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hwset1questions - Macroeconomics Principles Hw1 due by...

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Macroeconomics Principles Hw1 due by October 4 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The price of a film camera is $150 and the price of a similar digital camera is $300. What is the relative price of the digital camera? 1) _______ A) 2 film cameras B) $150 more expensive than the film camera C) 1/2 of a film camera D) $150 2) The "law of demand" refers to the fact that, all other things remaining constant on the demand side of the market, when the price of a good rises 2) _______ A) there will be a movement up along the demand curve to a smaller quantity demanded. B) there will be a movement down along the demand curve to a larger quantity demanded. C) the demand curve will shift rightward. D) the demand curve will shift leftward. 3) Which of the following will occur in the market for soft drinks if the money price of soft drinks increases? I) The relative price of soft drinks increases. II) The substitution effect may cause people to switch to drinking bottled water. 3) _______ A) both I and II B) II only C) I only D) neither I nor II 4) If the price of an apple increases, 4) _______ A) the substitution effect does not occur. B) the income effect does not occur. C) its opportunity cost decreases. D) its opportunity cost increases. 5) Pizza is a normal good. When the price of a pizza decreases from $12 to $10, 5) _______ A) the income effect means people buy more pizza. B) the income effect means people buy less pizza. C) the quantity demanded of pizza will not change. D) None of the above answers is correct. 6) Which of the following explains why demand curves slope downward? 6) _______ A) substitutes and complements B) resources and technology
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C) substitution effect and income effect D) prices and income 7) Changes in which of the following items will shift the demand curve for hamburgers? 7) _______
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hwset1questions - Macroeconomics Principles Hw1 due by...

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