Which of the following land resources are nonrenewable?

surface land, water, and all minerals

water, oil, and natural gas

just the land we use for residential and commercial construction

coal, oil, and natural gas

surface land, water, and some minerals

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

scarcity.

macroeconomics.

microeconomics.

why to produce.

social interest versus self-interest.

Which of the following is true regarding demand?
i. Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
ii. Demand refers to one quantity at one time.
iii. "Demand" and " quantity demanded" are the same thing.

i only.

both ii and iii.

both i and ii

iii only.

ii only.

Which of the following statements is true?
i. The functional distribution of income shows the income distribution among the factors of production.
ii. The personal distribution of income shows that income is distributed equally amongst all workers.
iii. The personal distribution of income shows how income is distributed among individual factors of production.

iii only.

i and ii.

i only.

ii only.

i and iii.

Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter) along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the

equilibrium price of peanut butter might rise or fall.

equilibrium quantity of peanut butter will definitely increase.

equilibrium quantity of peanut will definitely decrease.

equilibrium price of peanut butter will definitely fall.

equilibrium price of peanut butter will definitely rise.

A surplus of cardboard boxes means that

at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.

at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied.

the current price of a cardboard box is less than the equilibrium price.

at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium..

More information is needed to determine if the price of cardboard boxes is higher than, lower than, or equal to the equilibrium price.

Which of the following is true of households in the circular flow model?
i. They own the factors of production.
ii. They choose the quantity of goods and services to sell.
iii. They interact with firms in the factor markets and the goods market.

ii and iii.

i only.

i and iii.

i and ii.

iii only.

Suppose the equilibrium wage rate for apricot pickers is $6.00 per hour and at that wage rate the equilibrium quantity of apricot pickers employed is 14,000. If the minimum wage is set at $6.50 per hour, then the

quantity of apricot pickers employed increases.

wage rate for apricot pickers decreases.

quantity of apricot pickers employed decreases.

quantity of apricot pickers employed does not change.

quantity of apricot pickers demanded does not change and the quantity of apricot pickers supplied does not change.

Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the

quantity of hot dogs demanded decreases.

quantity of hot dogs demanded increases.

demand for hot dogs decreases.

demand for hot dogs increases.

More information is needed to determine if the demand increases or decreases.

When income increases from $20,000 to $30,000 the number of home delivered pizzas per year increases from 22 to 40. Hence the income elasticity of demand for home delivered pizza equals

0.40.

0.58.

0.69.

1.45.

A supply curve differs from a supply schedule because a supply curve

is a graph and the supply schedule is a table.

represents all firms in the market, whereas the supply schedule represents one firm.

holds the number of suppliers constant, whereas the supply schedule allows the number to vary.

represents one firm, whereas the supply schedule represents all firms in the market.

holds resource prices constant, whereas the supply schedule allows them to vary.

A supply curve differs from a supply schedule because a supply curve is a graph and the supply schedule is a table. represents all firms in the market, whereas the supply schedule represents one firm. holds the number of suppliers constant, whereas the supply schedule allows the number to vary. represents one firm, whereas the supply schedule represents all firms in the market. holds resource prices constant, whereas the supply schedule allows them to vary. The knowledge and skill people obtain from education, on-the-job training, and work experience is known as
entrepreneurship.

labor.

human capital.

physical capital.

financial capital.

Some experts have suggested that of the total electricity consumed in the United States, 8 percent is used up by the Internet. Thus an increased demand by consumers to surf the Internet will ____ the equilibrium price of electricity and ____ the equilibrium quantity of electricity.

lower; decrease

raise; decrease

raise; increase

not change; increase

lower; increase

Tammy buys four Barbie dolls a year if the price of a doll is $12 per doll. The actual price of a Barbie doll is $13 per doll. The four dolls Tammy buys if the price is $12 are her

demand for Barbie dolls.

quantity demanded of Barbie dolls when the price is $13 per doll because the price is $13 per doll.

quantity demanded of Barbie dolls when the price is $12 per doll.

Both answers A and B are correct.

Both answers A and C are correct.

Assume that when a pizza has a price of $10, the quantity sold of soda is 300 drinks and if pizza has a price of $15, the quantity sold of soda is 100 drinks. Therefore, the cross elasticity is equal to

-2.50.

-0.25.

-0.40.

-25.00.

When the price of a latte increases from $2 to $3, the quantity demanded decreases from 100 per week to 83 per week. Using the midpoint method, the price elasticity of demand is

2.11.

0.46.

36.4.

0.03.

Which of the following statements is true about a competitive market? A competitive market

must have a physical location.

has one seller competing to sell his or her product.

has so many buyers and sellers that no one can influence the price.

includes markets for goods and services but not for inputs.

has a handful of sellers but always has many buyers.

When the price of a textbook is $95, the quantity of textbooks supplied is 90 million a year and when the price rises to $105, the quantity of textbooks supplied is 110 million a year. The supply of textbooks is

perfectly elastic

perfectly inelastic

inelastic

elastic

Money payments for which of the following appear in the circular flow diagram?
i) entrepreneurship
ii) labor
iii) capital
iv) land

i and iii.

i, ii, iii and iv.

ii, iii and iv.

iii and iv.

ii and iii.

As the price of home heating oil rises, families buy less home heating oil. Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ____ relationship.

positive

cross-sectional

linear

negative

time-series