2. Another active learning strategy brought to the heaps cool economics students at wellington college by the douceinator

4. Instructions 1.stand behind your desk 2.challenges will be shown on the screen 3.answer by following instructions 4.if your answer is incorrect sit down 5.challenges are repeated until there is only one student remaining 6.the last person remaining standing is the class survivor

5. Lets Start

6. The production possibility curve/frontier shows the maximum output combination of two goods that can be produced with existing resources and technology HAND UPHAND DOWN correct incorrect

7. if your hand is down YOU HAVE BEEN VOTED OFF sit down

8. the slope of the PPC shows opportunity cost HAND UPHAND DOWN truefalse

9. if your hand is down YOU HAVE BEEN VOTED OFF sit down

10. the bowed PPC shape is caused by HAND UPHAND DOWN diminishingconstant returns

11. if your hand is down YOU HAVE BEEN VOTED OFF sit down

12. all points on the PPC line are HAND UPHAND DOWN allocative production efficient

13. if your hand is up YOU HAVE BEEN VOTED OFF sit down

14. the production of which type of good will increase a country’s future productive capacity? HAND UPHAND DOWN capital goodsconsumer goods

15. if your hand is down YOU HAVE BEEN VOTED OFF sit down

16. industries which are losing their importance in the economy are known as: HAND UP HAND DOWN sunrise sunset industries

17. if your hand is up YOU HAVE BEEN VOTED OFF sit down

18. diminishing returns can only occur in the HAND UPHAND DOWN long runshort run

19. if your hand is up YOU HAVE BEEN VOTED OFF sit down

20. if a price is set above the market equilibrium, which of the following is created? HAND UP HAND DOWN a shortagea surplus

21. if your hand is up YOU HAVE BEEN VOTED OFF sit down

22. a decrease in demand results in: HAND UPHAND DOWN fall in equilibriumrise in equilibriumprice

23. if your hand is down YOU HAVE BEEN VOTED OFF sit down

24. the triangle area between the demand curve and the price line is called the: HAND UPHAND DOWN producerconsumersurplus

25. if your hand is up YOU HAVE BEEN VOTED OFF sit down

26. The point on the graph where there is neither a shortage or a surplus is called: HAND UP HAND DOWN market allocative equilibrium efficiency

27. both answers are correct TRICKED YAR!! stay standing

28. After the introduction of a sales tax, the consumer surplus gets smaller HAND UP HAND DOWN falsetrue

29. if your hand is up YOU HAVE BEEN VOTED OFF sit down

30. deadweight loss only occurs when the government intervenes in the market HAND UPHAND DOWN truefalse

31. if your hand is down YOU HAVE BEEN VOTED OFF sit down

32. in the midpoint formula for calculating price elasticity of demand, the change in quantity demanded is on the: HAND UPHAND DOWN top linebottom line

33. if your hand is down YOU HAVE BEEN VOTED OFF sit down

34. when the price elasticity of demand coefficient is greater than one, demand is HAND UPHAND DOWN inelasticelastic

35. if your hand is up YOU HAVE BEEN VOTED OFF sit down

36. at high prices, price elasticity of demand tends to be more HAND UPHAND DOWN elasticinelastic

37. if your hand is down YOU HAVE BEEN VOTED OFF sit down

38. perfectly elastic demand is HAND UPHAND DOWN horizontalvertical

39. if your hand is down YOU HAVE BEEN VOTED OFF sit down

40. If a firms Total Revenue falls after they increase the price of their product, the demand for their product is: HAND UPHAND DOWN elasticinelastic

41. if your hand is down YOU HAVE BEEN VOTED OFF sit down

42. The government will raise more revenue is they put a sales tax on goods that are: HAND UPHAND DOWN elasticinelastic

43. if your hand is up YOU HAVE BEEN VOTED OFF sit down

44. The incidence of a sales tax on an inelastic product falls more heavily on the HAND UPHAND DOWN consumerproducer

45. if your hand is down YOU HAVE BEEN VOTED OFF sit down

46. The following are characteristics of what kind of elasticity: addictive, few substitutes, necessities HAND UPHAND DOWN elasticinelastic

47. if your hand is down YOU HAVE BEEN VOTED OFF sit down

48. If the response to a given change in price is a less than proportionate change in quantity demanded, then the products demand is HAND UPHAND DOWN inelasticelastic

49. if your hand is down YOU HAVE BEEN VOTED OFF sit down

50. If the cross elasticity of demand coefficient is negative, then the two goods are HAND UPHAND DOWN complementssubstitutes

51. if your hand is down YOU HAVE BEEN VOTED OFF sit down

52. If two goods are substitutes and the price of one good goes up, the demand for the other good will HAND UPHAND DOWN shift leftshift right

53. if your hand is up YOU HAVE BEEN VOTED OFF sit down

54. Quantity demanded of one product falls and this causes the demand curve for another product to shift left. The cross elasticity of demand coefficient must be HAND UPHAND DOWN negativepositive

55. if your hand is down YOU HAVE BEEN VOTED OFF sit down

56. which of the following are likely to have a negative cross elasticity of demand? HAND UPHAND DOWNvegemite and toastand marmite

57. if your hand is down YOU HAVE BEEN VOTED OFF sit down

58. If the income elasticity of demand coefficient for a good is negative, then the good is an HAND UPHAND DOWN inferior goodnormal good

59. if your hand is down YOU HAVE BEEN VOTED OFF sit down

60. If quantity demanded and income changes are in the same direction, then the good is HAND UP HAND DOWN normalinferior

61. if your hand is down YOU HAVE BEEN VOTED OFF sit down

62. if the income elasticity of demand coefficient for a good is greater than one, then the good is a HAND UPHAND DOWN normal luxurynormal necessity

63. if your hand is down YOU HAVE BEEN VOTED OFF sit down

64. the perfectly inelastic supply curve is HAND UPHAND DOWN verticalhorizontal

65. if your hand is down YOU HAVE BEEN VOTED OFF sit down

66. If the coefficient of price elasticity of supply is less than one, then the supply is HAND UPHAND DOWN elasticinelastic

67. if your hand is up YOU HAVE BEEN VOTED OFF sit down

68. supply in the short run tends to be more HAND UPHAND DOWN inelasticelastic

69. if your hand is up YOU HAVE BEEN VOTED OFF sit down

70. the momentary supply curve (supply on a given day) is HAND UPHAND DOWN verticalhorizontal

71. if your hand is down YOU HAVE BEEN VOTED OFF sit down

72. If the response to a given change in price is a more than proportionate change in quantity supplied, then the supply is HAND UPHAND DOWN elasticinelastic

73. if your hand is down YOU HAVE BEEN VOTED OFF sit down

74. The current dollar value of a wage adjusted for changes in the price level is called HAND UPHAND DOWN real wagenominal wage

75. if your hand is down YOU HAVE BEEN VOTED OFF sit down

76. If the current wage rate is below the equilibrium wage rate then which of the following occurs in the labour market? HAND UPHAND DOWN shortage ofexcess labour labour

77. if your hand is down YOU HAVE BEEN VOTED OFF sit down

78. the current dollar value of a wage adjusted for changes in the price level is called HAND UPHAND DOWN real wagenominal wage

79. if your hand is down YOU HAVE BEEN VOTED OFF sit down

80. If the real wage rate increases, then the amount of voluntary unemployment HAND UPHAND DOWN decreasesincreases

81. if your hand is down YOU HAVE BEEN VOTED OFF sit down

82. A minimum wage causes unemployment to HAND UPHAND DOWN decreaseincrease

83. if your hand is up YOU HAVE BEEN VOTED OFF sit down

84. If NZ goods are exported overseas, then the domestic price HAND UPHAND DOWN fallsrises

85. if your hand is up YOU HAVE BEEN VOTED OFF sit down

86. NZ will import a good if its price is lower than the domestic price HAND UPHAND DOWN falsetrue

87. if your hand is up YOU HAVE BEEN VOTED OFF sit down

88. The world supply curve is horizontal because HAND UP HAND DOWN the world can supplyNZ importers unlimited quantitywant to raise at this pricethe price

89. if your hand is down YOU HAVE BEEN VOTED OFF sit down

90. if demand is elastic, the greater incidence of a sales tax falls on the HAND UPHAND DOWN consumerproducer

91. if your hand is up YOU HAVE BEEN VOTED OFF sit down

92. If a good has inelastic demand, and the government introduces a subsidy, then the greater incidence falls on the HAND UPHAND DOWN consumerproducer

93. if your hand is down YOU HAVE BEEN VOTED OFF sit down

94. A deadweight loss is always created when the government pays subsidies to firms HAND UPHAND DOWN incorrectcorrect

95. if your hand is up YOU HAVE BEEN VOTED OFF sit down

96. THE END

97. Challenge 1 write down the 3 forumulas for determining price elasticity of demand

98. Challenge 2 demonstrate how the PPC shows scarcity choice opportunity cost unemployment diminishing returns

99. Challenge 3 draw a demand and supply curve and label allocative efficiency point shade consumer surplus shade producer surplus

100. Challenge 4 draw a graph that shows a deawweight loss occuring and explain it

101. Challenge 5 draw 3 supply curves and show which is most inelastic more elastic monentary supply

102. Challenge 6 draw the labour market showing no involuntary unemployment

103. Challenge 7 Draw and label the labour market showing no volunatary unemployment

104. Challenge 8 draw and label a supply and demand graph showing the producer incidence and producer incidence of a sales tax for an elastic good

105. Challenge 9 Draw and label a demand and supply curve showing consumer and producer incidence of an inelastic good after a sales tax is imposed

106. Challenge 10 1.Draw and label a supply and demand graph showing a subsidy. 2.Shade the consumer and producer incidence 3.shade the total cost of the subsidy to the government 4.shade the DWL

107. Challenge 11 1.draw a graph showing supply and demand for sheep in NZ at a low price 2.draw a graph showing supply and demand for sheep at a higher price in Canada 3.show what will happen under free trade