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Economics
Waiver Test For GVSU ECOM 542
| Question | Answer |
|---|---|
| If the price of product K declines (due to an increase in supply), the demand curve for a complement product J will | Shift to the right |
| Consumer Surplus is defined as | What consumers are willing to pay minus what they actually paid. |
| If the elasticity of demand is 2, the percentage change in price is 8%, than percentage change in demand will be | 16% |
| Market failure could be caused by | Lack of timely information & Inadequate accountability for risk taking |
| Diseconomies of scale occur because of | Problems with coordination |
| The Monetarist maintains that the economy is generally at | full employment because of flexible prices |
| A permanent increase in oil prices will | shift the Aggregate Supply curve to the left |
| The following will shift the Aggregate Demand curve to the left | increasing taxes |
| In Milton Friedman’s “Fooling model”, prices are increased by | higher wages shifting short run aggregate supply to the left |
| If the supply of a product decreases and the demand of the product simultaneously increases,we conclude that equilibrium | price must rise, but equilibrium quantity may either increase or decrease or remain unchanged |
| Other things being equal, which of the following might shift the demand curve of gasoline to the left | the development of a low-cost electric automobile |
| Assume the price of product A declines (due to an increase in supply), if the demand curve for product B shifts to the right, it can be concluded that | A and B are complimentary goods |
| If the production possibility curve were a straight line, this would suggest that | resources are perfectly shiftable at a constant rate between the production of these two goods |
| A higher toll price for cars in the downtown area during heavy traffic congestion hours will | reduce the amount of cars at peak time & encourage some drivers to alter their commuting pattern |
| A decrease in the cost of labor will | shift the supply curve to the right |
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marissam06
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