Quiz 2

A  50 guns

B  20 guns

C  1/50 of a tank

D  1/50 of a gun

A  empirically verifiable by checking economic data

B  a positive statement

C  an incorrect positive statement

D  a normative statement

E  an indisputable statistical fact

A  shows that the quantity demanded is inversely related to price

B  does not apply to goods traded in competitive markets

C  suggests that most goods are normal goods

D  suggests that consumers become less fashionable for those goods.

E  suggests that those goods are inferior goods

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

B  both the demand and supply curves typically slope downward

C  both the demand and supply curve typically slope upward

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

A  a positive statement

B  macroeconomic observation

C  a normative statement

D  a political statement

E  a financial statement

A  demand for good X will increase

B  market price for good X will decrease

C  market price for good X will rise

D  demand for good X will decrease

A  they both usually slope upward

B  they both show a relationship between quantity and price

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

D  they both usually slope downward

A  a greater number of exchanges.

B  shortages.

C  a new market equilibrium.

D  surpluses.

A  an increase in buyers’ incomes

B  a decrease in the price of steel

C  an increase in the U.S. population

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

E  increased prices of other Ford models

A  technical inefficiency would not exist in the long run

B  the demand curve usually slopes downward

C  the law of demand applies to most markets

D  the supply curve usually slopes upward

A  price and quantity will fall

B  price will rise and quantity will fall

C  quantity will fall, but price may rise or fall

D  price will fall and quantity will rise

E  price and quantity will rise

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

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

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

D  costs of production are sky rocketing

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

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

C  prices determine both what firms produce and what consumers buy

D  the government allocates 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 demand, with supply constant

C  decrease in supply and demand together

D  rise in supply and demand together

E  increase in demand, with supply constant

A  determining the best level of immigration into the country

B  determining whether the government should reduce poverty

C  determining whether too many luxury goods are being produced

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

A  increase in quantity demanded

B  increase in price

C  decrease in the number of firms in the market

D  rise in resource input prices

A  economic history.

B  individual decision-makers.

C  how firms maximize profit.

D  economy-wide phenomena.

E  economic growth and GDP

A  supply and demand.

B  tradeoffs.

C  economic growth.

D  opportunity cost.

E  recession and unemployment

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

B  Both a and b are correct.

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

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

E  All of the above are correct.