Economics Questionnaire

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1. A legal maximum on the price at which a good can be sold is called a? price ceiling.
2. Which of the following is likely to have the most price elastic demand? Breakfast cereal, corn flakes
3. A reduction in a country 's barriers to trade? benefits some citizens of the importing country but does not benefit the domestic producers in the importing country.
4. The amount of a good that buyers are willing and able to purchase is quantity demanded.
5. Suppose a market in which demand is more elastic than supply. The incidence of a tax will? fall more heavily on sellers than buyers.
6. Suppose there is a frost that destroys much of the strawberry crop and the price of blueberries, a substitute for strawberries, increases. What would we
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26. If price elasticity of demand is less than one? increasing the price of the product will increase total revenue.
27. Sue can produce 4 dozen cookies or 2 dozen cupcakes in one hour. David can produce 6 dozen cookies or 4 dozen cupcakes in one hour. A producer that requires fewer resources to produce a good is said to have? a comparative advantage, a straight line production possibilities frontier
28. A tax levied on buyers has the same effect on the price the buyer pays as an equal magnitude tax levied on sellers. TRUE
29. A price floor set below the market equilibrium price? is a non-binding price floor.
30. One producer can have the comparative advantage in both products, but cannot have the absolute advantage in both products? FALSE
31. When the minimum wage is set above the equilibrium wage it is a binding price floor that results in a surplus of labor
32. A decrease in quantity supplied is shown as a movement from? point B to point A
33. Imports are goods? produced abroad and sold domestically
34. Goods with a positive cross price elasticity are? substitutes.
35. An increase in supply is shown as a movement from? point A to point B, point B to point A
36. A market with only one seller is called a monopoly market. TRUE
37. If the government were to impose a tax on cigarettes, the tax incidence will likely fall more
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