Chapter 1Introducing the Economic Way of Thinking
1. When economists say scarcity, they mean:
a. there are only a limited number of consumers who would be interested in
b. the human desire for goods exceeds the available
Chapter 3 Part 2Market Demand and Supply
251. If a shortage exists in a market then:
a. the price is below equilibrium.
b. the quantity demanded exceeds the quantity supplied.
c. the price will rise in the near future.
d. all of these.
Chapter 5 Part 1Price Elasticity of Demand and Supply
1. Suppose the Pleasant Corporation cuts the price of its American Girl dolls by 10 percent, and
as a result, the quantity of the dolls sold increases by 25 percent. This indicates that
Chapter 3 Part 1Market Demand and Supply
1. In economics, the demand for a good refers to the amount of the good people:
a. would like to have if the good were free.
b. are willing to buy at various prices.
c. need to achieve a minimum sta
Chapter 8Perfect Competition
1. Market structure is defined as the:
a. number of firms in each industry.
b. similarity of the product sold.
c. ease of entry into and exit from the market.
d. all of these.
TOP: Market structur
1. Which of the following factors is not a barrier limiting the entry of potential competitors into a
a. legally enforced patent rights
b. an inelastic demand for a product
d. control over an essentia
Chapter 10Monopolistic Competition and Oligopoly
1. Which of the following most closely approximates the conditions of a monopolistically
a. The market for Grade A eggs, which is characterized by a large number of firms
Chapter 4 Part 1Markets in Action
1. If the demand for a good decreased, what would be the effect on the equilibrium price and
a. Price would increase, and quantity would decrease.
b. Price would decrease, and quantity would decr
Chapter 7Production Costs
1. Explicit costs would include:
b. the interest loss of the business owner on money withdrawn from his/her saving
account and invested in the business.
c. the loss of rent on a building the business owne
Chapter 4 Part 2Markets in Action
1. Assuming supply is held constant, an increase in demand for a product will cause an increase
in the equilibrium price and the amount bought and sold.
TOP: Change in equilibrium