Question

1. If demand deceases and supply remains constant, what happens to the market equilibrium?

	A. Quantity and price both rise.
	B. neither price or quantity will change
	C. Quantity and price both fall.
	D. Quantity rises and price falls.

2. A positive statement is

	A. an opinion
	B. a value judgement.
	C. can be shown to be correct or incorrect.
	D. based upon what can be demonstrated to be true.

3. If a technology change reduces a company's production costs, it will

	A. decrease consumer demand.
	B. shift the supply curve to the right.
	C. move up and to the right from point to point along a stationary supply curve
	D. increase consumer demand.

4. Economic capital is productive, so it does not include________?

	A. buildings & equipment
	B. tools
	C. money
	D. any of the above

5. If the consumer surplus is $1000 and the producer surplus is $300, social surplus is

	A. $700
	B. $1300
	C. $1000
	D. -$700

6. When quantity demanded decreases in response to a change in price

	A. the demand curve shifts to the right.
	B. there is a movement from one point to another along the demand curve which is up and to the left.
	C. the demand curve shifts to the left.
	D. there is a movement from one point to another along the demand curve which is down and to the right.

7. According to the law of supply, assuming other factors are held constant

	A. there is an inverse relationship between price and quantity supplied
	B. as the price of bread increases, the quantity of bread supplied will increase.
	C. as the supply for bread increases, the price of bread will also increase.
	D. as the price of bread increases, the quantity of bread supplied will decrease.

8. Which of the following would cause the supply curve to shift to the right?

	A. an increase in taxes
	B. An improvement in technology.
	C. An increase in the price of the product.
	D. An increase in production costs.

Answer 1

Answer 2