In a market system, the costs associated with exchanging goods are known as
A) voluntary costs.
B) signaling costs.
C) wholesale costs.
D) transaction costs.
Ques. 2The money price of a good is also known as its
A) relative price.
B) case price.
C) absolute price.
D) subjective price.
Ques. 3Extremely cold winter weather has destroyed oranges in Florida. The freeze has caused
A) scarcity because there are less oranges now than people want.
B) scarcity because people have to switch to other types of citrus fruits.
C) a shortage because people cannot obtain as many oranges as they wish to buy at the pre-freeze price.
D) a shortage because the orange growers will have less income.
Ques. 4Which of the following statements about markets is correct? I. A market helps resources move to their highest-valued uses by means of prices changes. II. A market represents the exchanges of both buyers and sellers.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
Ques. 5A macroeconomist would study
A) the price changes at K-Mart.
B) the cost problems at several airlines.
C) the economy's unemployment level.
D) none of the above.
Ques. 6The demand curve is downward sloping because
A) the price must rise to induce firms to increase quantity supplied.
B) a reduction in the price of a good causes individuals to increase their purchase of that good.
C) an increase in the price will cause a leftward shift in the demand curve.
D) all of the above.
Ques. 7Which of the following would most likely NOT be taught in a macroeconomics course?
A) changes in the health care industry
B) factors leading to different economic growth rates among countries
C) government actions in response to a slowdown in the economy
D) the relationship between the inflation rate and the unemployment rate
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