1. Interest rates can be viewed as the price of capital. In poor countries, interest rates are higher than in rich countries. This creates an incentive for investors to invest in poor countries. Which of the scenarios (graphs) of the Supply and Demand model best illustrates the capital market of a poor country during the period of economic development; that is, when the supply of capital increases?

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

2. Following the terrorist attacks in New York City and Washington D.C. in September 2001, many people decided to take the train or drive instead of traveling by plane. Which of the scenarios (graphics) of the Supply and Demand model best illustrates the impact of terrorism on the air travel market?

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

3. Twenty years ago, very few stores sold personal computers. Nowadays, there are many stores where one can buy them. Which of the scenarios (graphics) best illustrates what has happened in the market for personal computers?

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

4 The Chinese economy was not long ago a very weak economy. Currently, the Chinese economy has become the second largest economy in the world and it is forecast that by 2030 it will have surpassed the level of production in the United States. Thus, its demand for oil has increased dramatically. Which of the scenarios (graphics) best illustrates the impact of the above on the world oil market?

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

5. The price of gold is 50% higher than it was two years ago. Choose the scenario (graph) that best illustrates what has happened in the gold market.

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

6 In the past, a family rarely had more than one phone. Today, it seems that every member of a family has a cell phone, and many households have more than one conventional phone line. Choose the scenario (graph) that best illustrates what happened in the telecommunications market.

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

7. As Americans have become more health conscious, they are drinking more tea. Previously, the only place you could buy tea was in supermarkets. Today, people can buy tea at stores in shopping malls as well as online. Which of the scenarios (graphics) best illustrates the change in the tea market?

Chart A

Chart B C-chart

Chart D

The information provided is insufficient to answer the question.

8. In view of the high cost, people used to make international calls only on special occasions like announcing weddings and births. Nowadays, people routinely make international calls and pay little per minute to make those calls or nothing if they call via Whatsapp. Which of the charts best illustrates the international calling market?

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

9. CDs were the only means of obtaining copies of popular music. Nowadays, music can be downloaded relatively cheaply or for free to your personal computer or android. According to you, which of the scenarios (graphics) best illustrates the impact on the CD market?

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

10. After the terrorist attacks in New York City in September 2001, many people feared traveling to that city. Nowadays, there are apparently security cameras everywhere and the news sporadically reports the capture of terrorist groups. Authorities appear to have the situation under control and tourists are returning to New York City. Which of the scenarios (graphs) best illustrates the impact of government control on the tourism market to New York?

Chart A

Chart B

C-chart

Chart D

The information provided is insufficient to answer the question.

Grafic A Other things being equal, when tastes shift in favor of a good or when consumer incomes rise, the demand for that good increases (shifts the demand curve to the right). As a consequence, the price of the good rises; thus, suppliers want to sell a greater quantity of the good offered and demanders wish to buy a greater quantity of the good demanded. P O A P* D D' Q* QGrafic B Grafico C All else equal, when tastes shift against a good or when consumer incomes decline, If everything else remains constant, when technology progresses or the price that demand for that good falls (shifts the demand curve to the left). As a consequence, the suppliers pay for inputs decreases, the supply of that good increases (shift of the supply price of the good falls; thus, suppliers want to sell a smaller quantity of the good offered curve to the right). This causes the price to decrease, the suppliers are willing to sell a and demanders want to buy a smaller quantity of the good demanded. greater quantity supplied and the demanders are willing to buy a greater quantity demanded. P O P O O' ........" P* P* D' D D Q* Q Q* OGrafico D If everything else remains constant, when the technology fails or the price that suppliers pay for inputs increases, the supply of that good decreases (shift of the supply curve to the left). This causes the price to rise, bidders willing to sell less quantity supplied, and demanders willing to buy less quantity demanded P D O*