The relative price of a good is that price
A) expressed in today's dollars.
B) expressed in constant 2012 dollars.
C) expressed in terms of the price of another good.
D) that is equal to the equilibrium price.
Ques. 2The impact of higher taxes would be examined by
A) a microeconomist.
B) a macroeconomist.
C) both a macroeconomist and a microeconomist.
D) neither a macroeconomist nor a microeconomist.
Ques. 3Which of these would NOT be considered a middleman in a market?
A) a produce wholesaler
B) an apple farmer
C) a smartphone retailer
D) a fruit distributor
Ques. 4Scarcity and shortages differ in that
A) scarcity is caused by natural disasters and shortages are caused by mistakes people make.
B) scarcity is a condition of human life while shortages are usually temporary phenomena related to an imbalance between the amount desired and the amount produced.
C) scarcity is a type of shortage but shortage is a broader concept.
D) shortages apply to resource markets while scarcity applies to product markets.
Ques. 5The macroeconomist would most likely study
A) the effects of changing apple prices on the market for oranges.
B) the effects of an increase in wage rates on a woman's decision to enter the labor force.
C) the effects of a lower income tax rates on the nation's total production of goods and services.
D) the effect of increased union wages on the cost of producing automobiles.
Ques. 6Jane is a top-level executive earning a high salary. Jane has just ordered a luxury car only to be told that she will have to wait three weeks for it to be delivered. Which of the following statements is TRUE?
A) The car is not a scarce good.
B) The car is an economic good.
C) The car is human capital.
D) The car is an intangible good.
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