Question

A decrease in the price of flour to bakeries in a competitive market will result in Select one: a.

a decrease in equilibrium price and an increase in equilibrium quantity of bread.

b. an increase in equilibrium price and a decrease in equilibrium quantity of bread.

c. an increase in equilibrium price and an increase in equilibrium quantity of bread.

d. a decrease in equilibrium price and a decrease in equilibrium quantity of bread. Clear my choice

Question 2 Not yet answered Marked out of 0.50 Not flaggedFlag question Question text Suppose the number of buyers in a market increases and a technological advancement occurs at the same time. What would we expect to happen in a competitive market?

Select one: a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.

b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

c. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.

d. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. Clear my choice

Question 3 Not yet answered Marked out of 0.50 Not flaggedFlag question Question text Which of these terms are used interchangeably? Select one:

a. "goods and services" and "inputs".

b. "inputs" and "factors of production".

c. "goods and services" and "factors of production".

d. "land, labor, and capital" and "goods and services". Clear my choice

Question 4 Not yet answered Marked out of 0.50 Not flaggedFlag question Question text Which of the following is an example of a normative, as opposed to a positive, statement? Select one:

a. A decrease in the minimum wage would decrease unemployment.

b. An increase in the cigarette tax would cause a decrease in the number of smokers.

c. A law requiring the federal government to balance its budget would increase economic growth.

d. Universal health care would be good for Malaysian citizens. Clear my choice

Question 5 Not yet answered Marked out of 0.50 Not flaggedFlag question Question text While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms’ owners, workers, and customers. This statement illustrates the principle that Select one:

a. rational people think at the margin.

b. people respond to incentives.

. people face tradeoffs.

d. trade can make everyone better off.

Answer 1

1. a decrease in equilibrium price and an increase in equilibrium quantity of bread.
(Decrease in price of flour will decrease cost of production which will increase supply which decreases P and increase Q.)

2. b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
(Increase in demand and supply increase Q but effect on P is ambiguous.)

3. b. "inputs" and "factors of production".
(Inputs are the factors of production.)

4. Universal health care would be good for Malaysian citizen
(This is based on judgements so it is normative.)

5. c. people face tradeoffs.
(People face tradeoffs between choices.)