A market is in equilibrium:

Select one:

a.at all prices above that shown by the intersection of the supply and demand curves

b.provided there is no surplus of the product

c.if the amount that producers want to sell is equal to the amount that consumers to buy

d.whenever the demand curve is downward-sloping and the supply curve is upward-sloping

A price ceiling means that:

Select one:

a.government is imposing a legal price that is below the equilibrium price

b.government is imposing a legal price that is above the equilibrium price

c.sellers are trying to impose a minimum price to raise their revenues

d.the relevant product is currently available in excess supply

A price floor means that:

Select one:

a.some sellers are artificially restricting supply in order to raise prices

b.inflation is severe in this particular market

c.government is imposing a legal price that is below the equilibrium price

d.government is imposing a legal price that is above the equilibrium price

A product has utility if it:

Select one:

a.satisfies consumer wants

b.is useful

c.takes more and more resources to produce successive units of it

d.can be produced in unlimited quantities

A rightward shift in the demand curve for product C might be caused by a(n):

Select one:

a.increase in the price of a product that is complementary to C

b.increase in the price of a product that is a substitute for C

c.increase in income if C is an inferior good

d.decrease in income if C is a normal good

An economist who says that consumer wants are inexhaustible means that:

Select one:

a.the nature of consumer wants is highly unpredictable

b.economic resources -- natural, capital, and human resources, are scarce

c.economic resources are valuable only because they can be used to produce consumer goods

d.consumer wants are virtually unlimited and, therefore, incapable of being fully satisfied

An increase in demand means that:

Select one:

a.the price of the product has risen, so consumers move up to a new point on the demand curve

b.the quantity demanded at every price is greater than before

c.the quantity demanded at every price is less than before

d.the price of the product has fallen, so consumers move down to a new point on the demand curve

An increase in the wages of construction workers will:

Select one:

a.decrease the average annual incomes of construction workers

b.shift the demand curve for construction workers to the right

c.shift the supply curve of new homes to the left

d.lead to an increase the quantity supplied of new homes

Any point inside the production possibilities curve indicates:

Select one:

a.that resources are imperfectly shiftable among alternative uses

b.that the economy is saving a part of its income

c.that more output could be produced with available resources

d.the presence of inflationary pressures

At the point where the demand and supply curves for a product intersect:

Select one:

a.either a shortage or a surplus of the product might exist, depending upon the degree of competition

b.the quantity that consumers want to purchase and the amount producers choose to sell are the same

c.the market may, or may not, be in equilibrium

d.the "selling price" and the "buying price" need not to be equal

Cuba is an example of a:

Select one:

a.mixed free enterprise

b.free enterprise system

c.centrally planned economy

d.none of the above

Economics can best be described as the study of how:

Select one:

a.to distribute limited resources among alternative ends

b.government policies affect businesses and labour

c.to manage business enterprises for profit

d.profitably to invest one's income in stocks and bonds

Economists use the term demand to refer to:

Select one:

a.the total amount spent on a particular product over a given time period

b.the relationship between the various possible prices of a product and the quantities that consumers are willing to purchase at each price

c.a particular price-quantity combination on a demand curve

d.the amount of a product that consumers are willing to purchase at a certain price

Given a downward-sloping demand curve and an upward-sloping supply curve for a product, a decrease in the price of a complementary good will:

Select one:

a.decrease equilibrium price and quantity

b.decrease equilibrium price and increase equilibrium quantity

c.increase equilibrium price and decrease equilibrium quantity

d.increase equilibrium price and quantity

If Sprite and 7-Up are substitutes, a fall in the price of Sprite, other things being equal, will cause the demand curve for 7-Up to:

Select one:

a.shift upward to the right

b.slope upward from left to right

c.none of the above

d.shift downward to the left

Macroeconomics approaches the study of economics from the viewpoint of:

Select one:

a.entire economic sectors

b.governmental units

c.specific product and resource markets

d.individual consumers

Microeconomics is concerned with the:

Select one:

a.total levels of income, employment, and output

b.behaviour of specific segments of the economy

c.behaviour of individual participants in various markets