In the above figure, a change in quantity demanded with unchanged demand is represented by a movement from
A) point a to point e.
B) point a to point b.
C) point a to point c.
D) None of the above represent a change in the quantity demanded with an unchanged demand.
Ques. 2The elasticity of supply does NOT depend on
A) resource substitution possibilities.
B) the fraction of income spent on the product.
C) the time elapsed since the price change.
D) none of the above because all of the factors listed affect the elasticity of supply.
Ques. 3In Obamacare (the Affordable Care Act) gives low-income families
A) vouchers for healthcare.
B) subsidies to buy private healthcare insurance.
C) full access to Medicaid.
D) full access to Medicare..
Ques. 4Discuss the quantity theory of money. Be sure to mention the velocity of circulation and the equation of exchange.
What will be an ideal response?
Ques. 5The figure above shows the marginal revenue and costs of a perfectly competitive firm. When the firm produces 170 units
A) marginal cost is less than marginal revenue.
B) marginal revenue equals marginal cost.
C) total revenue is less than total cost.
D) total revenue equals total cost.
Ques. 6Marginal utility theory predicts that if a consumer's income decreases, the consumer
A) buys fewer normal goods.
B) buys fewer inferior goods.
C) buys more of all goods.
D) might either increase or decrease purchases of normal goods.
Ques. 7Consider the production of some industrial good that creates air pollution. The table below gives the marginal social cost (MSC), the marginal cost (MC), and the marginal social benefit (MSB) for each level of output (Q).
Q MSC MC MSB 1 3 2 11 2 6 4 10 3 9 6 9 4 12 8 8 5 15 10 7 6 18 12 6 The inefficient market quantity is ________ and the efficient market quantity is ________. A) 4; 3
B) 6; 3
C) 3; 4
D) 4; 6
Ques. 8If your labor supply increases when you get a raise, which of the following is TRUE?
A) Your substitution effect is greater than your income effect.
B) Your substitution effect is less than your income effect.
C) Your substitution effect equals your income effect.
D) None of the above answers is correct.
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