Economics

If a market begins in equilibrium and then the demand curve shifts leftward, a

If a market begins in equilibrium and then the demand curve shifts leftward, a

If a market begins in equilibrium and then the demand curve shifts leftward, a
A) shortage is created, which is eliminated by a fall in price.
B) shortage is created, which is eliminated by a rise in price.
C) surplus is created, which

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A barter exchange (Multiple Choice Question)

A barter exchange (Multiple Choice Question)

A barter exchange
A) always takes place without greed on behalf of the trading parties.
B) takes place without money.
C) tends to have lower transaction costs compared to exchanges using money.
D) is characterized by all of the ab

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Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supp

Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supp

Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________.
A) rises; increases
B) rises; does not change
C)

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In the United States the system most generally used for assigning tasks and distributing benefits

In the United States the system most generally used for assigning tasks and distributing benefits

In the United States the system most generally used for assigning tasks and distributing benefits
A) employs continuing bids and offers among individuals.
B) operates without the use of money prices.
C) presupposes shifting and uncerta

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In the United States the assignment of tasks and distribution of benefits

In the United States the assignment of tasks and distribution of benefits

In the United States the assignment of tasks and distribution of benefits
A) is determined by business firms.
B) is determined democratically.
C) is negotiated among potential buyers and potential sellers.
D) leaves all parties fr

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When nations attempt to move quickly from central planning to a market system, they face the obstacl

When nations attempt to move quickly from central planning to a market system, they face the obstacl

When nations attempt to move quickly from central planning to a market system, they face the obstacle of high transaction costs in large part because
A) market systems are unnatural and require careful design.
B) people who have lived under

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For each pound of salami that Hungary produces, it gives up the opportunity to make 10 bottles of be

For each pound of salami that Hungary produces, it gives up the opportunity to make 10 bottles of be

For each pound of salami that Hungary produces, it gives up the opportunity to make 10 bottles of beer. Slovakia can produce 1 pound of salami for every 8 bottles of beer it produces. Which of the following is true about the comparative advantage bet

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Effective cooperation among the members of a commercial society is more likely when

Effective cooperation among the members of a commercial society is more likely when

Effective cooperation among the members of a commercial society is more likely when
A) economic decisions are placed in the hands of democratically-elected committees.
B) everyone's income is approximately the same.
C) people prod

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Fact: Churches and charities work hard to acquire more money to advance their projects. They happily

Fact: Churches and charities work hard to acquire more money to advance their projects. They happily

Fact: Churches and charities work hard to acquire more money to advance their projects. They happily accept money because
A) they are clearly selfish and materialistic.
B) the transaction costs of donating money are generally lower than the

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Hurricane victims in the United States are likely to receive emergency relief aid and embark upon re

Hurricane victims in the United States are likely to receive emergency relief aid and embark upon re

Hurricane victims in the United States are likely to receive emergency relief aid and embark upon reconstruction more rapidly than similar victims in India because
A) U.S. victims typically need the resources more than the victims in India.

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Fill in the blanks: Transaction costs are likely to be ________ when property rights are ________ cl

Fill in the blanks: Transaction costs are likely to be ________ when property rights are ________ cl

Fill in the blanks: Transaction costs are likely to be ________ when property rights are ________ clearly defined.
A) lower ; less
B) higher; more
C) lower; more
D) Trick question: there is no causal relationship between transacti

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The market process will likely fail to fully coordinate supply and demand if transaction costs areA)

The market process will likely fail to fully coordinate supply and demand if transaction costs areA)

The market process will likely fail to fully coordinate supply and demand if transaction costs are
A) non-existent.
B) significant.
C) locally perverse.
D) inconsequential.

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Which of the following is the most important advantage of using money rather than relying exclusivel

Which of the following is the most important advantage of using money rather than relying exclusivel

Which of the following is the most important advantage of using money rather than relying exclusively on barter?
A) The use of money encourages people to diversify and learn to do more things for themselves.
B) The use of money encourages p

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Transaction costs are (Multiple Choice Question)

Transaction costs are (Multiple Choice Question)

Transaction costs are
A) all unnecessary and wasteful costs.
B) any nonmonetary costs associated with a transaction.
C) not real costs because they make no positive contribution to economic transactions.
D) the costs of arranging

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If market prices help inform individuals about the relative scarcities of goods and services, then a

If market prices help inform individuals about the relative scarcities of goods and services, then a

If market prices help inform individuals about the relative scarcities of goods and services, then abolishing market prices would
A) finally allow people to overcome scarcity.
B) eliminate important information.
C) abolish the dog-eat-

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Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per po

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per po

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?
A) There is a shortage, so the price falls and quantity demanded increases.
B) There is a surplus, so the price falls

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Socialism seeks to abolish the market-price system. In the economic way of thinking, socialism would

Socialism seeks to abolish the market-price system. In the economic way of thinking, socialism would

Socialism seeks to abolish the market-price system. In the economic way of thinking, socialism would therefore
A) generate tremendous economic growth.
B) overcome scarcity.
C) lead to a greater coordination among peoples' producti

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Deadweight costs in an exchange are costs

Deadweight costs in an exchange are costs

Deadweight costs in an exchange are costs
A) charged for free goods.
B) imposed by government, such as taxes or safety requirements.
C) that have no effect on either the quantity demanded or the quantity supplied.
D) that have not

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If the price of carrots is below the equilibrium price, the

If the price of carrots is below the equilibrium price, the

If the price of carrots is below the equilibrium price, the
A) quantity demanded of carrots exceeds the quantity supplied and a surplus exists.
B) quantity supplied of carrots exceeds the quantity demanded and a surplus exists.
C) quan

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Which of the following best exemplifies a deadweight cost?

Which of the following best exemplifies a deadweight cost?

Which of the following best exemplifies a deadweight cost?
A) Eating something in a restaurant you don't really want because you have already paid for it.
B) Paying for something in a restaurant but not eating it.
C) Refusing dess

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When there is a shortage of parking spaces at your college, the

When there is a shortage of parking spaces at your college, the

When there is a shortage of parking spaces at your college, the
A) demand for parking spaces is greater than the supply.
B) supply of parking spaces is greater than the demand.
C) quantity of parking spaces supplied is greater than the

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Systematic efforts to extend vaccination throughout the world have produced a situation today in whi

Systematic efforts to extend vaccination throughout the world have produced a situation today in whi

Systematic efforts to extend vaccination throughout the world have produced a situation today in which the smallpox virus is
A) in short supply (a shortage exists).
B) rare.
C) scarce.
D) all of the above.

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If the price is below the equilibrium price,

If the price is below the equilibrium price,

If the price is below the equilibrium price,
A) there is a surplus.
B) there is a shortage.
C) the supply curve will shift rightward.
D) the supply curve will shift leftward.
E) the demand curve will shift leftward.

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As a falling price eliminates a surplus in the jersey market,

As a falling price eliminates a surplus in the jersey market,

As a falling price eliminates a surplus in the jersey market,
A) the demand curve for jerseys shifts leftward, and the supply curve of jerseys shifts rightward.
B) consumers increase the quantity of jerseys they demand.
C) producers in

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If 80,000 people want tickets to the World Series at the current price, and there are only 55,000 ti

If 80,000 people want tickets to the World Series at the current price, and there are only 55,000 ti

If 80,000 people want tickets to the World Series at the current price, and there are only 55,000 tickets available,
A) the cost of obtaining a ticket for someone who doesn't yet have one will be greater than the price stamped on its face.

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Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per p

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per p

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a
A) shortage, so the price falls and quantity demanded increases.
B) surplus, so the price falls and quantity

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Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equili

Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equili

Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equilibrium price, a
A) shortage exists and the price falls to restore equilibrium.
B) shortage exists and the price rises to restore equilibrium.

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The existence of a shortage means

The existence of a shortage means

The existence of a shortage means
A) people are buying more than is available.
B) people cannot buy as much as they plan to buy at the prevailing money price.
C) prices are too high.
D) there is not enough to satisfy everyone'

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If, by law, we suppress free market prices to determine who gets what,

If, by law, we suppress free market prices to determine who gets what,

If, by law, we suppress free market prices to determine who gets what,
A) other criteria will come into play to ration scarce goods.
B) scarcity will be reduced or eliminated.
C) shortages will be reduced or eliminated.
D) there w

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High money prices for scarce goods

High money prices for scarce goods

High money prices for scarce goods
A) are one among many possible causes of their scarcity.
B) are the basic cause of their scarcity.
C) are the effect of their scarcity.
D) have nothing to do with their scarcity, because almost a

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If there is a surplus of tacos, then the

If there is a surplus of tacos, then the

If there is a surplus of tacos, then the
A) quantity of tacos demanded equals the quantity of tacos supplied.
B) quantity of tacos demanded is greater than the quantity of tacos supplied.
C) quantity of tacos demanded is less than the

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When there is a surplus of snowboards, the

When there is a surplus of snowboards, the

When there is a surplus of snowboards, the
A) demand for snowboards is greater than the supply of snowboards.
B) supply of snowboards is greater than the demand for snowboards.
C) quantity of snowboards demanded is greater than the qua

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As job opportunities for women and the wages those jobs pay have increased, the opportunity cost of

As job opportunities for women and the wages those jobs pay have increased, the opportunity cost of

As job opportunities for women and the wages those jobs pay have increased, the opportunity cost of doing housework has ________, so many families have chosen to hire specialists in households chores, such as cleaning services and lawn care services,

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A surplus of cardboard boxes means that

A surplus of cardboard boxes means that

A surplus of cardboard boxes means that
A) at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied.
B) at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.

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Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because o

Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because o

Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because of all of the following except
A) her tattoos are highly esteemed by tattoo lovers who are willing to pay very high prices.
B) for her, this

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From the perspective of economic theory, prices are basically

From the perspective of economic theory, prices are basically

From the perspective of economic theory, prices are basically
A) constant.
B) information signals
C) rising.
D) rates of exploitation.

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Market equilibriumi.can never occur because there are always people who want a good but cannot affor

Market equilibriumi.can never occur because there are always people who want a good but cannot affor

Market equilibrium
i.   can never occur because there are always people who want a good but cannot afford it.
ii.   occurs at the intersection of the supply and demand curves.
iii.   is the point where the price equals the quantity.
A)

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If the best lawyer in town is also the best at operating a word processor, then according to economi

If the best lawyer in town is also the best at operating a word processor, then according to economi

If the best lawyer in town is also the best at operating a word processor, then according to economic reasoning, this person should
A) split her time evenly between being a lawyer and a word processor.
B) specialize in being a lawyer becaus

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Popular criticism of determining who gets what by means of money prices increases in periods of infl

Popular criticism of determining who gets what by means of money prices increases in periods of infl

Popular criticism of determining who gets what by means of money prices increases in periods of inflation because
A) inflation hits poor people the hardest.
B) people mistakenly assume an increase in money prices makes them worse off.

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Market equilibrium occurs when (Multiple Choice Question)

Market equilibrium occurs when (Multiple Choice Question)

Market equilibrium occurs when
A) the quantity demanded equals the quantity supplied.
B) the market is changing rapidly.
C) other things remain the same.
D) buyers get the lowest possible price.
E) everyone who wants the good

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