1. Which of the following is true?
a. Sellers are willing to supply more of a good or service at every price after costs have increased.
b. A fall in the price of a product leads to an increase in the profits by the sellers.
c. A fall in the cost of production leads to a downward movement along the supply curve of a product.
d. Sellers are willing to supply more of a goood or service at every price after costs have decreased.
e. An increase in the price of a product leads to a fall in the profits earned by sellers.
2. Which of the following helps in determining wether health care cost rises because of government policy, or because of demand rising faster than supply?
a. Examining the market for health care away from the belief that the market outcome is unfair
b. Examining the market for health care with the beleif that the market outcome is unfair
c. Examining the allocation system
d. Examining the changes in the price of health care proudcts
e. Examining the changes in the number of suppliers of health care in the market
3. Which of the following is true?
a. If minimum wage is set below the equlibrium wage, it leads to a labor surplus.
b. If anything interferes with the vooluntary exchanges that make up a market, equilibrium does not occur.
c. Minimum wage helps deal with the problem of unemployment in the market for unskkilled labor.
d. Producers are willing to employ more labor at a minimum wage.
e. Minimum wage leads to a situation of labor deficit in a market.
4. Which of the following is true?
a. Economists assume that there are no private property rights in a free market.
b. A free market is allso known as a fettered market.
c. A voluntary transaction means that all parties to the transaction must expect to benefit.
d. People always receive goods and services at a discounted price in a free market
e. An economic growth is represented by an inward shift of the production possbility curve.