Exam#1 Q1 Ch4.docx  Refer to the figure. When the supply curve shifts from S0 to S1, the equilibrium price rises to:   a.  $12 and the equilibrium quantity falls to 70.   b.  $10 and the equilibrium quantity falls to 100.   c.  $12 and the equilibrium quantity falls to 40.   d.  $10 and the equilibrium quantity falls to 70.

The equilibrium price and quantity are the only price and quantity that are stable in a free market.

Exam #1 Q1 CH3.docx  Refer to the figure. According to the demand curve, if the price of potatoes is $8 a pound, how many pounds are demanded? a.  5 b.  50 c.  60,000 d.  80,000

The supply curve tells us the minimum quantity that suppliers would be willing to sell at different prices

Exam #1 Q2 CH4.docx  Refer to the figure. When the demand curve shifts from D0 to D1, the equilibrium price rises to:   a.  $9 and the equilibrium quantity rises to 120.   b.  $9 and the equilibrium quantity rises to 160.   c.  $8 and the equilibrium quantity rises to 140.   d.  $8 and the equilibrium quantity rises to 160.

The value of a car produced by Kia (a South Korean company) in a factory located in Tennessee would be included in U.S. GDP.

How did the spread of the Internet affect the market for news (regardless of source)?   a.  Demand increased, causing the price to rise.   b.  Demand decreased, causing the price to fall.   c.  Supply decreased, causing the price to rise.   d.  Supply increased, causing the price to fall.

Imported goods purchased in the United States are counted as part of U.S. GDP.

Economic growth in China has led to more Chinese people owning cars, which:   a.  increased demand for oil, causing oil prices to rise.   b.  decreased demand for oil, causing oil prices to rise.   c.  increased demand for oil but decreased supply, causing oil prices to increase rapidly.   d.  increased demand and supply of oil, causing oil prices to increase rapidly.

Exam #1 Q#24.docx   (Table: Three-Good Economy II) Suppose an economy produces only the three finished goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. If 2008 prices are used in the calculation of real GDP, then nominal GDP in 2009 is _____ and real GDP in 2009 is _____.   a.  $34,310; $33,700   b.  $35,350; $34,310   c.  $33,700; $35,000   d.  $35,000; $33,700