1.In economics, markets are an excellent example of which of the following?

1. Coordination through spontaneous order
2. Coordination through hierarchy
3. Centralized control through hierarchy
4. Centralized control through spontaneous order

2.A demand curve is drawn holding constant each of the following except which of the following?

The price of the good

Tastes and preferences

The price of substitute goods

Income level

3)Hierarchy is a way to coordinate the behavior of individuals

True

False

4)The federal government announces a new gasoline tax of $1.00 per gallon that will be imposed tomorrow at noon. What would predict happening before noon tomorrow?

An increase in the demand for gasoline and shortages of gasoline

An increase in the demand for gasoline and surpluses of gasoline

A decrease in the demand for gasoline and surpluses of gasoline

A decrease in the demand for gasoline and shortages of gasoline