1/23/2015
Take Test: Assignment 1 Quiz
Take Test: Assignment 1 Quiz
Description
After reading through the Assignment 1 Instructions, take this quiz.
Instructions
Answer each of the questions below.
Multiple Attempts This test allows 2 attempts. This is attempt number 1.
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QUESTION 1
3 points
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3 points
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3 points
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According to the article I, Pencil, how many people on earth know how to make a pencil?
0 people.
1 person.
2 people.
Countless people.
QUESTION 2
According to the article I, Pencil, is there a human mastermind behind the production of pencils?
Yes
No
QUESTION 3
Which of these best describes what Adam Smith meant by the "Invisible Hand"?
In order to achieve the best allocation of resources, many people must be employed to monitor and direct production and consumption around the world.
A modified Providence‑class carrier/destroyer which served as one of General Grievous's flagships during the Clone Wars.
Left to their own devices, people will not try to better their circumstances.
The best allocation of resources in society will be achieved if everyone does what they think is best.
QUESTION 4
4 points
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4 points
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In the market for widgets, demand is represented by the following equation:
If you observe that 100 units are sold, what would you expect the price to be?
QUESTION 5
In the market for widgets, supply is represented by the following equation:
If you observe that 100 units are sold, what would you expect the price to be?
QUESTION 6
3 points
Saved
Why are you certain that the equilibrium quantity in the market for widgets is not 100 units?
I believe the equilibrium quantity is 100 units.
Widgets are not real.
The equations for supply and demand yield different prices at 100 units. This is not possible in equilibrium.
People cannot possibly consume 100 widgets.
QUESTION 7
4 points
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1/23/2015
Take Test: Assignment 1 Quiz
In the market for widgets, demand is given by:
And supply is given by:
What is the equilibrium price?
QUESTION 8
4 points
Save Answer
3 points
Save Answer
3 points
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3 points
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In the market for widgets, demand is given by:
And supply is given by:
What is the equilibrium quantity?
Note: Do not adjust your answer to thousands. For example, if you get 200 as your answer, enter in "200" and not "200,000".
QUESTION 9
In the market for widgets, demand is given by:
And supply is given by:
When the market is at equilibrium what is consumer surplus?
QUESTION 10
In the market for widgets, demand is given by:
And supply is given by:
When the market is at equilibrium what is producer surplus?
QUESTION 11
The supply curve given by
exhibits an odd property. It says that supplier will be willing to make 20 widgets even if the market price were zero
dollars. Even more, if they were only making 10 widgets, they'd be willing to pay consumers $10 to take them. Which of the following could explain why
producers would be willing to put in costly time, effort, and resources even when the reward is nothing at all?
There are too many producers in the market.
The producers are being charitable.
Technology has driven the costs of production into the negative values.
An outside entity (e.g. the goverment) is subsidizing or paying producers $20 per widget but still letting them sell the widgets on the open market.
QUESTION 12
3 points
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Using the supply and demand framework in the market for gasoline, which of the following charts below describes the effects of a discovery of more oil, which is used as an
input for gasoline.
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Take Test: Assignment 1 Quiz
QUESTION 13
3 points
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Using the supply and demand framework in the market for wheat, which of the following charts below describes the effects of a storm which destroys a significant number of
wheat crops?
QUESTION 14
3 points
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Using the supply and demand framework in the market for Pepsi, which of the following charts below describes the effects of an increase in the price of Coca‑Cola?
QUESTION 15
4 points
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Every movie I see in theaters costs me $7.25. That is to say, the marginal cost of seeing a movie in theaters is $7.25. I have done extensive calculations and found
that the marginal benefit I recieve from each movie in a given year is defined by this equation:
For example, the marginal benefit of seeing 10 movies in theaters is 23 ‑ (10/4) = $20.50.
Given this information, how many movies should I see in theaters this year?
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