question
A decrease in demand with the supply held constant leads to a(an)
answer
decreased equilibrium price and a decreased equilibrium quantity
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An increased equilibrium price and a decreased equilibrium quantity results from a(an)
answer
decrease in supply
question
Assume no price ceiling exists in a market. Then a price ceiling is established below the market equilibrium. What would result?
answer
Shortage
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Which of the following is not an example of market failure?
answer
Efficient equilibrium
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A cost imposed on people other than the consumer of a good or service is a
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negative externality
question
Suppose prices for new homes have risen, yet the number of new homes sold has also risen. We can conclude that
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the demand for new homes has risen
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Which of the following statements is true of a market?
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An increase in demand, with no charge in supply, will increase the equilibrium price and quantity
question
Consider the market for chicken. An increase in the price of beef will
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increase the demand for chicken, resulting in a higher price and a greater amount of chicken purchased in the market
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An increase in consumers' income increases the demand for oranges. As a result of the adjustment to a new equilibrium, there is a(an)
answer
upward movement along the supply
question
An increase in the wage paid to grape pickers will cause the
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supply curve for grapes to shift to the left, resulting in higher prices for grapes
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If the federal government wants to raise the price of cheese, it will
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encourage farmers to produce less cheese
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Which of the following is least likely to result from rent controls set below the equilibrium price for rental housing?
answer
the supply of rental housing will increase rapidly
question
Suppose the equilibrium price set by supply and demand is lower than the price ceiling set by the government. The result will be
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that quantity demanded is equal to quantity supplied
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A good that provides external benefits to society has
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too few resources devoted to its production
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Pollution from cars is an example of
answer
negative externality
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Which of the following is the best example of a public good?
answer
defense
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A public good may be defined as any good or service that
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must be distributed all citizens in equal shares
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