Quiz1 - ECON 205 Principles of Macroeconomics Spring 2007,...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 205 Principles of Macroeconomics Spring 2007, Prof. Safarzadeh Quiz #1 Discussion Section: TA name: Name: Student I.D: 1. By economics definition scarce resources are resources a. that can not be found abundantly b. that are rare and exotic c. that we pay a price for them d. such as diamond, gold and oil e. a & b Answer: C 2. Which of the following is considered capital in economics: a. A $20 bill in your pocket b. A $1,000,000 saving of EZ corporation in the bank c. Stocks and bonds owned by individuals d. A calculator owned by a student e. All of the above Answer: D 3. Which of the following statements is (are) normative statement(s) a. A tax on tobacco industry will increase price of cigarettes and will reduce consumption of cigarettes. b. Government should increase taxes on tobacco industry to cut consumption of cigarettes by public. c. Smoking is bad for people. Government should raise sales taxes for cigarette. d. a and b e. b and c Answer: E 4. Recession is a. A decline in the economy b. An increase in unemployment c. Two consecutive quarters of decline in GDP d. Decline in GDP and increase in Unemployment e. A mild depression Answer: C 5. The ultimate owner of economic resources is (are) a- government b- households, government, and firms c- businesses d- households Answer: D 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6. An increase in price of a good will a. Increase demand c. Decrease demand b. Increase supply d. Decrease quantity demanded e. c and d Answer: D 7. An increase in income will a. Increase demand c. Decrease demand b. Increase supply d. Decrease quantity demanded e. c and d Answer: A 8. Assume that the market for gasoline is in equilibrium. If the price of crude oil, which is an input for making gasoline, increases then in the market for gasoline a. Demand will shift to right and price will increase b. Quantity supplied will shift to left and price will increase c. Supply will shift to left and price will increase d. Supply will shift to right and price will increase e. Demand and supply will shift to right and price will increase Answer: C 9. Assume that the market for gasoline is in equilibrium. If income increases (GDP increase) and price of crude oil, which is an input for making gasoline, increases. a. Demand will shift to left, supply will shift to right and price will increase b. Demand will shift to right and supply will shift to right and price will increase c. Supply will shift to left and quantity demanded will shift to right and price will increase d. Supply will shift to left and demand will shift to right and price will increase e. Demand and supply will shift to left and price will increase Answer: D 10. Assume that the market for gasoline is in equilibrium. Then, assume that government levies new sales taxes on gasoline and OPEC increases oil prices. The market response will be. a.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Quiz1 - ECON 205 Principles of Macroeconomics Spring 2007,...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online