Ashford University - ECO 203

Question1)Which of the following is LEAST likely to be a public good?

a sunset

a party

a park

an army

Question 2When the supply of a product increases but the demand for the product remains unchanged, the equilibrium price of the product will        .

rise, and the equilibrium quantity will increase first rise, and then return to the original level fall, and the equilibrium quantity will decrease

fall, and the equilibrium quantity will increase

Question 3Most modern industrial countries have a          economy.

traditional command market

mixed

Question 4The directing function of prices ensures that  . consumers and businesses participate in proper markets prices will always move in the right direction

consumers know how to get correct market information

production will increase for goods with more intense demands

The answer can be found in Chapter 3, Section 3.5, Evaluating the Market Process.

Question 5Along with the other social sciences, economics is specifically and primarily concerned with     .

the behavior of human beings both as individuals and in groups

 the economic practices of international agencies

the laws of mathematics as they apply to decision making the actions of international monetary agencies

Question 6Regarding a production possibilities curve, a shift to the right—away from the origin—illustrates .

opportunity cost scarcity of a good economic downturn

economic growth

Question 7Which of the following is the study of “what is” rather than “what ought to be”?

institutionalism

positive theory

normative theory subjectivism

Question 8If an economist sees that an inferior good’s price has increased from $1.00 to $1.50 per unit, and that the income available to purchase that inferior good has increased from $10,000 to $15,000, the economist will likely conclude that       .

the quantity demanded of the good has increased 10,000 units would be purchased in both cases

the equilibrium quantity will increase, because both forces have a positive effect