Sample test

Sample test - The most fundamental assumption of economic...

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The most fundamental assumption of economic theory of those below is that: a. There is no difference between rational and irrational behavior. b. Individuals chose those actions, from among the actions available, that they think will yield them the highest net advantage c. People are selfish in the last analysis (Self-interest is not equal to "Selfish"). d. Everyone is more interested in money than in goods ("money" is of little interest apart from its use in getting goods). 2. Which of the following will not change the demand for movie tickets? a. A change in the cost of babysitting services. b. A change in the price of movie tickets c. A change in the quality of television programs. d. A change in the income of moviegoers. 3. If people are willing this year to buy more bottled water at each and every price than they were willing to buy last year, the a. Demand for bottled water has increased b. Law of demand has been violated. c. Law of demand has been demonstrated. d. Cost of living must have risen. 4. Consider the market for cotton in the U.S., and suppose that a new chemical is developed that can be added to cotton at an insignificant cost to make the ironing of cotton shirts unnecessary. We would expect this to a. Increase the quantity supplied of cotton. b. Increase the demand for cotton. c. Increase the quantity demanded of cotton. d. Both a) and b) e. Both a) and c). 5. People must make choices because of the existence of a. Poverty. b. Scarcity c. Inflation. d. Unemployment. 6. Compared to high-income families, the lower-income families consume more of: a. Complementary goods. b. Substitute goods. c. Normal goods. d. Inferior goods 7. The area underneath the demand curve, but above the price paid, is referred to as: a. The quantity supplied. b. The producer surplus. c. The shortage. d. The surplus. e. The consumer surplus 8. If the equilibrium rent for a two-bedroom apartment in Boulder is $1,200/month, and a price ceiling is imposed at $1,500/month, the result will be a. A shortage. b. A surplus.
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c. A deadweight loss. d. None of the above 9. If the equilibrium low-skilled wage rate in Boulder is $6.50/hour, and a minimum wage is imposed at $8.00/hour, the result will be: a. A shortage of low-skilled labor in that market. b. A surplus of low-skilled labor in that market. c. A deadweight loss.
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Sample test - The most fundamental assumption of economic...

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