EcoNook

When the demand for personal computer increases, the demand for software proportionally increases. The impact on price will be :

• A. Price of the PC alone increases.

• B. Price of both products increases.

• C. Price of the software alone increases.

• D. Price of the personal computer increases while the price of software remains constant.

The law of supply indicates that :

• A. Price and supply are negatively related.

• B. Price and supply are inversely related.

• C. Price and supply are positively related.

• D. The relationship of these variables are not clear.

Occurs when the price is lower than the market price level.

• Shortage

• Surplus

• Opportunity cost

• Dead weight loss

Occurs when the price level is higher than the market price level:

• Shortage

• Surplus

• Consumer surplus

• Production surplus

Market failure occurs when:

• A. Pursuit for profit results in decreased consumer satisfaction.

• B. Cost and benefit of a private business activity is passed on to society.

• C. Private business activity causes environmental degradation.

• D. All of the above.

High and low employment affect production possibilities. This situation also influences the average price market levels.

• The first and second statements are both true.

• The first and second statements are both false.

• The first statement is true. The second statement is false.

• The first statement is false. The second statement is true.

Refers to the alternate combinations of maximum amount of two different goods of the economy’s resources that are fully and efficiently utilized.

• A. Production Function.

• B. GDP

• C. Unemployment

• D. None of the above

In the law of demand, quantity demanded decreases as the price increases, ceteris paribus. Therefore, price and quantity demanded are positively related.

• A. The first and the second statements are both true.

• B. The first statement is true. The second statement is false.

• C. The first and the second statements are both false.

• D. The first statement is false. The second statement is true.

A situation in which resources are not fully utilized in production.

• Economic instability.

• Unemployment

• Opportunity cost.

• Economic growth

Refers to the study of the total economy:

• Microeconomics

• Behavioral economics

• Econometrics

• Macroeconomics