When prices are used as a rationing device, goods that are relatively more scarce than they used to ...

When prices are used as a rationing device, goods that are relatively more scarce than they used to be will have
 
  A) greater demand.
  B) lower excess demands.
  C) higher prices.
  D) long queues.

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Ques. 2

Ceteris paribus assumption means
 
  A) the role of rational self-interest in the economy.
  B) that nothing else changes except the variables under consideration.
  C) relying on real-world data in evaluating the usefulness of a model.
  D) analysis that is strictly limited to making either purely descriptive statements or scientific predictions.

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Ques. 3

A person who is currently not working and has stopped looking for a job because he or she is convinced there is no job available is classified as a
 
  A) discouraged worker.
  B) disgruntled worker.
  C) depressed worker.
  D) dissatisfied worker.

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Ques. 4

When government intervenes in the production process because external costs exist, it typically attempts to shift the industry's
 
  A) demand curve to the right.
  B) demand curve to the left.
  C) supply curve to the right.
  D) supply curve to the left.

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Ques. 5

When the rate of interest in the economy falls, there will be
 
  A) an increase in the market price of existing bonds.
  B) a decrease in the transaction demand for money.
  C) less investment by businesses.
  D) an increase in nominal Gross Domestic Product (GDP).

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Ques. 6

A shift of the demand curve to the left represents
 
  A) an increase in demand.
  B) a decrease in demand.
  C) an increase in quantity demanded.
  D) a decrease in quantity demanded.

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Ques. 7

A 5 percent tax is going to be applied to a 100,000 tax base. What can be said about the revenue collected assuming static tax analysis?
 
  A) The total revenue will be zero.
  B) The total revenue will be between 0 and 5,000.
  C) The total revenue will be 5,000.
  D) There is not enough information to determine what revenues will equal.

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Ques. 8

In the above figure, the combination of computers and televisions shown by point x
 
  A) is not attainable at the point in time for which the graph is drawn.
  B) can be attained only if some of society's resources are unemployed.
  C) suggests that the law of increasing relative costs does not hold.
  D) results only because society allocates its resources inefficiently.