32). Which of the following best resembles a perfectly competitive market?

A. electricity market

B. sugar market

C. automobile market

D. textbook market

33). Suppose a tax is imposed on the buyers of a product. On whom will the burden of the tax fall?

a. on the buyers or the sellers

b. on the buyers and the sellers

c. on the buyers or the government

d. on the buyers and the government

34). What is the unique point at which the supply and demand curves intersect?

a. market unity

b. an agreement

c. cohesion

d. equilibrium

35). What would a macroeconomist NOT study?

a. the impact of changes in beer prices on the consumption of wine

b. the effect of changes in tax rates on GDP

c. the impact of a change in interest rates on the rate of inflation

d. the effect of government spending on the rate of economic growth

36). hat results when two individuals produce efficiently and then make a mutually beneficial trade based on comparative advantage?

a. they both obtain consumption inside their production possibilities frontier

b. they both obtain consumption outside their production possibilities frontier

c. each individual consumes a point on her own production possibilities frontier

d. one individual consumes inside her production possibilities frontier, while the other consumes outside hers

1). Some countries win in international trade, while other countries lose.

True

False

2). Connie can clean windows in large office buildings at a cost of $1 per window. The market price for window cleaning is $3 per window. If Connie cleans 100 windows, her producer surplus is $100.

True

False

3). What happens when there is a surplus in a market?

a. There is upward pressure on price.

b. There is downward pressure on price.

c. The market is operating below the equilibrium level.

d. There are too many buyers chasing too few goods.

4). Market demand is given as Qd = 80 - P. Market supply is given as Qs = 3P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

a. price will be $15 and quantity will be 45

b. price will be $20 and quantity will be 60

c. price will be $40 and quantity will be 20

d. price will be $45 and quantity will be 15

5). What are exports?

a. limits placed on the quantity of goods brought into a country

b. goods produced abroad and sold domestically

c. a country's ability to produce a good

d. goods produced domestically and sold abroad