Question

19. Ifthe price ofoil (a close substitute for coal) increases, then the a. supply curve for coal will shift to the right. b. demand curve for coal will shift to the tight. C. equilibrium price and quantity of coal will not change. d. quantity of coal demanded will decline. 20. If the rice of shoes is initially above the equilibrium value, which of the following is likely to occur? a. stores inventories will decrease as consumers buy more shoe than show companies produce. b. the demand curve for shoes will shift in response to higher prices. c shoe stores and companies will reduce prices in order to increase sales leading to a lower equilibrium price. d equilibrium will be reestablished at the original price as the supply curve shifts to the left. A surplus results when a. the quantity demanded exceeds the quantity supplied. b. the quantity supplied exceeds the quantity demanded. c. the demand curve shifts to the right. d effective price ceilings are imposed 21. 22. Microeconomics is concerned with b. the actions of individual economic decision-making units c. small people. d. small countries. The study of macroeconomics focuses on a. the economic actions of large people. b. decisions by the largest 500 industrial companies. c. the prices and outputs of all firms in an industry d. the behavior of entire economies. 23. Which of the following is an example of macroeconomic aggregate? a. the national output of Haiti b. the total output of General Motors c. employment at Wal-Mart. d. the price of unleaded gas. 24.