If the price of oil rises, producers of oil will
A) increase the quantity of oil supplied.
B) supply less oil.
C) leave the amount of oil supplied unchanged.
D) cut the price.
Ques. 2The law of increasing additional cost exists because
A) resources are not perfectly adaptable to both production processes.
B) the demand for the product increases.
C) the cost of resources of the products increase.
D) the cost of resources of the products decrease.
Ques. 3Which of the following statements is TRUE regarding the textbook used in this course?
A) The textbook presents only economic theory, so no value judgments are involved in the text.
B) The textbook does not include normative statements.
C) The microeconomic section of the book includes only positive analysis while the macroeconomic section includes normative analysis.
D) The selection of topics included in the book involves value judgments as well as economic theory.
Ques. 4The price of bonds and the interest rate are
A) inversely related.
B) positively related.
C) unrelated.
D) related, but we are not sure how.
Ques. 5In general, the demand for the product of a monopolistic competitor is
A) unitary elastic.
B) relatively inelastic.
C) relatively elastic.
D) perfectly elastic.
Ques. 6The Herfindahl-Hirschman index is a measure of
A) the profit margin of an industry.
B) market size.
C) the degree of collusion among firms in a market.
D) the degree of concentration among firms in a market.
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