Economics Exam

Based on the information in the graph, if the government limits the price of the item offered so that it cannot rise above $0.75, the result will be —

• An excess supply

• An excess demand of 240 units

• A consumer surplus of $1.00

• An excess surplus of 240 units

One potential risk from investing in the stock market is the loss of —

• Investor tolerance

• Purchasing power

• Earned interest income

• Portfolio diversification

Paying rent instead of purchasing tickets to a concert is an example of —

Which of the following conditions could explain the shift in the demand curve shown on the graph?

• Farmers harvested a bumper crop of tomatoes.

• Shoppers learned that cans of cooked tomatoes are spoiled.

• Surveys found that people are eating more cooked tomatoes.

• Eating cooked tomatoes was found to have more health benefits.

Which of the following is a non-price determinant of demand?

• Subsidy

• Productivity

• Price ceiling

• Consumer preferences

Based on the information in the graph, what is the equilibrium price of pizza?

• $2.00

• $4.00

• $1.00

• $5.00

On a supply and demand graph, supply will decrease and shift to the left when which of the following happens?

• The number of firms leaving the industry increases.

• There are fewer government regulations in place.

• The total cost of inputs decreases.

• Production taxes decline over a short period of time.

Which of the following statements is supported by the information in the demand schedule for gasoline?

• Demand for gasoline decreases as the price decreases.

• Price for gasoline remains constant as the demand increases.

• As the price of gasoline decreases, the quantity demanded increases.

• As the price of gasoline decreases, the quantity demanded decreases.

How do fluctuations to the international exchange rate of a nation's currency affect its balance of trade?

• If a country's exchange rate increases, the country's balance of trade stays the same.

• If a country's exchange rate increases, the country can import goods less expensively.

• If a country's exchange rate decreases, a negative trade balance occurs for that country.

• If a country's exchange rate decreases, the country's balance of trade stays the same.

According to the information in the excerpt, the described grant is provided for students who demonstrate that they —

• Saved for college

• Graduated with honors

• Have financial challenges

• Are first time attenders to college