Exhibit 4-3 Supply and demand curves
In Exhibit 4-3, an increase in demand would cause a movement from which equilibrium point to another, other things being equal?
A. E1 to E2.
B. E1 to E3.
C. E4 to E1.
D. E1 to E4.
Answer: D
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Suppose that residents of a town are asked to vote on the best day to improve the safety of an intersection. The three choices are: a stoplight, a 4-way stop, and a 2-way stop. The mayor asks the residents to assign 3 points to their first choice, 2 points to their second choice, and 1 point to their last choice. The intersection will be controlled by the method that receives the most points
This voting scheme is called a. Arrow's impossibility theorem. b. the Condorcet paradox. c. a Borda count. d. the median voter theorem.
Suppose an increase in supply lowers the price from $10 to $8 and increases and increases the quantity demanded from 100 units to 130 units. Using the midpoint method, the elasticity of demand equals what
A) 1.17. B) 0.85. C) 0.26. D) 1.56. E) None of the above answers is correct.
Excess demand in an unregulated market will cause the price of a product to fall.
Answer the following statement true (T) or false (F)
A federal budget ________ occurs when the government spends less than it collects in taxes.
A. surplus B. deficit C. equilibrium D. floor