1.

Which of the following statements is true?

Group of answer choices

If the demand curve is vertical, the quantity needed does not change as its price changes.

If the demand curve is horizontal, the quantity needed does not change as its price changes.

Changes in the supply curve always result in changes in the equilibrium quantity.

Changes in the demand curve always result in changes in the equilibrium quantity.

2.

If the supply curve is vertical and the demand curve is downward sloping, then a rightward shift of the supply curve will always lead to________.

Group of answer choices

Decrease of equilibrium quantity

Increase of producer surplus

Increase of consumer surplus

Decrease of social surplus

3.

If the demand for gas is perfectly inelastic, a large decrease in the supply of gas will result in

Group of answer choices

An increase in the price and a decrease in quantity

A decrease in both the price and the quantity exchanged

Price stays the same while quantity exchanged decreases

Price increases while quantity exchanged stays unchanged

4.

Consider the market for self-driving electric cars in the United States. Assume that Tesla is the leading manufacturer of electric cars in the United States. What will happen to the price elasticity of demand for Tesla's electric cars if electric cars producers in foreign countries are banned from exporting to the American market

Group of answer choices

The price elasticity of demand will increase since less electric vehicles will be available

5.

Due to the law of the demand, the price elasticity of demand is

Group of answer choices

Negative

Positive

Null

There is no relationship between the two.

The price elasticity of demand will decrease since less substitutes will be available in the American market

The price elasticity of demand will stay the same

The price elasticity of demand will increase because people will shift to public transport

6.Togoland only produces bread and wheat. However, the entire production of wheat is devoted to making bread which is then sold to consumers. In 2020, Togoland produced 10 million dollars worth of bread and 2 million dollars worth of wheat. What was Togoland's GDP in 2020?

12 million dollars

10 million dollars

8 million dollars

2 million dollars

7.The economy of Zanzibar had a GDP of 500 million dollars in 1960 with a population of 5 million. Also, its GDP per capita in 2000 was about 1,560 dollars per capita. Consider the following statements about this economy:

1. Zanzibar saw a 1460 percent increase in GDP per capita.
2. Between 1960 and 2000, Zanzibar was producing much more than their population was growing.
3. The population of Zanzibar was growing disproportionately, which led to a decrease in GDP per capita.

Group of answer choices

I and II are correct.

Only II is correct.

Only I is incorrect.

Only III is correct.