Quiz 2

A  1/50 of a gun

B  20 guns

C  1/50 of a tank

D  50 guns

A  empirically verifiable by checking economic data

B  a normative statement

C  an indisputable statistical fact

D  an incorrect positive statement

E  a positive statement

A  suggests that those goods are inferior goods

B  shows that the quantity demanded is inversely related to price

C  suggests that most goods are normal goods

D  does not apply to goods traded in competitive markets

E  suggests that consumers become less fashionable for those goods.

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

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

C  both the demand and supply curves typically slope downward

D  both the demand and supply curve typically slope upward

A  macroeconomic observation

B  a financial statement

C  a positive statement

D  a normative statement

E  a political statement

A  market price for good X will decrease

B  demand for good X will increase

C  demand for good X will decrease

D  market price for good X will rise

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

B  they both usually slope upward

C  they both usually slope downward

D  they both show a relationship between quantity and price

A  a greater number of exchanges.

B  a new market equilibrium.

C  surpluses.

D  shortages.

A  a decrease in the price of steel

B  increased prices of other Ford models

C  an increase in the U.S. population

D  increase in price of similar model produced by Chevy and Dodge

E  an increase in buyers’ incomes

A  the law of demand applies to most markets

B  the supply curve usually slopes upward

C  the demand curve usually slopes downward

D  technical inefficiency would not exist in the long run

A  price and quantity will rise

B  price will rise and quantity will fall

C  price and quantity will fall

D  quantity will fall, but price may rise or fall

E  price will fall and quantity will rise

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

B  costs of production are sky rocketing

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

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

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

B  prices determine both what firms produce and what consumers buy

C  the government allocates resources while prices allocate goods and services

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

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

A  increase in supply, with demand constant

B  decrease in supply and demand together

C  rise in supply and demand together

D  decrease in demand, with supply constant

E  increase in demand, with supply constant

A  determining whether too many luxury goods are being produced

B  determining the best level of immigration into the country

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

D  determining whether the government should reduce poverty

A  decrease in the number of firms in the market

B  increase in quantity demanded

C  rise in resource input prices

D  increase in price

A  economic history.

B  economy-wide phenomena.

C  individual decision-makers.

D  economic growth and GDP

E  how firms maximize profit.

A  recession and unemployment

B  opportunity cost.

C  supply and demand.

D  tradeoffs.

E  economic growth.

A  only if the family is not in economic competition with other families.

B  Both a and b are correct.

C  by allowing the family to buy a greater variety of goods and services at a lower cost.

D  by allowing each person to specialize in the activities he or she does best.

E  All of the above are correct.