Three economic questions must be determined in all societies. What are they?
a. How much will be produced? When will it be produced? How much will it cost?
b. What will the price of each good be? Who will produce each good? Who will consume each good?
c. What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced?
d. What goods will be produced? How will goods be produced? Who will get the goods produced?
Question 2The use of financial leveraging on mortgage backed securities played a central role in the 2008 financial crisis.
a. True
b. False
Indicate whether the statement is true or false
Question 3Which of the following will cause an inward shift in the demand for steaks at a restaurant?
a. A report by the American Medical Association states that the consumption of steak reduces the risk of cardiovascular disease
b. A 50 percent reduction in the price of steaks
c. A double-digit increase in the price of chicken
d. A recession leading to a significant fall in the income levels of consumers
e. The expectation that the price of steaks will double within two months
Question 4Which of the following is not a question that scarcity forces all societies to answer?
a. Which goods and services are to be produced?
b. How are goods and services to be produced?
c. Who will get the goods and services produced?
d. How can scarcity be eliminated?
Question 5The 2008 financial crisis was caused by the decline of real estate values as well as several other factors.
a. True
b. False
Indicate whether the statement is true or false
Question 6The change in the quantity demanded of any good is always caused by:
a. a change in consumers' preferences for that good.
b. a change in the general income levels of the consumers who buy that good.
c. an increase or decrease in the population.
d. a change in the price of that good.
e. a change in the price of substitute goods.
Question 7A market economy answers the question how will goods be produced by focusing on
a. dollar votes.
b. consumer sovereignty.
c. least-cost method of production.
d. who can afford these goods.
Question 8A consumption tax would lead to an increase in the supply of loanable funds and a decrease in real interest rates.
a. True
b. False
Indicate whether the statement is true or false
Question 9The market demand curve is derived by:
a. studying an individual's demand for a product over a year.
b. comparing the monthly consumption of a group of people.
c. surveying a set of consumers and ascertaining their preferences.
d. adding up the quantities that consumers in a market are willing and able to purchase at each price.
e. calculating the average price a random sample of consumers are willing to pay for a product.
Question 10A market economy answers the question what goods will be produced by focusing on
a. dollar votes.
b. least-cost method of production.
c. who can afford these goods.
d. none of the above
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