Econ: Supply and Demand and Fewer Electric Guitars

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ECON 5103 Sample Mid Session | 1. To say that a country possesses an absolute advantage means that: | A. | it is relatively more endowed with natural resources than another country. | B. | it is relatively more efficient at producing some but not all goods and services than another country. | C. | it is relatively more efficient at producing goods and services than another country. | D. | there are no gains to specialisation for this country. | | | | | | | 2. | Use the table to answer the question. Employee | Electric guitars per hour | Acoustic guitars per hour | Mark | 10 | 1 | Glenn | 8 | 8 | Dennis | 2 | 20 | | | | The opportunity cost of an extra acoustic guitar for Mark is:…show more content…
| A. | excess supply, 8 | B. | excess supply, 16 | C. | equilibrium quantity, 16 | D. | excess demand, 8 | | | | | | 13. In order to support the sugar cane producers, the government fixed a price above the market equilibrium price. This policy: | A. | will not change the quantity traded. | B. | will reduce efficiency in the sugar cane market. | C. | is an example of a price ceiling. | D. | will benefit the sugar cane consumers. | | | | 14. Consider the following graph: The total economic surplus when the market is unregulated is represented by the points: | A. | ACB. | B. | AEJ. | C. | DGF. | D. | ACD. | | | 15. | Consider the following graph: After the price ceiling is imposed, producer surplus ___________ and is represented by the points ___________. | A. | increases; DBC | B. | decreases; DGF | C. | increases; 0GFQ2 | D. | decreases; 0DFQ2 | | | 16. | In an open economy, how many TVs will this country import? | A. | 30 000 | B. | 60 000 | C. | 90 000 | D. | 120 000 | | | 17. | After the imposition of the quota, the numbers of TVs imported will drop by________ thousand units. | A. | 20 | B. | 40 | C. | 80 | D. | 100 | | | | | 18. | Consider the following diagram: A monopoly

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