Multiple Choice – Section 00: Introduction 1.Thetwowordsmostoftenusedbyeconomistsare a.pricesandquantities. b.resourcesandallocation. c.supplyanddemand. d.efficiencyandequity. 2.Thetwowordseconomistsusemostoftenare a.inflationandtrade. b.supplyanddemand. c.competitionandprices. d.marketsandequilibrium. 3.Theforcesthatmakemarketeconomiesworkare a.workandleisure. b.politicsandreligion. c.supplyanddemand. d.taxesandgovernmentspending. 4.Inamarketeconomy,supplyanddemanddetermine a.boththequantityofeachgoodproducedandthepriceatwhichitissold. b.thequantityofeachgoodproducedbutnotthepriceatwhichitissold. c.thepriceatwhicheachgoodissoldbutnotthequantityofeachgoodproduced. d.neitherthequantityofeachgoodproducednorthepriceatwhichitissold. 5.Inamarketeconomy,supplyanddemandareimportantbecausethey a.playacriticalroleintheallocationoftheeconomy’sscarceresources. b.determinehowmuchofeachgoodgetsproduced. c.canbeusedtopredicttheimpactontheeconomyofvariouseventsandpolicies. d.Alloftheabovearecorrect. 6.Inamarketeconomy,supplyanddemandareimportantbecausethey a.aredirectpolicytoolsusedbygovernmentagenciestoregulatetheeconomy. b.illustratewhenanmarketisinequilibrium,buttheyarenothelpfulwhenamarketisoutofequilibrium. c.canbeusedtopredicttheimpactontheeconomyofvariouseventsandpolicies. d.Alloftheabovearecorrect. 7.Inamarketeconomy, a.supplydeterminesdemandanddemand,inturn,determinesprices. b.demanddeterminessupplyandsupply,inturn,determinesprices. c.theallocationofscarceresourcesdeterminespricesandprices,inturn,determinesupplyanddemand. d.supplyanddemanddeterminepricesandprices,inturn,allocatetheeconomy’sscarceresources. Multiple Choice – Section 01: Markets and Competition 1.Whichofthefollowingstatementsiscorrect? a.Buyersdeterminesupply,andsellersdeterminedemand. b.Buyersdeterminedemand,andsellersdeterminesupply. c.Buyersdeterminebothdemandandsupply. d.Sellersdeterminebothdemandandsupply. 2.Thedemandforagoodorserviceisdeterminedby a.thosewhobuythegoodorservice. b.thegovernment. c.thosewhosellthegoodorservice. d.boththosewhobuyandthosewhosellthegoodorservice. 3.Thesupplyofagoodorserviceisdeterminedby a.thosewhobuythegoodorservice. b.thegovernment. c.thosewhosellthegoodorservice. d.boththosewhobuyandthosewhosellthegoodorservice. 4.Agroupofbuyersandsellersofaparticulargoodorserviceiscalleda(n) […]