11. If an economy has to sacrifice increasing amounts of good X for each unit of good Y produced, then its production possibilities curve is: (Points: 3)
bowed out from the origin. I PICKED THIS ONE
bowed in toward the origin.
a straight line.
a vertical line.

12. The fact that a society's production possibilities curve is bowed out or concave to the origin of a graph demonstrates the law of: (Points: 3)
increasing opportunity cost. I PICKED THIS ONE
decreasing opportunity cost.
constant opportunity cost.
concave opportunity cost.

13. If an economy is producing a level of output that is on its production possibilities curve, the economy: (Points: 3)
has idle resources.
has idle resources but is using resources efficiently.
has no idle resources but is using resources inefficiently.
has no idle resources and is using resources efficiently. I PICKED THIS ONE

14. Technological improvements will: (Points: 3)
leave the production possibilities curve unchanged.
shift the production possibilities curve inward.
shift the production possibilities curve outward. I PICKED THIS ONE
necessarily lead to increased unemployment.

15. When a nation experiences economic growth: (Points: 3)
its production possibilities curve shifts outward. I PICKED THIS ONE
its production possibilities curve shifts inward.
it has been able to reach full employment.
it has moved to a more consumer-oriented position on its production possibilities curve.

16. The current rate of unemployment of 5 percent is too high. This is an example of: (Points: 3)
a normative statement. I PICKED THIS ONE
a positive statement.
the circular-flow model.
none of the above.

17. The primary difference between a change in demand and a change in the quantity demanded is: (Points: 3)
a change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve.
a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve. I PICKED THIS ONE
both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.

18. An announcement that smoking will harm your ability to think clearly will most likely result in: (Points: 3)
an increase in the quantity of cigarettes demanded.
a decrease in the demand for cigarettes. I PICKED THIS ONE
no change in smoking habits.
an increase in the price of cigarettes.

19. Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be: (Points: 3)
an increase in the demand for beef.
a decrease in the demand for beef. I PICKED THIS ONE
a decrease in the quantity of beef demanded.
no change in the demand for beef.

20. For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes. Such goods are known as: (Points: 3)
inferior goods.
direct goods.
normal goods. I PICKED THIS ONE
indirect goods.

21. If the price of a commodity increases, you would expect the: (Points: 3)
supply to increase.
quantity supplied to increase.
quantity supplied to decrease. I PICKED THIS ONE
supply curve to shift to the right.

22. If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price: (Points: 3)
is above the market equilibrium price.
will rise to clear the market.
will either rise or remain unchanged.
is below the market equilibrium price.

23. An increase in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price. (Points: 3)
an increase; an increase
an increase; a decrease
a decrease; an increase I PICKED THIS ONE
a decrease; a decrease

24. A decrease in supply, with no change in demand, will lead to ________ in equilibrium quantity and ________ in equilibrium price. (Points: 3)
an increase; an increase
an increase; a decrease I PICKED THIS ONE
a decrease; an increase
a decrease; a decrease

25. The government decides to impose a price ceiling on a good, because it thinks the market determined price is “too high.” If it imposes the price ceiling above the equilibrium price: (Points: 3)
consumers will respond to the higher price and therefore wish to purchase less of the good than at the equilibrium price.
producers will respond to the higher price and therefore offer fewer units for sale.
consumers will purchase less of the good after the price ceiling is imposed.
there will be no change to either the price of quantity in the market. I PICKED THIS ONE

27. Rent controls set a price ceiling below the equilibrium price and therefore: (Points: 3)
quantity supplied exceeds the quantity demanded.
quantity demanded exceeds the quantity supplied. I PICKED THIS ONE
a surplus of rental units will result.
poor people will obviously be helped.

28. Price controls: (Points: 3)
always increase economic efficiency.
always lead to more equitable results.
can result in inequitable outcomes.
are all of the above. I PICKED THIS ONE

29. Price elasticity of demand measures the responsiveness of the change in ______. (Points: 3)
quantity demanded to a change in price
price to a change in quantity demanded I PICKED THIS ONE
slope of the demand curve to a change in price
slope of the demand curve to a change in quantity demanded

30. Using the midpoint method of elasticity to calculate price elasticity of demand eliminates the problem of ______. (Points: 3)
different elasticities, depending on whether price decreases or increases I PICKED THIS ONE
different elasticities because price and quantity are inversely related on the demand curve
total revenue falling when price falls and demand is inelastic
total revenue increasing when price falls and demand is elastic

11. Agree
12. Agree
13. Agree
14. Agree
15. Agree
16. Agree
17. Agree
18. Agree
19. Agree
20. Agree
21. Not sure
22. I would say is above equilibrium, since below would have no bearing on the market.
23. I picked an increase; an increase. An increase in demand with no change to supply forces up and the qty up. At least that is what I found.
24. I picked a decrease; an increase.
25. I would say either of the first two answers.
26. Price Floor
27. Agree
28. I would say inequitable outcomes
29. quantity demanded to a change in price
30. Agree