6. When government imposes a binding price ceiling on a competitive market?

a. a surplus of the good arises

b. a shortage of the good arises

c. the slope of the demand curve generally flattens and becomes more inelastic

d. quantity supplied of a good will exceed quantity demanded

7. Supply and demand?

a. operate most efficiently when price ceilings and floors are implemented

b. are generally inelastic in the long run

c. are generally more elastic in the long run

d. curves are inefficient in markets for inferior goods

8. The expenditures approach to measuring GDP is?

a. G+Inv+Inf+Inc+Pvt

b. G+Inv+Inf+Inc+(X-M)

c. C+I+G+(X-M)

d. C+I+G+M e C+I-G-(M-X)

9 A perfectly elastic demand curve would favor?

a. buyers

b. sellers

c. both buyers and seller the same

d. price controls

10. The Law of Demand measures_______________whereas elasticity measures__________________

a. direction - how much

b. timing - magnitude

c. time - place

d. quantity demanded - quantity supplied