Consumers consider chicken and turkey to be substitute goods. Therefore, a fall in the price of chicken shall cause _____.
A. the quantity demanded of turkey to decrease
B. the demand for turkey to decrease
C. the quantity demanded of chicken to increase
D. (2) and (3) above
If Britain has a comparative advantage in producing beef and France has a comparative advantage in producing pork, _____.
A. the opportunity cost of producing a pound of beef in terms of pork given up is lower in Britain than in France
B. the opportunity cost of producing a pound of pork in terms of beef given up is lower in France than in Britain
C. Britain ought to specialize as far as possible in Beef and France in pork
D. All of the above
This question is based on Table 1 in the document ‘Charts and Tables for Practice Midterm Exam 1.doc’ in the ‘Exams’ folder in Blackboard.
The following statement is true:
A. France has an absolute advantage in wine
B. Italy has an absolute advantage in cheese
C. France has an absolute advantage in cheese
D. (1) and (3) above
A certain distribution of goods is said to be efficient when _____.
A. it is possible, by redistribution, to make an individual better off without making others worse off
B.it is impossible, by redistribution, to make an individual better off without making others worse off
C.it is possible to produce more of one good without reducing outputs of other goods
D. it is impossible to produce more of one good without reducing outputs of other goods
No private company shall produce public goods because _____.
A. private firms aren’t authorized to do so
B. public goods are extremely expensive to produce
C. it would be impossible for firms to charge customers because of the particular property of public
D.goods that, once produced, no one may be prevented from consuming them
of the negative effects of producing such goods on third parties
The following statement is untrue:
A. the income elasticity of demand for an inferior good is negative
B. the cross-price elasticity of demand for a good with respect to its substitute is positive
C. the price elasticity of demand is a negative number because of the Law of Supply
D. when the absolute value of the price elasticity of demand for a good is greater than 1, demand for the good is elastic
ignore the third question please
D,more people want less of turkey
D, more exports are possible, internal consumption can be met at cheaper cost
SEE THE CHART
A, nothing to do with production or impossibility
question is not clear, must be specific to some topic. Buses, trains that are used in public property are produced by private firms.
D, elasticity is the amount of change in the other variable with a change in one variable , if demand increases then price increases; price of a good falls if demand for its substitute increases, demand for a good changes a lot if price changes by even a small amount where the elasticity >1