If the price of oil, a close substitute for coal, increases then the

supply curve for coal will shift to the right.

demand curve for coal will shift to the right.

equilibrium price and quantity of coal will not change.

demand curve for coal will shift to the left.

supply curve of coal will shift to the left.

Question
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2
A government policy that prevents the price of a good or service from
falling below a specified level is called a price floor and usually results in

a shortage.

a surplus.

a black market.

fewer producers of the good or service.

a decrease in demand.

Question 6.67 points Save

3
If the demand for steak shifts to the right, the most likely explanation is
that

the price of cattle feed has fallen.

consumer income has risen.

the price of steak has fallen.

cattle production has fallen.

 Question 6.67 points Save
4
If price rises, what happens to quantity demanded for a product?

It increases.

It decreases.

It does not change.

Uncertain-economic theory has no answer to this question.

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5
Which of the following is a symptom of a price floor?

scalping of Super Bowl tickets

surplus cheese

the New York city housing shortage

black markets

milk shortages

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6
The invention of machinery that can double the amount of gold extracted
from raw ore will likely lead mining companies to

raise the world price of gold to pay for the new machinery.

lower the world price of gold because any amount can now be
produced more cheaply.
raise the world price of gold because miners' wages must double as
their productivity doubles.
lower the world price of gold only if new mining companies are not
allowed to enter the industry.
 Question 6.67 points Save
7
The major coordination tasks can be summarized with the questions

who, what, when, where?

how, what, for whom?

how, what, why?

how, why, for whom?

who, how, what?

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8
Because of scarcity, every economic decision involves

a trade-off.

a free good.

a trade-in.

an increasing cost.

a money payment.

Question 6.67 points Save

9
List the three coordination decisions made by every economy.

Where? When? How?

How? What? To whom?

Why? Where? What?

When? To Whom? Where?

 Question 6.67 points Save
10
A market will experience a ____ when the price is above equilibrium
and a ____ when the price is below equilibrium.

shortage, shortage

surplus, surplus

shortage, surplus

surplus, shortage

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11
If price rises, what happens to supply for a product?

It increases.

It decreases.

It does not change.

Uncertain-economic theory has no answer to this question.

Question 6.67 points Save

12
Assume the demand schedule for cookies is downward sloping. If the
price of cookies falls from $1.50 to $1.25 per dozen,

the demand for cookies will fall.

the demand for cookies will rise.

a larger quantity of cookies will be demanded.

a smaller quantity of cookies will be demanded.

Question
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13
 Increasing opportunity cost tends to occur if

management is disorganized.

markets do not equate money and opportunity cost.

production is inefficient.

resources are scarce.

resources are specialized.

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14
The mechanism of supply and demand is

a fundamental tool in both microeconomics and macroeconomics.

the only real "law" of economics.

a fundamental tool only in microeconomics.

a fundamental tool only in macroeconomics.

Question 6.67 points Save

15
As a general rule, technological progress

shifts the production possibilities frontier outward, away from the

origin.
reduces the slope of the production possibilities frontier, making it
shallower.
increases the slope of the production possibilities frontier, making
it steeper.
shifts the production possibilities frontier inward, toward the
origin.
makes the production possibilities frontier more "bowed out."
 15 _325418854_1 _325418854_1

Answers:

If the price of oil, a close substitute for coal, increases then the

Selected
Answer: demand curve for coal will shift to the right.
Correct Answer:
demand curve for coal will shift to the right.

Question 6.67 out of 6.67 points

2
A government policy that prevents the price of a good or service from falling
below a specified level is called a price floor and usually results in

Selected
Answer: a surplus.
Correct Answer:
a surplus.

Question 6.67 out of 6.67 points

3
If the demand for steak shifts to the right, the most likely explanation is that

Selected
Answer: consumer income has risen.
Correct Answer:
consumer income has risen.
 Question 6.67 out of 6.67 points
4
If price rises, what happens to quantity demanded for a product?

Selected
Answer: It decreases.
Correct Answer:
It decreases.

Question 6.67 out of 6.67 points

5
Which of the following is a symptom of a price floor?

Selected
Answer: surplus cheese
Correct Answer:
surplus cheese

Question 6.67 out of 6.67 points

6
The invention of machinery that can double the amount of gold extracted from
raw ore will likely lead mining companies to

Selected
Answer: lower the world price of gold because any amount can now be
produced more cheaply.
Correct
Answer: lower the world price of gold because any amount can now be
produced more cheaply.

Question 0 out of 6.67 points

7
The major coordination tasks can be summarized with the questions

Selected
Answer: how, what, why?
Correct Answer:
how, what, for whom?

Question 6.67 out of 6.67 points

8
Because of scarcity, every economic decision involves
 Selected
Answer: a trade-off.
Correct Answer:
a trade-off.

Question 6.67 out of 6.67 points

9
List the three coordination decisions made by every economy.

Selected
Answer: How? What? To whom?
Correct Answer:
How? What? To whom?

Question 6.67 out of 6.67 points

10
A market will experience a ____ when the price is above equilibrium and a ____
when the price is below equilibrium.

Selected
Answer: surplus, shortage
Correct Answer:
surplus, shortage

Question 0 out of 6.67 points

11
If price rises, what happens to supply for a product?

Selected
Answer: It decreases.
Correct Answer:
It does not change.

Question 0 out of 6.67 points

12
Assume the demand schedule for cookies is downward sloping. If the price of
cookies falls from $1.50 to $1.25 per dozen,

Selected
Answer: the demand for cookies will rise.
Correct Answer:
a larger quantity of cookies will be demanded.

Question 0 out of 6.67 points

13
Increasing opportunity cost tends to occur if

Selected
Answer: markets do not equate money and opportunity cost.
Correct Answer:
resources are specialized.

Question 6.67 out of 6.67 points

14
The mechanism of supply and demand is

Selected
Answer: a fundamental tool in both microeconomics and
macroeconomics.
Correct Answer:
a fundamental tool in both microeconomics and
macroeconomics.

Question 6.67 out of 6.67 points

15
As a general rule, technological progress

Selected
Answer: shifts the production possibilities frontier outward, away
from the origin.
Correct
Answer: shifts the production possibilities frontier outward, away
from the origin.