2-Which one of the following is Not correct O An improvement in production technology will shift the supply curve to the right O An improvement in production technology will shift the demand curve to the right O An increase in the wages of construction workers will shift the supply curve of new homes to the left O A market is in equilibrium if the amount that producers want to sell is equal to the amount that consumers want to buy 3-One of the following is Not correct O One reason that the quantity demanded of a product increases when its price falls is that the product has greater value in terms of satisfaction per dollar spent. O Graphically, the market demand curve is the horizontal sum of individual demand curves O DVD players and DVDs are substitutes products O The law of demand states that price and quantity demanded are inversely related 4-A positive statement is one that: O outlines a direct relationship between two variables O is subjective and is, therefore, based upon a value judgement O is necessarily true O is objective and is, therefore, based upon facts 5-A surplus of product will arise when price is: O above equilibrium with the result that quantity demanded exceeds quantity supplied O above equilibrium with the result that quantity supplied exceeds quantity demanded O below equilibrium with the result that quantity demanded exceeds quantity supplied O below equilibrium with the result that quantity supplied exceeds quantity demanded 6-Find Which of the following is Not correct O If the price of K declines, the demand curve for complementary product J shifts to the right O Ceteris paribus, the development of a low-cost electric automobile might shift the demand curve for gasoline to the left O Ceteris paribus, a rise in the price of gasoline might shift the demand curve for gasoline to the left O The law of supply indicates that producers will offer more of a product at high prices than they will at low prices 7-Economies of scale are indicated by: O the rising segment of the average variable cost curve O the declining segment of the long-run average total cost curve. O the difference between total revenue and total cost. O a rising marginal cost curve 8-The demand curve for chocolate shifts to the right if: O the price of chocolate increases O medical studies conclusively find that chocolate helps fight migraines O consumers expect the price of chocolate to fall in the future O the government imposes a new tax on milk 9-Which among the following does not shift the demand for good "X" O A change in the income of the consumer O Changes in the tastes of a consumer O Price of good "X" O A change in the price of the substitute of good "X" 10-Select the False statement O Assuming competitive markets with typical supply and demand curves, an increase in demand with no change in supply will result in an increase in the quantity exchanged in the market O Assuming competitive markets with typical supply and demand curves, an increase in supply with a decrease in demand will result in an increase in price O The law of diminishing marginal utility states that additional units of a given product yield less and less extra satisfaction to a consumer O If we represent the marginal utility from consuming product x and y as MUx and My respectively, and represent the respective prices as Px and Py. Suppose that consumer spends her/his income in suc = MUy/Py. In such a situation the consumer is maximizing total utility