Question 1

Shortages of a particular good can be expected to lead to rising prices and increased production for that good in a market economy

Accepted Answer

A) True 
 B)False  True

Question 2

The Following Questions Refer to the graph below. 
-When price is $10,how much will be sold in the market?

Accepted Answer

A)  0
B)  100
C)  200
D)  300
E)  It can not be determined B

Question 3

Mao Zedong started China's transition to a market economy

Accepted Answer

A) True 
 B)False  False

Question 4

Given a downward-sloping demand curve and an upward-sloping supply curve,an increase in supply together with an increase in demand will cause the

Accepted Answer

A)  Equilibrium quantity purchased to increase,but the effect on price will be indeterminate
B)  Equilibrium quantity purchased to decrease,but the effect on price will be indeterminate
C)  Price to rise,but the effect on the equilibrium quantity purchased will be indeterminate
D)  Price to fall,but the effect on the quantity bought and sold will be indeterminate
E)  Equilibrium price to rise and the equilibrium quantity purchased will rise

Question 5

A market with only one seller of a product that has no good substitutes is called

Accepted Answer

A)  A pure monopoly
B)  A pure command economy
C)  Purely competitive
D)  Imperfectly competitive
E)  An oligopoly

Question 6

If the price of film increases at the same time the cost of camera production increases,what will happen to the equilibrium price and quantity in the camera market?

Accepted Answer

A)  Price will increase,quantity will decrease
B)  Price will increase,quantity will increase
C)  Price will decrease,quantity will decrease
D)  Price will decrease,quantity will increase
E)  The new equilibrium price and quantity can not be determined

Question 7

Blocked entry is essential for a purely competitive market

Accepted Answer

A) True 
 B)False

Question 8

In a market economy,price fluctuations indicate there is a lack of effective competition

Accepted Answer

A) True 
 B)False

Question 9

Suppose the United Auto Workers union successfully lobbies Congress to enact an import quota on all foreign cars imported into the U.S.Which of the following is most likely to occur in the U.S.?

Accepted Answer

A)  A fall in the price of imported cars and increase in the price of domestics
B)  An increase in the demand for domestic cars
C)  A decrease in American autoworker wages
D)  Higher unemployment among American autoworkers
E)  A fall in the demand for imports

Question 10

The Chinese Communist Party favored production in the heavy industry sectors of the economy

Accepted Answer

A) True 
 B)False

Question 11

When both supply and demand increase,price and quantity will increase

Accepted Answer

A) True 
 B)False

Question 12

The Following Questions Refer to the graph below. 
-The demand curve and supply curve for beef are DD and SS.Which of the following could NOT cause demand to shift to D1D1?

Accepted Answer

A)  An increase in the price of a substitute good
B)  An increase in the price of a complementary good
C)  An increase in consumer income
D)  A change in consumer tastes
E)  A change in consumer expectations

Question 13

Under the Great Leap Forward,the task of determining how much to produce fell on the State Planning Commission

Accepted Answer

A) True 
 B)False

Question 14

An increase in the wages of orange pickers will have what effect in the market for oranges?

Accepted Answer

A)  Price will increase,quantity will decrease
B)  Price will increase,quantity will increase
C)  Price will decrease,quantity will decrease
D)  Price will decrease,quantity will increase
E)  The new equilibrium price and quantity can not be determined

Question 15

The Following Questions Refer to the graph below. 
-If the market starts in equilibrium with D1 and S1,and equilibrium price and quantity increase to $10 and 65,which of the following could have caused the change?

Accepted Answer

A)  An increase in consumer income
B)  An increase in production costs
C)  The discovery that Dr.Pepper causes health problems
D)  A technological advance in Dr.Pepper production
E)  All of the above

Question 16

Following the establishment of a Soviet style society in 1949,the State Planning Commission was created by

Accepted Answer

A)  Chiang Kai-Shek
B)  Deng Xiaoping
C)  Mao Zedong
D)  Joseph Stalin
E)  Wen Jiabao

Question 17

From a standpoint of resource allocation, a surplus of corn implies

Accepted Answer

A)   Consumers would prefer some of the resources used to produce corn be used to produce something else
B)   The market for agricultural products is failing
C)   Government should purchase the surplus to protect the farmers
D)   The price of corn is too low and should be increased
E)   The quantity demanded of corn exceeds the quantity supplied

Question 18

An increase in consumer income can either increase or decrease demand for a good

Accepted Answer

A) True 
 B)False

Question 19

If an increase in the price of bicycles leads to an increase in the demand for bus transportation,the bicycles and bus rides must be

Accepted Answer

A)  Substitutes
B)  Complements
C)  Normal goods
D)  Inferior goods
E)  Standardized products

Question 20

Since 1990,China's growth has been

Accepted Answer

A)  Roughly equal to that of the United States
B)  Declining
C)  In the double digits
D)  About 3% per year
E)  None of the above

Exam 2: Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Shortages of a particular good can be expected to lead to rising prices and increased production for that good in a market economy

The Following Questions Refer to the graph below. -When price is $10,how much will be sold in the market?

Mao Zedong started China's transition to a market economy

Given a downward-sloping demand curve and an upward-sloping supply curve,an increase in supply together with an increase in demand will cause the

A market with only one seller of a product that has no good substitutes is called

If the price of film increases at the same time the cost of camera production increases,what will happen to the equilibrium price and quantity in the camera market?

Blocked entry is essential for a purely competitive market

In a market economy,price fluctuations indicate there is a lack of effective competition

Suppose the United Auto Workers union successfully lobbies Congress to enact an import quota on all foreign cars imported into the U.S.Which of the following is most likely to occur in the U.S.?

The Chinese Communist Party favored production in the heavy industry sectors of the economy

When both supply and demand increase,price and quantity will increase

The Following Questions Refer to the graph below. -The demand curve and supply curve for beef are DD and SS.Which of the following could NOT cause demand to shift to D₁D₁?

Under the Great Leap Forward,the task of determining how much to produce fell on the State Planning Commission

An increase in the wages of orange pickers will have what effect in the market for oranges?

The Following Questions Refer to the graph below. -If the market starts in equilibrium with D₁ and S₁,and equilibrium price and quantity increase to $10 and 65,which of the following could have caused the change?

Following the establishment of a Soviet style society in 1949,the State Planning Commission was created by

From a standpoint of resource allocation, a surplus of corn implies

An increase in consumer income can either increase or decrease demand for a good

If an increase in the price of bicycles leads to an increase in the demand for bus transportation,the bicycles and bus rides must be

Since 1990,China's growth has been

Exam 2: Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Shortages of a particular good can be expected to lead to rising prices and increased production for that good in a market economy

The Following Questions Refer to the graph below. -When price is $10,how much will be sold in the market?

Mao Zedong started China's transition to a market economy

Given a downward-sloping demand curve and an upward-sloping supply curve,an increase in supply together with an increase in demand will cause the

A market with only one seller of a product that has no good substitutes is called

If the price of film increases at the same time the cost of camera production increases,what will happen to the equilibrium price and quantity in the camera market?

Blocked entry is essential for a purely competitive market

In a market economy,price fluctuations indicate there is a lack of effective competition

Suppose the United Auto Workers union successfully lobbies Congress to enact an import quota on all foreign cars imported into the U.S.Which of the following is most likely to occur in the U.S.?

The Chinese Communist Party favored production in the heavy industry sectors of the economy

When both supply and demand increase,price and quantity will increase

The Following Questions Refer to the graph below. -The demand curve and supply curve for beef are DD and SS.Which of the following could NOT cause demand to shift to D1D1?

Under the Great Leap Forward,the task of determining how much to produce fell on the State Planning Commission

An increase in the wages of orange pickers will have what effect in the market for oranges?

The Following Questions Refer to the graph below. -If the market starts in equilibrium with D1 and S1,and equilibrium price and quantity increase to $10 and 65,which of the following could have caused the change?

Following the establishment of a Soviet style society in 1949,the State Planning Commission was created by

From a standpoint of resource allocation, a surplus of corn implies

An increase in consumer income can either increase or decrease demand for a good

If an increase in the price of bicycles leads to an increase in the demand for bus transportation,the bicycles and bus rides must be

Since 1990,China's growth has been

The Following Questions Refer to the graph below. -The demand curve and supply curve for beef are DD and SS.Which of the following could NOT cause demand to shift to D₁D₁?

The Following Questions Refer to the graph below. -If the market starts in equilibrium with D₁ and S₁,and equilibrium price and quantity increase to $10 and 65,which of the following could have caused the change?