Explain why you chose your answer, or give an example. For both true false and multiple choice.
1. The opportunity cost of getting an MBA at University includes the time you give up to prepare for exams. (True or False) Why?
2. For hypothesis to be called scientific, it has to be conceivable that it can be shown to be false. (True of False) Why?
3. The model of perfect competition assumes that any individual buyer or seller can affect market price. (True or False) Why?
4. IF the demand for heroin is price elastic, a reduction in the availability of heroin due to increased law enforcement efforts will increase total expenditures on heroin. (True or False) Why?
5. If the price of pizza goes up by 10% and the quantity demanded of pizza decreased by 4%, we can conclude that pizza is inelastic in this segment of the demand curve. (True or False) Why?
6. The statement “Higher income makes people happier,” is a statement of normative economics. (True or False) Why?
7. If there is a scarcity of a good, there must also be a shortage. (True or False) Why?
8. If a production possibilities curve shifts outward, then the economy moves from unemployment to full employment. (True or False) Why?
9. Since a market at its equilibrium has no shortage or surpluses, we can therefore conclude that buyers and sellers in that market are happy. (True or False) Why?
10. A good whose consumption decreases when income decreases, ceteris paribus, is called a normal good. (True or False) Why?
1. Effective rent controls:
a. Are examples of price floors.
b. Cause the quantity demanded to exceed the quantity supplied of rental occupied housing.
c. Create a great amount of higher quality housing to be made available to low income renters.
d. Create a surplus of rental occupied housing.
e. Do not influence the housing market.
2. If consumers expect the price of automobiles will decrease next year, ceteris paribus,
a. The demand for automobiles this year will decrease
b. The demand for automobiles this year will increase
c. The demand for automobiles next year will decrease
d. The demand for automobiles will not change
e. The demand for motor oil next year will decrease
3. If all farmers reduced the acreage they planted by 10% there would probably be
a. A 10% reduction in food production
b. More than a 10% reduction in food production
c. Less than a 10% reduction of food production
d. All of the above
4. Cereal and milk are
a. Strong substitute goods.
b. Perfect substitute goods.
c. Ordinary substitute goods
d. Have a negative cross price elasticity coefficient
e. Have a positive cross price elasticity coefficient
5. If a minimum wage law is passed but the new minimum wage is less than the current market equilibrium wage rate, then
a. There will be a shortage of workers
b. There will be a surplus of workers.
c. The market equilibrium wage rate will be reduced.
d. The market equilibrium wage rate will be the wage rate that firm’s pay.
6. You are told that the price elasticity of demand for DVD video is 3. From this knowledge, write three sentences that provide useful information about DVD Videos.
Dear student Please accept the solution attached. If you... View the full answer