Question

83.) Kathy has eaten five cookies. The fifth cookie makes Kathy sick. This means that for Kathy

1. the fifth cookie has little utility
2 the fifth cookie has negative utility
3 the opportunity cost of cookies is high
4 cookies must be inexpensive

82) Which of the following would cause an increase in the market supply of drones?
1 a decrease in the demand for drones
2 an increase in taxes levied on drones
3 an increase in the cost of components used to make drones
4 an increase in the number of firms making drones

79) Which of the following would cause an increase in the supply of planes?
1 a decrease in the demand for planes
2 an increase in the price of planes
3 an increase in taxes applied to plane producers
4 an improvement in the technology used to produce planes

77.) Suppose that the price of wheat is above its equilibrium price in a free market. You would expect to see
1 a shortage on the market that causes prices to increase further
2 an increase in quantity demanded because of the high price
3 a leftward shift of the demand curve because of the high price
4 sellers begin to lower their prices because of the surplus of wheat

Answer 1

1) "B"

The fifth cookie has a negative utility. Because it made Kathy sick and it reduced the total utility Kathy can get from the cookie.

2) "D"

An increase in the number of firms supplying drone will lead to an increase in the supply of drones.

3) "D"

An increase in the technology used to produce the planes. It will shift the supply curve to the right increasing the supply. The fall in the price will only increase the quantity supplied and not the supply itself.

4) "D"

If the price is above the equilibrium there will more supply and less demand. it will cause a surplus and force the price downward.