8. A movement along the demand curve for automobiles is caused by a change in a.
ID: 1141679 • Letter: 8
Question
8. A movement along the demand curve for automobiles is caused by a change in a. consumers' incomes. b. the price of automobiles. c the price of gasoline. d. the price of steel. 9. Economics is the study of how people: a. make choices to produce and consume goods and services b. vote for political leaders. c. establish social institutions that maximize well-being. d. develop value systems. 10. In economics, the term marginal refers to: a. the change or difference from a current situation. b. man-made resources as opposed to natural resources. c. the satisfaction a consumer receives from a good. d. holding everything else constant in the analysis. 11. When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the: a. benefits expected from two cars with the cost of both. b. additional benefits of the second car with the additional cost of the second car. c. dollar cost of the two cars with the potential income that the cars will generate. d. additional benefits expected from a second car with the cost of the two cars. 12. Which of the following most accurately summarizes the implications of an economy's production possibilities curve? a. Over time, it is generally impossible for a country to expand its production of goods. b. An economy will automatically move toward a point that lies outside of the production possibilities constraint unless proper government policy constrains production. c. Ifall the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced. d. If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods. 13. Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward? a. An increase in the quantity of resources. b. A reduction in the labor force. c. A choice of more education and less computers. d. A choice of more computers and less education. 14. As production of a good increases, opportunity costs rise because: a. people always prefer having more goods.Explanation / Answer
8: A movement along the demand curve for automobiles is caused by a change in:
Answer: (b) The price of Automobiles.
Explaination: There is a movement on the demand curve, when the price of good changes due to the change the quantity demanded and vice versa.
9: Economics is the study of how people:
Answer: (a) make choices to produce and consume goods and services.
10: In economics, the term marginal refers to:
Answer: (a)The change or difference from a current situation.
11: When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the:
Answer: (b) Additional benefits of the second car with the additional cost of the second car.
Explaination: Marginal analysis is a decision making process to find out if buying one more unit of a good(second car) is more beneficial than the costs of buying that same good(second car).
12: Which of the following most accurately summarises the implications of an economy's production possibilities curve:
Answer: (c) If all the resourses of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
Explaination: Resourse are limited, hence when we transfer resouses from one good to produce another good, more of one good will be produced and less of the other good.
13: Which of the following will be most likely to cause the production possibilities curve for computers and education to shift outward?
Answer: (a) An increase in the quantity of resources.
Explaination: When there is an increase in the quantity and qualilty of resouses we can produce more of goods, leading to an outward shift in the production possibiity curve.
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