An economist would identify a state of equilibrium as when

no one has any reason to alter their behavior

Which of the following actions do competitive markets NOT perform?

allocate scarce resources to consumers who desire them the m

If input prices decrease, then

quantity produced will increase

Which of the following statements BEST describes equilibrium?

All forces in a system are balanced.

Which of the following curves would be the LEAST elastic?

If price increases 3%, quantity does not change

How much of a good is supplied?

the amount sellers can and will make

What is the central topic of microeconomics

the interaction of supply and demand

Which statement is NOT true about trade?

Everyone in an economy directly benefits from trade.

Keynesian economics supports

government spending to stimulate the economy

Which of these statements would a normative economist make?

Minimum wage should be raised because it will help the poor.

A market is made up of all

consumers and producers of one product

How is the equilibrium point affected after public education about cigarettes?

The equilibrium point shifts down and to the left

Which of the following products has the highest elasticity of supply?

airline flights on a specific route

The law of demand states that as

price rises, quantity demanded falls

An economic model may be found in all of the following forms EXCEPT a

computer program that mimics real situations

Which of these topics would an economist NOT study?

how individuals form social groups

A marginal buyer is a person

indifferent to buying or not buying a good at a given price

How much of a good is demanded?

the amount buyers can and will purchase

Which of these following options is NOT something people consider when acting rationally?

extremely unlikely negative scenarios

What is deadweight loss?

. the reduction in social welfare caused by a tax

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Acadec Economics

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Questions 64

Answers

1
Which option is NOT an example of government intervention?
taxation
monetary policy
price floors
market pricing
2
Which factor does NOT shift the supply curve?
the technology used
consumer expectations
the number of sellers
the number of buyers
3
Which feature is NOT a characteristic of perfectly competitive markets?
a well-informed populace
a large number of sellers
each firm having market power
a large number of buyers
4
Which of the following categories has NOT been subject to price controls in the United States?
bedding
wheat
corn
wages
5
An economist would identify a state of equilibrium as when
no one has any reason to alter their behavior
quantity demanded is greater than quantity supplied
profit is maximized for all suppliers
consumers are most happy
6
Which of the following actions do competitive markets NOT perform?
convey information through price
. move toward equilibrium
. maximize benefits from exchange
allocate scarce resources to consumers who desire them the m
7
Trade always
happens between large countries
negatively impacts someone
benefits those involved
involves money
8
If input prices decrease, then
producer profits will decrease
quantity consumed will increase
quantity produced will increase
consumer surplus will increase
9
World War II helped to relieve the
Great Recession
Great Depression
Depression of 1920
Panic of 1907
10
Which wartime occupation can cause a sudden reduction in unemployment?
war bond management
military draft
loan management
weapons research
11
Which of the following statements BEST describes equilibrium?
One force is more dominate than other forces
All forces in a system are balanced.
The system exerts no force on its surroundings
All forces are easily measured.
12
Which of these answer choices is NOT an opportunity cost of attending college?
books
tuition
room and board
time spent studying
13
Which part of the supply and demand curve shows buyers’ willingness to pay?
the x-value of the demand curve
the height of the demand curve
the area under the demand curve, but above the market price
the height of the demand curve
14
According to the law of demand, as prices increase,
price floors are added
producer surplus decreases
quantity demanded decreases
deadweight loss decreases
15
Which of the following curves would be the LEAST elastic?
. If price decreases 5%, quantity increases by 100%.
If price decreases by 9%, quantity increases by 6%
If price increases 3%, quantity does not change
If quantity increases by 30%, price increases by 3%
16
Domino’s Pizza might be described as a
luxury good
collective good
inferior good
public good
17
How much of a good is supplied?
the amount sellers can and will make
the amount that will minimize deadweight loss
the amount demanded
the amount that will maximize seller profit
18
What does the competitive market model maximize?
total surplus
liquidity
crowding out
money supply
19
What is the central topic of microeconomics
deciding the government’s role in the economy
the interaction of supply and demand
deciding the number of consumers and producers in markets
accounting for the output gap
20
A price ceiling negatively impacts
only producers
only consumer
the government
consumers and producers
21
Which statement is NOT true about trade?
Everyone in an economy directly benefits from trade.
Trade is best with comparative advantages.
There is often opposition to free trade.
Trade makes people better off.
22
Cars and gasoline are BEST described as
inferior goods
necessities
complements
substitutes
23
Which type of relationship exists between quantity supplied and price?
negative
direct
positive
inverse
24
Keynesian economics supports
government laissez-faire policies to reduce unemployment
German reparations from World War I
communist ideology in reforming the economy
government spending to stimulate the economy
25
Which of these statements would a normative economist make?
The United States’ unemployment rate is 5.5%.
14.5% of Americans live below the poverty line.
Minimum wage should be raised because it will help the poor.
If minimum wage is raised $1, unemployment will rise 1%.
26
A resource is considered scarce if it
has a physical form
has a high price
exists in a limited quantity
can only be used by a small number of people
27
Cows on BGH will
produce more nutritious milk
produce more milk
increase muscle size
require less food
28
A market is made up of all
producers of all products
consumers of all products
consumers and one producer of a product
consumers and producers of one product
29
Which of the following choices is a defining characteristic of the modern economy?
historically high taxation
technological progress
command economy policies
job equality
30
Who wrote An Inquiry into the Nature and Causes of the Wealth of Nations?
Vilfredo Pareto
Arthur Okun
Adam Smith
Aristotle
31
Price controls ALWAYS result in
a fairer market
demand surplus
social costs
supply surplus
32
How is the equilibrium point affected after public education about cigarettes?
The equilibrium point shifts up and to the right.
The equilibrium point shifts down and to the left
The equilibrium point shifts down and to the right
The equilibrium point shifts only up
33
Which of the following products has the highest elasticity of supply?
first edition books
brand-name candy bars
airline flights on a specific route
granite
34
The law of demand states that as
quantity supplied increases, quantity demanded increases
price rises, quantity supplied increases
price rises, quantity demanded falls
prices fall, quantity of consumers falls
35
An economic model may be found in all of the following forms EXCEPT a
mathematical equation
computer program that mimics real situations
mathematical equation
picture or visual
36
Public education about cigarettes is designed to
decrease the supply of cigarettes
increase the supply of cigarettes
decrease demand for cigarettes
increase the price of cigarettes
37
Which of these topics would an economist NOT study?
how individuals interact
how individuals make choices
how individuals form social groups
how individuals distribute scarce resources
38
If more producers enter the market, then
demand will decrease
products will become more expensive
taxes on the product will increase
supply will increase
39
Which of these words would NOT be used to describe an economic model?
clear
realistic
mathematical
simple
40
A marginal buyer is a person
who measures tax revenue of a good
who is both a producer and consumer in a single market
indifferent to buying or not buying a good at a given price
who is both a producer and consumer in a single market
41
Which type of curve shift does educating the public about cigarettes cause?
a shift in expectations
a shift in technology
a shift in income
a shift in tastes
42
How much of a good is demanded?
the amount that minimizes consumer cost
the amount a company produces
the amount buyers desire
the amount buyers can and will purchase
43
The Bretton Woods system made most currencies directly convertible to
American dollars
gold
Euros
silver
44
Which of these following options is NOT something people consider when acting rationally?
monetary cost
their own beliefs about a decision
the potential negatives of making a decision
extremely unlikely negative scenarios
45
What is deadweight loss?
. the reduction in social welfare caused by a tax
the reduction in social welfare caused by new technology
the increase in social welfare caused by new technology
the increase in social welfare caused by government subsidie
46
Amy and Rory sell ice cream. What part of the ice cream market do they represent?
the buyer
the producer
the consumer
the government
47
Which of the following products would have the LOWEST elasticity of demand?
high quality pencils
ice cream
smartphones
gasoline
48
On a graph, where is the ideal price in a perfectly competitive market?
at equilibrium
at deadweight loss
at marginal revenue
at the price control
49
Which factor does NOT shift the demand curve?
the price of related goods
expectations
price increases
consumers’ tastes
50
All levels of government use
pork barrel politics
international trade
taxes
direct elections
51
Which way would the demand curve shift if the demand for ice cream decreased?
Out
Down
Right
Left
52
Products with close substitutes have
relatively high price elasticity
perfectly elastic price elasticity
perfectly inelastic price elasticity
relatively low price elasticity
53
Which of these items CANNOT be the opportunity cost of a given situation?
an event you could have been doing instead
the time you spend doing the thing
the monetary cost of the item
something you would have bought regardless of the situation
54
According to the law of supply, as prices increase,
consumer surplus increases
the government increases taxes
quantity demanded increases
quantity supplied increases
55
Which of the following items would be studied in macroeconomics?
a market for bananas
an international company
a shipping company
a country
56
In order to function properly, capitalist economies rely on
barter
the availability of resources
government control
the self-interest of individuals
57
According to the law of supply, a supply curve should
extend in both directions forever
slope downward
increase exponentially
slope upward
58
In which way do microeconomics and macroeconomics NOT differ?
basic assumptions
use and application
modes of analysis
scale of inquiry
59
Which office supervised the production of $185 billion worth of weapons and wartime supplies?
the Office of Price Administration
the Office for Emergency Management
the War Mobilization Board
the War Production Board
60
Demand is inelastic when a 1% change in price results in a
more than 1% change in demand
1% change in demand
less than 1% change in demand
demand of zero
61
An economist would say economic markets are coordinated through
the interaction of supply and demand
producers’ attempts to maximize profits
government intervention
the illuminati
62
A well-informed United States citizen would calculate her take-home income based on the
average marginal tax rate
marginal tax rate of income earned within each tax bracket
marginal tax rate of her highest tax bracket
marginal tax rate of her highest tax bracket
63
Why is the perfectly competitive market model useful?
The model shows exactly how buyers act.
The model shows the goal for a real market.
The model is good for understanding less perfect markets.
The model matches real-world markets exactly.
64
Which of the following words would NOT describe buyers and sellers?
rational
unpredictable
market members
tax payers

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