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.

Answer 1

1) demand curve will shift to the right. Subsidy will help consumers in purchasing more at the same price due to which demand increases

2) satisfy unlimited wants with limited resources. This is because every resource can be put to numerous alternatives and it becomes difficult to select the best one.

3) few investors. it is very difficult to be the market which means to earn interest rate greater than the interest earned by the overall stock index.

4) increases.

5) remains in the same location.