Minutes Needed to Make 1

Bushel of Wheat
Pound of Beef
Andia
Zardia

20
15

12
10

1.
Refer to Table below. Which of the following combinations of wheat and beef could Andia produce in one 8-hour
day?
a. 6 bushels of wheat and 35 pounds of beef
b. 9 bushels of wheat and 25 pounds of beef
c. 15 bushels of wheat and 20 pounds of beef
d. 24 bushels of wheat and 40 pounds of beef
3. Which of the following demonstrates the law of demand?
a. After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his
raise.
b. Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal.
c. Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal.
d. Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per
Milky Way.
4. A market demand curve shows
a. the relationship between price and the number of buyers in a market.
b. how quantity demanded changes when the number of sellers changes.
c. the sum of all prices that individual buyers are willing and able to pay for each possible quantity of
the good.
d. how much of a good all buyers are willing and able to buy at each possible price.
5. If the price elasticity of demand for a good is 4, then a 12 percent decrease in price results in a
a. 0.33 percent increase in the quantity demanded.
b. 3 percent increase in the quantity demanded.
c. 30 percent increase in the quantity demanded.
d. 48 percent increase in the quantity demanded.
6.The demand for Hubba Bubba bubble gum is likely
a. elastic because gum is expensive relative to other snacks.
b. elastic because there are many close substitutes for Hubba Bubba.
c. elastic because bubble gum is regarded as a necessity by many people.
d. inelastic because it is consumed quickly, making the relevant time horizon short.
7.If the government removes a binding price ceiling from a market, then the price paid by buyers will
a. increase, and the quantity sold in the market will increase.
b. increase, and the quantity sold in the market will decrease.
c. decrease, and the quantity sold in the market will increase.
d. decrease, and the quantity sold in the market will decrease.
8.Which of the following is a correct statement about production possibilities frontiers?
a. An economy can produce only on the production possibilities frontier.
b. An economy can produce at any point inside or outside a production possibilities frontier.
c. An economy can produce at any point on or inside the production possibilities frontier, but
not outside the frontier.
d. An economy can produce at any point inside the production possibilities frontier, but not on or
outside the frontier.