Concluding that there is a positive relationship

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Concluding that there is a positive relationship between gasoline prices and the quantity demanded would be an example of: A) the post hoc fallacy. B) the failure to hold other things constant. C) the fallacy of composition. D) a mixed market economy. E) none of the above.
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11 The principle of the "invisible hand" claims that: A) the selfish pursuits of everyone's own interest will lead to the best good for all under market competition. B) government must gently guide economic activity so that the best for all will be attained. C) government policies work like an invisible hand, steering resources to their best use. D) producers must quietly cooperate so that prices are not so low as to cause losses. E) none of the above. II True or False (16 points). Decide whether each of the following statements is True or False. 12 _________Supply refers to the amount of a product that a producer will offer in the market at some particular price. 13 _________The notion of a production-possibility frontier can be generalized to accommodate three goods.
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14 _________In general, supply becomes less elastic the longer the time period under consideration. 15 _________The opportunity cost of economic growth is the current consumption we give up to produce more capital goods. III Fill in the blanks: (10 points). A new technology makes production of DVD players cheaper. Assume that DVD players and DVDs are complements. All else equal (ceteris paribus), the new, better, technology will cause the ___________(supply/demand) for __________(DVD players/ DVDs) to _____________(increase/decrease), and the equilibrium price for DVD players to ___________(increase/decrease/not change). The market equilibrium quantity of DVDs will ___________(increase/decrease/not change). IV Define "Negative Externality" (10 points). Be as precise as possible.
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V Graphs with Explanations (20 points) 1. Use the appropriate curve(s) (e.g. Supply and Demand Curves, PPF, etc.) to represent each of the following: (remember to label each axis as well as the curves and all the relevant points such as equilibrium quantity, Q0, equilibrium price, P0, market equilibrium, E, or production combination). 2. Show the shift in or along the appropriate curve(s) and indicate the new
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