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1. Scarcity is best defined as
2. Which of the following statements is most consistent with a capitalist market economy?
The graph in Figure above shows a nation's production possibility curve (PPC) for the production of bread and butter. Which of the following is true?
4. Which of the following is true of equilibrium in a purely (or perfectly) competitive market for good X?
5. The competitive market for gasoline, a normal good, is currently in a state of equilibrium. Which of the following would most likely increase the price of gasoline?
6. If the demand for grapes increases simultaneously with an increase in the supply of grapes, we can say that
In Figure above, identify the area of consumer surplus.
8. Suppose the price of beef rises by 10 percent and the quantity of beef demanded falls by 20 percent. We can conclude that
9. If the price of firm A's cell phone service rises by 5 percent and the quantity demanded for firm B's cell phone service increases by 10 percent, we can say that
10. Which of the following describes the theory behind the demand curve?
11. If a consumer is not required to pay a monetary price for each cookie she consumes, the consumer will stop eating cookies when
12. In the short run, a firm employs labor and capital to produce gadgets. If the annual price of capital increases, what will happen to the short-run cost curves?