Home / essay help / business plan writing services / the “coincidence of wants” problem associated with barter refers to the fact that

the “coincidence of wants” problem associated with barter refers to the fact that

Exam: 050472RR – INTRODUCTION TO ECOMONICS AND THE ECONOMY

When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam.

Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.

1. Other things equal, the provision of a per unit subsidy for a product will A. decrease the quantity sold. B. increase its price. C. decrease its demand.

D. increase its supply. 2. When the price of a product rises, consumers shift their purchases to other products whose prices are

now relatively lower. This statement describes A. the income effect. B. the substitution effect. C. the rationing function of prices.

D. an inferior good.

3. The law of demand states that A. price and quantity demanded are directly related. B. consumers will buy more of a product at high prices than at low prices. C. the larger the number of buyers in a market, the lower will be product price. D. price and quantity demanded are inversely related.

4. Which one of the following statements about the competitive market system is correct?

A. The competitive market system encourages innovation because successful innovators are rewarded with economic profits.

B. The competitive market system discourages innovation because it’s difficult to acquire additional capital in the form of new machinery and equipment.

C. The competitive market system discourages innovation because firms want to get all the profits possible from existing machinery and equipment.

D. The competitive market system encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques.

5. The coincidence-of-wants problem associated with barter refers to the fact that A. specialization is restricted by the size or scope of a market. B. for exchange to occur, each seller must have a product that some buyer wants. C. buyers in resource markets and sellers in product markets can never engage in exchange.

D. money must be used as a medium of exchange, or trade will never occur.

SStudent ID: 21784984 Exam: 050472RR – INTRODUCTION TO ECOMONICS AND THE ECONOMY

When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam.

Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.

1. Other things equal, the provision of a per unit subsidy for a product will A. decrease the quantity sold. B. increase its price. C. decrease its demand.

D. increase its supply. 2. When the price of a product rises, consumers shift their purchases to other products whose prices are

now relatively lower. This statement describes A. the income effect. B. the substitution effect. C. the rationing function of prices.

D. an inferior good.

3. The law of demand states that A. price and quantity demanded are directly related. B. consumers will buy more of a product at high prices than at low prices. C. the larger the number of buyers in a market, the lower will be product price. D. price and quantity demanded are inversely related.

4. Which one of the following statements about the competitive market system is correct?

A. The competitive market system encourages innovation because successful innovators are rewarded with economic profits.

B. The competitive market system discourages innovation because it’s difficult to acquire additional capital in the form of new machinery and equipment.

C. The competitive market system discourages innovation because firms want to get all the profits possible from existing machinery and equipment.

D. The competitive market system encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques.

5. The coincidence-of-wants problem associated with barter refers to the fact that A. specialization is restricted by the size or scope of a market. B. for exchange to occur, each seller must have a product that some buyer wants. C. buyers in resource markets and sellers in product markets can never engage in exchange.

D. money must be used as a medium of exchange, or trade will never occur.

6. Microeconomics is concerned with A. a detailed examination of specific economic units that make up the economic system. B. the establishing of an overall view of the operation of the economic system. C. the aggregate or total levels of income, employment, and output. D. positive economics, but not normative economics.

7. Government rather than private firms must provide economically desirable public goods because A. high marginal costs preclude their production in the private sector. B. public goods have characteristics that make it difficult or impossible for private firms to produce them profitably. C. public goods have marginal costs that exceed marginal benefits.

D. the law of increasing opportunity costs applies only to private goods. 8. In performing its stabilization function, it may be appropriate for the nation’s central bank (the Federal

Reserve in the United States) to A. lower interest rates to stimulate private spending and reduce unemployment. B. increase subsidies to businesses to reduce unemployment. C. raise taxes to reduce inflation. D. increase government spending to reduce unemployment.

9. Income data that show how total income is distributed as wages, rents, interest, and profits describe the _______ distribution of income.

A. horizontal B. functional C. vertical D. personal

10. Welfare checks and food stamps are examples of _______ used by the government to redistribute income.

A. transfer payments B. corporate subsidies C. market intervention D. taxation

11. The two general types of economic systems that exist today are A. market systems and command systems. B. socialism and central planning. C. market systems and capitalism.

D. laissez-faire systems and pure command systems.

12. Macroeconomic stability is said to exist in an economy whenever A. there’s no inflation. B. the rates of output growth, unemployment, and inflation are all zero.

C. total spending exceeds production capacity. D. output matches production capacity, labor is fully employed, and inflation is low and stable.

13. The law of increasing opportunity costs states that

A. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do so.

B. the sum of the costs of producing a particular good can’t rise above the current market price of that good.

C. if the prices of all the resources used to produce goods increase, the cost of producing any particular good will increase at the same rate.

D. if the sum of the costs of producing a particular good rises by a specified percent, the price of that good must rise by a greater relative amount.

14. Which one of the following is not an important source of revenue for the federal government? A. Payroll taxes B. Corporate income taxes C. Personal income taxes

D. Property taxes 15. If consumers are willing to pay a higher price than previously for each level of output, we can say that

_______ has occurred. A. a decrease in demand B. an increase in demand C. an increase in supply

D. a decrease in supply

16. Which one of the following is not a characteristic of the market system? A. Government ownership of the major industries B. Freedom of enterprise C. Private property

D. Competition in product and resource markets

17. The major source of tax revenue for the United States federal government is _______ taxes. A. personal income B. corporate income C. property

D. sales and excise

18. Which one of the following statements correctly describes export subsidies?

A. Export subsidies are excise taxes or duties placed on imported products.

B. Export subsidies are licensing requirements, unreasonable quality standards, and the like designed to impede imports.

C. Export subsidies are government payments to domestic producers to enable them to charge lower prices and sell more goods in world markets.

D. Export subsidies are maximum limits on the quantity or total value of specific products imported to a nation.

19. The organization created to oversee the provisions of multilateral trade agreements, resolve disputes under the international trade rules, and meet periodically to consider further trade liberalization is called the

A. Common Market Organization (CMO). B. International Monetary Fund (IMF). C. International Trade Commission (ITC). D. World Trade Organization (WTO).

20. Which one of the following statements about limited liability is correct? A. Limited liability means that creditors have no legal claim on the personal assets of a proprietor. B. Limited liability means that creditors have no legal claim on the personal assets of a corporate stockholder. C. Limited liability means that corporations can’t be sued. D. Limited liability means that corporations have a legal life independent of their owners and managers.

About eduhawks

Check Also

find the sum of the interior angles of a nonagon

Find the sum of the interior angles of a nonagon. (1 point) 140° 1,620° 1,260° …