In general, a fine on buying a product leads to the
A) supply curve shifting rightward.
B) supply curve shifting leftward.
C) demand curve shifting rightward.
D) demand curve shifting leftward.
Ques. 2A market in which firms can enter and leave so easily that firms in the market face competition from potential entrants is called a
A) contestable market.
B) cartel.
C) limit pricing market.
D) monopolistic competition market.
Ques. 3Becky decides to spend 50 per month on DVD rentals and movie tickets. Her marginal utility schedules from these two goods are shown in the table above. The price of a DVD rental is 2.50, and the price of a movie ticket is 5.
Suppose Becky rents 8 DVDs and buys 6 movie tickets per month. She A) cannot increase her total utility because she already gets the maximum possible utility from DVD rentals and movies within her budget.
B) can increase her total utility if she rents more DVDs and buys more movie tickets.
C) can increase her total utility if she rents more DVDs and buys fewer movie tickets.
D) can increase her total utility if she rents fewer DVDs and buys more movie tickets.
Ques. 4Long-run macroeconomic equilibrium is achieved when the money wage rate has adjusted so that employment is such that real GDP equals potential GDP.
Indicate whether the statement is true or false
Ques. 5In the above figure, using the slope across an arc, the slope of the curve between points b and c is
A) 1/3.
B) -1/3.
C) 3.
D) -3.
Ques. 6The above figure shows the Lorenz curve for wealth for the nation of Rusha. The wealthiest forty percent of the population own what percent of wealth?
A) 40 percent
B) 50 percent
C) 60 percent
D) 100 percent
Ques. 7Are checks and credit cards money? Explain why or why not.
What will be an ideal response?
Ques. 8If a 5 percent increase in price results in a 3 percent increase in the quantity supplied, the elasticity of supply is
A) 0.30.
B) 0.60.
C) 1.20.
D) 1.66.
Ques. 9The lower the exchange rate, the cheaper are foreign-produced goods and services.
Indicate whether the statement is true or false
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