Quiz 2

A  20 guns

B  1/50 of a tank

C  50 guns

D  1/50 of a gun

A  an incorrect positive statement

B  empirically verifiable by checking economic data

C  a normative statement

D  a positive statement

E  an indisputable statistical fact

A  suggests that most goods are normal goods

B  does not apply to goods traded in competitive markets

C  suggests that consumers become less fashionable for those goods.

D  shows that the quantity demanded is inversely related to price

E  suggests that those goods are inferior goods

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

B  both the demand and supply curve typically slope upward

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

D  both the demand and supply curves typically slope downward

A  macroeconomic observation

B  a financial statement

C  a political statement

D  a normative statement

E  a positive statement

A  demand for good X will decrease

B  demand for good X will increase

C  market price for good X will decrease

D  market price for good X will rise

A  they both usually slope upward

B  they both usually slope downward

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

D  they both show a relationship between quantity and price

A  shortages.

B  a new market equilibrium.

C  a greater number of exchanges.

D  surpluses.

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

B  an increase in buyers’ incomes

C  an increase in the U.S. population

D  increased prices of other Ford models

E  a decrease in the price of steel

A  the law of demand applies to most markets

B  the demand curve usually slopes downward

C  the supply curve usually slopes upward

D  technical inefficiency would not exist in the long run

A  price and quantity will rise

B  price will fall and quantity will rise

C  quantity will fall, but price may rise or fall

D  price will rise and quantity will fall

E  price and quantity will fall

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

B  costs of production are sky rocketing

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

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

A  the government allocates resources while prices allocate goods and services

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

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

D  prices determine both what firms produce and what consumers buy

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

A  increase in demand, with supply constant

B  increase in supply, with demand constant

C  rise in supply and demand together

D  decrease in demand, with supply constant

E  decrease in supply and demand together

A  determining whether the government should reduce poverty

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 too many luxury goods are being produced

A  increase in quantity demanded

B  rise in resource input prices

C  decrease in the number of firms in the market

D  increase in price

A  economic history.

B  economic growth and GDP

C  how firms maximize profit.

D  economy-wide phenomena.

E  individual decision-makers.

A  supply and demand.

B  economic growth.

C  recession and unemployment

D  tradeoffs.

E  opportunity cost.

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

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

C  Both a and b are correct.

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

E  All of the above are correct.