(1) PFLE August

If Serenity chose to study for an important exam on Saturday night instead of going to the movies with her friends, what is the opportunity cost? Choose the correct response.

• the time she spent studying

• the price of the movie tickets

• the enjoyment of watching a movie

• the grade she will earn on the exam

Which of the following conditions could explain the shift in the demand curve shown on the graph?

• Farmers harvested a bumper crop of tomatoes.

• Shoppers learned that cans of cooked tomatoes are spoiled.

• Surveys found that people are eating more cooked tomatoes.

• Eating cooked tomatoes was found to have more health benefits.

Which of the following lists includes only capital resources (and therefore no labor or land resources)?

• a hydroelectric dam; water behind the dam; power lines

• the owner of a new startup firm; a chemistry lab; a researcher

• automobiles owned by a car rental firm; computers at the car rental agency; the vans that shuttle rental customers to and from the airport

• an ice arena; a professional hockey player; hockey uniforms

As a consequence of the problem of scarcity, individuals have to make choices from among alternatives.

• make choices

• avoid decisions

• increase resources

• ignore needs

The production possibility curve (PPC) below shows the productive capacity of a country that produces only cars and apples.

• The country is lacking in resources.

• The country is using its resources effectively.

A market for a product reaches equilibrium when

• buyers intend to buy a quantity equal to the quantity that sellers intend to sell.

• price falls further after there is a shortage.

• the actual quantity bought by buyers equals actual quantity sold by sellers.

• the price rises further after there is a surplus.

In understanding and analyzing "demand," we focus on how much of a product the buyers are

• willing and able to buy at different prices.

• willing and able to buy with their given income.

• actually buying now and in the recent past at various prices.

• willing and wanting to buy at different prices.

According to the law of supply and demand, what is one short term and one long term effect of what will happen in the video game market if wages decrease for video game designers?

• Fewer people will pursue jobs as video game designers.

• Unemployment will increase among video game designers.

• The price of video games will increase due to a labor shortage.

• Consumers will buy fewer video games due to an increase in price.

• Firms will hire more designers leading to increased production of games.

How does this development change the price and the quantity demanded of bread?

• The price increases.

• The price decreases.

• The quantity demanded increases.

• The quantity demanded decreases.

Analyze the market graph. Which point represents the price where a surplus will occur? Select the ONE correct circle.

• Top Circle

• Middle Circle

• Bottom Circle