FIRST QUIZ 1.Developing a model of an economy means answering the question(s) of: d.what to produce, how to produce and for whom to produce. e.Only what to produce and how to produce, since distribution is not the task of economics. 2.Every year during the holidays there seems to be a great demand for some particular "hot" toy. This is an example of the effect of _________ on demand.a.tastes and preferencesb.expectationsc.incomed.prices of other goodse.wealth3.A market is in equilibrium when there is:a.excess demand.b.excess supply.c.a shortage.d.a surplus.e.None of the above.4.The equilibrium quantity in a market could remain unchanged if there were a/an _________ in demand offset by a/an ________ in supply.a.increase, decreaseb.increase, increasec.decrease, decreased. None of the above.5. Which of the following is microeconomics? a. A study of national output growth in Japan. b. A study of IBM sales since 1995. c. A study of Irish employment levels. d. A study of unemployment in Sweden. e. None of the above can be considered microeconomics.6.Which of the following would NOT cause the demand for a normal good or service to decrease?a.An increase in the price of the product.b.The income available to the household decreases.c.Other goods which are good substitutes become available.d.Households have negative expectations about future income, wealth and prices.e.None of the above. All of the above would cause a decrease in demand. 7.Refer to Figure 4.1. Which panel best depicts the following situation: I do not buy Cola Cola at the supermarket because another brand is on sale.a.panel 1b.panel 5c.panel 6d.panel 7e. panel 88.If there were an increase in the price of hamburger,a.the quantity demanded of hamburger would decrease.b.the demand for catsup would decrease.c.the demand for hamburger rolls would decrease.d.All of the above.e.None of the above.9. The conventional bowed-...
