1.How will a reduction in the price of cotton influence the market for bluejeans?

A.The cost of producing blue jeans willfall, and the supply curve for blue jeans will shift to the right

B.The cost of producing blue jeans willrise, and the supply curve for blue jeans will shift to the right.

C.The cost of producing blue jeans willrise, and the supply curve for blue jeans will shift to the left.

D.The cost of producing blue jeans willfall, and the supply curve for blue jeans will shift to the left.

2.If cable TV service and satellite TV service aresubstitutes,

A.a decrease in the price of cable will decrease the demand for satellite TV.

B.an increase in the price of cable will decrease the demand for satellite TV

C.an increase in the price of cable will shift the marginal utility curve for satellite TV to the left.

D.an increase in the price of cable will generally have no effect on the demand for satellite TV.

3.At equilibrium price and quantity

A.A shortage occurs from excess demand

B.A surplus occurs from excess quantity being produced

C.Deadweight loss occurs as a transfer of producer surplus goes to the consumer

D.Neither shortage nor surplus occurs

4.How is a Lorenz curve used to represent anation's incomedistribution?

A.The more bowed the curve the more equal the distribution of income.

B.The closer the Lorenz curve is to a straightline, the more unequal the distribution of income.

C.The closer the Lorenz curve is to a straightline, the more equal the distribution of income.

D.The more bowed the curve the more unequal the distribution of income overone's lifetime

5.Which of the following is probably the most significant reason why people have different marginalproductivities?

A.People have different inheritances.

B.People have different comparable worths.

C.People have different investment in human capital.

D.People have different rates of taxation.