Refer to the above table. Suppose Buyer 2 leaves the market. What is the new market quantity of DVDs demanded at a price of 10?
A) 33
B) 25
C) 22
D) 8
Ques. 2There has recently been an increase in the price of dairy products used in the production of ice cream. High temperatures have also induced people to consume more ice cream.
In the market for ice cream, the effects these changes will have on equilibrium price and quantity are A) price will increase, and quantity will decrease.
B) price will increase, and the effect on quantity is indeterminate.
C) price will decrease, and quantity will increase.
D) price will decrease, and the effect on quantity is indeterminate.
Ques. 3The saying that You cannot have your cake and eat it too illustrates the economic concept of
A) a positive statement.
B) a normative statement.
C) physical capital.
D) opportunity cost.
Ques. 4The Do-Good Company produces goods that provide benefits to society-at-large. If consumers of Do-Good's products fail to take external benefits into account
A) the demand curve will be too far to the left.
B) the supply curve will be too far to the left.
C) the demand curve will be too far to the right.
D) the supply curve will be too far to the right.
Ques. 5Which of the following would NOT provide an incentive to reduce the amount of beef consumed?
A) an increase in the price of beef
B) a subsidy to buyers of beef
C) a decrease in the price of chicken
D) a ban on beef sales by the Food and Drug Administration
Ques. 6Using the above figure, which of the lines in the above diagram represents a progressive tax?
A) A
B) B
C) C
D) none of them
Ques. 7The opportunity cost of a decision is the
A) value of the best alternative not chosen.
B) value of all the alternatives not chosen.
C) cost of making the wrong choice.
D) cost incurred by others who are unhappy with your decision.
Ques. 8Refer to the above table. What is the market quantity demanded at a price of 8?
A) 5
B) 15
C) 35
D) 44
Quick Reply
