QUESTION 20

An expected increase in the future price of automobiles will lead to

		a reduction in the demand for gasoline today.
		no predictable impact on today's demand for automobiles.
		a movement down the demand schedule for automobiles.
		an outward shift in demand for automobiles today.

1 points

QUESTION 21

An import quota for sugar results in an increase in

		the domestic market price of sugar.
		sugar imports.
		the domestic demand for sugar.
		the domestic market supply of sugar.

1 points

QUESTION 22

An import quota is

		a price ceiling.
		a quantity restriction.
		a direct tax on imports.
		a price floor.

1 points

QUESTION 23

An import quota is a limit on the

		value of low-priced foreign goods that are allowed to be imported into the United States.
		number of container ships allowed to enter the territorial waters of the United States.
		number of foreign workers allowed to work in a country.
		amount of a product that may be imported.

1 points

QUESTION 24

An increase in supply will occur when

		the demand curve shifts downward to the left.
		the supply curve shifts downward to the right.
		the supply curve shifts upward to the left.
		the demand curve shifts upward to the right.

1 points

QUESTION 25

An increase in the price of input used to produce a product will lead to

		a decrease in quantity supplied of that product
		a decrease in the demand for that product.
		a decrease in the supply of that product.
		an increase in the supply of that product.

1 points

QUESTION 26

Any improvement in overall production technology that permits more output to be produced with the same level of inputs causes

		a leftward shift of the supply curve so that less is offered for sale at each price.
		a rightward shift of the supply curve so that more is offered at each price.
		no movement of the supply curve, but a fall in price and a decrease in quantity supplied.
		a movement up the supply curve resulting in both a higher equilibrium price and quantity.

1 points

QUESTION 27

As a result of establishing a legal minimum wage above the market clearing wage

		fewer workers will want to work.
		firms will hire more workers.
		firms will hire fewer workers.
		there will be a shortage of workers.

1 points

QUESTION 28

Flour is an input used to produce cookies. Suppose that the price of flour rises. As a result

		the supply curve for cookies will shift to the left.
		the supply curve for flour will shift to the left.
		the supply curve for cookies will shift to the right.
		the supply curve for flour will shift to the right.

1 points

QUESTION 29

Government intervention in agriculture usually involves

		price supports in order to keep farm incomes high.
		price ceilings in order to subsidize U.S. exports.
		price supports in order to keep agricultural imports low.
		price ceilings in order to keep food prices low.

1 points

QUESTION 30

Government-imposed quantity restrictions

		generate a higher price for the good than would prevail under freely competitive markets.
		does not affect the price of the good because quantity restrictions always ban sale of the good completely.
		generate a lower price for the good than would prevail under freely competitive markets.
		can cause prices to either be higher or lower, but always cause excess quantities supplied to develop.

1 points

QUESTION 31

Hospitals announce that there are not enough nurses available to keep them fully staffed. Economically speaking, what does this announcement mean?

		There is currently a surplus of nurses in this market.
		The market will adjust very rapidly to correct this imbalance because anyone can be a nurse without any training.
		The market wage for nurses will eventually rise to the market clearing wage.
		The market wage for trained nurses is currently above the equilibrium wage.

1 points

QUESTION 32

If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?

		The demand curve for bagels shifts to the right.
		The demand curve for croissants shifts to the right.
		The demand curve for croissants shifts to the left.
		A leftward movement along the bagel demand curve.

1 points

QUESTION 33

If demand increases while supply decreases, then the equilibrium price

		may increase, decrease, or stay the same.
		never changes.
		always increases.
		always decreases.

1 points

QUESTION 34

If more buyers came into the market for a good, we would expect to see the market demand curve

		shift inward and to the left.
		remain unchanged since none of the determinants of individual demand changed.
		shift outward and to the right.
		reflect a positive relationship between price and quantity demanded.

1 points

QUESTION 35

Price S A P2 Po F P1 D 0 Q Qo Q- Quantity