ECO3041 - Ch 5 and 6 Review Qs

ECO3041 - Ch 5 and 6 Review Qs - Chapter 5 and 6 Review...

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Chapter 5 and 6 Review Questions Questions 1 The minimum wage is an example of a. a price floor. b. a price ceiling. c. a tax on a market. d. a tax on a market. 2 The existence of a shortage in a market will cause: a. market price to rise and quantity supplied to increase. b. market price to rise and quantity supplied to decrease. c. market price to fall and quantity supplied to decrease. d. market price to fall and quantity supplied to increase. Figure 3.1 3 In figure 3.1, if supply decreases, then equilibrium: a. price falls and quantity rises. 1
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Chapter 5 and 6 Review Questions b. price and quantity rise. c. price rises and quantity falls. d. price and quantity fall. 2
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4 If the demand for cars increases when the price of good gasoline decreases, then: a. the two goods are complementary. b. gasoline is a normal good. c. cars are an inferior good. d. the two goods are substitutes. 5 If the demand for a good increases when there is high unemployment, we can conclude that the commodity is: a. a good for which the law of demand does not apply. b. a normal good. c. an inferior good. d. a luxury good. 6 As more firms produce a product: a. market supply increases. b. market demand increases. c. market price increases. d. production costs must increase. 7 If you would have been willing to pay $10 for a pizza and you only had to pay $8, what does the difference between $10 and $8 represent? a. Total benefit. b. Marginal benefit. c. Average benefit. d. Consumer surplus. 8
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This note was uploaded on 01/22/2012 for the course ECO 3041 taught by Professor Dacal during the Fall '11 term at FIU.

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ECO3041 - Ch 5 and 6 Review Qs - Chapter 5 and 6 Review...

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