QUESTION 81

The law of supply states that other things being equal

		as price increases, quantity supplied increases.
		supply creates its own demand.
		supply will increase to meet demand if demand increases.
		supply will increase if productivity increases.

1 points

QUESTION 82

The money price of a good is also known as its

		relative price.
		subjective price.
		comparative price.
		absolute price.

1 points

QUESTION 83

The only variable that can affect a movement along the demand curve is

		income levels.
		the number of substitutes.
		the price of the good itself.
		the number of buyers.

1 points

QUESTION 84

The price of a phone call at a pay phone was 5 cents in 1950 and the price of a first-class stamp was 3 cents. In 2016, the pay phone costs 50 cents for a call and a first-class stamp costs 47 cents. We know that

		all prices increased from 1950 to 2016: Nominal prices of phone calls, first-class stamps, and the relative prices of phone calls and first-class stamps.
		both the nominal and the relative price of phone calls increased from 1950 to 2016.
		both the nominal prices of phone calls and first-class stamps increased from 1950 to 2016, but the relative price of stamps increased and the relative price of phone calls decreased from 1950 to 2016.
		both the nominal prices of phone calls and first-class stamps increased from 1950 to 2016, but we can't tell if the relative prices increased or decreased without more information.

1 points

QUESTION 85

The price of a smartphone increased from $250 to $400 while the price of a smartphone app increased from $1 to $2. The relative price of smartphones in terms of smartphone apps

		increased from 175 to 350.
		decreased from 0.35 to 0.2.
		increased from 0.003 to 0.05.
		decreased from 250 to 200.

1 points

QUESTION 86

The relationship between quantity supplied and price is usually

		a negative relationship.
		a direct relationship.
		an inverse relationship.
		impossible to determine.

1 points

QUESTION 87

The relative price of a good is that price

		expressed in today's dollars.
		expressed in constant 2017 dollars.
		expressed in terms of the price of another good.
		that is equal to the equilibrium price.

1 points

QUESTION 88

The role of platform firms is to

		lower transaction costs for buyers and sellers.
		reduce the level of voluntary exchanges in markets.
		reduce the amount of information in the price system.
		reduce the amount of market competition among sellers.

1 points

QUESTION 89

The textbook points out that rent controls have

		had no effect on the market for housing.
		attracted increases in low-income housing.
		greatly benefited the homeless.
		benefited upper-income or existing tenants.

1 points

QUESTION 90

The textbook suggests that rent controls

		are used in a government kickback scheme.
		actually contribute to the housing boom in an area where they are applied.
		have no effect on the local housing market.
		actually contribute to the housing shortage in the area where they are applied.

1 points

QUESTION 91

What is the type of companies that provide services by linking individuals to others with similar interests or to companies that sell certain products?

		not-for-profit firms
		government agencies
		platform firms
		non-transaction firms

1 points

QUESTION 92

Which of the following causes a movement along a supply curve?

		a change in technology
		a change in resource costs
		a change in the price
		all of the above

1 points

QUESTION 93

Which of the following does NOT cause a shift in demand?

		change in the price of a related good
		change in the price of the good
		change in income
		change in tastes

QUESTION 94

Which of the following is NOT a determinant of demand?

		consumers' tastes
		production technology
		prices of other goods
		consumers' incomes

1 points

QUESTION 95

Which of the following is most likely to benefit from government established price floors in agriculture?

		small farmers
		large farm owners and corporate farms
		cattle ranchers
		low income farmers

1 points

QUESTION 96

Which of the following statements is FALSE?

		If the price of a good rises, quantity demanded of the good decreases and the demand curve shifts toward the origin as long as supply is static.
		A change in the demand for a product is caused by factors other than changes in the product's price.
		If there is an increase in the demand for a product, consumers want to buy more of the product at each and every possible price.
		A decrease in demand shifts the demand curve leftward toward the origin, while a decrease in quantity demanded involves a movement upward along a particular demand curve.

1 points

QUESTION 97

Which of the following statements is most accurate regarding who benefits and loses from establishment of a minimum wage above the market clearing wage?

		All employers benefit equally from the establishment of the minimum wage because they are able to hire fewer workers at a lower wage.
		All employers lose because they must pay the higher minimum wage to the same number of employees as they did before the minimum wage was established.
		All workers benefit equally from the establishment of the minimum wage because just as many workers as before remain employed, and all earn the higher minimum wage.
		Individuals who obtain jobs benefit because they earn a higher wage, but some individuals lose because employers will not hire them at the minimum wage.

1 points

QUESTION 98

Which of the following will cause a movement along the demand curve for shoes?

		an increase in the price of shoes
		an increase in income
		an increase in the price of socks
		all of the above

1 points

QUESTION 99

Which of the following will shift the supply curve for laptop computers to the left?

		a subsidy to the laptop computer industry
		expectations of a future decline in laptop computer prices
		development of a cheaper microchip used in laptop computer production
		a reduction of the number of firms that make laptop computers

1 points

QUESTION 100

Which of the following will shift today's supply curve to the right?

		Sales taxes increase.
		Prices are expected to be lower in the future.
		Prices are expected to be higher in the future.
		Input prices rise.

1 points