Economic goods are items that
A) are used only by economists.
B) provide satisfaction to users.
C) cannot be sold at any price in the market.
D) individuals would pay to get rid off.
Ques. 2Suppose that demand for tablets increases, and simultaneously, the supply of tablets increases. Which of the following would you conclude definitely will occur in the market for tablets?
A) The market clearing price will rise.
B) The market clearing price will fall.
C) The equilibrium quantity will rise.
D) The equilibrium quantity will fall.
Ques. 3An increase in the relative price of a good cannot be caused by
A) an increase in the nominal price of the good that is greater than the increase in the nominal price of the other good.
B) a decrease in the nominal price of the good that is less than the decrease in the nominal price of the other good.
C) a decrease in the nominal price of the other good while the price of the good itself remains constant.
D) an increase in the nominal price of the other good while the price of the good itself remains constant.
Ques. 4An example of an entrepreneur would be
A) the owner of a new Indian food restaurant.
B) the cafeteria employee who won the employee of the month award.
C) a Greyhound bus driver.
D) the cashier at your local supermarket.
Ques. 5The price of bread in terms of gallons of milk per loaf is 0.6 and the price a gallon of milk in terms of pounds of butter per gallon is 1.2. What is the relative price of bread to butter?
A) 1.39
B) 0.6
C) 0.72
D) 0.50
Ques. 6Aggregate measures are
A) anything to do with economics.
B) a total measure of a variable across the economy.
C) used only in microeconomics.
D) determined by the Bureau of Labor Statistics.
Ques. 7Suppose that there is an improvement in technology in the market for iPhones. Which of the following is TRUE?
A) Supply will increase and the market clearing price will fall.
B) Supply will increase and the market clearing price will rise.
C) Demand will increase and the market clearing price will rise.
D) Demand will increase and the market clearing price will fall.
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