Firm Level Economics Consumer and Producer Behavior Exams
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Course
PIA 2185 (PIA2185)
Institution
University Of Pittsburgh
Lesson 1-1 Practice Quiz
1. Which of the following best describes the concept of opportunity cost?
2. True or false? While calculating the opportunity cost of utilizing land for production of bread, we must calculate the opportunity cost of forgoing the use of the land for production of butter....
firm level economics consumer and producer behavior exams
which of the following best describes the concept of opportunity cost
true or false while calculating the opportunity cost of utilizing land
Written for
University Of Pittsburgh
PIA 2185 (PIA2185)
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Lesson 1-1 Practice Quiz
1. Which of the following best describes the concept of opportunity cost?
• None of the other options are correct.
• Money spent buying a shovel to start a ditch digging business
• Money spent on purchasing books instead of purchasing DVDs
• Cost of employing labor for construction
• Cost of wheat for producing bread
2. True or false? While calculating the opportunity cost of utilizing land for production of bread, we must calculate
the opportunity cost of forgoing the use of the land for production of butter.
• True
• False
Lesson 1-2 Practice Quiz
1. There is a market for bread; wheat flour is an ingredient for making bread. Now, the price of wheat flour rises. This
will cause the demand curve for bread to shift to the left.
• True
• False
• Cannot be determined
2. There is a market for bread; wheat flour is an ingredient for making bread. Now, the price of wheat flour rises.
The supply curve for bread shifts to the left.
• True
• False
• Cannot be determined
3. There is a market for bread; wheat flour is an ingredient for making bread. Now, the price of wheat flour rises. Which
of the following changes in equilibrium price and quantity of bread is seen?
1.A consumer buys either burgers or hot dogs and does not prefer one over the other. Given a market for burgers,
an increase in the price of hot dogs will cause the demand curve for burgers shifts to the left.
• True
• False
• Cannot be determined
2. Consider the market for oil. Suppose a war breaks out in a country that is a large supplier of oil, and the war
shuts down production of all oil in this country. Which of the following can we anticipate will occur?
• There will be an increase in the demand for oil.
• There will be a decrease in the demand for oil.
• There will be an increase in the supply of oil.
• There will be a decrease in the supply of oil.
• We cannot be certain if any of the other options are correct.
3. Universities frequently decide to set the price of attending sporting events to zero for their students. This is an
example of reducing scarcity for these activities.
• True
• False
4. Imagine there is an innovation that allows milk cows to double their daily production of fluid milk. When we
consider the market for milk, which of the following can we anticipate?
• The supply curve for milk will shift to the left on a graph with price on the vertical axis and quantity on
the horizontal axis AND the demand for milk will increase.
• The supply curve for milk will shift to the left on a graph with price on the vertical axis and quantity on
the horizontal axis.
• There will be a shift to the right in the supply curve AND the demand for milk will increase.
• There will be a shift to the right in the supply curve.
• The demand for milk will increase.
5.A consumer buys either burgers or hot dogs and does not prefer one over the other. Given a market for burgers,
an increase in the price of hot dogs will cause the supply curve for burgers to shift to the right.
• True
• False
• Cannot be determined
6.A consumer buys either burgers or hot dogs and does not prefer one over the other. Given a market for burgers, an
increase in the price of hot dogs will cause which of the following changes in equilibrium price and quantity of
burgers?
• Price decreases, quantity increases
• Cannot be determined
• Price increases, quantity increases
• Price decreases, quantity decreases
• Price increases, quantity remains the same
• Price remains the same, quantity decreases
• Price increases, quantity decreases
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