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Economics
Economics for Managers 2e Paul Farnham

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Test Bank Multiple Choice
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Assume there is a reduction in the shipments of petroleum products due to political tension in the Persian Gulf. In a market economy, which consumers would get the reduced supplies of gas? 1) _______ A) Wealthy consumers. B) Who gets the gasoline would be a random process. Those who arrive at the service station first will get the gasoline, regardless what its price is. C) The consumers who value gasoline the most and are able to pay for it. D) Lower income consumers. 2) All else constant, as more firms substitute alternative materials, e.g., plastic, for copper, the market price of copper would be expected to: 2) _______ A) increase. B) decrease. C) stay the same. D) cannot be determined with the information given. 3) All else constant, an increase in foreign imports would cause the supply of cameras in the United States to: 3) _______ A) decrease. B) increase. C) stay the same. D) cannot be determined with the information given. 4) A home theatre system and and an HD television

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