Economists believe that people are:
A. always risk-seekers.
B. always risk-averse.
C. generally risk-averse.
D. generally risk-seekers.
Answer: C
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Which statement is false?
A. Suburbanization was the migration of tens of millions of middle-class Americans—nearly all of them white—from the cities to the suburbs. B. The people who moved to the suburbs were replaced in the cities by millions of poor people, the large majority of whom were black and Hispanic. C. The inner cities today are socially isolated from the rest of the country. D. None of these statements are false.
Which of the following is a characteristic of perfect competition?
a. easy entry into or exit from the market b. a small number of buyers c. a high degree of government regulation d. a differentiated product e. a high degree of collusion
If both the supply and demand curves shift to the left, then we can conclude that there will be
a. an increase in the equilibrium quantity sold. b. a decrease in the equilibrium quantity sold. c. an increase in the equilibrium price. d. a decrease in the equilibrium price.
Figure 5-2
In Figure 5-2, consumer surplus is measured by the area
a.
ABC.
b.
OBCD.
c.
OACD.
d.
DCE.