Question 1

Stable Equilibriumis defined as

A market where illegal goods are sold, or where legal goods are sold under illegal conditions (such as illegal prices or rules).

Once away from equilibrium forces push back toward equilibrium.

Once away from equilibrium forces push further way.

Quantity Demanded is less than Quantity Supplied

Question 2

Law of Supplyis defined as

Shows the quantity of a good people are willing and able to sell at a specific price, ceteris paribus. (Shown by a specific quantity number, or location on the quantity axis of a graph.)

Shows the quantity of a good people are willing and able to buy at various prices, ceteris paribus. (Shown by a table, graph, or function.)

The supply curve has a positive slope.

Shows the quantity of a good people are willing and able to buy at a specific price, ceteris paribus. (Shown by a specific quantity number, or location on the quantity axis of a graph.)

Question 3

Supplyis defined as

Shows the quantity of a good people are willing and able to sell at a specific price, ceteris paribus. (Shown by a specific quantity number, or location on the quantity axis of a graph.)

Shows the quantity of a good people are willing and able to buy at a specific price, ceteris paribus. (Shown by a specific quantity number, or location on the quantity axis of a graph.)

Shows the quantity of a good people are willing and able to buy at various prices, ceteris paribus. (Shown by a table, graph, or function.)

Shows the quantity of a good people are willing and able to sell at various prices, ceteris paribus. (Shown by a table, graph, or function.)

Question 4

Shortageis defined as

Quantity Demanded exceeds Quantity Supplied

A market where illegal goods are sold, or where legal goods are sold under illegal conditions (such as illegal prices or rules).

A state where market forces are not causing the price and quantity to change.

Quantity Demanded is less than Quantity Supplied

Question 5

Demandis defined as

Shows the quantity of a good people are willing and able to sell at various prices, ceteris paribus. (Shown by a table, graph, or function.)

Shows the quantity of a good people are willing and able to buy at various prices, ceteris paribus. (Shown by a table, graph, or function.)

Shows the quantity of a good people are willing and able to buy at a specific price, ceteris paribus. (Shown by a specific quantity number, or location on the quantity axis of a graph.)

Shows the quantity of a good people are willing and able to sell at a specific price, ceteris paribus. (Shown by a specific quantity number, or location on the quantity axis of a graph.)

Question 6

Black Marketis defined as

Quantity Demanded is less than Quantity Supplied

A market where illegal goods are sold, or where legal goods are sold under illegal conditions (such as illegal prices or rules).

Once away from equilibrium forces push back toward equilibrium.

Once away from equilibrium forces push further way.

Question 7

An irrational murderer

can be explained easily by economic theories.

does not weigh expected benefits of murder vs. expected costs of committing the crime.

casually weighs expected benefits of murder vs. expected costs of committing the crime.

carefully weighs expected benefits of murder vs. expected costs of committing the crime.

Question 8

If the government reduces penalties forsellersof prostitution the result in the prostitution market would be (draw supply demand diagram to help.)

Question 8 options:

decreasing price and decreasing quantity of prostitution.

increasing price and increasing quantity of prostitution.

decreasing price and increasing quantity of prostitution.

increasing price and decreasing quantity of prostitution.

Question 9

If the government cracks down on penalizing sellers of prostitution the result in the prostitution market would be (draw supply demand diagram to help.)

Question 9 options:

decreasing price and increasing quantity of prostitution.

increasing price and increasing quantity of prostitution.

decreasing price and decreasing quantity of prostitution.

increasing price and decreasing quantity of prostitution.

Question 10

Ifprostitutionis aneconomic substitutefor rape then government making prostitution illegal would

Question 10 options:

decrease demand for rape

decrease supply for rape

increase supply for rape.

increase demand for rape.

Question 11

Ifpornographyis aneconomic complementfor rape then government making pornography illegal would

Question 11 options:

increase demand for rape.

decrease demand for rape

decrease supply for rape

increase supply for rape.

Question 12

A good economy causes incomes to decrease.If and illegal drug called pizzazz is anormal good

Question 12 options:

Demand for pizzazz would shift left and supply for pizzazz would shift left.

Demand for pizzazz would shift left and supply for pizzazz would shift right.

Demand for pizzazz would shift right and supply for pizzazz would be unchanged.

Demand for pizzazz would shift left and supply for pizzazz would be unchanged.

Question 13

An illegal drug called zizzazz has and equilibrium price of $5.25 per ounce. If a chemical used to produce zizzazz increased in price, then the price of zizzazz would be expected to ___ and the quantity sold per day would be expected to ___. (Draw supply demand diagram.)

Question 13 options:

increase, increase

increase, decrease

decrease, increase

decrease, decrease

Question 14

A good economy causes incomes to increase.If and illegal drug called pizzazz is anormal good

Question 14 options:

Demand for pizzazz would shift left and supply for pizzazz would shift left.

Demand for pizzazz would shift left and supply for pizzazz would shift right.

Demand for pizzazz would shift right and supply for pizzazz would be unchanged.

Demand for pizzazz would shift left and supply for pizzazz would be unchanged.

Question 15

An illegal drug called zizzazz has and equilibrium price of $3.25 per ounce. If suddenly more people arrive in town for a music festival (some of them enjoy zizzazz) then the price of zizzazz in town would be expected to ___ and the quantity sold per day would be expected to ___. (Draw supply demand diagram.)

Question 15 options:

increase, decrease

decrease, decrease

increase, increase

decrease, increase

Question 16

An illegal drug called zizzazz has and equilibrium price of $2.65 per ounce. If more people decided to produce and sell zizzazz, then the price of zizzazz would be expected to ___ and the quantity sold per day would be expected to ___. (Draw supply demand diagram.)

Question 16 options:

decrease, decrease

increase, increase

decrease, increase

increase, decrease

Question 17

A good economy causes incomes to decrease.If and illegal drug called pizzazz is ainferior good

Question 17 options:

Demand for pizzazz would shift left and supply for pizzazz would be unchanged.

Demand for pizzazz would shift left and supply for pizzazz would shift right.

Demand for pizzazz would shift left and supply for pizzazz would shift left.

Demand for pizzazz would shift right and supply for pizzazz would be unchanged.

Question 18

elasticity of supplyis defined as

Question 18 options:

percent change in price divided by percent change in quantity supplied.

percent change in quantity supplied divided by percent change in price.

percent change in quantity demanded divided by percent change in price.

percent change in price divided by percent change in quantity demanded.

Question 19

elasticity of demandis defined as

Question 19 options:

percent change in price divided by percent change in quantity supplied.

percent change in quantity demanded divided by percent change in price.

percent change in quantity supplied divided by percent change in price.

percent change in price divided by percent change in quantity demanded.

Question 20

revenueis defined as

Question 20 options:

price plus quantity

price times quantity

price minus quantity

price divided by quantity

Question 21

Two points on a supply curve are(10,$200)and(20,$300).Calculate the elasticity between the two points.

Question 21 options:

2.9

4.2

1.3

1.7

Question 22

Two points on a demand curve are(50,$300)and(40,$400).Calculate the elasticity between the two points.

Question 22 options:

-1.3

-4.3

-2.2

-0.8

Question 23

Two points on a demand curve are(30,$500)and(40,$400).Calculate the elasticity between the two points.

Question 23 options:

-4.3

-1.3

-2.2

-0.8

Question 24

The government crackdown on Fizz causes the market equilibrium for the illegal drug to move from(20,$40)to(15,$80).This is due to supply shifting left and demand being unchanged. The demand curve along this range is _______ and the government policy causes revenue to change from_____ to ______.

Question 24 options:

elastic, $800, $1200

inelastic, $720, $540

inelastic, $800. $1200

elastic, $720, $540

Question 25

A government crackdown on drug dealers willincreaserevenue in the drug market if demand for drugs is

Question 25 options:

positive

elastic

inelastic

negative