or made unavailable. Stocks are not economic resources by this definition
17. The basic economic challenge confronting street entertainers is a :
a. Principal-agent problem
b. Free-rider problem
c. Monopoly problem
d. Taxation problem
Reason- the free rider problem refers to a situation where some individuals in a population either consume more than their fair share of a common resource, or pay less than their fair share of the cost of a common resource. Many people do not pay for street entertainement.
18. When society overallocates resources to the production of a product it means that the:
a. Investment in the product is declining
b. Opportunity cost of the product is decreasing
c. Marginal benefit is greater than the marginal cost
d. Marginal benefit is less than the marginal cost
Reason- With negative extrenality, firms pass some of the costs to society
41. In a linear equation for price and quantity supplied, the value of the vertical intercept is 16 and the slope of the line is 5. If price is $296, the quantity supplied is:
a. 144
b. 150
c. 56
d. 24
Reason= P=16+5*Q
296= 16+5Q
Q= 56
43. Price Quantity supplied Quantity demanded
$10 100 295
$11 150 275
$12 190 250
$13 220 220
$14 245 180
$15 265 135
Refer to the above table. A technological advance lowers production costs such that the quantity supplied increase by 60 units of this product at each price. As a result of this technological change, equilibrium output in this market:
a. Decreased by 60 units
b. Increased by 60 units
c. Increased by 30 units
d. Decrease by 30 units
Reason
Earlier equilibrium output = 220
After the chnage as shown below equilibrium output = 250
$10 160 295
$11 210 275
$12 250 250
$13 280 220
$14 305 180
$15 325 135
44. A and B are substitute goods, but A and C are complementary goods. If the costs of production of A decrease, then the demand for:
a. both B and C will decrease
b. both B and C will increase
c. B will increase and the demand for C will decrease
d. B will decrease and the demand for C will increase
Reason- Preice of A will fall, demand of A will rise and demand of B will Fall. With demand of A rising, demand of C will rise too
48. Seller A was willing to sell 400 units of a commodity at a prices of $5 per unit. Seller A is now willing to sell the same number of units at a prices of $4 per units. Evidently, seller A has experiences a(n):
a. increase in supply
b. decrease in supply
c. increase in demand
d. decrease in demand
Reason- Increase in supply lowers prices
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.