Microeconomics Questions. Please help me find answers!?

[denys]

1) The production possibilities frontier model shows that
A) if consumers decide to buy more of a product its price will increase.
B) a market economy is more efficient in producing goods and services than is a centrally planned economy.
C) economic growth can only be achieved by free market economies.
D) if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of
another good.
2) The points inside the production possibilities frontier are _________________.
I. unattainable
II. efficient
III. such that in order to produce more of one good, the production of the other good should be sacrificed.
IV. are possible to produce with the available resources.
A) only I B) II and IV C) III and IV D) only IV
3) If the production possibilities frontier is ________, then opportunity costs are constant as more of one good
is produced.
A) bowed out B) bowed in C) non-linear D) linear
4) An inward shift of a nation's production possibilities frontier can occur due to
A) a reduction in unemployment. C) a change in the amounts of one good desired.
B) a natural disaster like a hurricane or bad earthquake. D) an increase in the labor force.
5) Absolute advantage means the ability to produce a good or service
A) by using less amount of resources. C) of a higher quality than any other producer.
B) at a lower opportunity cost than any other producer. D) at a higher profit than any other producer.
6) An increase in the demand for gas in U.S. due to changes in consumer tastes, accompanied by a decrease in the
supply of gas as a result of bad weather in U.S. reducing the number of oil refineries, will result in
A) a decrease in the equilibrium quantity of gas and a decrease in the equilibrium price.
B) an increase in the equilibrium price of gas and no change in the equilibrium quantity.
C) an increase in the equilibrium price of gas; the equilibrium quantity may increase or decrease.
D) a decrease in the equilibrium quantity of gas; the equilibrium price may increase or decrease.
7) An increase in the demand for gas in U.S. due to changes in consumer tastes, accompanied by an increase in the
supply of gas as a result of a new trade agreement between OECD countries (the main suppliers of gas) and U.S.,
will result in
A) a decrease in the equilibrium quantity of gas and no change in the equilibrium price.
B) an increase in the equilibrium price of gas and no change in the equilibrium quantity.
C) an increase in the equilibrium price of gas; the equilibrium quantity may increase or decrease.
D) an increase in the equilibrium quantity of gas; the equilibrium price may increase or decrease.
8) A small decrease in the demand for gas in U.S. due to changes in consumer tastes, accompanied by a relatively
big increase in the supply of gas (compared to the decrease in demand) as a result of a new trade agreement
between OECD countries and U.S., will result in
A) an increase in the equilibrium quantity of gas and a decrease in the equilibrium price.
B) an increase in the equilibrium price of gas and no change in the equilibrium quantity.
C) an increase in the equilibrium price of gas; the equilibrium quantity may increase or decrease.
D) a decrease in the equilibrium quantity of gas; the equilibrium price may increase or decrease.
9) "Because margarine and butter are substitutes, an increase in the price of butter will cause the demand for
margarine to increase. This initial shift in demand for margarine results in a higher price for margarine; this higher
price will cause the demand curve for margarine to shift to the right." Which of the following correctly comments
on this statement?
A) The statement will be true if consumer tastes for margarine and butter do not change.
B) The statement is false because a change in margarine’s price would not change the demand for margarine.
C) The statement is false because butter is an inferior good; margarine is a normal good.
D) The statement is false because an increase in the price of butter will cause the demand for margarine to decrease.
10) Which of the followings would cause an increase in both the equilibrium price and quantity of bread?
A) an increase in demand and a decrease in supply
B) a decrease in supply
C) an increase in demand and a decrease in supply greater than the increase in demand
D) an increase in supply and an increase in demand greater than the increase in supply
11) The income effect of a price change refers to the impact of a change in
A) income on the price of a good.
B) demand when income changes.
C) the quantity demanded when income changes.
D) the price of a good on a consumer's purchasing power.

[orlondo100]

1. D) if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.
2. D) only IV
3. B) bowed in
4. B) a natural disaster like a hurricane or bad earthquake
5. A) by using less amount of resources.
6. C) an increase in the equilibrium price of gas; the equilibrium quantity may increase or decrease.
7. D) an increase in the equilibrium quantity of gas; the equilibrium price may increase or decrease.
8. A) an increase in the equilibrium quantity of gas and a decrease in the equilibrium price
9.
10. D) an increase in supply and an increase in demand greater than the increase in supply
11. D) the price of a good on a consumer's purchasing power.