# The last samurai Essay

3684 Words Oct 10th, 2013 15 Pages
Macro Fall 2009 Test 1

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. Sophia is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that
a.
people respond to incentives.
b.
rational people think at the margin.
c.
d.
improvements in efficiency sometimes come at the expense of equality.

____ 2. Which of the following phrases best captures the notion of efficiency?
a.
absolute fairness
b.
equal
the impact of faster money growth on the rate of inflation
d.
a comparison of alternative tax policies and their respective impacts on the rate of the nation’s economic growth

____ 15. For a market for a good or service to exist,
a.
there must be a group of buyers and sellers.
b.
there must be a specific time and place at which the good or service is traded.
c.
there must be a high degree of organization present.
d.
All of the above are correct.

Table 4-2

Price
Audrey’s
Quantity
Demanded
Bob’s
Quantity
Demanded
Chuck’s
Quantity
Demanded
Dottie’s
Quantity
Demanded
\$12
2
1
3
4
\$10
4
4
4
5
\$8
6
7
5
6
\$6
8
8
4
7
\$4
10
9
3
8
\$2
12
10
2
9

____ 16. Refer to Table 4-2. Whose demand does not obey the law of demand?
a.
Audrey’s
b.
Bob’s
c.
Chuck’s
d.
Dottie’s

____ 17. When quantity demanded decreases at every possible price, we know that the demand curve has
a.
shifted to the left.
b.
shifted to the right.
c.
not shifted; rather, we have moved along the demand curve to a new point on the same curve.
d.
not shifted; rather, the demand curve has become flatter.

____ 18. An increase in the price of a good will
a.
increase demand.
b.
decrease demand.
c.
increase quantity demanded.
d.
decrease quantity demanded.

____ 19. The demand curve for hot dogs
a.
shifts when the price of hot dogs changes because the price

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