Chapter_4(1) - Principles of Macroeconomics 9e TB1(Case/Fair/Oster Chapter 4 1 Demand and Supply Applicatio n s 4.1 The 1 M ul ti pl e C h o i c e

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Unformatted text preview: Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster) Chapter 4 1 Demand and Supply Applicatio n s 4.1 The 1 M ul ti pl e C h o i c e 1) In the short run, it is necessary to non-price ration a good whenever ________ exists. A) excess demand B) excess supply C) a surplus D) market equilibrium Answer: A Diff: 2 Topic: The Price System: Rationing and Allocating Resources Skill: Conceptual AACSB: Reflective Thinking 2) Among the methods of nonprice rationing are A) coupons. B) favored customers. C) waiting in line. D) all of the above Answer: D Diff: 2 Topic: The Price System: Rationing and Allocating Resources Skill: Conceptual 3) The price system A) automatically distributes scarce goods. B) is inefficient. C) requires government help to allocate goods. D) is the only way to allocate goods. Answer: A Diff: 2 Topic: The Price System: Rationing and Allocating Resources Skill: Conceptual AACSB: Reflective Thinking 4) Attempts to bypass price rationing in the market A) are efficient. B) are easily administered. C) are costly. D) always fail. Answer: C Diff: 2 Topic: The Price System: Rationing and Allocating Resources Skill: Conceptual AACSB: Reflective Thinking 5) Favored customers are customers who receive special treatment from dealers during periods of A) excess demand. B) excess supply. C) price above equilibrium. D) equilibrium. Answer: A Diff: 2 Topic: The Price System: Rationing and Allocating Resources Skill: Definition 6) In a "black market" A) suppliers take advantage of buyers. B) price is illegally below market price. C) illegal trading at market prices takes place. D) only illegal goods and services are traded. Answer: C Diff: 2 Topic: The Price System: Rationing and Allocating Resources Skill: Definition 7) When supply is fixed or the product is unique, then price is A) supply determined. B) demand determined. C) government determined. D) indeterminate. Answer: B Diff: 2 Topic: The Price System: Rationing and Allocating Resources Skill: Conceptual AACSB: Reflective Thinking 8) If the government imposes a maximum price that is above the equilibrium price, A) this maximum price will have no economic impact. B) quantity demanded will be less than quantity supplied. C) demand will be greater than supply. D) the available supply will have to be rationed with a nonprice rationing mechanism. Answer: A Diff: 1 Topic: The Price System: Rationing and Allocating Resources Skill: Conceptual AACSB: Reflective Thinking 9) People...
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This note was uploaded on 01/31/2011 for the course ECON 12123 taught by Professor Donald during the Spring '10 term at Johnson County Community College.

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Chapter_4(1) - Principles of Macroeconomics 9e TB1(Case/Fair/Oster Chapter 4 1 Demand and Supply Applicatio n s 4.1 The 1 M ul ti pl e C h o i c e

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