Econ w my ********* teacher

Which of the following statements is FALSE? (a)An increase in demand shifts the demand curve to the left, closer to the price axis. (b) When only the price of a good changes, there is movement along the demand curve but no change in demand. (c) A change in demand is graphically shown by shifting the entire demand curve. (d) When demand decreases, there is a drop in the quantity demanded at each price

(a)An increase in demand shifts the demand curve to the left, closer to the price axis.

What is true of incentives? (a)Each of us is motivated by different incentives, and they can change over time. (b) Money is the only effective incentive. (c) All of the people in any particular nation are motivated by the same incentives. (d) An individuals incentives do not change over time.

(a)Each of us is motivated by different incentives, and they can change over time.

Productive efficiency is achieved when (a)a firm's output is produced using the fewest possible inputs. (b) Consumers' needs are satisfied. (c) Economic growth is maximized. (d) Reductions in the supply of resources can't be achieved.

(a)a firm's output is produced using the fewest possible inputs.

If demand increases while supply decreases, then prices (a)always increase. (b) always decrease. (c) may increase, decrease, or stay the same. (d) never change.

(a)always increase.

Suppose a change takes place and the new equilibrium is at point A in the above figure. This change could have been caused by (a)an increase in the per-unit tax on CDs. (b) a decrease in the income of consumers. (c) a reduction in the wages paid to workers in the CD industry. (d) a reduction in the price of CD players.

(a)an increase in the per-unit tax on CDs.

One of the most important characteristics of the price system is that (a)consumers are the ones who ultimately decide what is produced. (b) politicians are the ones who ultimately decide what is produced. (c) competition among sellers is reduced. (d) all exchanges are regulated by the government.

(a)consumers are the ones who ultimately decide what is produced

When consumer tastes for a product change (a) the supply curve shifts. (b)the demand curve shifts. (c) both the supply and demand curves shift. (d) the market price changes but the supply and demand curves do not.

(b)the demand curve shifts.

When a market has reached its equilibrium point: (a) the demand curve is stable. (b)the quantity of the goods demanded at the market price is equal to the quantity producers are willing to supply at that price. (c) the quantity of goods demanded is equal to the quantity of goods producers can make. (d) prices are fixed.

(b)the quantity of the goods demanded at the market price is equal to the quantity producers are willing to supply at that price.

Productive efficiency is the necessary result of (a) economic profits. (b) cost advantage. (c) competition. (d) comparative advantage.

(c) competition

If Apple's iTunes Music Store increases its "fee" for its music services, the law of demand predicts (a) downloads would increase. (b) there would be no change in demand. (c)downloads would decrease. (d) supply would change but demand would not.

(c)downloads would decrease.

If goods X and Y are substitute goods, then an increase in the price of Y, other things constant, (a) results in a decrease in the amounts of both X and Y consumed. (b) decreases the quantity demanded of Y, but has no effect on the amount of X consumed. (c)results in a decrease in the quantity of Y consumed, but the amount of X consumed increases. (d) has no real effect on the quantity demanded of good Y, but increases the demand for X.

(c)results in a decrease in the quantity of Y consumed, but the amount of X consumed increases.

Education and training of workers would best be categorized as (a) Land. (b) Labor. (c) Physicalcapital. (d)Human Capital.

(d)Human Capital.

Which of the following statements is FALSE? (a) The rationing function of prices is not allowed to freely operate when the government imposes price controls. (b) Price controls may take the form of price ceilings or price floors. (c) Price ceilings below the equilibrium price can cause black markets to develop. (d)Rent controls are examples of price floors.

(d)Rent controls are examples of price floors.

The establishment of strong property rights will (a) reduce employment. (b) reduce the power of monopoly. (c) increase the power of monopoly. (d)promote economic activity

(d)promote economic activity

If a price floor is set below the current market clearing price, then (a) a surplus must immediately occur. (b) a shortage must immediately occur. (c) there will be incentives for black markets to develop. (d)quantity demanded will remain equal to quantity supplied at the current market clearing price.

(d)quantity demanded will remain equal to quantity supplied at the current market clearing price.

Allocative efficiency is achieved when (a) the total amount of resources employed is maximized. (b) resources are fully employed. (c) theresourcesunderconsiderationarecompetitivelypriced. (d)resources are shifted to produce the goods consumers desire.

(d)resources are shifted to produce the goods consumers desire.

If the government imposes a per-unit tax on sales of an industry's product, then we would expect: (a) the supply curve in that industry would shift to the left. (b) the supply curve in that industry would shift to the right. (c) the demand curve for that industry would shift to the right. (d)the demand curve for that industry would shift to the left.

(d)the demand curve for that industry would shift to the left

Suppose the price of cheese rises. In the market for pizza, one would expect that (a) the supply of pizza would increase and the price would fall. (b) the demand for pizza would increase and the price would increase. (c) the demand for pizza would decrease and price would fall. (d)the supply of pizza would decrease and price would rise.

(d)the supply of pizza would decrease and price would rise.