Question

1. An increase in the minimum wage is good for workers. This statement is

a. obviously true

b.obviously false

c.a positive statement (or positive analysis)

d.a normative statement (or normative analysis)

2. Ceteris paribus is an analytical assumption that means that when you consider a relationship

a. you always must remember that what goes around comes around

b. you must remember that the ones with the money make the rules

c. you assume that all other factors and variables are constant and do not change

d. you assume that all other variables are changing at the same time

3. According to the rationality assumption, we assume that people

a. Are usually smart

b. Are usually dumb

c. Will not knowingly do something that will hurt themselves

d.Never make mistakes

4. Which of the following is most true of economics before Adam Smith?

a. Economics was a well-established discipline

b. There was little economic analysis, and most of this was only normative analysis

c. There was little economic analysis, and most of this was only positive analysis

d. Economists were in great demand, but they had to practice their craft in villages

5. Satiation occurs when people have everything that they need or want. Many economists have been fascinated with satiation. Which of the following is correct regarding satiation?

a.    We have reached satiation many times
b.    Capitalist economists have claimed that it is possible, but socialist have never made this mistake
c.    There has been no indication that we have ever reached satiation, or are about to reach satiation
d.    We have never reached satiation, but it is clear that we are nearing it

6. The Theory of Voluntary Exchange argues that
a.   Markets require government regulation and policing in order to work well
b.   People know what is good or bad for themselves
c.   People do not really know what is good or bad for themselves, but planners can voluntarily help them
d.   Value is objective
e.   Since every market exchange is voluntary, all market exchanges are good or beneficial to society

7. Soviet planners rejected the Pet Rock because
a.    They argued that it did not measure up to their object standards of value
b.    It was not a serious product
c.    Consumers in the USSR had already rejected the product
d.    It was too difficult

8.OPEC has certainly been the world's most successful cartel. What did OPEC do to prevent the competition of capitals or creative destruction?

a. it suppressed innovations in new technologies and kept other producers out of the market
b. it managed to keep new technologies and new producers out of the market through monopolistic practices and collusion
c. it was unable to develop strategies to stop or slow down either of these competitions
d. it got the world court to recognize its patents in oil technologies and sued any firm or company that sought to enter the oil market
e. it refused to allow new producers to enter the market

9. What type of competition stems from sellers of substitutes?
a. Market competition
b. Arbitrage
c. Product competition
d. The competition of capitals
e. Creative destruction

10. Ceteris paribus, an increase in the price of a complement will cause
a. our demand curve to shift to the left and a higher equilibrium price
b. our demand curve to shift to the right and a lower equilibrium price
c. our demand curve to shift to the left and a lower equilibrium price
d. our demand curve to shift to the right and a higher equilibrium price
e. our quantity demand at the new equilibrium to increase, but price to remain unchanged

11. Ceteris paribus, an increase in the price of a substitute will cause
a. our demand curve to shift to the left and a higher equilibrium price
b. our demand curve to shift to the right and a lower equilibrium price
c. our demand curve to shift to the left and a lower equilibrium price
d. our demand curve to shift to the right and a higher equilibrium price
e. our quantity demand at the new equilibrium to increase, but price to remain unchanged

12. Suppose income increases and your product is a normal good. This will result in
a. the demand curve shifting to the left and a higher equilibrium price
b. the demand curve shifting to the right and a lower equilibrium price
c. the demand curve shifting to the left and a lower equilibrium price
d. the demand curve shifting to the right and a higher equilibrium price
e. quantity demand at the new equilibrium to increase, but price to remain unchanged

13. Consider the following statement: “A good economy is an economy that gives people more of what they want wore of.” Those who agree with this will have
a. An objective theory of value
b. A subjective theory of value
c. A free theory of value
d. Only a positive theory of value
e. An irrational theory of value

14. According to the Law of Diminishing Marginal Utility, demand curves will have a negative slope because

a.   it is illegal to have a positive slope

b. value is objective

c.   ceteris paribus, the more of a product that you have or use, the less total enjoyment or satisfaction that you get from it

d. ceteris paribus, the more of a product that you have or use, the less enjoyment or satisfaction that you get from one more unit of the product

e.   marginal means small

15. According to the “substitution effect,” ceteris paribus, you will buy more of product at a lower price because
a. at the lower price, you will have more real income
b. at the lower price, you will have less real income
c. at the lower price, you will want more of this product and less of complement products
d. at the lower price, you will want more of this product and less of substitute products
e. at the lower price, you will want more of this product and more of substitute products
f. the law requires it

PLEASE HELP, IM HAVING A QUIZ RIGHT NOW.

THANKS!!! :(

Answer 1