1.
Which of the following is not a characteristic of a market?
A. Markets are physical locations where trading occurs
B. Voluntary exchanges between economic agents
C. Flexible prices
D. There are rules and arrangements for trading
2.
How would a decrease in supply affect the equilibrium price in a market?
A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.
How would the equilibrium price in a market be affected if there were a large increase in supply and a small increase in demand?
A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.
How would the equilibrium price in a market be affected if there were a large decrease in supply and a small decrease in demand?
A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.
4.
What does it mean to say that we are running out of "cheap oil"?
A. That there are declining reserves of low-quality oil, but there is still plenty of high-quality oil remaining.
B. That world demand for oil is declining , which will raise the price of oil in the future.
C. That we will soon seplete all the world's oil reserves, which will cause the price of oil to increase significantly.
D. That oil reserves are becoming more expensive to find and extract over time.
What doese this imply for the price of oil in the future?
A. the demand for oil will increase, which will lead to lower prices in the future.
B. the demand for oil will decrease, which will lead to higher prices in the future.
C. The supply of oil will increase, which will lead to lower prices in the future.
D. The supply of oil will decrease, which will lead to higher prices in the future.
5.
What is meant by holding all else equal and how is this concept used when discussing movements along the demand curve?
A. everything else in the economy is held constant, including the price of the good.
B. All variables that can affect the demand for the good are held constant.
C. All variables in the model are set to equal values.
D. All of the above.
We make the assumption of holding all else equal when considering demand curves since we want to focus on the changes in the quantity demanded that result from changes in [ only the price of a good / only the income of consumers / the price of a good and incomes ]
1.
Which of the following is not a characteristic of a market?
A. Markets are physical locations where trading occurs
B. Voluntary exchanges between economic agents
C. Flexible prices
D. There are rules and arrangements for trading
2.
How would a decrease in supply affect the equilibrium price in a market?
A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.
How would the equilibrium price in a market be affected if there were a large increase in supply and a small increase in demand?
A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.
How would the equilibrium price in a market be affected if there were a large decrease in supply and a small decrease in demand?
A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.
4.
What does it mean to say that we are running out of "cheap oil"?
A. That there are declining reserves of low-quality oil, but there is still plenty of high-quality oil remaining.
B. That world demand for oil is declining , which will raise the price of oil in the future.
C. That we will soon seplete all the world's oil reserves, which will cause the price of oil to increase significantly.
D. That oil reserves are becoming more expensive to find and extract over time.
What doese this imply for the price of oil in the future?
A. the demand for oil will increase, which will lead to lower prices in the future.
B. the demand for oil will decrease, which will lead to higher prices in the future.
C. The supply of oil will increase, which will lead to lower prices in the future.
D. The supply of oil will decrease, which will lead to higher prices in the future.
5.
What is meant by holding all else equal and how is this concept used when discussing movements along the demand curve?
A. everything else in the economy is held constant, including the price of the good.
B. All variables that can affect the demand for the good are held constant.
C. All variables in the model are set to equal values.
D. All of the above.
We make the assumption of holding all else equal when considering demand curves since we want to focus on the changes in the quantity demanded that result from changes in [ only the price of a good / only the income of consumers / the price of a good and incomes ]
