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Paper Topic:

Macro Economics

COURSE : MACRO ECONOMICS (1st year , Undergrad

1 . Which statement is not consistent with the law of supply

A ) The more of a good supplied , the higher the price , other things constant

B ) The less of a good supplied , the lower the price , other things constant

C ) Quantity supplied of a good is directly related to the good 's price

D ) Quantity supplied of a good is inversely related to the good 's price 2 . The supply of leather jackets would be expected to increase as a result of

A ) a

decrease in the cost of producing leather jackets

B ) an increase in the price of leather jackets

C ) an increase in the popularity of leather jackets

D ) the expectation that the price of leather jackets will rise in the future Use the following to answer question 3

Price Quantity demanded Quantity Supplied (per litre (litres per week (litres per week 1 2000 1000 2 1500 1500 3 1000 2000 4 500 2500 3 . Suppose the above supply and demand table reflects the supply and demand for milk per week . At a price of 4

A ) there is a surplus of 1000 litres per week

B ) there is a surplus of 2000 litres per week

C ) there is a shortage of 1000 litres per week

D ) there is a shortage of 2000 litres per week 4 . To derive a market demand curve from two individual demand curves

A ) add the two demand curves horizontally

B ) add the two demand curves vertically

C ) subtract one demand curve from the other demand curve

D ) add the demand curves both horizontally and vertically 5 . Fishing for king crabs for a living is risky business . Their migration habits along the Bering Strait are not understood . In 1981 king crabs seemed to disappear but returned mysteriously in the late 1980s , wreaking havoc on the income of crabbers . When crabs disappear consumers buy lobster instead . What best describes this situation in the king crab market

A ) The supply curve shifts to the left when crabs disappear (their price rises ) and shift to the right when they reappear (their price declines

B ) The supply curve shifts to the left when crabs disappear (their price rises ) and the demand curve shifts to the left when consumers substitute lobster for crab (lowering their price . The supply curve then shifts to the right when crabs reappear (their price declines

C ) The price of crab rises when crabs are scarce creating excess demand The price of crab falls when crabs are abundant creating excess supply

D ) The quantity of crab falls and then rises as crabs disappear and reappear in response to shifts in demand . Demand shifts to the left as consumers substitute toward lobster when crab is scarce and shift to the right when crab is abundant 6 . Which of the following problems is not one of the central concerns of macroeconomics

A ) Product pricing

B ) Growth

C ) Business cycles

D ) Unemployment 7 . Which of the following statements best characterizes the...

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