Transcript When a government imposes penalties on both sellers and buyers

When a government imposes penalties on both sellers and
buyers of an illegal good,
d)
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the price of the good falls as does
the quantity purchased.
the price of the good falls, but the
quantity purchased may increase
or decrease.
the price of the good rises, but the
quantity purchased may increase
or decrease.
the quantity purchased of the good
decreases, but the price may rise
or fall.
a)
a)
Which of the following influences does
NOT shift the supply curve?
a) an increase in consumer income
b) a decrease in the price firms
expect to receive in the future
c) a rise in the wages paid workers
d) development of new technology
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a)
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d)
Market equilibrium is a situation in which:
a) consumers obtain the highest
quantity at the lowest prices
b) producers obtain the highest price
for a given quantity sold
c) quantity supplied equals quantity
demanded at a single price
d) the market yields a substantial
surplus of goods produced
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d)
The number of people seeking to obtain tickets to an
OSU football game is nearly always larger than the
number of available tickets (and seats) to the game.
This is evidence that the price of the ticket is
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at
above the equilibrium level
below the equilibrium level
too high for many to afford
at the equilibrium level because
the number of tickets bought
always equals the number of
tickets for sale.
th
.
a)
b)
c)
d)
Which of the following statements uses incorrect terminology:
A: "The recent fare war among the major airlines has
increased the demand for air travel.“
B: "The terrorist attack on America has caused the demand
for air travel to fall."
a)
b)
c)
d)
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A is incorrect; B is correct
A is correct; B is incorrect
A and B are correct
A and B are incorrect
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a)
b)
c)
d)
Which of the graphs below best illustrates a
situation in which price will fall?
a)
b)
c)
d)
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2
The graph on the left
The graph on the right
Both graphs
Neither graph
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c)
d)
Between 2002 and 2003 bad weather affected the area
where most of the world’s vanilla is grown. Which of
the graphs below best depicts that situation?
a)
b)
c)
d)
A
B
C
D
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After bad weather affected most of the world’s natural
vanilla, which of the graphs below best depicts what
happened in the market for synthetic vanilla?
a)
b)
c)
d)
A
B
C
D
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You notice that the price of DVD players falls and the
quantity of DVD players sold increases. This set of
observations can be the result of:
a) a shift of the demand curve for
DVD players to the right
b) a shift of the demand curve for
DVD players to the left
c) a shift of the supply curve of
DVD players to the right
d) a shift of the supply curve of
DVD players to the left
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d)
Most economists believe that the U.S. minimum wage
has relatively little effect because it is set too:
a)
b)
c)
d)
low and therefore is nonbinding
high and therefore is nonbinding
low and therefore is binding
high and therefore is binding
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d)
Which of the following is an example of a black
market?
a) a tenant in a rent controlled
apartment subletting at a higher rent
b) the purchase of an inferior radio at a
department store
c) waiting in line during the oil
shortages of the 1970s
d) none of the above
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d)
This figure shows the supply and demand for clams.
The government imposes a quota limiting sales of
clams to 8,000 lbs. The quota rent per pound is:
a)
b)
c)
d)
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$2.00
$4.00
$5.00
$6.00
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a)
b)
c)
d)
A consumer's willingness to pay for a surfboard is the
minimum price at which he or she would buy the
surfboard
a) True
b) False
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To the extent that eBay moves the markets for
collectibles and other items to equilibrium, it can be
said to:
a) maximize consumer
surplus
b) maximize producer
surplus
c) maximize total surplus
d) create a market failure
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