How does a price ceiling affect consumer surplus and producer surplus?

It increases consumer surplus and decreases producer surplus

It decreases both consumer surplus and producer surplus

It increases both consumer surplus and producer surplus

It decreases consumer surplus and increases producer surplus

How does a price ceiling affect consumer surplus and producer surplus?

It increases consumer surplus and decreases producer surplus

It decreases consumer surplus and increases producer surplus

It decreases both consumer surplus and producer surplus

It increases both consumer surplus and producer surplus

How does a price floor affect consumer surplus and producer surplus?

It decreases consumer surplus and increases producer surplus

It decreases both consumer surplus and producer surplus

It increases consumer surplus and decreases producer surplus

It increases both consumer surplus and producer surplus

How does a price floor affect consumer surplus and producer surplus?

It decreases consumer surplus and increases producer surplus

It increases consumer surplus and decreases producer surplus

It decreases both consumer surplus and producer surplus

It increases both consumer surplus and producer surplus

How does a tax affect consumer surplus and producer surplus?

It decreases both consumer surplus and producer surplus

It decreases consumer surplus and increases producer surplus

It increases both consumer surplus and producer surplus

It increases consumer surplus and decreases producer surplus

How does a tax affect consumer surplus and producer surplus?

It decreases both consumer surplus and producer surplus

It increases both consumer surplus and producer surplus

It increases consumer surplus and decreases producer surplus

It decreases consumer surplus and increases producer surplus

How does trade affect points on the production possibilities frontier?

Trade allows producers to move along their production possibilities frontier by adjusting their output mix according to market prices and demand

Trade allows producers to produce beyond their production possibilities frontier by pooling their resources and technology with other producers

Trade allows producers to consume beyond their production possibilities frontier by specializing in their comparative advantage and exchanging goods with other producers

How is the velocity of money defined?

The average number of times a dollar is spent in a year.

The rate at which the Fed injects money into the economy.

The money supply divided by nominal GDP.

The same metric as the long-run growth rate of the money supply.

If a bank allocates $100 of its excess reserves to issue a new loan when the reserve requirement is 10 percent, this action alone initially causes the money supply to

Increase by $100 while wealth does not change.

Decrease by $100 while wealth decreases by $100.

Increase by $100 and wealth increase by $100.

Increase by $100 and wealth decrease by $100.

If a country's GDP is higher than its GNP, it indicates that

the country's residents are producing less abroad than foreign residents are producing domestically.

the country's residents are producing more abroad than foreign residents are producing domestically.

the country has a trade deficit.

the country has a trade surplus.

If a seller in a competitive market charges more than the market price, buyers will

Continue purchasing from that seller at a lower price

If a U.S. citizen buys a television made in Korea by a Korean firm, then

U.S. net exports decrease and U.S. GDP is unaffected.

U.S. net exports are unaffected and U.S. GDP decreases.

U.S. net exports are unaffected and U.S. GDP is unaffected.

U.S. net exports decrease and U.S. GDP decreases.

If both demand and supply increase, what will be the effect on the equilibrium price and quantity?

The quantity will increase but the price could either rise, fall, or remain the same.

Both the price and the quantity will increase.

The price will rise but the quantity could either increase, decrease, or remain the same.

The price will fall but the quantity will increase.

If Iowa’s opportunity cost of corn is lower than Oklahoma’s opportunity cost of corn, then

Iowa has a comparative advantage in the production of corn.

Oklahoma should produce just enough corn to satisfy its own residents’ demands.

Iowa should import corn from oklahoma.

Iowa has an absolute advantage in the production of corn.

If Jim’s opportunity cost of producing baseball bats is lower than Tom’s, then

Jim has a comparative advantage in the production of baseball bats.

Jim should not produce baseball bats.

Tom must have an absolute advantage in the production of baseball bats.

Tom has a comparative advantage in the production of baseball bats.

If net investment is zero, then

gross investment equals depreciation.

gross investment is greater than depreciation.

gross investment is less than depreciation.

If nominal GDP is $12 trillion and real GDP is $10 trillion, then the GDP deflator is

120, and this indicates that the price level has increased by 20 percent since the base year.

83.33, and this indicates that the price level has increased by 83.33 percent since the base year.

83.33, and this indicates that the price level has decreased by 16.67 percent since the base year.

120, and this indicates that the price level has increased by 120 percent since the base year.

If Okun’s Law holds true, a 3% increase in real GDP growth would lead to:

A decrease in the unemployment rate by 1.5%.

An increase in the unemployment rate by 6%.

An increase in the unemployment rate by 1.5%.

A decrease in the unemployment rate by 6%.

If Okun’s Law is applied, a 4% decrease in real GDP growth would likely result in:

An increase in the unemployment rate by 2%.

A decrease in the unemployment rate by 2%.

A decrease in the unemployment rate by 8%.

An increase in the unemployment rate by 8%.

If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the

Growth rate of real GDP per person.

If Shawn can produce donuts at a lower opportunity cost than Sue, thenIf Shawn can produce donuts at a lower opportunity cost than Sue, then

Shawn has a comparative advantage in the production of donuts.

Sue has a comparative advantage in the production of donuts.

Shawn is capable of producing more donuts than sue in a given amount of time.

Shawn should not produce donuts.

If Spencer buys 6 glasses of lemonade at $1.00 per glass and 4 glasses at $1.50 per glass, Spencer’s demand shows

A movement along the demand curve

Phần 3 Introduction to Economics

Authored by Lam (Nilliam)

Financial Education

University

Used 1+ times

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50 questions

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MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Higher inflation causes

firms to change prices less often and reduces relative-price variability.

firms to change prices less often and increases relative-price variability.

firms to change prices more often and increases relative-price variability.

firms to change prices more often and reduces relative-price variability.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How can a point outside the production possibilities frontier become feasible?

By a decrease in consumer demand or preferences (3)

By an improvement in technology or productivity (2)

By an increase in the quantity or quality of resources (1)

(1) and (2) are correct

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How do incentives affect people’s behavior?

Incentives affect people’s behavior by making some actions more or less desirable

Incentives affect people’s behavior only if they are strong enough

Incentives do not affect people’s behavior, only preferences do

Incentives affect people’s behavior only if they are monetary

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How do intermediate goods differ from final goods in the calculation of GDP?

They are produced for personal use

They are not included in the final GDP calculation

They contribute directly to economic growth

They are considered legal goods

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How do you calculate the price elasticity of demand using the midpoint method?

By dividing the change in quantity demanded by the average quantity demanded and dividing the change in price by the average price (2)

Both (1) and (2)

By dividing the percentage change in quantity demanded by the percentage change in price (1)

By dividing the percentage change in price by the percentage change in quantity demanded (2)

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How do you calculate the price elasticity of demand using the midpoint method?

By dividing the percentage change in quantity demanded by the percentage change in price (1)

Both (1) and (2)

By dividing the percentage change in price by the percentage change in quantity demanded (2)

By dividing the change in quantity demanded by the average quantity demanded and dividing the change in price by the average price (2)

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How do you write a linear demand function? (Slope: b)

Qd = b - aP

Qd = a + bP

Qd = a - bP

Qd = b + aP

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Phần 3 Introduction to Economics

Higher inflation causes

How can a point outside the production possibilities frontier become feasible?

How do incentives affect people’s behavior?

How do intermediate goods differ from final goods in the calculation of GDP?

How do you calculate the price elasticity of demand using the midpoint method?

How do you calculate the price elasticity of demand using the midpoint method?

How do you write a linear demand function? (Slope: b)

How do you write a linear supply function? (Slope: d)

How does a price ceiling affect consumer surplus and producer surplus?

How does a price ceiling affect consumer surplus and producer surplus?

Access all questions and much more by creating a free account

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