[{"id":213239,"question":"The \"Law of demand\" most directly means that consumers buy","choices":[{"text":"More of a good the higher their incomes, ceteris paribus.","value":"A"},{"text":"Less of good the higher its price ceteris paribus","value":"B"},{"text":"Buy more of a good the less is its supply ceteris paribus","value":"C"},{"text":"Buy less of a good the greater is its supply ceteris paribus","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213238,"question":"The \"Law of demand\" states that other things remaining the same the quantity demanded of any good is.","choices":[{"text":"Directly related to its price","value":"A"},{"text":"Positively related to its price","value":"B"},{"text":"Inversely related to its price","value":"C"},{"text":"Directly elated to the supply of the good","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213237,"question":"Which of the following best defines price discrimination.","choices":[{"text":"Charging different prices on the basis of race","value":"A"},{"text":"Charging different prices for goods with different costs of production","value":"B"},{"text":"Charging different prices based on cost of service differences.","value":"C"},{"text":"Selling a certain product of given quality and cost per unit at different prices to different buyers","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213236,"question":"Japan's low interest rates in the mid 80's were due to.","choices":[{"text":"High rates of domestic savings.","value":"A"},{"text":"A decrease in Japan's exports","value":"B"},{"text":"Increases in the U.S. deficit","value":"C"},{"text":"High rates of domestic spending in Japan","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213235,"question":"Sales taxes are generally considered to be.","choices":[{"text":"Proportional taxes","value":"A"},{"text":"Regressive taxes","value":"B"},{"text":"Progressive taxes","value":"C"},{"text":"Indirect taxes","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213234,"question":"The diamond water paradox can be explained by suggesting that the price of a product is determined by.","choices":[{"text":"Consumer incomes","value":"A"},{"text":"Its marginal utility","value":"B"},{"text":"Consumer surplus","value":"C"},{"text":"Diminishing marginal utility","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213233,"question":"Economists use the term marginal utility to mean.","choices":[{"text":"Additional satisfaction gained divided by additional cost of the last unit.","value":"A"},{"text":"Additional satisfaction gained by the consumption of one more unit of a good","value":"B"},{"text":"Total satisfaction gained when consuming a given number of units.","value":"C"},{"text":"The process of comparing marginal units of all goods which could be purchased","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213232,"question":"Economists use the term utility to mean","choices":[{"text":"The value of a product before it has been advertised","value":"A"},{"text":"The satisfaction a consumer obtains from a good or service","value":"B"},{"text":"any characteristic of a good or service which cannot be measured","value":"C"},{"text":"The contribution a good or service makes to social welfare","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213231,"question":"If the \"Regulated -market\" price is below the equilibrium price.","choices":[{"text":"The quantity demanded will be greater than quantity supplied","value":"A"},{"text":"Demand will be les than supply","value":"B"},{"text":"Quantity demanded will be less than quantity supplied","value":"C"},{"text":"Quantity demanded will equal quantity supplied","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213230,"question":"What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity.","choices":[{"text":"Price falls, quantity rises","value":"A"},{"text":"Price rises, quantity falls","value":"B"},{"text":"Both price and quantity fall","value":"C"},{"text":"Both price and quantity rise","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213229,"question":"Equilibrium in the market for good A obtains.","choices":[{"text":"When there is no surplus or shortage prevailing in the market","value":"A"},{"text":"Where the demand and supply curves for A intersect","value":"B"},{"text":"When all of what is produced of A is consumed","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213228,"question":"Which of the following is necessary for a natural monopoly.","choices":[{"text":"Economies of scale","value":"A"},{"text":"A high proportion of the total cost is the cost of capital goods","value":"B"},{"text":"The market is very small","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213227,"question":"The concept of \"Interdependence of markets\" can refer to the interdependence between.","choices":[{"text":"Two or more factor markets","value":"A"},{"text":"Goods and factor markets","value":"B"},{"text":"Goods markets","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213226,"question":"Laboratory experiments cannot be performed in economics because.","choices":[{"text":"Of resource scarcity","value":"A"},{"text":"Economics is a natural science","value":"B"},{"text":"Of the difficulty of distinguishing between normative and positive statements.","value":"C"},{"text":"Economics is a social science","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213225,"question":"What lies is at the heart of the allocation of goods and services in a free market economy.","choices":[{"text":"Concerns of equity or equal distribution among individuals.","value":"A"},{"text":"The order or command of the ruling government or dictator","value":"B"},{"text":"The wishes of consumers in the market","value":"C"},{"text":"The price mechanism","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213224,"question":"Capital, as economists use the term.","choices":[{"text":"Is the money the firm spends to hire resources","value":"A"},{"text":"Is money the firm raises from selling stock","value":"B"},{"text":"Refers to the process by which resources are transformed into useful forms","value":"C"},{"text":"Refers to things that have already been produced that are in turn used to produce other goods and services.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213223,"question":"Compared to the case of perfect competition, a monopolist is more likely to","choices":[{"text":"Charge a higher price","value":"A"},{"text":"Produce a lower quantity of the product","value":"B"},{"text":"Make a greater amount of economic profit","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213222,"question":"In order to maximize profits a monopoly company will produce that quantity at which the.","choices":[{"text":"Marginal revenue equals average total cost","value":"A"},{"text":"Price equals marginal revenue","value":"B"},{"text":"Marginal revenue equals marginal cost","value":"C"},{"text":"total revenue equals total cost","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213221,"question":"The length of a business cycle would be measured from","choices":[{"text":"Peak t trough","value":"A"},{"text":"Trough to peak","value":"B"},{"text":"Peak to Peak","value":"C"},{"text":"The slump to the expansion","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213220,"question":"When referring to economic growth we normally refer to.","choices":[{"text":"Growth in actual real per capita output","value":"A"},{"text":"Growth in potential real per capita output","value":"B"},{"text":"Growth in actual nominal per capita output","value":"C"},{"text":"Growth in potential real per capita output","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213219,"question":"In pure monopoly what is the relation between the price and teh marginal revenue.","choices":[{"text":"The price is greater than the marginal revenue","value":"A"},{"text":"The price is les than the marginal revenue","value":"B"},{"text":"There is no relation","value":"C"},{"text":"They are equal","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213218,"question":"Which of the following is a characteristic of pure monopoly.","choices":[{"text":"one seller of the product","value":"A"},{"text":"Low barriers to entry","value":"B"},{"text":"Close substitute products","value":"C"},{"text":"Perfect information","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213217,"question":"Why is the law of diminishing marginal returns true.","choices":[{"text":"specialization and division of labor","value":"A"},{"text":"Spreading the average fixed cost","value":"B"},{"text":"Limited capital","value":"C"},{"text":"All factors being variable in the long run","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213216,"question":"Exchange rates that are determined by the unregulated forces of supply and demand are.","choices":[{"text":"Floating exchange rates","value":"A"},{"text":"Pegged exchange rates","value":"B"},{"text":"Fixed exchange rate","value":"C"},{"text":"Managed exchange rates","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213215,"question":"All currencies other than the domestic currency of a given country are referred to as.","choices":[{"text":"Reserve currencies","value":"A"},{"text":"Neal monies","value":"B"},{"text":"Foreign exchange","value":"C"},{"text":"Hard currency","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213214,"question":"If inflationary expectations increase, the short run Phillip's curve will","choices":[{"text":"Become vertical","value":"A"},{"text":"Become up warding sloping","value":"B"},{"text":"Shift to the right","value":"C"},{"text":"Shift to the left","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213213,"question":"If input price adjusted very slowly to output prices, the Phillip's curve would be.","choices":[{"text":"Downward sloping","value":"A"},{"text":"Vertical or nearly vertical","value":"B"},{"text":"Upward sloping","value":"C"},{"text":"Horizontal or nearly horizontal","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213212,"question":"The index used most often to measure inflation is the","choices":[{"text":"Consumer price index","value":"A"},{"text":"Wholesale price index","value":"B"},{"text":"Student price index","value":"C"},{"text":"Producer price index","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213211,"question":"The accelerator theory of investment says that induced investments determined by.","choices":[{"text":"The rate of change of national income","value":"A"},{"text":"Expectations","value":"B"},{"text":"The level of national income","value":"C"},{"text":"The level of aggregate demand","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213210,"question":"If injection are less than with drawls at the full employment level of national income there is.","choices":[{"text":"an inflationary gap","value":"A"},{"text":"Equilibrium","value":"B"},{"text":"A deflationary gap","value":"C"},{"text":"Hyperinflation","value":"D"},{"value":"E"}],"correctAnswer":3}]