EXPLANATIONS NOT NEEDED JUST ANSWERS!!

Question 1(Multiple Choice Worth 3 points)

(01.06 HC) A number of consumers and a number of sellers leave a market at the same time. After this, the equilibrium quantity would ____ and the equilibrium price would ________.

decrease; increase

decrease; decrease

increase; decrease

increase; be indeterminate

decrease; be indeterminate

Question 2(Multiple Choice Worth 3 points)

(01.06 MC) If supply and demand are not moving, but consumers are responding to increasing prices, what situation is being eliminated in the market for that good?

A surplus

Scarcity

A shortage

A dysfunctional coordinating mechanismEquilibrium

Question 3(Multiple Choice Worth 3 points)

(01.03 LC) When comparing two countries' production possibilities of a certain good, _____ is the ability to simply produce more of it, while _____ is having a lower opportunity cost to produce it.

efficiency; absolute advantage

comparative advantage; absolute advantage

absolute advantage; comparative advantage

efficiency; comparative advantage

economic growth; absolute advantage

Question 4(Multiple Choice Worth 3 points)

(01.05 MC) If a producer is equally able to make Good A or Good B, and the market price for Good B increases, the producer will increase the quantity supplied of Good B and decrease the quantity supplied of Good A. This is an example of the

law of diminishing marginal utility

law of supply

law of demand

income effect

substitution effect

Question 5(Multiple Choice Worth 3 points)

(01.01 LC) The foundational problem underlying the study of all economics is

scarcity

maximizing profit

the fairest distribution of resources

efficiency

the law of supply

Question 6(Multiple Choice Worth 3 points)

(01.06 MC) Use the graph below to answer the following question.

Price/Unit ($) S A B C D 25 35 45 60 70 QuantityDominican Republic Cuba 50 Consumer Goods Consumer Goods 20 25 50 Capital Goods Capital GoodsDominican Republic Cuba 50 Consumer Goods Consumer Goods 20 25 50 Capital Goods Capital Goods