A change in quantity demanded :

A change in quantity demanded
 
  A) is a shift of the demand curve.
  B) is a movement along the demand curve.
  C) can be either a shift or a movement along the demand curve.
  D) is caused when there is a change in a ceteris paribus factor.

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Ques. 2

The term economic freedom means
 
  A) the right to own private property.
  B) the right to trade goods and services.
  C) the right to own financial assets.
  D) all the above.

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Ques. 3

Which of the following are considered ad valorem taxes?
 
  A) taxes assessed by charging a rate equal to a percentage of an item's price
  B) taxes assessed by charging a flat amount per unit purchased
  C) taxes based on the amount of debt that the government must repay
  D) taxes based on the amount of spending the government will undertake

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Ques. 4

What is an externality? How do positive and negative externalities differ in their effects? How can government action correct positive and negative externalities?
 
  What will be an ideal response?

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Ques. 5

If psychological limitations and other complications cause people to be unable to examine and think through every possible choice available to them and rely instead on rules of thumb, then these individuals exhibit
 
  A) unbounded rationality.
  B) normative thinking.
  C) bounded rationality.
  D) positive thinking.

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Ques. 6

Refer to the above figure. Which panel shows the effect of an increase in the price of a good on the demand curve of that good?
 
  A) Panel A
  B) Panel B
  C) both panels
  D) neither panel

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Ques. 7

Economic growth will
 
  A) shift the production possibilities curve inward.
  B) shift the production possibilities curve outward.
  C) shift along the production possibilities curve toward the X-axis.
  D) be a movement from inside the productions possibilities curve to the curve itself.