Answer the following statements true (T) or false (F)
1. Demand is a list of needs or wants, regardless of purchasing power.
2. There is a difference between demand and quantity demanded.
3. A typical demand schedule shows higher sales at lower prices.
4. The quantity of goods demanded is a function of price alone.
5. An increase in demand causes price to rise and quantity sold to fall.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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If the population increases, the market demand for most products will
A) not change. B) depend on supply. C) decrease. D) increase.
To maximize cartel profit, the members must allocate output so that the marginal cost for the final unit produced by each firm is
a. identical b. unequal c. negative d. equal to the firm's average total cost e. maximized
If the Federal Open Market Committee (FOMC) decides to expand the money supply, then: a. it will issue directions to sell U.S. government securities, thus increasing the velocity of circulation of the money supply. b. it will issue directions to purchase U.S. government securities, thus putting more reserves in the hands of banks. c. it will order new Federal Reserve notes delivered to member
banks. d. it will raise the discount rate to member banks.
A government seeking to raise revenue would be most likely to tax a good
a. having a high income elasticity of demand b. with a low cross elasticity of demand c. having a high price elasticity of demand d. with a low income elasticity of demand e. having a low price elasticity of demand