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Economics Questions on Yahoo! Answers

The document is a Yahoo Answers post asking for help with several economics questions. Another user provides explanations for each question in the response. For the first question, they explain that an increase in the number of consumers is a factor of demand, not supply, and will shift the demand curve not the supply curve. For the second question, they say excess demand means a shortage and the price will rise. For the third question, they say the candidate's proposal is possible if the economy has unemployed resources. And for the last two questions, they clarify that an increasing opportunity cost is represented by an outward-bowed production possibilities curve, and that suppliers supply more of a good when the price rises because the opportunity cost has decreased, not

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284 views3 pages

Economics Questions on Yahoo! Answers

The document is a Yahoo Answers post asking for help with several economics questions. Another user provides explanations for each question in the response. For the first question, they explain that an increase in the number of consumers is a factor of demand, not supply, and will shift the demand curve not the supply curve. For the second question, they say excess demand means a shortage and the price will rise. For the third question, they say the candidate's proposal is possible if the economy has unemployed resources. And for the last two questions, they clarify that an increasing opportunity cost is represented by an outward-bowed production possibilities curve, and that suppliers supply more of a good when the price rises because the opportunity cost has decreased, not

Uploaded by

carterkdd
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Econ questions! help please!? - Yahoo!

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Econ questions! help please!?


Which of the following is least likely to change the supply of personal computers? A. A environmental regulation that makes it more costly to produce computer chips. B. A technological breakthrough that makes it much less costly to produce personal computers. C. An increase in the number of consumers in the personal computer market. D. A decrease in the wage paid to electrical engineers. I think this is D ... they all somewhat change the supply though.

Given a demand and supply curve, if there is excess demand in a market, we can expect that:

A. prices will rise because some suppliers will find it in their interest to raise prices. B. the demand curve will shift to the right to restore equilibrium. C. the demand curve will shift to the left to restore equilibrium. D. prices will fall because some suppliers will find it in their interest to lower prices I think this is A A promise by a Presidential candidate for more funding for cancer research and police enforcement without sacrifice: A. is possible only in a fully employed economy. B. is impossible in all cases. C. is possible if the economy is producing on its production possibility curve. D. may be possible if the economy has unemployed resources. C? If there were increasing marginal opportunity costs, the production possibility curve would be: A. straight. B. bowed outward. C. bowed inward. D. flat. This one I just forgot ... I know it's B or C though Suppliers will supply more of a good when the price of that good rises because the opportunity cost for producing that good has risen. True ctfdacow False

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11/3/2011 10:42 PM

Econ questions! help please!? - Yahoo! Answers

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False?
1 year ago ( 2010-07-08 [Link] +0000 ) Report Abuse

Best Answer - Chosen by Asker


1. C An increase in the number of consumers is a factor of demand, not supply. This will shift the demand curve to the right, which will intersect the existing supply curve at a different point, but the supply curve will not shift; thus no change in supply. All of the other choices are factors of supply and will shift the supply curve. 2. A You are correct, excess demand will mean a shortage; market forces will cause the price to rise. 3. B or D, depending on how you define "without sacrifice". I would lean towards B. A and C are the same answer. The money spent on these items means that it is not being spent on something else. In that case, the answer would have to be B. But if you define "without sacrifice" to mean that nobody's economic condition will be hurt compared to the current situation, then it may be possible for this candidate to come up with a way to increase productivity enough so that additional government revenue can be generated to cover these costs. Productivity can potentially be increased if the economy is currently operating with unemployed resources. 4. B Increased opportunity costs are represented by a bowed-out PPC. 5. False Suppliers supply more of a good when the price of that good rises, but it is because the opportunity costs have decreased, not increased. Decreased opportunity costs means that other options are less attractive.
1 year ago ( 2010-07-08 [Link] +0000 ) Report Abuse

Asker's Rating: once again you were correct just not in time, thanks! jerry w Search Yahoo! for

Other Answers (1)

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11/3/2011 10:42 PM

Econ questions! help please!? - Yahoo! Answers

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The answers are 1.C, Jerry is right. It won't shift the supply curve. 2.A, excess demand means price is too low. 3.D, it is an obligation of the government during recession to increase spending, and stimulus package. [Link] should be concave and downward to represent increasing opportunity cost. On the contrary, the indifference curves are bowed inward mostly. 5. false,the value of the goods that are forgone is decreasing. Jerry is mostly right.

Source(s):
[Link]\the opportunity cost.
1 year ago ( 2010-07-08 [Link] +0000 ) Report Abuse

Anjaree

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11/3/2011 10:42 PM

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