Question :
1) Partial-equilibrium analysis considers
A) only the existence of a market : 1384168
1) Partial-equilibrium analysis considers
A) only the existence of a market equilibrium, as if no other markets exist.
B) a specific market while ignoring any feedback effects that may come from induced changes in other markets.
C) all markets simultaneously, recognizing the interactions among the various markets.
D) how government planning can improve upon the results of a free market.
E) the induced changes in other markets that result from a partial change in the primary market.
2) General-equilibrium analysis considers
A) the existence of a general market equilibrium, as if no specific markets existed.
B) a specific market while ignoring any feedback effects that may come from induced changes in other markets.
C) all markets simultaneously, recognizing the interactions among the various markets.
D) how government planning can improve upon the results of the free-market system.
E) the linkages between markets specifically.
3) Consider partial and general equilibrium analysis. If a specific market is quite small relative to the entire economy
A) the feedback effects on this market from induced changes in other markets will be very small.
B) government intervention is necessary to link it to other markets.
C) general-equilibrium analysis will be necessary in order to understand this market.
D) changes in this market will have considerable effects on other markets.
E) partial-equilibrium analysis is the only tool available to understand this market.
4) If an economist is conducting a partial-equilibrium analysis of the market for commuter jets, then he or she is
A) accounting for the effects of changes in jet fuel prices in the market for commuter jets.
B) assuming that the prices of all other goods are constant.
C) assuming that changes in the prices of substitute goods will not affect the market for commuter jets.
D) making an equivalent analysis to a general-equilibrium analysis, but for one market only.
E) conducting an irresponsible analysis.
5) Partial-equilibrium analysis is a legitimate method of analysis if the market being studied
A) is large relative to the entire economy such that the feedback effects are obvious to the analyst.
B) is in the financial sector of the economy.
C) is small relative to the entire economy, such that feedback effects on the market being studied are small.
D) is small relative to the entire economy, such that feedback effects on the market being studied are significant.
E) is in the manufacturing sector of the economy.
6) At any disequilibrium price, whether government controlled or not, the quantity actually exchanged is determined by
A) the elasticity of supply.
B) the elasticity of demand.
C) government decree.
D) the lesser of quantity demanded and quantity supplied.
E) the greater of quantity demanded and quantity supplied.
7) Consider a competitive labour market. The likely consequence of a binding minimum wage in this labour market is
A) a labour shortage.
B) a lower wage for all individuals.
C) a higher wage for all individuals.
D) excess demand for workers.
E) unemployment.
8) Government price controls are policies that attempt to maintain the
A) quantity bought at less than the quantity sold.
B) quantity sold at less than the quantity bought.
C) the price at some disequilibrium value.
D) market price at equilibrium.
E) price requested by the seller.
9) In a market where we observe a disequilibrium, quantity exchanged is determined
A) by the quantity demanded.
B) by the greater of quantity demanded and quantity supplied.
C) by neither quantity demanded nor quantity supplied.
D) by the lesser of quantity demanded and quantity supplied.
E) by the quantity supplied.
10) Which of the following statements about government price controls is most accurate. They
A) act as a guideline to producers as to what is a fair price.
B) inform consumers what is the maximum price they should pay.
C) usually set upper or lower limits on prices.
D) ensure that the actual price is at its free-market equilibrium.
E) ensure that transactions take place at a fair price.
