1Singlechoice1. Thephenomenonofscarcitystemsfromthefactthat().A) mosteconomies'productionmethodsarenotverygood.B) inmosteconomies,wealthypeopleconsumedisproportionatequantitiesofgoodsandservices.C) governmentsrestrictproductionoftoomanygoodsandservices.D) resourcesarelimited.2. Inamarketeconomy,supplyanddemandareimportantbecausethey().A) playacriticalroleintheallocationoftheeconomy'sscarceresources.B) determinehowmuchofeachgoodgetsproduced.C) canbeusedtopredicttheimpactontheeconomyofvariouseventsandpolicies.D) Alloftheabovearecorrect.3. Whatwillhappentotheequilibriumpriceofnewtextbooksifmorestudentsattendcollege,paperbecomescheaper,textbookauthorsacceptlowerroyalties,andfewerusedtextbooksaresold?()A) Pricewillrise.B) Pricewillfall.C) Pricewillstayexactlythesame.D) Thepricechangewillbeambiguous.4. Thepresenceofapricecontrolinamarketforagoodorserviceusuallyisanindicationthat().A) aninsufficientquantityofthegoodorservicewasbeingproducedinthatmarkettomeetthepublic'sneed.B) theusualforcesofsupplyanddemandwerenotabletoestablishanequilibriumpriceinthatmarket.C) policymakersbelievedthatthepricethatprevailedinthatmarketintheabsenceofpricecontrolswasunfairtobuyersorsellers.D) policymakerscorrectlybelievedthatpricecontrolswouldgeneratenoinequitiesoftheirownonceimposed.5. Policymakersusetaxes().A) toraiserevenueforpublicpurposesbutnottoinfluencemarketoutcomes.B) bothtoraiserevenueforpublicpurposesandtoinfluencemarketoutcomes.C) whentheyrealizethatpricecontrolsaloneareinsufficienttocorrectmarketinequities.D) onlyinthosemarketsinwhichtheburdenofthetaxfallsclearlyonthesellers.6. Theparticularpricethatresultsinquantitysuppliedbeingequaltoquantitydemandedisthebestpricebecauseit().A) maximizescostsoftheseller.2B) maximizestaxrevenueforthegovernment.C) maximizesthecombinedwelfareofbuyersandsellers.D) minimizestheexpenditureofbuyers.7. Economistssaythatamarketwheregoodsarenotconsumedbythosevaluingthegoodsmosthighlyis().A) laissez-faire..B) unequal.C)...
