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Ashford University ECO 204 Week 1 Quiz (2014)




Question;1. Question: In economics, scarcity means that Student Answer: there are not sufficient resources to produce everything that people want. poverty will always exist. a country can never feed all of its citizens. the price of a good may increase more rapidly than the general price level. there is not enough of a particular good for people to buy all they want at the prevailing price. 2. Question: If beans are inferior goods, a decrease in income will Student Answer: cause beans to sell at a lower price. increase the production of beans. shift the demand curve for beans to the left. shift the demand curve for beans to the right. rotate the supply curve in a clockwise manner. 3. Question: Which of the following is a macroeconomic issue? Student Answer: The price of butter The number of new cars produced The growth rate of total output The price of products sold in the steel industry The price of cell phone service 4. Question: In Collegia, a small college town, the market for parking spaces is in equilibrium at a going price of $5 a day. There are 1,500 spaces and they are all sold every day with no unsatisfied buyers. Now the college takes in 200 more students, each of whom also wants a parking space at $5 a day. If there is a normal, upward-sloping supply curve, what will happen when the market has time to adjust? Student Answer: There will be 1,700 parking spaces at $5 a day. There will be 1,500 parking spaces at some price greater than $5 a day. There will be more than 1,500 but less than 1,700 parking spaces at $5 a day. There will be more than 1,500 but less than 1,700 parking spaces and the price will be more than $5 a day. 5. Question: Demand for a good will always rise when Student Answer: the price of a complementary good falls. the price of a substitute good falls. tastes change. incomes decrease. the price of the good falls. 6. Question: In what type of economic system are the basic economic questions answered in the same way as in the past? Student Answer: A planned economy A traditional economy A command economy A market economy 7. Question: All but which one of the following could shift the demand curve? Student Answer: A shift of the supply curve A rise in income A change in the price of substitutes An increase in the size of the age group buying that good A successful advertising campaign which convinces people that they want more of this good 8. Question: When price changes, there is an opposite change in the Student Answer: quantity supplied. demand. supply. quantity demanded. level of technology and income. 9. Question: What will cause a change along the supply curve? Student Answer: The supplier's expectations The supplier's costs The price of the good The price of all other goods 10. Question: The Wall Street Journal carried a story on a type of grocery store that operates with few services and limited use of attractive displays, but with lower prices than its competitors. This decision of the owners is a way of answering a question that every society must face. Which of the following is that question? Student Answer: What goods and services will be produced? How can we avoid inflation? How can we avoid a recession? Who will get the goods and services produced? How will the goods and services be produced?


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