With reference to the difference between a change in demand and a change in quantity demanded, which ...

With reference to the difference between a change in demand and a change in quantity demanded, which of the following is TRUE?
 
  A) If a good's price goes down, then demand for the good will decrease.
  B) If a good's price goes down, then quantity demanded will increase.
  C) If demand increases, then the demand curve will shift to the left.
  D) If price rises and quantity demanded decreases, then the demand curve will shift to the left.

---

Ques. 2

Using a graph, show a market equilibrium. Suppose the costs of inputs increase. How is this shown on the graph? Explain what is happening in the market.
 
  What will be an ideal response?

---

Ques. 3

Between points b and c in the above figure, the opportunity cost of 250 more bushels of corn is
 
  A) 200 yards of cloth.
  B) 250 yards of cloth.
  C) 600 yards of cloth.
  D) 800 yards of cloth.

---

Ques. 4

When does a subsidy that benefits consumers result in a more efficient allocation of a resource?
 
  A) when the good being produced or consumed is not scarce
  B) when the good being produced or consumed generates a negative externality
  C) when the good being produced or consumed generates a positive externality
  D) when the equilibrium price of the good is one that consumers don't like

---

Ques. 5

An individual in the labor force whose employment was involuntarily terminated is
 
  A) a job leaver.
  B) a job loser.
  C) a job reentrant.
  D) part of the PPI.

---

Ques. 6

Positive externalities arise when
 
  A) an unprofitable firm is shut down.
  B) a profitable firm is regulated.
  C) tax rates are reduced.
  D) production of a good generates benefits that spill over to third parties.

---

Ques. 7

The demand for money to cover unexpected expenditures and to meet emergencies is known as
 
  A) the transactions demand for money.
  B) the precautionary demand for money.
  C) the asset demand for money.
  D) the terminal demand for money.

---

Ques. 8

The usefulness of a model is determined by
 
  A) whether it helps to explain or predict real world phenomena.
  B) whether it possesses realistic assumptions.
  C) how well it uses the ceteris paribus assumption.
  D) how many of the possible relationships that exist are included in the model.