ECN211

What incentives are created under a first come, first served allocation mechanism?

To acquire purchasing ability (to obtain income and wealth)

To be first

To produce the most

Fairness

Equality for all

  Flag this Question Question 2 2 pts The market system may not be efficient because people want more of the product. In this situation, the market<br> The market system may not be efficient because people want more of the product. In this situation, the market

is unable to measure the cost of cigarettes.

is not able to account for all costs and benefits.

accounts for all costs and benefits except in the case of fast food.

cannot account for the cost of Styrofoam cups.

is always able to account for all costs and benefits.

  Flag this Question Question 3 2 pts The development of a low-cost synthetic fuel is expected to affect the market for crude oil in which of the following ways?<br> The development of a low-cost synthetic fuel is expected to affect the market for crude oil in which of the following ways?

Decrease the price of oil

Decrease the quantity demanded and quantity supplied of oil

All of these

Decrease the demand for oil

Decrease the equilibrium quantity of oil

  Flag this Question Question 4 2 pts A market<br> A market

makes possible the exchange of goods and services between buyers and sellers.

refers only to a formally organized place where a well-defined commodity is always traded.

refers only to a specialized place or service where goods and services are exchanged.

refers only to a localized place or service that facilitates the exchange of goods and services.

refers to both large and small places where poorly defined commodities are traded.

  Flag this Question Question 5 2 pts Ryan is on a limited budget. He constantly takes money from the office coffee jar to pay for his meals. Ryan is utilizing a free market as it is intended to be used.<br> Ryan is on a limited budget. He constantly takes money from the office coffee jar to pay for his meals. Ryan is utilizing a free market as it is intended to be used.

True

False

  Flag this Question Question 6 2 pts Disequilibrium does <i>not </i>exist when<br> Disequilibrium does not exist when

there is a surplus.

quantity demanded and quantity supplied are equal.

there is a shortage.

the existing price is below the equilibrium price.

the existing price is above the equilibrium price.

  Flag this Question Question 7 2 pts If both supply and demand for a good increase, which of the following will definitely happen?<br> If both supply and demand for a good increase, which of the following will definitely happen?

Price will decrease.

Price will increase.

Quantity will decrease.

Price will remain the same.

Quantity will increase.

  Flag this Question Question 8 2 pts A market is in equilibrium when<br> A market is in equilibrium when

equilibrium price equals equilibrium quantity.

the government imposes price controls.

the demand and supply curves intersect.

the price is low.

the price is high.

  Flag this Question Question 9 2 pts Assume that the supply curve of sirloin steak is upward sloping. If the price increases from $5.25 to $8.60 per pound,<br> Assume that the supply curve of sirloin steak is upward sloping. If the price increases from $5.25 to $8.60 per pound,

the demand for sirloin steak will decrease.

the supply of sirloin steak will rise.

a greater quantity of sirloin steak will be supplied.

the supply of sirloin steak will decrease.

a smaller quantity of sirloin steak will be supplied.

  Flag this Question Question 10 2 pts Assume an increase in the profitability of firms in a product market. Over time, we can expect<br> Assume an increase in the profitability of firms in a product market. Over time, we can expect

firms to leave this market.

the equilibrium price of the product to fall.

the demand for resources to increase.

market supply to decrease.

the equilibrium price of the product to rise.