One of the biggest benefits of the Internet auction site eBay A) is its control over prices. B) is that it increases the supply of products. C) is that it increases the demand for products. D) is that it reduces transaction costs for both sellers and buyers. ANSWER D
Date: September 9th, 2020
The change in price that results from a rightward shift in demand will be greater if A) the supply curve is horizontal than if the supply curve is upward sloping. B) the supply curve is relatively steep than if the supply curve is relatively flat. C) the supply curve is upward sloping than if the […]
Date: September 9th, 2020
It is appropriate to use the supply-and-demand model in which of the following markets? A) beer market B) car market C) wheat market D) market for breakfast cereal ANSWER C
Date: September 9th, 2020
Understanding the supply and demand model facilitates A) greed. B) charity. C) happiness. D) prediction. ANSWER D
Date: September 9th, 2020
If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in A) a price of zero. B) an increase in price. C) a decrease in price. D) no change in price. ANSWER D
Date: September 9th, 2020
Import quotas on steel tend to result in higher quantities of steel being sold at lower prices than would be observed in the absence of a quota. Indicate whether the statement is true or false ANSWER False. The opposite is true. Quotas restrict the supply curve. This reduces quantity and raises price.
Date: September 9th, 2020
If a large number of people decide to major in economics, the supply and demand model has little to say about the future wages of economists. Indicate whether the statement is true or false ANSWER False. If more people major in economics, and the demand for economists does not change, the wages of economists […]
Date: September 9th, 2020
The military is NOT a perfectly competitive market because A) there is only one buyer, i.e., the government, for military goods/services. B) there is imperfect information, i.e., intelligence branches. C) there are heterogeneous goods/services because each military branch provides different goods/services. D) All of the above. ANSWER D
Date: September 9th, 2020
Suppose the market for a good is expressed as follows: Inverse demand: P = 200 – 2Q Inverse supply: P = 2Q What is the equilibrium if the government imposes a supply quota of 75 units? What is the equilibrium if the government imposes a supply quota of 25 units? What will be an ideal […]
Date: September 9th, 2020
What is one reason the supply and demand model might NOT be appropriate to the health-care industry? A) Consumers do not have full information. B) Providers do not know the demand for health-care services. C) Consumers do not know how to value their own health. D) The costs of finding a doctor are too low. […]
Date: September 9th, 2020
