Reference no: EM132795169
1. Suppose widespread press reports warn consumers about the dangers of consuming vegetables that may contain E. coli bacteria. What is the likely economic effect on the Canadian demand curve for potentially harmful vegetables coming from the United States?
a.no change
b. a shift of the demand curve for vegetables to the right
c. a movement down along the demand curve for vegetables to the right
d. a shift of the demand curve for vegetables to the left
2. Suppose that Geoff plays golf twelve times per year when the price is $40 and eight times per year when the price is $60. What is the price elasticity of Geoff's demand curve?
a. 0.1
b. 0.8
c. 1.0
d. 10.0
3. The elasticity of demand examines the relationship between which two things?
a. price and quantity demanded
b. quantity demanded and the opportunity costs
c. the price and the opportunity costs
d. quantity demanded and quantity supplied
4. Ceteris paribus, if the market supply of a product increases, what will happen to the equilibrium quantity and price of the product?
a. The quantity will decrease and the price will increase.
b. The quantity will increase and the price will decrease.
c. The quantity will decrease and the price will be indeterminate.
d. The quantity will increase and the price will increase.
5. Which of the following best describes scarcity?
a. Human desires are limited.
b. All but the very wealthy must face choices.
c. Resources are insufficient to satisfy all human desires.
d. Choices are unnecessary.
6. If both market demand and supply increase simultaneously, what will happen to equilibrium quantity and equilibrium price?
a. Quantity and price will both increase.
b. Quantity will increase and price will be indeterminate.
c. Quantity will be indeterminate and price will decrease.
d. Quantity and price will both decrease.
7. A firm is producing 400 units of output at a total cost of $2000. The firm's average variable cost equals $4 per unit. What does the total fixed cost equal?
a. $4
b. $400
c. $1600
d. $2000
8. Suppose there is an increase of immigrants into the country. What is the likely economic effect on the demand curve for apartment rentals?
a. no change
b. a shift of the demand curve for apartment rentals to the right
c. a movement down along the demand curve for apartment rentals to the right
d. a shift of the demand curve for apartment rentals to the left
9. Which of the following is NOT a question that scarcity forces all societies to answer?
A. How are goods and services to be produced?
B. Who will get the goods and services produced?
C. How can scarcity be eliminated?
D. Which goods and services are to be produced?