QUIZ 2Macroeconomics theories and policies (AEC-106)1. The quantity demanded will equal the quantity supplied at a free market equilibrium and alsowhen:A. a price floor is established above the equilibrium price.B. suppliers are able to sell their commodity for the black market price.C. a price ceiling is established below the equilibrium price.D. an effective price ceiling exists and the government is able to prevent thedevelopment of a black market.E. none of the above cause quantity demanded to equal quantity supplied.2. When the actual price of a good is above its equilibrium market price, competition among:A. buyers will force the actual price upward.B. sellers will force the actual price upward.C. sellers will force the actual price downward.D. buyers will force the actual price downward.E. none of the above.15.7.20223. Which of the following characterize index numbers?A. Index numbers express observed data relative to some base value.B. Index numbers indicate overall trends in an economy rather than specific detailedfacts.C. Index numbers often require that the individual items in the index be assigned someweight to reflect each item's overall importance to the final index number.D. Index numbers are often used to measure aggregate macroeconomic variables.E. all of the above.4. If, between 1983 and 1985, nominal GDP rose by 20% and prices rose by 13%, actualoutput rose by approximately:A. 33%B. 2.6%C. 20%D. 7%E. 13%5. Gross Domestic Product (GDP) is the total market value of all domestic:A. commodities sold in a year.B. services produced in a year.C. production during a year.D. consumer goods sold during a year.6. Inflation imposes especially large burdens on people who:A. receive social security benefits.B. owe huge fixed interest rate mortgages on their houses.C. work under union contracts with cost of living adjustments built in.D. rely on fixed dollar assets for their retirement.E. all of the above.7. According to classical economists, Aggregate Demand primarily determines:A. levels of national output and income.B. total production in the economy.C. Aggregate Supply at full employment.D. the price level.cies

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1. The quantity demanded will equal the quantity supplied at a free market equilibrium and also when: A. a price floor is established above the equilibrium price. B. suppliers are able to sell their commodity for the black market price. C. a price ceiling is established below the equilibrium price. D. an effective price ceiling exists and the government is able to prevent the development of a black market. E. none of the above cause quantity demanded to equal quantity supplied. good is above its equilibrium market price, competition among:

1. The quantity demanded will equal the quantity supplied at a free market equilibrium and also when: A. a price floor is established above the equilibrium price. B. suppliers are able to sell their commodity for the black market price. C. a price ceiling is established below the equilibrium price. D. an effective price ceiling exists and the government is able to prevent the development of a black market. E. none of the above cause quantity demanded to equal quantity supplied. good is above its equilibrium market price, competition among:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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