Strayer ECO301 week 2 quiz

Question 1 Let QD= -5P + 54 and QS= P – 6. Equilibrium can be found atAnswerQ = 4; P = 10Q = 6; P = 10P = 6; Q = 0Q =.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891752.jpg” alt=””>; P = 25 points Question 2 Suppose a production possibilities frontier can be expressed as 9X2+ Y2= 81 what is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y)?Answer45.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891753.jpg” alt=””>.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891754.jpg” alt=””>-.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891755.jpg” alt=””>15 points Question 3 The Ricardian notion that of diminishing returns implies thatAnswerAs more input is used more output will be made.As more input is used less output will be made.As more input is used the increase in output will increase.As more input is used the increase in output will decrease.5 points Question 4 Suppose.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891764.jpg” alt=””>and.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891765.gif” alt=””>. The equilibrium quantity isAnswer23455 points Question 5 If the production possibilities frontier can be expressed as 4X2+ Y2= 16 then the point X = 1; Y = 4 isAnswerOutside the production possibilities frontierOn the production possibilities frontierInside the production possibilities frontierIn the wrong quadrant to be on the graph5 points Question 6 If society is producing a combination of goods on its production possibilities frontierAnswerIt must be employing all available resources.It must be growing.It is using all the available natural resources but may not be using all available labor resources.Both a and b.5 points Question 7 Suppose right (R) and left (L) shoes are only useful if produced in equal proportion and societal happiness is expressed as min(R,L). The contour lines would beAnswerDownward sloping linesUpward sloping linesL-shapedBackward L-shaped5 points Question 8 IfY=X2+Z2, the contour linesAnswerAre concentric circles.Are parabolas.Are hyperbolas.Intersect whenever eitherXorZis zero.5 points Question 9 Suppose you can write generic supply and demand curves such that QS= A + BP and QD= D + CP. Equilibrium price is given byAnswer.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891778.jpg” alt=””>.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891779.gif” alt=””>.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891780.gif” alt=””>.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891781.gif” alt=””>5 points Question 10 The underlying reason early economists believed a (short-run) supply curve would be upward sloping is because ofAnswerDecreasing average costsIncreasing average costDecreasing marginal costsIncreasing marginal costs5 points Question 11 If an individual has a constantMRSof shoes for sneakers of 3/4 (that is, he or she is always willing to give up 3 pairs of sneakers to get 4 pairs of shoes) then, if sneakers and shoes are equally costly, he or she willAnswerBuy only sneakers.Buy only shoes.Spend his or her income equally on sneakers and shoes.Wear sneakers only 3/4 of the time.5 points Question 12 Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25. Suppose a student’s beverage budget is $20 per week. What is the algebraic expression of the budget?Answer.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891782.gif” alt=””>.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891783.gif” alt=””>.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891784.gif” alt=””>.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891785.gif” alt=””>5 points Question 13 If bundles of goodsAandBlie on the same indifference curve, one can assume the individualAnswerPrefers bundleAto bundleB.Prefers bundleBto bundleA.Enjoys bundleAandBequally.BundleAcontains the same goods as bundleB.5 points Question 14 The X-intercept of the budget constraint representsAnswerHow much of goodYcan be purchased if no goodXis purchased and all income is spent.How much of goodXcan be purchased if no goodYis purchased and all income is spent.Total income divided by the price ofX.A and C.5 points Question 15 Suppose an individual’s MRS (of steak for beer) is 2:1. That is, at the current consumption choices he or she is willing to give up 2 beers to get an extra steak. Suppose also that the price of a steak is $1 and a beer is 25¢. Then in order to increase utility the individual shouldAnswerBuy more steak and less beer.Buy more beer and less steak.Continue with current consumption plans.Not enough information to answer the question.5 points Question 16 If an individual’s indifference curve map does not obey the assumption of a diminishingMRS, thenAnswerThe individual will not maximize utility.The individual will buy none of goodX.Tangencies of indifference curves to the budget constraint may not be points of utility maximization.The budget constraint cannot be tangent to an appropriate indifference curve.5 points Question 17 An increase in an individual’s income without changing relative prices willAnswerRotate the budget constraint about the X-axis.Shift the indifference curves outward.Shift the budget constraint outward in a parallel way.Rotate the budget constraint about the Y axis.5 points Question 18 Suppose a teenager has $20 and likes both rap music (R) and country music (C) with a set of preferences so that U = C1/2R1/2. Suppose that the iTunes price of a rap music song is.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891788.gif” alt=””>and the price of a country music song is.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891789.gif” alt=””>. Which level of utility is affordable?Answer.strayer.edu/courses/1/ECO301001VA016-1152-001/ppg/respondus/exam_Week_2_Quiz/img4d33891790.jpg” alt=””>916255 points Question 19 The point of tangency between a consumer’s budget constraint and his or her indifference curve representsAnswerComplete satisfaction for the consumer.The equivalence of prices the consumer pays.Constrained utility maximization for the consumer.The least he or she can spend.5 points Question 20 Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25. Suppose a student’s beverage budget is $20 per week. Suppose the student simply prefers more caffeine to less and that the tea sold has the same amount of caffeine as the coffee. The student will buyAnswerAll tea.All coffee.A mix of coffee and tea.There is insufficient information to know.