Quiz 1

A  unknown due to insufficient information.

B  increasing by 20%

C  increasing by 15%

D  increase by 5%

E  increasing by 11%

A  supply and demand explains how prices are set in competitive markets

B  prices are used to allocate goods in markets

C  markets are used to allocate resources in centrally-planned socialist economic systems

D  markets can vary in geographical size

E  markets are used to allocate resources in market systems

A  it shows 8 is intercept for the linear equation

B  it shows that its slope is equal to 8.

C  it suggests that x depending on the changes of y.

D  it suggests that it’s a time-series analysis

E  it’s a non-linear equation.

A  y is an independent variable

B  b is an independent variable

C  m=change of y over change of x.

D  y is the intercept for the linear slope

E  b=change of y over change of x.

A  study recession and boom

B  study money

C  study supply and demand

D  study the market changes

E  study how to efficiently allocate scare resources to maximize societal goals.

A  determining whether the government should reduce poverty 

B  determining the impact of government spending on the actual level of total employment 

C  determining whether too many luxury goods are being produced 

D  determining the best level of immigration into the country 

E  determining the ideal level of immigration to the country 

A  increase in demand

B  increasing in market price 

C  increasing in monetary cost

D  increasing opportunity cost

E  rising in resource (input) prices 

A  a drop in the nation’s unemployment rate

B  an increase in the price of the Ford Focus GT

C  a general rise in national interest rates

D  an increase in total production in the United States

E  a drop in inflation

A  to produce more of one thing, we must produce less of something else

B  to produce more of one thing, we must produce more of everything 

C  costs of production are sky rocketing 

D  when an individual obtains more of a good, he may not be fully satisfied 

A  government decree 

B  prices 

C  economic planning

D  voter consensus 

E  tradition 

A  the government, producers, and consumers work together and allocate resources while prices allocate goods and services 

B  prices determine what consumers buy while the government determines what firms produce 

C  prices determine what firms produce while the government determines what consumers buy 

D  the government allocates resources while prices allocate goods and services 

E  prices determine both what firms produce and what consumers buy 

A  a decrease in the price of new college textbooks 

B  a decrease in the wealth of college students 

C  an increase in the price of used college textbooks 

D  a decrease in the population of college students 

A  the current price exceeds the equilibrium price 

B  the entire supply curve must shift to the left in order to attain equilibrium 

C  the market will not be able to approach equilibrium 

D  the problem of scarcity has been solved in that market 

A  determining whether too many luxury goods are being produced 

B  determining the best level of immigration into the country 

C  determining whether the government should reduce poverty 

D  determining the impact of government spending on the actual level of total employment 

A  both the demand and supply curve typically slope upward 

B  both the demand and supply curves typically slope downward 

C  the demand curve typically slopes upward; the supply curve typically slopes downward 

D  the demand curve typically slopes downward; the supply curve typically slopes upward

A  quantity supplied equals quantity demanded 

B  supply follows demand 

C  price and quantity supplied are directly related 

D  price and quantity supplied are inversely related 

A  decrease in the quantity demanded of cranberry juice 

B  increase in the demand for cranberry juice 

C  increase in the demand for orange juice 

D  increase in the quantity demanded of orange juice 

A  they both show a relationship between quantity and price 

B  they both usually slope upward 

C  neither of them is influenced by the size of the population 

D  they both usually slope downward 

A  increase in demand 

B  increase in supply 

C  increase in quantity demanded 

D  increase in quantity supplied 

A  what is sacrificed to pursue that action 

B  limited to the out-of-pocket cost incurred 

C  irrelevant to economic theory 

D  what we gain in the process of consumption