Questions:
Question 1.When price changes, one should expect a change in
supply.
demand.
the weather.
technology and income.
quantity supplied.
Question 2. What function of government promotes price stability and full employment?
allocation
stabilization
distribution
law and order
national defense
Question 3. A shift to the right (away from the origin) of a production possibilities curve is an illustration of
the law of increasing costs.
economic growth.
opportunity cost.
scarcity.
the macroeconomy.
Question 4. When the government allocates money to build highways, it is answering which basic economic question?
What?
How?
When?
Why?
For whom?
Question 5. An economy that does NOT engage in international trade is
an open economy.
a traditional economy.
a closed economy.
a mixed economy.
a command economy.
Question 6. If left alone, a market-directed economy will
invariably provide the correct economic choices.
provide the correct economic choice in many but not all cases.
protect consumers from monopoly.
avoid the production problems encountered in command economies.
disintegrate.
Question 7. When price changes, there is an opposite change in the
quantity supplied.
demand.
supply.
quantity demanded.
level of technology and income.
Question 8. People are forced to make choices because of
competition.
pressure to conform.
scarcity.
the absence of money.
taxes.
Question 9. If caviar is a normal good, a decrease in income will
cause the price of caviar to increase.
shift the demand curve for caviar to the left.
shift the demand curve for caviar to the right.
increase the production of caviar.
Question 10. The basis for a market solution to the basic economic questions is
a central market organization.
a framework for the implementation of comparative advantages.
a well-established system of property rights.
a government that never participates in economic activities.
a division of governmental functions into federal and state levels.