The money price of a good is that price
A) expressed in constant 2005 dollars.
B) expressed in purchasing power against a common item like bread.
C) expressed in today's dollars.
D) that would clear the market.
Ques. 2The existence of scarcity means that
A) there are not enough resources to satisfy unlimited human wants.
B) firms will increase their production to eliminate the scarcity.
C) the government will step in to eliminate the scarcity.
D) firms working with the government will allocate resources to eliminate the scarcity.
Ques. 3A microeconomist would study all of the following issues EXCEPT
A) the impact of a change in consumer income on the sales of corn.
B) the impact of a snowstorm on the sales of snow shovels.
C) the most efficient means for General Motors to produce an automobile.
D) the effect of a change in income taxes on the nation's rate of unemployment.
Ques. 4Suppose that the price of cornflakes is 3 per box and the price of oatmeal is 4.50 per box. Both boxes contain the same number of ounces of cereal. The relative price of cornflakes in terms of oatmeal is
A) 0.67.
B) 1.0.
C) 0.75.
D) 1.50.
Ques. 5In a market system, intermediaries in the exchange process are known as
A) producers.
B) consumers.
C) middlemen.
D) free agents.
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