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Froggy Jumps

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Food and Resources

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Monserrat Garcia

United States

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Froggy Jumps ExtraOnline version Food and Resources by Monserrat Garcia 1 What does PPC stand for in economics? a Production Possibility Chart b Price Possibilities Chart c Production Possibilities Curve 2 What does the Law of Demand state? a As price rises, quantity demanded falls b As price rises, quantity demanded rises c Price and demand are unrelated 3 What is opportunity cost? a The next best alternative foregone b The total monetary price paid c The cost of a product 4 What is arbitrage? a Profiting from price differences across markets b Negotiating trade tariffs c Setting prices in a monopoly 5 Sunk costs should be ignored in future decisions because they are: a Always recoverable b Already incurred and cannot be recovered c Future benefits only 6 Which is a common demand shifter? a All prices rise equally b Increase in income c Decrease in substitute price 7 What is comparative advantage? a Highest production speed b Lowest production cost per unit c Ability to produce at lower opportunity cost 8 What does the Law of Supply state? a Prices become unpredictable b As price rises, quantity supplied increases c Demand drives supply downward 9 In a competitive market, participants are often: a Price takers b Only buyers or sellers c Price setters 10 How can the Production Possibilities Frontier (PPC) expand outward? a Specialization and trade or better inputs b Reducing output c Increasing prices only 11 To engage in economic reasoning, you must compare: total cost and total benefit. a Only costs b True c False 12 The slope of a demand curve is typically: a Negative b Zero c Positive 13 If last year you bought stocks for $10, $15, and $20, and today they’re $15 each, which should you sell to meet a $15 need? a Any one of them b Pepto-Bismol c McDonald’s 14 The marginal decision rule says you quit drinking when marginal benefit < marginal cost. a Always continue b True c False 15 Opportunity cost is the net benefit foregone by not undertaking the next best alternative. a Only monetary cost b False c True 16 If college tuition is higher but enrollment increases, the law of demand is invalid. a Cannot tell b False c True 17 An increase in family incomes would likely increase the demand for beef. a Cannot determine b False c True 18 To derive a market demand curve from individual curves, sum the curves horizontally. a True b Sum vertically c False 19 If an economy has a higher equilibrium price with no change in quantity, this could be due to: a Only tax changes b Shift in supply or demand c Only price controls 20 Elasticity describes how quantity demanded responds to price changes. a Only supply b False c True

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Froggy Jumps

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ExtraOnline version

by Monserrat Garcia

What does PPC stand for in economics?

What does the Law of Demand state?

What is opportunity cost?

What is arbitrage?

Sunk costs should be ignored in future decisions because they are:

Which is a common demand shifter?

What is comparative advantage?

What does the Law of Supply state?

In a competitive market, participants are often:

How can the Production Possibilities Frontier (PPC) expand outward?

To engage in economic reasoning, you must compare: total cost and total benefit.

The slope of a demand curve is typically:

If last year you bought stocks for $10, $15, and $20, and today they’re $15 each, which should you sell to meet a $15 need?

The marginal decision rule says you quit drinking when marginal benefit < marginal cost.

Opportunity cost is the net benefit foregone by not undertaking the next best alternative.

If college tuition is higher but enrollment increases, the law of demand is invalid.

An increase in family incomes would likely increase the demand for beef.

To derive a market demand curve from individual curves, sum the curves horizontally.

If an economy has a higher equilibrium price with no change in quantity, this could be due to:

Elasticity describes how quantity demanded responds to price changes.