Question 1 3 pts All societies must address the questions of what outputs to produce. how to produce those outputs. and who gets to consume them because: C? most individuals are self-interested and will not consider what is best for society as a whole when deciding howr to use their personal resources. .0 scarcity exists and the desired uses for resources exceed the resources available. 0 the production of some outputs causes society to encounter increasing opportunity costs. 0 microeconomic generalizations should not be applied to macroeconomic situations. Question 2 3 pts Which of the following is a normative microeconomic statement? O U.S. gross domestic product has historically increased after adjusting for inflation. O Government should lower the taxes paid by small businesses. O Market equilibrium occurs when quantity demanded equals quantity supplied. The Central Bank should raise interest rates when the country experiences inflation.Which of the following is an example of capital as a factor of production? O Personal computers used by teenagers to do homework and keep in touch with friends O Shares of stock in a corporation O Kitchen equipment for a new restaurant venture O Camera equipment used by a family on vacationQuestion 17 Which of the following would lead to an increase in the demand for coffee, ceteris paribus? O A decrease in the price of coffee 0 An increase in the price of coffee 0 A decrease in the price of tea, a substitute for coffee 0 A decrease in the price of creamer, a complement for coffee 3pts Technological improvements that reduce the cost of manufacturing smaller personal computers would be expected to cause an increase in the ______ personal computers and a _____ equilibrium price. O demand; lower 0 demand; higher C' supply; lower V" supply; higher Question 21 3pts Which of the following would best explain an increase in the supply of potato chips? C An increaSe in the prica of potato chips C A decrease in the price of potato chips C A decrease in cost of producing potato chips C A decrease in the number of sellers of potato chips Question 22 3pts Ceteris paribus. an increase in the supply of lemons causes the equilibrium price of lemons to __________ and the equilibrium quantity of lemons to ___________. Cf\": increase; increase it\": increase; decrease C' decrease; decrease C- decrease; increase Question 23 3 pts Assume that the popularity of playing dodge ball decreases at the same time that the number of dodge ball manufacturers decreases. Supply and demand analysis predicts that: I'TT- both the equilibrium price and quantity of dodge balls will decrease. CT- the equilibrium quantity of dodge balls will decrease but the change in the equilibrium price can't be determined from the information given. (7- the equilibrium price of dodge balls will decrease but the change in the equilibrium quantity can't be determined from the information given. I'f'; the equilibrium price of dodge balls will decrease and the equilibrium quantity of dodge balls will increase. Question 26 3 pts If the demand function is linear and downward-sloping, demand is: C\"- inelastic on the top portion, unit elastic in the middle. and elastic on the bottom portion of the demand function. (\Question 27 3 pts If quantity demanded is 30 when price is $3 and quantity demanded is 20 when price is $5, then total revenue __________ if price increases from $3 to $5, implying that demand is ________ . O increases; elastic If) decreases; elastic If: increases; inelastic ('7 decreases; inelastic Question 29 3 pts Suppose the income elasticity for medical care is 2 and the income elasticity for public transportation is -1.5: these values imply that: O medical care and public transportation are both inferior goods. 0 medical care and public transportation are both normal goods. O medical care is a normal good and public transportation is an inferior good. 0 medical care is an inferior good and public transportation is a normal good