10. If people begin to favor science fiction novels to a greater degree than previously, the demand curve for science fiction novels a. shifts rightward. b. shifts leftward. C. stays constant. d. can shift either rightward or leftward. 1 1. An advance in technology causes a. a leftward shift in the supply curve. b. a rightward shift in the supply curve. c. the supply curve to go from upward sloping to vertical. d. the supply curve to go from vertical to upward sloping. 12. At a price below equilibrium price, there is a. a shortage. b. excess demand. c. a surplus. d. super-equilibrium. 13. At a price for which quantity demanded exceeds quantity supplied, a is experienced, which pushes the price toward its equilibrium value. a. surplus; downward b. surplus; upward c. shortage; downward d. shortage; upward 14. On a supply-and-demand diagram, consider a price for which the horizontal distance to the supply curve is less than the horizontal distance to the demand curve. There is a at that price and we are clearly the equilibrium price. a. shortage; above b. shortage; below c. surplus; above d. surplus; below 15. One of the effects of a price floor (above equilibrium price) is a. higher-quality goods are produced b. a surplus. c. more satisfied customers. d. all of the above16. Which of the following statements is true? a. Surpluses cause price ceilings to be imposed. b. Price ceilings set below the equilibrium price cause shortages c. Neither a price ceiling nor a shortage is the cause of the other. d. Price ceilings cannot be imposed for longer than a month. 17. In the supply-and-demand diagram of the market for peanut butter, the equilibrium point has moved up and to the right. What could have caused this? a. a fall in the price of peanuts b. a rise in the price of peanuts c. a rise in income, assuming that peanut butter is an inferior good d. a shift in preferences toward peanut butter 18. Which of the following statements represents a correct and sequentially accurate economic explanation? a. X and Y are substitutes. The price of X falls, the quantity demanded of X rises, and the demand for Y rises. b. X and Y are substitutes. The price of X rises, the demand for X falls, and the demand for Y rises. c. X and Y are substitutes. The price of X falls, the demand for X rises, and the quantity demanded of Y rises. d. X and Y are substitutes. The price of X falls, the quantity demanded of X rises, and the demand for Y falls. 19. Refer to the figure below, a movement from point W to point Z would have been the result of Price (dollars) 3- W Quantity a. a decline in technology. b. an increase in population. C. a price reduction. d. an increase in the number of buyers. 420. Refer to the figure below, the number of units exchanged at the price ceiling is S Price (dollars) 10 Price ceiling 0 75 125 175 Quantity a. 75. b. 125. C. 175. d. 100.NORTH SOUTH UNIVERSITY Quiz 1: Fall 2020 Time: 30 Minutes Answer all the TWENTY questions (20 Marks) 1. Entrepreneurship is a. knowledge of the particular natural resources to be found in a given area. b. skill in influencing government regulators and legislators. c. accumulated technical knowledge in using labor and capital. d. the talent for organizing the use of land, labor and capital, among other things. 2. Choice is fundamentally a consequence of a. living in a world where there are both goods and bads. b. how wealthy one is. c. scarcity. d. opportunity cost. 3. The opportunity cost of attending college is a. the money one spends on college tuition, books, and so forth. b. the highest valued alternative one forfeits to attend college. c. the least valued alternative one forfeits to attend college. d. equal to the salary one will earn when one graduates from college. 4. Which of the following is an example of a positive statement? a. The U.S. public should devote more resources to education. b. The poor should pay lower taxes and the rich should pay higher taxes. c. If you drop a ball from the top of a building, it will fall to the ground. d. Soap operas should be taken off television. 5. Microeconomics is the branch of economics that deals with a. highly aggregated markets or the entire economy. b. the production side of the economy, exclusively. c. the buying side of the economy, exclusively. d. human behavior and choices as they relate to relatively small units-an individual, a firm, an industry. This study source was downloaded by 1000008 14247287 from Course Hero.com on 09-18-2022 13:47:58 GMT -05:00 attps:/www.coursehero.com/file/1 13978067/Quiz-1-BUS-$253-Fall-2020pdf/6. Scarcity is defined as the condition in which a. wants are infinite and resources finite. b. wants are finite and resources infinite. c. both wants and resources are infinite d. both wants and resources are limited. 7. Refer to the figure below, if the student whose study habits are illustrated here is currently studying for 8 hours she should Marginal Cost Marginal Benefit, Time Spent Studying (hours) a. cut back on the number of hours she is studying because the marginal benefit of studying for 8 hours is less than the marginal cost of doing so. b. cut back on the number of hours she is studying because the marginal benefit of studying for 8 hours is greater than the marginal cost of doing so. c. increases the number of hours she is studying because the marginal benefit of studying for 8 hours is less than the marginal cost of doing so. d. increases the number of hours she is studying because the marginal benefit of studying for 8 hours is greater than the marginal cost of doing so. 8. If an increase in income results in an increase in the demand for chicken, then chicken is a. a neutral good. b. a normal good. C. a luxury good. an inferior good. 9. As the price of good A rises, the demand for good B rises. Therefore, goods A and B are a. normal goods. b. inferior goods. c. complements. d. substitutes