ECO 1104 Study Guide - Midterm Guide: Demand Curve, Bes, Opportunity Cost

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11 Jul 2014

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ECO 1104 Full Course Notes

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The opportunity cost of producing any item is the amount of resources used to produce other products. other products that were produced instead. resources sacrificed. other products that could have been produced. The opportunity cost, to this society, of having two shopping malls is seventeen business colleges. two business colleges. two-fifths of a business college. one business college. Answer this question using diagrams 4-1 to 4-4. In 1989 a local cafe sold 6,000 tortillas at . 75 each. In 1990 the same cafe sold 6,800 tortillas at . 85 each. Imagine that when the price of matches is increased by 24%, the quantity of matches purchased reduces by 40%. One can say that the demand is unitary. responsive. elastic. inelastic. Answer this question using tables 5-2 and 5-3. Any amounts shown on the demand curve, depending on demand. The equilibrium price and quantity cannot be determined from the information in the tables.

Related Questions

The production possibilities curve illustrates the basic principle that:

a. the production of more of any one item will in time require smaller and smaller sacrifices of other items

b. an economy automatically seeks that level of output that employs all of its resources

c. if all the resources of an economy are fully used, more of one item could be produced only if less of another item is produced

d. any production point below the curve reflects a high opportunity cost

e. any production point above the curve reflects the low opportunity cost

orchidrabbit535

When economic losses exist in the cereal market, for example, this is an indication that

a. The goods and services that society is giving up (the opportunity cost) are more valuable than the cereal being produced.

b. Society's scarce resources are being used in the best way.

c. Not enough firms are producing cereal (assuming that the market is perfectly competitive).

d. The WHAT to produce question is being answered efficiently.

erinfish839

The law of increasing opportunity costs states that:

A. if the sum of the costs of producing a particular good rises by a specified percent, the price of that good must rise by a greater relative amount.

B. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do so.

C. the sum of the costs of producing a particular good can't rise above the current market price of that good.

D. if the prices of all the resources used to produce goods increase, the cost of producing any particular good will increase at the same rate.

orchidcattle313

ECO 1104 Study Guide - Midterm Guide: Demand Curve, Bes, Opportunity Cost

ECO 1104 Full Course Notes

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