17. Opportunity cost can be represented graphically by the

a. area inside the production possibilities frontier. b. slope of the production possibilities frontier. c. vertical distance from the horizontal axis to the production possibilities frontier. d. horizontal distance from the vertical axis to the production possibilities frontier. e. sum of the horizontal and vertical distances to the production possibilities frontier.

_____18. The price of fresh fish rose and the quantity sold also fell. Everything else being equal, it is consistent that

a. consumers developed a taste for fish. b. the price of meat rose. c. the cost of gasoline fell. d. the price of frozen fish for export increased. e. the supply of fresh fish increased.

_____19. An effective price ceiling will

a. result in a surplus. b. result in a shortage. c. clear the market. d. induce entry into the industry.

_____20. If the income of buyers increases, what is likely to happen to demand?

a. If the good is normal, demand will increase. b. If the good is normal, demand will decrease. c. If the good is inferior, demand will be unchanged. d. If the good is inferior, demand will increase.

_____21. An inferior good is one

a. produced by American industries. b. whose demand increases only with increases in income. c. ordinarily bought by college students from college-town merchants. d. whose quantity demanded falls when the purchaser's income rises. e. suitable for a garage sale.

_____22. Supply curves are generally _______ sloping because _______________

a. downward; more consumers will buy the good if the price falls. b. upward; of the principle of increasing opportunity costs c. downward; it is less expensive to mass produce goods d. upward; of inflation

_____23. Which of the following is NOT a characteristic of a market in equilibrium?

a. Excess supply is zero. b. All consumers are able to purchase as much as they wish. c. Excess demand is zero. d. The equilibrium price is stable, i.e., there is no pressure for it to change.

24. Consider the market for corn. The supply of corn (in millions of bushels) is given by Qs = 2P. The demand for corn is given by Q d = 12 - P. The competitive equilibrium price and quantity are equal to

a. P=3, Q=9

b. P=4, Q=8

c. P=5, Q=7

d. P=6, Q=6 e. It cannot be determined with the data given.