Transcript Public Finance

Clicker Quiz
#1
Which of the following influences does NOT shift
the supply curve?
a)
b)
c)
d)
an increase in consumer income
a decrease in the price firms
expect to receive in the future
a rise in the wages paid workers
development of new technology
#2
Market equilibrium is a situation in which:
a)
b)
c)
d)
consumers obtain the highest
quantity at the lowest prices
producers obtain the highest price
for a given quantity sold
quantity supplied equals quantity
demanded at a single price
the market yields a substantial
surplus of goods produced
#3
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
a)
b)
c)
d)
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.
#4
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)
b)
c)
d)
a shift of the demand curve for
DVD players to the right
a shift of the demand curve for
DVD players to the left
a shift of the supply curve of DVD
players to the right
a shift of the supply curve of DVD
players to the left
#5
Assume that beer and nachos are complements. If
the price of beer falls, we may predict that:
a)
b)
c)
d)
the demand for beer will increase, which
will then force the price of beer back up.
the demand for nachos will decrease.
the demand for nachos will increase.
(a) and (c).
#6
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)
A
A
A
A
is incorrect; B is correct
is correct; B is incorrect
and B are correct
and B are incorrect
#7
Which of the graphs below best illustrates a situation
in which price will fall?
a)
b)
c)
d)
The graph on the left
The graph on the right
Both graphs
Neither graph
#8
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
#9
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
#10
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
#11
Which of the following is an example of a black
market?
a)
b)
c)
d)
a tenant in a rent controlled
apartment subletting at a higher rent
the purchase of an inferior radio at a
department store
waiting in line during the oil shortages
of the 1970s
none of the above
#12
A consumer's willingness to pay for a surfboard is the
minimum price at which he or she would buy the
surfboard
a)
b)
True
False
#13
To the extent that eBay moves the markets for collectibles
and other items to equilibrium, it can be said to:
a)
b)
c)
d)
maximize consumer
surplus
maximize producer
surplus
maximize total surplus
create a market failure
#14
Equilibrium in the fish market is disturbed by two different events: (i) a report by
the American Medical Association announces that increased consumption of fish
is associated with lower heart disease, and (ii) fisherman are banned from fishing
in environmentally sensitive areas that previously were important sources for
their catch. In the market for fish,
a)
b)
c)
d)
Equilibrium price will increase and
equilibrium output will decrease
Both equilibrium price and output will
increase
Equilibrium quantity will decrease but we
don’t have enough information to determine
the change in equilibrium price
Equilibrium price will increase but we don’t
have enough information to determine the
change in equilibrium quantity
#15
When a government imposes penalties on both sellers and
buyers of an illegal good,
a)
b)
c)
d)
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.