Question

(5)Which of the following statements is true?

When price rises in a market for pineapples given ceteris paribus, the interaction between the laws of supply and demand will result in a:

(a)A deficit of pineapples

(b)An equilibrium amount of pineapples

(c)A glut of pineapples

(d)A shortage of pineapples

               Table#1-Supply and Demand for CDs

CDs demanded Per month	Price Per CDs	CDs supplied Per Month
35	$9.25	109
65	7.45	96
68	5.88	68
75	3.75	60
80	2.15	30

(6)Which of the following price causes a shortage of CDs in the market in Table#1 above?

(a)$6.75

(b)$8.60

(c)$2.45

(d)All of the above

(7)Which of the following is a natural resource in a society?

(a)Computers

(b)I-Phones

(c)Colognes

(d)None of the above

(8)Which of the following statements is true?

The factors that determine the prices breakfast cereals in the City of Baltimore are a concern of:

(a)Both macroeconomists and microeconomists

(b)Neither microeconomists nor macroeconomists

(c)Microeconomists

(d)Macroeconomists

(9)The eternal state of insufficiency of resources to satisfy people’s unlimited wants and needs in a society requires the:

(a)Sub-optimal use of resources

(b)Efficient use of resources

(c)Misuse of resources

(d)Any of the above

(10)Which of the following statements is true?

When constructing a model of a city’s economy, a microeconomist must:

(a)Provide a complete description of the city’s economy

(b)Collect accurate data about the city’s economy

(c)Ignore the realities about the city’s economy

(d)None of the above

(11)Which of the following statements is true?

Assumptions are used by microeconomists to:

(a)Explain all the details of the smaller units in an economy

(b)Simplify an understanding of the smaller units in an economy

(c)Complicate an understanding of a country’s macroeconomy

(d)None of the above

(12)Which of the following statements is true?

Human wants and needs:

(a)Are not fulfilled only in the poorest nations

(b)Can be easily satisfied as technology gets more advanced

(c)Can never be fully satisfied

(d)None of the above

(13)Which of the following statements is false?

The condition of scarcity:

(a)Prevails all societies

(b)Prevails in rich societies

(c)Cannot be eliminated

(d)None of the above

Answer 1