Question

1. When there is a subsidy to consumers, *

the demand curve will shift to the left

the demand curve will shift to the right.

the demand curve will shift, but the direction depends on relative elasticity.

suppliers can expect to be taxed.

2. Which of the following is the great economic problem? *

Differentiating shifts from movements

Reducing the deficit in a multi-party system

Minimizing unemployment in a changing world

Satisfying unlimited wants with limited resources

3. On average, __________ usually beat the market (stock market) average. *

No investors

Few investors

Most investors

All investors

4. With a subsidy on producers, supply *

decreases.

remains the same.

increases.

shifts in a direction that cannot be determined.

5. When there is a tax on suppliers, the demand curve *

shifts to the left.

remains in the same location.

shifts to the right.

shifts, but the direction cannot be determined without knowing the amount of the tax.

6. The rule of 70 explains how *

long it takes an investment to double in value

many stocks you need to completely diversify your portfolio.

much money is needed to invest monthly in order to retire comfortably.

long it takes for an investment to achieve the efficient market hypothesis.

7. Markets are linked through which of the following? *

Bonds

Prices

Stocks

Production possibilities

8. An example of the piece rate is paying workers *

$20.00 per hour.

a piece of a firm's profit.

a bonus for meeting a fixed standard.

$0.25 for every pound of apples picked.

Answer 1

1. When there is subsidy to consumers the demand curve will shift to the right. Hence, option(B) is correct.

2. Satisfying unlimited wants with limited resources is a great economic problem. Hence, option(D) is correct.

3. On average most investors beat the market average.Hence, option(C) is correct.

4. With a subsidy on producers, supply increases and therefore shift to the right.Hence, option(C) is correct.

5. When there is a tax on suppliers, the demand remain in the same location and supply curve will shift to the left. Hence, option(B) is correct.