Microeconomics–Please complete thoroughly and correctly
1
An increase in consumer incomewill affect the supplyof any given product.
True False
2
The production possibilities frontierassumes that the level of technologyvaries when applying the model.
True False
3
Government actions, such as price floors and ceilings, can actually reduce employment and raise market inefficiency.
True False
4
The smaller percentage of one’s net budgetone has to allocate money to a particular product, the more price inelastic will be the demand for that product.
True False
5
The law of demand states that there is a direct relationship between supply and demand.
True False
6
Equilibrium is a state of balance between supply and demand.
True False
7
Joint output of individuals or nationswill be maximized when goods are exchanged between parties in accordance with the law of “comparative advantage”.
True False
8
A supply curve is negatively sloped, while a demand curve is positively sloped. If given a graph of them both, that will be evidenced by computing each curve’s X axis divided by its Y axiswhen devising a 90-degree angle.
True False
9
Households play a dual roleof providing the factors of production while purchasing the goods and services of firms.
True False
10
Excess demandin the market will cause the price of a product to decline.
True False
11
“As the price of gasoline rises, consumer demand decreases. In addition, the quantity demanded of compact cars increased, causing their price to rise.” This statement contains TWO ERRORS: demand and quantity demanded are confused twice.
True False
12
A point inside the production possibilities frontier represents an economy that is utilizing resources efficiently.
True False
13
“The big corporations in this country, like ExxonMobil and GM, have deep pockets and need to be hiring more people.” This is a positive statementabout economic policy.
True False
14
The law of supply states that there is a negative relationship between price and quantity demanded.
True False
15
A change in quantity demandedis a movement along the same demand curve.
True False
16
In the production possibilities frontier, a nation’s boundary will shift inwardif they export more than they import, likely leading to inflationary pressuresin the economy.
True False
17
The “Law of diminishing returns” states that as any activity is extended, it eventually becomes increasingly easier to pursue the activity further.
True False
18
Demand is measured on the vertical axisand supply on the horizontal axis.
True False
19
A substitute goodis a determinant of supply.
True False
20
As globalization and world trade proliferates, individual markets within countries’ economies become more competitive.
True False
21
In the circular flow model, firms own economic resources, and households buy the manufactured products and services.
True False
22
Opportunity cost is the lowest valued benefit that must be sacrificed as the result of choosing an alternative.
True False
23
Antiqueswould tend to have highly price inelastic supply curves.
True False
24
For economies that rely on decentralized decision making, the most important decisions are made by the government.
True False
25
If the spot oil price in petroleum markets is rising, then we can expect the supply curves of products using petroleum as an input to shift rightward.
True False
