Exam 1

In our video Elaine was excited about getting a new apartment because a binding floor was keeping the price below equalibrium.

In the country of North Korea a central planner is used to answer the question of "waht to produce" as opposed to relying on the free market

According to the definition we gave in class, economics can best be defined as the studt of

Suppose it takes a worker in Country A ten hours to produce a beer and twenty hours to produce a pizza. It take a worker in COuntry B two hours to produce a beer and ten hours to produce a pizza. We expect___________to be a net exporter of pizza if these countries trade with one another and follow the theory of comparative advantage.

Which country has the ABSOLUTE advantage in producing pizza? which worker has the ABSOLUTE advantage in producing beer?

Suppose in Econ Land a worker can produce ten pizzas or fifty beers per day. In aggie Land a worker can produce two pizzas or six beers per day. What is a price for one beer that will allow each country to specialize in the good they have COMPARATIVE advantage in and gain from trade?

The example of the limousine rides costing $45 or more in Nashville, TN was an example of

EconLan Can produce

  0  1    2    3    4    5  6 Pizzas

100  96  90  80  65  40  0 Beers

If the price of one pizza in the world market is twelve beers how many pizza should be produced in Econland?

Suppose in Econland the most caluable bundle of goods possible was being produces and traded efficiently. How many beers could be traded for in Econland? (Price of pizza=12 beers)

A droubt that reduced grain output would cause the price of grain to___and the amount sold to___

According to Adam Smith (who wrote the Wealth of Nations) which of the following is not a role of government?

What are drawn below would represent the deadweight loss with a price ceiling set at P= $20

If people find out that "New Coke" is going to come out and in one month it will be impossible to buy Coke we expect that the price of Coke will ___ and the amount sold will ____.

The following assumption means we are building a model while holding several outside important cariables constant.

Which of the following not Necessarily true?

Dwight knew that the____of/for Princess Unicorn dolls would____around Christmas time on the video we watched in class

Suppose I decided to go to the Ksu vs Ku basketball game. I bought a $100 ticket back in October. Suppose last week i decided that this game is only worth $75 for me to see in person but I still decided to go. I decided not to watch the game on TV at home which would have given me $15 worth of enjoyment. As I am walking into the fame some guy offered me $200 for my ticket. Should I have gone to the game?

The United States currently faces a signifigant problem with

What is the hourly wage rate in the graph?

Wage      Hours

20            0

60            5

100          10

Suppose that John was willing to purchase a Coca-Cola for $1. He got to his favorite store and he found out that the price of Coca-Cola was only $0.25. He was able to get___

Qs=3p Qd=100-2p

How many units of Pete's Pizza do we expect to be sold in this market?

At a price of $25 is there a surplus or a shortage of Pete's Pizza?