<br/><br/>If there is a surplus of a​ good, the quantity demanded

is​ ________ the quantity supplied and the price will​ ________.
A.
greater​ than; fall
B.
less​ than; fall
C.
greater​ than; rise
D.
less​ than; rise
E.
equal​ to; fall

The marginal cost of an activity is a measure of​ ________ the activity.
A.
the benefit derived from every one unit increase in
B.
the benefit derived from every one unit decrease in
C.
what is forgone with every one unit increase in
D.
the total cost of
E.
sunk cost of

Both the demand for and supply of cars changes in France. You observe that the quantity of cars does not change but the price rises.​ Thus, which of the following​ occurred?
A.
Demand and supply increased by an equal amount.
B.
Demand increased and supply decreased by an equal amount.
C.
Demand increased by a larger magnitude than supply decreased.
D.
Demand decreased and supply increased by an equal amount.
E.
Demand and supply decreased by an equal amount.

Market equilibrium occurs when
A.
the quantity demanded equals the quantity supplied.
B.
opposing forces pull demand and supply apart.
C.
demand and supply move in opposite direction.
D.
demand and supply change so that are equal at all possible prices.
E.
all markets become equal.

If both the supply and demand curves shift​ simultaneously, we can always predict what will happen to
A.
both the price and the quantity.
B.
only the price.
C.
either the price or the​ quantity, but not both.
D.
only the quantity.
E.
neither the price nor the quantity.
To achieve gains from​ trade, a country
A.
should produce at the midpoint of its PPF.
B.
specializes in the producing a good in which it has a lower opportunity cost.
C.
must produce at a point beyond its PPF.
D.
needs to have an absolute advantage in the production of at least one good.
E.
needs to have an absolute advantage in the production of all goods

In the above​ figure, Jack’s opportunity cost of producing 1 gallon of soda is​ ________ of bottled water.
A.
2 gallons
B.
6 gallons
C.
​1/4 of a gallon
D.
​1/2 of a gallon
E.
1 gallon
If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts​ leftward, then
A.
More information is needed to determine the effect on the equilibrium price.
B.
the equilibrium price definitely rises.
C.
the equilibrium price definitely falls.
D.
the equilibrium quantity definitely increases.
E.
the equilibrium price definitely remains the same.

The demand for cat food decreases while the supply increases. The equilibrium price of cat food​ ________, and the equilibrium quantity​ ________.
A.
​rises; decreases
B.
​falls; increases
C.
does not​ change; increases
D.
​rises; perhaps changes but we​ can’t say if it​ increases, decreases, or stays the same
E.
​falls; perhaps changes but we​ can’t say if it​ increases, decreases, or stays the same
The technology associated with manufacturing computers has advanced enormously. This change has led to the price of a computer​________ and the quantity​ ________.
A.
​falling; increasing
B.
​falling; not changing
C.
​rising; increasing
D.
​rising; decreasing
E.
​falling; decreasing
If the price of a movie rises 3 percent​ and, as a​ result, the quantity demanded of video rentals increases 6​ percent, then the cross elasticity of demand is
A.
2.
B.
9.
C.
​-1/2.
D.
​-2.
E.
​1/2.

The figure above shows the production possibilities frontiers for the United Kingdom and France. If the United Kingdom and France specialize and engage in​ trade, the United Kingdom will produce​ ________ and France will produce​ ________.
A.
both wheat and​ fish; both wheat and fish
B.
​wheat; wheat
C.
​fish; wheat
D.
​wheat; fish
E.
​fish; fish

The price elasticity of supply equals the percentage change in the
A.
quantity demanded divided by the percentage change in the price of a substitute or complement.
B.
supply divided by the percentage change in the demand.
C.
quantity demanded divided by the percentage change in price.
D.
quantity supplied divided by the percentage change in the quantity demanded.
E.
quantity supplied divided by the percentage change in price.
If both supply and demand decrease by the same​ amount, the equilibrium price
A.
falls.
B.
rises.
C.
cannot be predicted.
D.
does not change.
E.
None of the answers is correct because the price depends on what happens to the equilibrium quantity.

An example of a U.S. export is
A.
matchbooks made in Mexico sold to a buyer in New Jersey.
B.
a TV made in China sold to a buyer in Azerbaijan.
C.
a washing machine made in Indiana sold to a buyer in France.
D.
pasta made in Italy sold to buyers in Spain.
E.
diamonds mined in Africa sold to buyers in South America.

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