Question 1. “After wearing seat belts became mandatory, d

1. “After wearing seat belts became mandatory, drivers reacted by driving faster and less carefully. This is consistent with what Principle of Economics “After wearing seat belts became mandatory, drivers reacted by driving faster and less carefully. This is consistent with what Principle of Economics? (Points : 5)
trade can make everyone better off
the cost of something is what you give up to get it
governments can sometimes improve market outcomes
people respond to incentives

2. The term ‘quantity supplied’ means _____ (Points : 5)
the same things as ‘supply’.
the amount of a good that customers need.
the amount of a good that consumers ultimately desire.
the amount of a good sellers are willing to sell at a given price.

3. Economists believe that self-sufficiency (no trade) _____ (Points : 5)
is needed, in order to guarantee national security.
ensures an equitable distribution of resources.
prevents exploitation of the working class, by limiting the power of capitalists.
results in lower levels of output and consumption than would prevail under free trade.

4. Opportunity cost is _____ (Points : 5)
any lost opportunity.
the value of the next-best opportunity that one foregoes when making a choice.
used to exploit weaker parties to a transaction by stronger parties.
the aggregate value of all foregone opportunities.

5. Economists argue that rent controls carry long-run unintended consequences such as _____ (Points : 5)
a fairer price for people who can’t afford market-determined rents.
improved quality of apartment units.
fewer apartment units as landlords seek substitute uses of their property.
a higher cost to landlords who discriminate through non-price criteria.

6. Other things constant, a lower price for corn tends to decrease _____ (Points : 5)
the supply of corn.
the quantity supplied of corn.
the demand for corn.
the quantity demanded for corn.

7. Economists study _____ (Points : 5)
the choices individuals make, but not the consequences of their choices.
the costs of production of goods and services, in order to set fair prices.
the choices that individuals make under conditions of scarcity and uncertainty.
theories and ignore all the facts.

8. If a consumer pays $12 for a product but he/she is willing to pay up to $20, what is his/her consumer surplus? (Points : 5)
$20
$32
$0
$8

9. Price gouging is _____ (Points : 5)
a natural response to a sudden increase in demand.
irrational behavior that violates economic logic.
not subject to economic analysis, because it is illegal.
a precisely defined concept that leaves no room for dispute or disagreement.

10. The Production Possibilities Frontier Illustrates this Principle of Economics: (Points : 5)
People Face Trade-Offs
The Cost of Something is What You Give Up to Get It
Both 1 and 2 above are right
Neither 1 nor 2 above are right

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.