Micro Economics Quiz One
Micro Economics Quiz One
Micro Economics Quiz One
NAME:_____________________________________________________________
Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question.
Table 1
Labor hours needed to make one
unit of Amount produced in 40 hours
Cheese Bread Cheese Bread
England 1 2 40 20
Spain 2 8 20 5
____ 2. Refer to Table 1. England and Spain could benefit by England specializing in:
____ 3. Suppose that a worker in Boatland can produce either 5 units of wheat or 25 units of fish per year, and a
worker in Farmland can produce either 25 units of wheat or 5 units of fish per year. There are 10 workers in
each country. No trade occurs between the two countries. Boatland produces and consumes 25 units of wheat
and 125 units of fish per year while Farmland produces and consumes 125 units of wheat and 25 units of fish
per year. If trade were to occur, Boatland would trade 100 units of fish to Farmland in exchange for 100 units
of wheat. If Boatland no longer grew any of its own wheat, how many units of fish could it now consume
along with the 100 units of imported wheat?
a. 25 units
b. 75 units
c. 150 units
d. 250 units
a. the former is a shift of the curve and the latter is a movement along the curve.
b. the former is a movement along the curve and the latter is a shift of the curve.
c. Both are shifts of the supply curve.
d. Both are movements along the curve.
____ 5. Mark is a computer company executive, and earns $200 per hour managing the company and promoting its
products. His daughter Regan is a high school student, and earns $6 per hour helping her grandmother on the
farm. Mark's computer is broken. He can repair it himself in one hour. Regan can repair it in 10 hours. Mark
has a comparative advantage repairing the computer.
7.
a. What is the difference between a "change in supply" and a "change in quantity supplied"?
Graph your answer.
Price Price
Quantity Quantity
b. For each of the following changes, determine whether there will be a change in quantity
supplied or a change in supply.