Quiz 1

A  unknown due to insufficient information.

B  increasing by 11%

C  increasing by 20%

D  increase by 5%

E  increasing by 15%

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

B  markets are used to allocate resources in market systems

C  prices are used to allocate goods in markets

D  markets can vary in geographical size

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

A  it’s a non-linear equation.

B  it shows that its slope is equal to 8.

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

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

E  it shows 8 is intercept for the linear equation

A  y is an independent variable

B  b=change of y over change of x.

C  y is the intercept for the linear slope

D  b is an independent variable

E  m=change of y over change of x.

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

B  study the market changes

C  study recession and boom

D  study money

E  study supply and demand

A  determining the best level of immigration into the country 

B  determining the ideal level of immigration to the country 

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

D  determining whether the government should reduce poverty 

E  determining whether too many luxury goods are being produced 

A  rising in resource (input) prices 

B  increase in demand

C  increasing in market price 

D  increasing in monetary cost

E  increasing opportunity cost

A  an increase in total production in the United States

B  an increase in the price of the Ford Focus GT

C  a drop in inflation

D  a general rise in national interest rates

E  a drop in the nation’s unemployment rate

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

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

C  costs of production are sky rocketing 

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

A  tradition 

B  government decree 

C  economic planning

D  prices 

E  voter consensus 

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

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

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

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 population of college students 

B  a decrease in the price of new college textbooks 

C  an increase in the price of used college textbooks 

D  a decrease in the wealth of college students 

A  the problem of scarcity has been solved in that market 

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

C  the current price exceeds the equilibrium price 

D  the market will not be able to approach equilibrium 

A  determining whether the government should reduce poverty 

B  determining whether too many luxury goods are being produced 

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

D  determining the best level of immigration into the country 

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  quantity supplied equals quantity demanded 

B  price and quantity supplied are directly related 

C  price and quantity supplied are inversely related 

D  supply follows demand 

A  decrease in the quantity demanded of cranberry juice 

B  increase in the quantity demanded of orange juice 

C  increase in the demand for orange juice 

D  increase in the demand for cranberry juice 

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  increase in demand 

B  increase in quantity supplied 

C  increase in quantity demanded 

D  increase in supply 

A  irrelevant to economic theory 

B  what is sacrificed to pursue that action 

C  what we gain in the process of consumption 

D  limited to the out-of-pocket cost incurred