[{"id":212999,"question":"The price mechanism cannot.","choices":[{"text":"Act as a signal","value":"A"},{"text":"Act as an incentive","value":"B"},{"text":"Act as a rationing device","value":"C"},{"text":"Shift the demand curve","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212998,"question":"A movement along the supply curve may be caused by","choices":[{"text":"A change in technology","value":"A"},{"text":"A change in the number of producers","value":"B"},{"text":"A shift in demand","value":"C"},{"text":"A change in costs","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":212997,"question":"A subsidy paid to producers.","choices":[{"text":"Shifts the supply curve","value":"A"},{"text":"Shifts the demand curve","value":"B"},{"text":"Leads to a contractional supply","value":"C"},{"text":"Leads to an extension of supply","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":212996,"question":"A movement along the demand curve may be caused by","choices":[{"text":"A change in income","value":"A"},{"text":"A change en the number of buyers","value":"B"},{"text":"A change in advertising","value":"C"},{"text":"A shift in supply","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212995,"question":"If the price was fixed below the equilibrium price there would be.","choices":[{"text":"Excess supply","value":"A"},{"text":"Excess demand","value":"B"},{"text":"Equilibrium","value":"C"},{"text":"Down ward pressure on prices","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":212994,"question":"Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by.","choices":[{"text":"An fall in demand","value":"A"},{"text":"An increase in supply","value":"B"},{"text":"Improvements in production technology","value":"C"},{"text":"An increase in demand","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212993,"question":"A shift in supply will have a bigger effect on price than output if demand is.","choices":[{"text":"Income elastic","value":"A"},{"text":"Income inelastic","value":"B"},{"text":"Price elastic","value":"C"},{"text":"Price inelastic","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212992,"question":"A reduction in the costs of production will","choices":[{"text":"Lead to a movement along the supply curve","value":"A"},{"text":"Shift the demand curve","value":"B"},{"text":"Shift the supply curve","value":"C"},{"text":"Lead to an extension of supply","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":212991,"question":"An increase income will","choices":[{"text":"Lead to a movement along the demand curve","value":"A"},{"text":"Shift the supply curve","value":"B"},{"text":"Shift the demand curve","value":"C"},{"text":"Lead to an extension of demand","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":212990,"question":"If demand increase in a market this will usually lead to.","choices":[{"text":"A higher equilibrium price and output","value":"A"},{"text":"a lower equilibrium price and higher output","value":"B"},{"text":"A lower equilibrium price and output.","value":"C"},{"text":"A higher equilibrium price and lower output","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":212989,"question":"An increase in productivity should.","choices":[{"text":"Lead to a contraction of supply","value":"A"},{"text":"Lead to an expansion of supply","value":"B"},{"text":"Lead to a shift in supply outwards","value":"C"},{"text":"Lead to higher equilibrium and lower equilibrium quantity.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":212988,"question":"An increase in price all other things unchanged leads to.","choices":[{"text":"A shift in supply out wards","value":"A"},{"text":"A shift in supply in wards","value":"B"},{"text":"A contraction of supply","value":"C"},{"text":"An extension of supply","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212987,"question":"An increase in the costs of production will","choices":[{"text":"Shift demand out wards","value":"A"},{"text":"Shift demand in wards","value":"B"},{"text":"Shift supply out wards so more is supplied at each and every price all other things unchanged.","value":"C"},{"text":"Shift supply inwards","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212986,"question":"A contraction in supply occurs when","choices":[{"text":"Demand shifts out wards","value":"A"},{"text":"The supply curve shifts inwards","value":"B"},{"text":"The quantity supplied falls when the price falls","value":"C"},{"text":"The supply curve shifts outwards","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":212985,"question":"A supply curve that starts at the origin has","choices":[{"text":"A price elasticity of supply greater than one","value":"A"},{"text":"A price elasticity of supply equal to one","value":"B"},{"text":"A price elasticity of supply less than one","value":"C"},{"text":"A positive price elasticity of supply","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":212984,"question":"Supply is likely to be more price elastic.","choices":[{"text":"In the short run rather than the long run","value":"A"},{"text":"If factors of production are relatively immobile between industries.","value":"B"},{"text":"If there are very few producers","value":"C"},{"text":"If it is easy to expand output","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212983,"question":"If demand is price inelastic.","choices":[{"text":"An increase in price must raise profits","value":"A"},{"text":"An increase in price decreases revenue","value":"B"},{"text":"An increase in price increase revenue","value":"C"},{"text":"A decrease in price reduces sales.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":212982,"question":"The bowed shape of the production possibilities curve illustrtres.","choices":[{"text":"The law of increasing marginal cost","value":"A"},{"text":"the production in inefficient","value":"B"},{"text":"That production is inattainable","value":"C"},{"text":"The demand is relatively inelastic","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":212981,"question":"If product an inferior good.","choices":[{"text":"Demand is inversely related to income","value":"A"},{"text":"Demand is inversely related to price","value":"B"},{"text":"Demand is directly related to price","value":"C"},{"text":"Demand is inversely related to the price of substitutes","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":212980,"question":"An increase in price all other, things unchanged leads to.","choices":[{"text":"Shift demand outwards","value":"A"},{"text":"Shift demand inward","value":"B"},{"text":"A contraction of demand","value":"C"},{"text":"An extension of demand","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":212979,"question":"An increase in the price of a complement or produce.A would.","choices":[{"text":"Shift demand for product a out wants","value":"A"},{"text":"Shift demand for product A inwards","value":"B"},{"text":"shift supply for product A out wards","value":"C"},{"text":"Shift supply for product A inwards","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":212978,"question":"If marginal utility is zero.","choices":[{"text":"Total utility is zero","value":"A"},{"text":"An additional unit of consumption will decrease total utility","value":"B"},{"text":"An additional unit of consumption will increase total utility","value":"C"},{"text":"Total utility is maximized","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212977,"question":"According to the law of diminishing utility.","choices":[{"text":"Utility is at a maximum with the first unit","value":"A"},{"text":"Increasing units of consumption increase the marginal utility","value":"B"},{"text":"Marginal product will fall as more units are consumed","value":"C"},{"text":"Total utility will rise at a falling rate as more units are consumed","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212976,"question":"Demand for a normal product may shift outwards if.","choices":[{"text":"Price decreases","value":"A"},{"text":"The price fo a substitute falls","value":"B"},{"text":"the price of a complement rises","value":"C"},{"text":"Income falls","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":212975,"question":"There are three fundamental questions every society must answer Which of the following is one of these questions.","choices":[{"text":"What goods and services are to be produced.","value":"A"},{"text":"How are the good and services to be produced.","value":"B"},{"text":"Who will get the goods and services what are produced.","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212974,"question":"Any combination of products inside the production possibility frontier is","choices":[{"text":"Allocatively inefficient","value":"A"},{"text":"X inefficient","value":"B"},{"text":"Consumer inefficient","value":"C"},{"text":"Productively inefficient","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212973,"question":"The resources in an economy are","choices":[{"text":"Constantly increasing","value":"A"},{"text":"Fixed at any moment","value":"B"},{"text":"Constant decreasing","value":"C"},{"text":"Able to be transferred easily between industries","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":212972,"question":"The resources in the economy do not include.","choices":[{"text":"Demand","value":"A"},{"text":"Land","value":"B"},{"text":"Labor","value":"C"},{"text":"Capital","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":212971,"question":"An economy may operate outside the production possibility frontier it.","choices":[{"text":"It is not utilizing its resources fully","value":"A"},{"text":"It is being productively efficient","value":"B"},{"text":"It is a maxed economy","value":"C"},{"text":"It is trading with other economics","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":212970,"question":"In a free market the combination of products produced will be determined by.","choices":[{"text":"Market forces of supply and demand","value":"A"},{"text":"The government","value":"B"},{"text":"The law","value":"C"},{"text":"The public sector","value":"D"},{"value":"E"}],"correctAnswer":1}]