Multiple choice r1. Equilibrium ra. is a concept unique to economIcs rb. always occurs where supply equals demand rC. results when opposing forces fail to cancel each other out rd indicates balance re all of the above
Multiple Choice 1. Equilibrium a. is a concept unique to economics. b. always occurs where supply equals demand. c. results when opposing forces fail to cancel each other out. d. indicates balance. e. all of the above
r2. In the supply and demand model, equilibrium occurs when r a. all buyers and sellers are satisfied with their respective quantities at the market p rice rb. supply and demand intersect rc. quantity supplied equals quantity demanded rd. the price has no tendency to change e. all of the above
2 . In the supply and demand model, equilibrium occurs when a. all buyers and sellers are satisfied with their respective quantities at the market price. b. supply and demand intersect. c. quantity supplied equals quantity demanded. d. the price has no tendency to change. e. all of the above
r3. A price above equilibrium price will lead to a(n) a. surplus. rb. shortage excess demand rd. price increase re none of the above
3. A price above equilibrium price will lead to a(n) a. surplus. b. shortage. c. excess demand. d. price increase. e none of the above
4, To have an effect on a market a price ceiling must a. be above equilibrium rb. be equal to equilibrium rC. be below equilibrium d. result in a surplus e none of the above
4. To have an effect on a market, a price ceiling must a. be above equilibrium. b. be equal to equilibrium. c. be below equilibrium. d. result in a surplus. e none of the above
r 5. The socially optimal quantity arinze ra. economic surplus. rb. producer surplus rC. consumer surplus rd. quantity demanded re quantity supplied
5. The socially optimal quantity maximizes a. economic surplus. b. producer surplus. c. consumer surplus. d. quantity demanded. e quantity supplied
r6. When is it not possible for individuals to arrange transaction that creates additional economic surplus? When ra. price is above equilibrium rb. price is below equilibrium C. price is at equilibrium rd. there is a shortage re there is a surplus
6 . When is it not possible for individuals to arrange a transaction that creates additional economic surplus? When a. price is above equilibrium. b. price is below equilibrium. c. price is at equilibrium. d. there is a shortage. e there is a surplus
r7. When a firm pollutes, ra. markets will be efficient rb. the output level is socially optimal c the smart-For-One-is-Sometimes dumb- for-All Principle does not hold rd. the output level is above the socially optimal level e. the output level is below the socially optimal level
7. When a firm pollutes, a. markets will be efficient. b. the output level is socially optimal. c. the Smart-For-One-is-Sometimes Dumbfor-All Principle does not hold. d. the output level is above the socially optimal level. e. the output level is below the socially optimal level
r8. An increase in price will ra decrease demand rb. decrease quantity demanded c. increase demand rd. increase quantity demanded e, not affect quantity demanded
8. An increase in price will a. decrease demand. b. decrease quantity demanded. c. increase demand. d. increase quantity demanded. e . not affect quantity demanded
r9. An increase in the price of a complement will ra. decrease demand b. decrease quantity demanded rc. increase demand rd. increase quantity demanded e. not affect quantity demanded
9. An increase in the price of a complement will a. decrease demand. b. decrease quantity demanded. c. increase demand. d. increase quantity demanded. e . not affect quantity demanded
10. If an increase in income leads to a decrease in the demand for a good, the good is a(n) a substitute good rb. complementary good C nferior good rd. normal good. e. superior good
10. If an increase in income leads to a decrease in the demand for a good, the good is a(n) a. substitute good. b. complementary good. c. inferior good. d. normal good. e. superior good
