Exhibit 3-3 Demand curves
Which of the graphs in Exhibit 3-3 depicts the effect of a decrease in the price of domestic cars on the demand for foreign cars?
A. Graph A.
B. Graph B.
C. Graph C.
D. Graph D.
Answer: C
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The idea of opportunity cost is relevant
A. only in consumption decisions. B. only in production decisions. C. only in financial decisions. D. in almost any kind of decision.
To eliminate a recessionary gap, the government can ________ government expenditures on goods and services or ________ taxes
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
Ilona’s country has five factories. In contrast, Hassan’s country has 100 factories. How will productivity in each country be impacted if each country builds two new factories?
a. Both Ilona’s and Hassan’s countries will experience a major increase in productivity. b. Hassan’s country will experience a relatively large increase in productivity, while Ilona’s country will experience a relatively small increase in productivity. c. Ilona’s country will experience a relatively large increase in productivity, while Hassan’s country will experience a relatively small increase in productivity. d. Neither Ilona’s nor Hassan’s country will experience an increase in productivity.
The primary concern of economics is the study of:
A. Why human wants exist and what motivates them. B. How to distribute goods and services according to human needs. C. How best to allocate scarce resources among competing uses. D. Who holds the most political power in a particular country.