Question 1

The transition economies continue to subsidize state owned enterprises (SOEs):

Accepted Answer

A)  in order to avoid bankruptcy. 
B)  in order to prevent unemployment from increasing. 
C)  in order for SOEs to continue to provide social services to their employees. 
D)  all of the above. 
A)  in order to avoid bankruptcy. 
B)  in order to prevent unemployment from increasing. 
C)  in order for SOEs to continue to provide social services to their employees. 
D)  all of the above.

Question 2

Use the following diagram to answer the following questions.
  
-Refer to Unit. If the price of housing is currently $80,000 per unit there will be:

Accepted Answer

A)  an excess demand of 20,000 units. 
B)  an excess demand of 10,000 units. 
C)  an excess supply of 20,000 units. 
D)  an excess supply of 30,000 units. 
A)  an excess demand of 20,000 units. 
B)  an excess demand of 10,000 units. 
C)  an excess supply of 20,000 units. 
D)  an excess supply of 30,000 units.

Question 3

According to economic theory:

Accepted Answer

A)  producers attempt to maximize output. 
B)  consumers attempt to maximize profits. 
C)  consumers and producers in a competitive economy are price seekers. 
D)  consumers and producers in a competitive economy are price takers. 
A)  producers attempt to maximize output. 
B)  consumers attempt to maximize profits. 
C)  consumers and producers in a competitive economy are price seekers. 
D)  consumers and producers in a competitive economy are price takers.

Question 4

Excess supply will exist when:

Accepted Answer

A)  market price is greater than the equilibrium price. 
B)  market price is less than the equilibrium price. 
C)  market price is equal to the equilibrium price. 
D)  quantity demanded is greater than quantity supplied. 
A)  market price is greater than the equilibrium price. 
B)  market price is less than the equilibrium price. 
C)  market price is equal to the equilibrium price. 
D)  quantity demanded is greater than quantity supplied.

Question 5

Briefly discuss how a market economy coordinates the plans of producers and consumers.

Accepted Answer

If desired, the student could use the su

Question 6

In order to provide managers of state owned enterprises (SOEs) with the incentive to make sound economic decisions, command economies have:

Accepted Answer

A)  provided managers with production targets. 
B)  have begun to use different schemes to privatize SOEs. 
C)  have prevented SOEs from becoming bankrupt. 
D)  provided mangers with materials at subsidized prices. 
A)  provided managers with production targets. 
B)  have begun to use different schemes to privatize SOEs. 
C)  have prevented SOEs from becoming bankrupt. 
D)  provided mangers with materials at subsidized prices.

Question 7

When the demand for compact disks increases, producers will be motivated to expand production because the:

Accepted Answer

A)  demand price for compact disks will exceed the opportunity cost of producing an additional compact disk. 
B)  the demand price for compact disks will be less than the opportunity cost of producing an additional compact disk. 
C)  increase in demand creates an excess supply of compact disks. 
D)  increase in demand will increase cost, thereby forcing producers to expand output in order to maintain profits. 
A)  demand price for compact disks will exceed the opportunity cost of producing an additional compact disk. 
B)  the demand price for compact disks will be less than the opportunity cost of producing an additional compact disk. 
C)  increase in demand creates an excess supply of compact disks. 
D)  increase in demand will increase cost, thereby forcing producers to expand output in order to maintain profits.

Question 8

Use the following diagram to answer the following questions.
  
-Refer to Case. The demand price of 4 cases of soft drinks is:

Accepted Answer

A)  $2. 
B)  $4. 
C)  $6. 
D)  $8. 
A)  $2. 
B)  $4. 
C)  $6. 
D)  $8.

Question 9

Suppose producers must be paid $1,000 per computer for them to be just willing to provide the market with 2,500 computers per month. The $1,000 represents:

Accepted Answer

A)  the consumer price for 2,500 computers. 
B)  the demand price for 2,500 computers. 
C)  the producer price of 2,500 computers. 
D)  the supply price of 2,500 computers. 
A)  the consumer price for 2,500 computers. 
B)  the demand price for 2,500 computers. 
C)  the producer price of 2,500 computers. 
D)  the supply price of 2,500 computers.

Question 10

The law of supply states that, other things constant, there is:

Accepted Answer

A)  a positive relationship between price and quantity demanded. 
B)  a negative relationship between price and quantity demanded. 
C)  a positive relationship between price and quantity supplied. 
D)  a negative relationship between price and quantity supplied. 
A)  a positive relationship between price and quantity demanded. 
B)  a negative relationship between price and quantity demanded. 
C)  a positive relationship between price and quantity supplied. 
D)  a negative relationship between price and quantity supplied.

Question 11

In order for the price system to work well, it must be based upon voluntary exchange between informed people.

Accepted Answer

A) True 
 B)False

Question 12

Suppose Jeff is willing to pay a maximum of $20 for a Smashing Pumpkins CD. This $20 represents:

Accepted Answer

A)  Jeff's supply price of the CD. 
B)  the producer price of the CD. 
C)  Jeff's demand price for the CD. 
D)  the consumer price for the CD. 
A)  Jeff's supply price of the CD. 
B)  the producer price of the CD. 
C)  Jeff's demand price for the CD. 
D)  the consumer price for the CD.

Question 13

Suppose the equilibrium price of movie theater tickets is $4.50 per ticket. The campus theater currently has its tickets priced at $3.00 per ticket. We would expect to find:

Accepted Answer

A)  excess supply and the price of tickets falling. 
B)  excess supply and the price of tickets rising. 
C)  excess demand and the price of tickets falling. 
D)  excess demand and the price of tickets rising. 
A)  excess supply and the price of tickets falling. 
B)  excess supply and the price of tickets rising. 
C)  excess demand and the price of tickets falling. 
D)  excess demand and the price of tickets rising.

Question 14

Relative price measures what must be given up in order to purchase an item.

Accepted Answer

A) True 
 B)False

The transition economies continue to subsidize state owned enterprises (SOEs):

Use the following diagram to answer the following questions. -Refer to Unit. If the price of housing is currently $80,000 per unit there will be:

According to economic theory:

Excess supply will exist when:

Briefly discuss how a market economy coordinates the plans of producers and consumers.

In order to provide managers of state owned enterprises (SOEs) with the incentive to make sound economic decisions, command economies have:

When the demand for compact disks increases, producers will be motivated to expand production because the:

Use the following diagram to answer the following questions. -Refer to Case. The demand price of 4 cases of soft drinks is:

Suppose producers must be paid $1,000 per computer for them to be just willing to provide the market with 2,500 computers per month. The $1,000 represents:

The law of supply states that, other things constant, there is:

In order for the price system to work well, it must be based upon voluntary exchange between informed people.

Suppose Jeff is willing to pay a maximum of $20 for a Smashing Pumpkins CD. This $20 represents:

Suppose the equilibrium price of movie theater tickets is $4.50 per ticket. The campus theater currently has its tickets priced at $3.00 per ticket. We would expect to find:

Relative price measures what must be given up in order to purchase an item.

Economic Growth: an Introduction to Scarcity and Choice

Competitive Markets and Government Policy: Agriculture

Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want

Market Power: Does It Help or Hurt the Economy

Air Pollution: Balancing Benefits and Costs

Health Care: How Much for Whom

Crime and Drugs: a Modern Dilemma

College Education: Is It Worth the Cost

Educational Reform: the Role of Incentives and Choice

Poverty: Old and New Approaches to a Persistent Problem

Tracking and Explaining the Macroeconomy

Unemployment: the Legacy of Recession, Technological Change, and Free Choice

Inflation: a Monetary Phenomenon

Sustained Budget Deficits: Is This Any Way to Run a Government

Social Security: Leading Issues and Approaches to Reform

International Trade: Beneficial, but Controversial

Financing Trade and the Trade Deficit

Filters

Exam 2: An Introduction to Economic Systems and the Workings of the Price System

The transition economies continue to subsidize state owned enterprises (SOEs):

Use the following diagram to answer the following questions. -Refer to Unit. If the price of housing is currently $80,000 per unit there will be:

According to economic theory:

Excess supply will exist when:

Briefly discuss how a market economy coordinates the plans of producers and consumers.

In order to provide managers of state owned enterprises (SOEs) with the incentive to make sound economic decisions, command economies have:

When the demand for compact disks increases, producers will be motivated to expand production because the:

Use the following diagram to answer the following questions. -Refer to Case. The demand price of 4 cases of soft drinks is:

Suppose producers must be paid $1,000 per computer for them to be just willing to provide the market with 2,500 computers per month. The $1,000 represents:

The law of supply states that, other things constant, there is:

In order for the price system to work well, it must be based upon voluntary exchange between informed people.

Suppose Jeff is willing to pay a maximum of $20 for a Smashing Pumpkins CD. This $20 represents:

Suppose the equilibrium price of movie theater tickets is $4.50 per ticket. The campus theater currently has its tickets priced at $3.00 per ticket. We would expect to find:

Relative price measures what must be given up in order to purchase an item.

Economic Growth: an Introduction to Scarcity and Choice

Competitive Markets and Government Policy: Agriculture

Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want

Market Power: Does It Help or Hurt the Economy

Air Pollution: Balancing Benefits and Costs

Health Care: How Much for Whom

Crime and Drugs: a Modern Dilemma

College Education: Is It Worth the Cost

Educational Reform: the Role of Incentives and Choice

Poverty: Old and New Approaches to a Persistent Problem

Tracking and Explaining the Macroeconomy

Unemployment: the Legacy of Recession, Technological Change, and Free Choice

Inflation: a Monetary Phenomenon

Sustained Budget Deficits: Is This Any Way to Run a Government

Social Security: Leading Issues and Approaches to Reform

International Trade: Beneficial, but Controversial

Financing Trade and the Trade Deficit

Filters