Economics Test with Answers

Topics: Supply and demand, Elasticity, Price elasticity of demand Pages: 3 (552 words) Published: October 5, 2012
1.) An example of externality…
c. pollution from a factory on the health of people in the vicinity of the factory

2.) The fact that the different countries experience different standards of living is largely explained by differences those countries. b. productivity levels

3.) In the short run which of the following rates o growth in the money supply is likely to lead to the highest level of unemployment in the economy? A. 1 percent

4.) A company that formerly produced software went out of business because too many potential customers bought illegal copies B. inadequate enforcement of property rights

5.) In the short run WOTF is not correct?
C. policies that encourage higher employment will also induce a lower rate of inflation

6.) In most societies resources are allocated by?
D. the combined actions of millions of households

7.) An example of a perfectly competitive maret would be the? b.) Soybean market

8.) Under price system firms are forced to chose the least cost combination of resources because of a. competition from other firms in the market

chart

9) not obey law of demand
c) chucks

10.) in a pure market system the distribution of goods services and resources is dependent on b. scarcity determined the prices and income determined by productivity

11.) suppose you are evaluating the auto market. Auto manufacturers discover a new engine that is more efficient and cost less to produce. We could expect that… B. the supply for autos has increase and the price has fallen

12)if the highest price the consumers will pay for a good is less than the lowest cost at which a goods can be produces, then ______ C. the good will not be produces by the private sector without subsidies 13) when the price of a good or service changes

d there is a movement along a given supply curve

Chart
the movement from point a to point b represents
b)decrease in the quantity supplied

wotf would cause price to decrease
c) a...
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