If price increases and the quantity purchased increases, we know that
A) supply increased.
B) supply decreased.
C) demand increased.
D) demand decreased.
Ques. 2The opportunity cost of attending college might best be described as
A) the money that must be paid in order to attend college.
B) the lowest-valued alternative use of the student's time.
C) the highest-valued alternative use of the student's time.
D) the value that the student attaches to not working.
Ques. 3If the marginal tax rate is less than the average tax rate, the tax system is
A) progressive.
B) proportional.
C) regressive.
D) liberal.
Ques. 4Holding demand constant, an increase in supply leads to
A) lower prices and higher quantity demanded.
B) lower prices and lower quantity demanded.
C) higher prices and higher quantity demanded.
D) higher prices and lower quantity demanded.
Ques. 5Which of the following leads to an underallocation of resources to a specific economic activity?
A) external costs
B) external benefits
C) marginal costs
D) effluent benefits
Ques. 6A demand schedule provides
A) the quantities of a good people are willing to sell every year.
B) the amount of a good a person wants to sell during a given time period.
C) the alternative quantities demanded for a given time period at different possible prices.
D) the amount of a good a person wants at different times of the day.
Ques. 7Explain the difference between human needs and wants.
What will be an ideal response?
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