Quiz 2

A  1/50 of a gun

B  50 guns

C  1/50 of a tank

D  20 guns

A  an indisputable statistical fact

B  empirically verifiable by checking economic data

C  a normative statement

D  a positive statement

E  an incorrect positive statement

A  suggests that those goods are inferior goods

B  suggests that consumers become less fashionable for those goods.

C  suggests that most goods are normal goods

D  shows that the quantity demanded is inversely related to price

E  does not apply to goods traded in competitive markets

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 downward; the supply curve typically slopes upward

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

A  a normative statement

B  macroeconomic observation

C  a positive statement

D  a financial statement

E  a political 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 show a relationship between quantity and price

B  they both usually slope downward

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

D  they both usually slope upward

A  surpluses.

B  shortages.

C  a new market equilibrium.

D  a greater number of exchanges.

A  an increase in buyers’ incomes

B  an increase in the U.S. population

C  a decrease in the price of steel

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

E  increased prices of other Ford models

A  the demand curve usually slopes downward

B  the supply curve usually slopes upward

C  technical inefficiency would not exist in the long run

D  the law of demand applies to most markets

A  price and quantity will fall

B  price and quantity will rise

C  quantity will fall, but price may rise or fall

D  price will rise and quantity will fall

E  price will fall and quantity will rise

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

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

C  costs of production are sky rocketing

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

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

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

E  the government allocates resources while prices allocate goods and services

A  rise in supply and demand together

B  decrease in supply and demand together

C  increase in supply, with demand constant

D  decrease in demand, with supply constant

E  increase in demand, with supply constant

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

B  determining whether too many luxury goods are being produced

C  determining whether the government should reduce poverty

D  determining the best level of immigration into the country

A  decrease in the number of firms in the market

B  rise in resource input prices

C  increase in quantity demanded

D  increase in price

A  individual decision-makers.

B  economic growth and GDP

C  economy-wide phenomena.

D  economic history.

E  how firms maximize profit.

A  tradeoffs.

B  economic growth.

C  opportunity cost.

D  supply and demand.

E  recession and unemployment

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

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

C  Both a and b are correct.

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

E  All of the above are correct.