Question

Please answer all the ten question

Question 21

Which of following will shift the supply to the left

Group of answer choices

An increase in taxes

More producers

Better technology

An increase in subsidies

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Question 22

Rent Control is an example of a price floor

Group of answer choices

True

False

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Question 23

Minimum wage is an example of a price ceiling.

Group of answer choices

True

False

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Question 24

Which of the following is not a demand function

Group of answer choices

30 = P + Q

Q = 30 - P

P = 30 + Q

P = 30 -Q

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Question 25

Left shoes and right shoes are complements

Group of answer choices

True

False

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Question 26

Distribution can be a problem with the market economy.

Group of answer choices

True

False

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Question 27

Normative Economics

Group of answer choices

Is normal but not as positive as positive economics

Says what things should be

is what economits claim that they do

Says how things do work

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Question 28

The various quantities that people are willing and able to buy at various prices during some time perirod is the definition of

Group of answer choices

Quantity Demanded

Equilibrium

Demand Shift

Demand

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Question 29

The budget model accounts for the ability to borrow money

Group of answer choices

True

False

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Question 30

Which of the following is not a problem with Fiscal Policy?

Group of answer choices

Administrative lag

Conflicting Goals

Future policy reversals

Consumer lag

Answer 1

1. a. An increase in taxes

An increase in taxes will increase the marginal cost of production and the supply curve will shift to the left. That is, less will be supplied at each price level. All other options will result in supply curve shifting right.

2. b. False

Rent control is an example of price ceiling, that is, the maximum that can be charged.

3. b. False

Minimum wage is an example of a price floor, that is, the minimum wage that must prevail at all times.

4. c. P = 30 + Q

Here, the coffecient of Q is positive implying that the curve is upward sloping. This is a suppy curve funtion since demand curve is downward sloping. All other options are of the form P= a-Q when rearranged.

5. a. True

Complements are goods that are consumed together.

6. a. True

7. b. Says what things should be

Normative economics is a part of economics that is objective fairness or what the outcome of the economy or goals of public policy ought to be.

8. d. Demand

This is the definition of a demand curve.

9. a. True

10. c. Future policy reversals