Question 1 Economics may best be defined as the: social science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants. empirical testing of value...

Question 1 Economics may best be defined as the: social science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants. empirical testing of value judgments through the use of logic. use of policy to refute facts and hypotheses. OO interaction between macro and micro considerations. Question 2 2 Microeconomics: is not concerned with details, but only with the overall big picture of the economy. is concerned with individual economic units (such as a company) and specific markets. describes the aggregate flows of output and income is the basis for the "after this, therefore because of this fallacy, Question 3 The term "ceteris paribus" means: that economics deals with facts, not values. other things being equal. O prosperity inevitably follows recession that if Event A precedes Event B, then Event Ahas caused Event B. Question 4 2 pt If we say that two variables are inversely related this means that: the two graph as an upsloping line. the resulting relationship can be portrayed by a straight line parallel to the horizontal axis. an increase in one variable is associated with a decrease in the other. an increase in one variable is associated with an increase in the other. The "Fallacy of Composition" states that: the anticipation of a particular event can effect the composition of that event when it occurs. what is true for the individual must necessarily be true for the group. because event A precedes event B, A is necessarily the cause of B. because economic systems are composed of so many diverse economic units, economic laws are necessarily inexact. Question 8 2 pts Which of the following is NOT one of the Great (Fundamental) Questions in Economics? Who will get the goods that are produced by the economy? Will the economy be able to eliminate surpluses and shortages? How will the economic system adapt to change? What goods and services will the economy produce? The scarcity problem: persists because economic wants exceed available productive resources. has been solved in all industrialized nations. has been eliminated in affluent societies such as the United States and Canada. O persists only because countries have failed to achieve continuous full employment Question 10 2 pts The "Law of Demand" states that: the larger the number of buyers in a market, the lower will be the product price. price and quantity demanded are directly related. consumers will buy more of a product at high prices than at low prices. price and quantity demanded are inversely related. At the point where the demand and supply curves intersect: the market is in disequilibrium. there is neither a surplus nor a shortage of the product (equilibrium). O quantity demanded exceeds quantity supplied. the buying and selling decisions of consumers and producers are inconsistent with one another. Question 13 2 pts An increase in consumer incomes will: increase the supply of an inferior good. decrease the supply of a normal good. increase the demand for an inferior good. increase the demand for a normal good. An increase in supply means that: the supply curve has shifted to the right. the price has increased and consumers therefore want to purchase less of the product. the price of the product will increase. the supply curve has shifted to the left. Question 18 2 pts Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will: increase equilibrium price and quantity, decrease equilibrium price and quantity increase equilibrium price and decrease equilibrium quantity. decrease equilibrium price and increase equilibrium quantity A normal good is one: which all people like. O for which demand increases when income increases. for which demand increases when income decreases. O for which demand increases when price decreases. Question 20 2 pts Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity? an increase in supply. a decrease in supply. an increase in demand. a decrease in demand. Quiz: ECON Question 24 2 pt The demand for a product is inelastic with respect to price if: the elasticity coefficient is greater than 1. O a drop in price is accompanied by a decrease in the quantity demanded. a rise in price is accompanied by an increase in the quantity demanded. O consumers are largely unresponsive to a price change.