PPSC Economics Topic 6 Economics Model

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  • Chapter NameEconomics Models

PPSC Economics Topic 6 Economics Model

  • Total Questions20

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PPSC Economics Topic 6 Economics Model

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Question # 1

The percentage change in the quantity demanded in response to a percentage change in the price is known as the.

Question # 2

Holding all other factors constant consumers demand more of a good the

Question # 3

Which of the following is an example of a normative statement.

Question # 4

For a given positively sloped supply curve the price increase to consumers resulting from a specific tax imposed on sellers will be.

Question # 5

If the price of automobiles were to decrease substantially the demand curve for public transpiration would most likely.

Question # 6

The expression increase in quantity supplied is illustrated graphically as a.

Question # 7

In the labor market if the government imposes a minimum wage that is below the equilibrium wage then.

Question # 8

If price is initially above the equilibrium level.

Question # 9

A vertical demand curve for a particular good implies that consumers are.

Question # 10

Suppose the demand curve for a good shifts rightward, causing the equilibrium price to increase this increase in the price of the good results in.

Question # 11

A competitive equilibrium is described by

Question # 12

It is appropriate to use the supply and demand model if in a market.

Question # 13

The purpose of making assumptions in economic model building is to.

Question # 14

As the price of a good increases, the change in the quantity demanded can be shown by

Question # 15

If the price of orange juice rises 10% and as a result the quantity demanded falls by 8% the price elastic of demand for orange juice is.

Question # 16

A Horizontal demand curve for a good could arise because consumers.

Question # 17

If the price of automobile were to decrease substantially the demand curve for automobiles would most likely.

Question # 18

Equilibrium is defined as a situation in which.

Question # 19

Consumers and firms are known as price takers only it

Question # 20

If a government imposed price celling causes the observed price in a market to be below the equilibrium price.

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