Question 1

An increase in the price of flashlights will have what effect on the equilibrium price and quantity of batteries?

Accepted Answer

A)  Price will increase,quantity will decrease
B)  Price will increase,quantity will increase
C)  Price will decrease,quantity will decrease
D)  Price will decrease,quantity will increase
E)  The new equilibrium price and quantity can not be determined

Question 2

A situation in which the demand for a product is decreasing while the price is simultaneously increasing can be explained by

Accepted Answer

A)  A decrease in supply
B)  An increase in supply
C)  Unchanged supply
D)  All of the above
E)  None of the above

Question 3

China can be best described as a

Accepted Answer

A)  Market economy
B)  Mixed economy
C)  Transitional economy
D)  Competitive economy
E)  Monopoly economy

Question 4

Demand is the quantity of a product per time period that buyers will buy at the prevailing price,other things equal

Accepted Answer

A) True 
 B)False

Question 5

Surpluses tend to drive competitive prices downward toward equilibrium,and shortages tend to drive competitive prices upward toward equilibrium

Accepted Answer

A) True 
 B)False

Question 6

If you buy more of a good as a result of an increase in income,the good is known as a consumer good

Accepted Answer

A) True 
 B)False

Question 7

The Following Questions Refer to the graph below. 1 and S1,price and quantity are A) 13 and 55 B) 10 and 40 C) 10 and 65 D) 7 and 55 E) 10 and 55" class="answers-bank-image d-inline" rel="preload" >
-If the market starts in equilibrium with D1 and S1,price and quantity are

Accepted Answer

A)  13 and 55
B)  10 and 40
C)  10 and 65
D)  7 and 55
E)  10 and 55

Question 8

A change in the quantity demanded

Accepted Answer

A)  Results whenever one of the "other things equal" underlying the demand curve changes
B)  Results when the price of the product increases or decreases
C)  Means a shift in the position of the demand curve
D)  Means movement along a given demand curve
E)  Is both (b) and (d)

Question 9

In the long run,an increase in the demand for a good will result in an increase in supply of the good in a market economy

Accepted Answer

A) True 
 B)False

Question 10

An increase in the price of gas will cause an increase in the supply of gas since it will be more profitable to sell

Accepted Answer

A) True 
 B)False

Question 11

The Following Questions Refer to the graph below. 1S1? A) An increase in the cost of production B) A decrease in the cost of production C) An increase in the price of a substitute in production D) An increase in income E) All of the above" class="answers-bank-image d-inline" rel="preload" >
-The demand curve and supply curve for beef are DD and SS.Which of the following could cause supply to shift to S1S1?

Accepted Answer

A)  An increase in the cost of production
B)  A decrease in the cost of production
C)  An increase in the price of a substitute in production
D)  An increase in income
E)  All of the above

Question 12

The Following Questions Refer to the graph below. 
-Which of the following could lead to a price of $20 in the market?

Accepted Answer

A)  An increase in demand
B)  A decrease in supply
C)  A decrease in demand
D)  An increase in supply
E)  An increase in both supply and demand

Question 13

Which of the following is least consistent with the pure market economy?

Accepted Answer

A)  An established legal system that arbitrates contract disputes
B)  An individual accepting a job for $1 per hour
C)  The institution of private property rights
D)  The existence of a minimum wage
E)  Private property rights

Question 14

The economy of the People's Republic of China operated as a command economy

Accepted Answer

A)  From 1917 until 1949
B)  from 1949 until 1978
C)  Since 1990
D)  From 1949 until 1962
E)  Which started China's transition to a market economy

Question 15

The Following Questions Refer to the graph below. 1 there is a A) Surplus of X1X2 B) Shortage of X1X2 C) Surplus of XX2 D) Surplus of AB E) Shortage of X1X" class="answers-bank-image d-inline" rel="preload" >
-At price P1 there is a

Accepted Answer

A)  Surplus of X1X2
B)  Shortage of X1X2
C)  Surplus of XX2
D)  Surplus of AB
E)  Shortage of X1X

Question 16

An increase in the price of a good will cause which of the following?

Accepted Answer

A)  Quantity demanded to demand to rise
B)  Demand to fall
C)  Quantity supplied to fall
D)  Supply to rise
E)  None of the above

Question 17

The Following Questions Refer to the graph below. 1D1 and a price ceiling is placed on beef at price p.The result will be A) A surplus equal to X1X B) A shift in the supply curve to S1S1 C) An increase in the quantity placed on the market to X1 D) Both (b) and (c) above E) A shortage equal to X1X" class="answers-bank-image d-inline" rel="preload" >
-The demand curve and supply curve for beef are DD and SS.The demand curve shifts to D1D1 and a price ceiling is placed on beef at price p.The result will be

Accepted Answer

A)  A surplus equal to X1X
B)  A shift in the supply curve to S1S1
C)  An increase in the quantity placed on the market to X1
D)  Both (b) and (c) above
E)  A shortage equal to X1X

Question 18

In the pure command economy,most resource use decisions are made by government

Accepted Answer

A) True 
 B)False

Question 19

In the market economy,markets serve the function of

Accepted Answer

A)  Coordinating resource use decisions made by individual owners of resources
B)  Bringing about resource allocation changes desired by resource owners
C)  Determining prices
D)  All of the above
E)  Both (a) and (b)

Question 20

After establishing the Republic of China in 1949,Mao's Communist Party patterned the Chinese economy after

Accepted Answer

A)  Japan
B)  Taiwan
C)  The USSR
D)  The United States
E)  Europe

Exam 2: Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

An increase in the price of a good will cause which of the following?

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -At price P1 there is a

Correct AnswerverifiedShow Answer

After establishing the Republic of China in 1949,Mao's Communist Party patterned the Chinese economy after

Correct AnswerverifiedShow Answer

Demand is the quantity of a product per time period that buyers will buy at the prevailing price,other things equal

Correct AnswerverifiedShow Answer

In the market economy,markets serve the function of

Correct AnswerverifiedShow Answer

In the long run,an increase in the demand for a good will result in an increase in supply of the good in a market economy

Correct AnswerverifiedShow Answer

Which of the following is least consistent with the pure market economy?

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -The demand curve and supply curve for beef are DD and SS.The demand curve shifts to D1D1 and a price ceiling is placed on beef at price p.The result will be

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -Which of the following could lead to a price of $20 in the market?

Correct AnswerverifiedShow Answer

An increase in the price of flashlights will have what effect on the equilibrium price and quantity of batteries?

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -The demand curve and supply curve for beef are DD and SS.Which of the following could cause supply to shift to S1S1?

Correct AnswerverifiedShow Answer

A change in the quantity demanded

Correct AnswerverifiedShow Answer

If you buy more of a good as a result of an increase in income,the good is known as a consumer good

Correct AnswerverifiedShow Answer

An increase in the price of gas will cause an increase in the supply of gas since it will be more profitable to sell

Correct AnswerverifiedShow Answer

A situation in which the demand for a product is decreasing while the price is simultaneously increasing can be explained by

Correct AnswerverifiedShow Answer

In the pure command economy,most resource use decisions are made by government

Correct AnswerverifiedShow Answer

Surpluses tend to drive competitive prices downward toward equilibrium,and shortages tend to drive competitive prices upward toward equilibrium

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -If the market starts in equilibrium with D1 and S1,price and quantity are

Correct AnswerverifiedShow Answer

China can be best described as a

Correct AnswerverifiedShow Answer

The economy of the People's Republic of China operated as a command economy

Correct AnswerverifiedShow Answer

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The Following Questions Refer to the graph below. -At price P₁ there is a

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The Following Questions Refer to the graph below. -The demand curve and supply curve for beef are DD and SS.The demand curve shifts to D₁D₁ and a price ceiling is placed on beef at price p.The result will be

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The Following Questions Refer to the graph below. -The demand curve and supply curve for beef are DD and SS.Which of the following could cause supply to shift to S₁S₁?

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The Following Questions Refer to the graph below. -If the market starts in equilibrium with D₁ and S₁,price and quantity are

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