2. Nuclear power in the United States turned out to be A. well worth the time an
ID: 1214024 • Letter: 2
Question
2. Nuclear power in the United States turned out to be
A. well worth the time and investment
B. far more expensice and troublesome than expected
C. a hazard-free source of limitless power
9. Technological change has always been the critical factor in raising living standards, even going as far back as the development of the __________.
A. steam engine
B. bicycle
C. fluorescent light
12. Technological change has always been the critical factor in raising living standards, even going as far back as the development of the __________.
A. social security
B. blue cross and blue shield
C. church-affiliated food kitchens
13. One measurement of economic prosperity is
A. the gross domestic policy
B. interest rates
C. the gross domestic product
19. For which pair of goods below would an increase in income have the same effect on both goods?
A. an inferior good and a luxury good
B. a normal good and a luxury good
C. a superior good and a normal good
20.
Price
Quantity Demanded
Quantity Supplied
$0
200
0
$1
150
40
$2
100
80
$3
50
120
$4
0
160
Refer to the table. In this market, the equilibrium price
A. does not exist
B. is between $2 and $3
C. is greater than $4
22. Inferior goods are characterized by _____ demand as a result of increased income.
A. lower
B. no change in
C. sharp increases in
26. Which of the following is probably NOT an example of a normal good?
A. routine medical care
B. housing
C. store-brand breakfast cereal
27. For which pair of goods below would an increase in income have the same effect on both goods?
A. an inferior good and a luxury good
B. a normal good and a luxury good
C. a superior good and a normal good
30. An increase in supply is shown graphically as a __________ shift of the supply curve, and as a result of an increase in supply, equilibrium price will __________.
A. rightward; decrease
B. leftward; decrease
C. leftward; increase
31. If a town begins requiring builders to build on one-acre lots, instead of smaller quarter-acre lots, the supply curve for new homes will
A. shift to the left
B. reach market equilibrium
C. reflect equilibrium pricing
32. A luxury good is one whose demand ______ as income increases.
A. rises slightly
B. rises sharply
C. decreases
43.
Price
Quantity Demanded
$0
1,000
$1
400
$2
200
$3
100
$4
25
Refer to the table, which shows the number of MP3 downloads demanded per month for the students at a certain university. What would happen to the quantity of MP3s demanded at a price of $2 if the university's enrollment were to increase significantly?
A. The quantity demanded would fall below 200 because there would be more students competing for MP3s
B. The quantity demanded would rise to exactly 400 because every number in the table would simply shift down one row
50. Which of the following is an example of a product that is sold primarily in a local market?
A. butter
B. milk
C. oil
Price
Quantity Demanded
Quantity Supplied
$0
200
0
$1
150
40
$2
100
80
$3
50
120
$4
0
160
Explanation / Answer
Q13. Gross domestic product is utilized as a measure of economic prosperity.
Hence, the correct answer is option (C).
Q19. Increase in income leads to increase in demand for normal good and luxury good but result in decrease in demand for inferior good. Thus, it is for the normal good and luxury good that increase in income have the same effect.
Hence, the correct answer is option (A).
Q20. Equilibrium price is that price at which quantity demanded is equal to quantity supplied.
If we analyze the table, we can see that there is no price at which quantity demanded equals quantity supplied.
So, it can be said that in this market, equilibrium price does not exist.
Hence, the correct answer is option (A).
Q22. Income and demand for inferior goods have inverse relationship.
Increase in income results in decrease in demand for inferior goods and vice-versa.
So, inferior goods are characterized by lower demand as a result of increased income.
Hence, the correct answer is option (A).
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.