1. If demand shifts left and supply shifts right, then we know that
a. price decreases but quantity increases
b. price decreases but we are not sure how the quantity will change
c. price increases but the quantity bought and sold decreases
d. price decreases and the quantity bought and sold also decreases
e. price increases and the quantity bought and sold also increases.
2. Demand will be more elastic if
a. the time period is shorter
b. the good is a necessity, not a luxury
c. better substitute goods exist
d. the amount spend on the good is a smaller proportion of consumer's income
3. A demand curve for beans will shift right if
a. the price of pease, a substitute for beans falls
b. consumers newly learn that beans provide a viable and healthy alternative to meat
c. consumers learn that eating beans increases the weight of consumers.
d. there is very good weather for growing beans
e. consumer income falls and beans are an normal good
4. Because it is difficult for economists to use experiments to generate data, they generally must
a. do without data
b. use real-world data what was not generated by an experiment, and which does not "hold all else constant."
c. ask to use data generated by scientists in other areas such as physics and chemistry.
d. select a committee of economists to make up data for all economists to use.
5. All points on the production possibility frontier
a. have all works with jobs, but they may be employed in the wrong job
b. have both full and efficient employment of all resources, including labor,
c. are fair and equitable
d. will lead to over production and eventually a recession