Question 1 of 48 1 0 1 0 Points In a competitive market when price is below the equilibrium price there will be pressure for the price to A fall B stay the same C rise D change only if demand and or supply change Answer Key C Question 2 of 48 0 0 1 0 Points It is true that the equilibrium quantity will always go up if supply A and demand both increase B increases and demand decreases C and demand both decrease D decreases and demand remains unchanged Answer Key A Question 3 of 48 1 0 1 0 Points An area of concern in the provision of health care in the United States is that A health care costs and spending are too high B too few resources are devoted to health care C physicians have no control over prices D everyone has an excessive amount of insurance Answer Key A Question 4 of 48 1 0 1 0 Points The primary difference between a change in demand and a change in the quantity demanded is A a change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve B a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve C both a change in quantity demanded and a change in demand are shifts in the demand curve only in different directions D both a change in quantity demanded and a change in demand are movements along the demand curve only in different directions Answer Key B Question 5 of 48 1 0 1 0 Points Price ceilings which lead to shortages will impose costs on society because they A will lead to long waiting lines B may result in black market prices which are higher than the market determined price would be C lead to a smaller quantity offered on the market D do all of the above Answer Key D Question 6 of 48 0 0 1 0 Points If demand and supply both shift to the right then A both price and quantity will go up B price will go down and quantity will go up C quantity will go down and price will go up D quantity will go up but price could go up down or stay the same Answer Key D Question 7 of 48 1 0 1 0 Points Which of the following would shift the demand curve for new textbooks to the right A A decrease in the price of paper B A fall in the price of used textbooks C An increase in college enrollments D A fall in the price of new textbooks Answer Key C Question 8 of 48 1 0 1 0 Points A price ceiling will have no effect if A it is set above the equilibrium price B the equilibrium price is above the price ceiling C set below the equilibrium price D it creates a shortage Answer Key A Question 9 of 48 1 0 1 0 Points An important reason for the rapid increase in output in the computer industry after 1980 was A the invention of the microchip B a reduction in the size and cost of computers C a great increase in demand D all of the above Answer Key D Question 10 of 48 1 0 1 0 Points Supply is best defined as the A relationship between the quantity of a good or service buyers are able to purchase and the independent variables that determine quantity B relationship between the quantity of a good or service buyers are willing to purchase and the independent variables that determine quantity C relationship between the quantity of a good or service sellers are willing to offer for sale and the independent variables that determine quantity D quantity of a good or service sellers are willing and able to offer for sale at a specific price Answer Key C Question 11 of 48 1 0 1 0 Points Price controls A always increase economic efficiency B always lead to more equitable results C can result in inequitable outcomes D all of the above statements are true Answer Key C Question 12 of 48 1 0 1 0 Points An increase in demand all other things unchanged will result in a n in the equilibrium price and a n in the equilibrium quantity A increase increase B decrease decrease C decrease increase D increase decrease Answer Key A Question 13 of 48 1 0 1 0 Points Which of the following would not change the demand for automobiles A a change in the price of gasoline B a change in the cost of steel C a change in the price of motorcycles D a change in tastes Answer Key B Question 14 of 48 1 0 1 0 Points A negative relationship between the quantity demanded and price is called the law of A demand B diminishing marginal returns C market clearing D supply Answer Key A Question 15 of 48 0 0 1 0 Points If economists say the price is too high they mean that A quantity demanded is greater than quantity supplied B quantity supplied is greater than quantity demanded C the equilibrium price exceeds the current price D the price of a good will tend to increase Answer Key B Question 16 of 48 1 0 1 0 Points A decrease in supply means A a shift to the left of the entire supply curve B moving downward to the left along the supply curve with lower prices C less will be demanded at every price D more will be supplied at every price Answer Key A Question 17 of 48 0 0 1 0 Points It s certain that the equilibrium price will fall when A the supply curve and the demand curve both shift to the right B the supply curve shifts to the right and the demand curve shifts to the left C supply and demand both increase D supply decreases and demand stays the same Answer Key B Question 18 of 48 1 0 1 0 Points Which of the following will result in an increased price of milk A A shift to the right of the supply curve for milk B A shift to the right of the demand curve for milk C An increase in the number of milk suppliers D A decrease in the number of milk buyers Answer Key B Question 19 of 48 1 0 1 0 Points The equilibrium price in a market is established subject to the all other things unchanged condition ceterius paribus and therefore very well may change due to A a change in the price of the good B a change in the quantity of the good C a change in the price of resource inputs used to produce the good D any of the above Answer Key C Question 20 of 48 1 0 1 0 Points A decrease in demand with no change in supply will lead to in equilibrium quantity and in equilibrium price …