AP (Advanced Placement) Microeconomics: Questions 320 - 322 of 398

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Question 320

Question

MCQ▾

Use the figure below to respond to the questions.

Price Ceiling

The competitive market equilibrium is at point C. If a per unit excise tax is imposed on the production of this good, the revenue collected by the government is

Choices

Choice (5)Response

a.

The area BDE.

b.

The area BADH.

c.

The area GDAB.

d.

The area GDH.

e.

The area DAC.

Question 321

Question

MCQ▾

Suppose that aluminum is a key production input in the production of bicycles. If the price of aluminum falls, and all other variables are held constant, we expect; a

Choices

Choice (5)Response

a.

The demand for bicycles to fall.

b.

The demand for bicycles to rise.

c.

The supply of bicycles to rise.

d.

The supply of bicycles to fall.

e.

The demand for aluminum to rise.

Question 322

Question

MCQ▾

Economics is best described as

Choices

Choice (5)Response

a.

The study of how scarce material wants are allocated between unlimited resources.

b.

The study of how scarce labor can be replaced by unlimited capital.

c.

The study of how decision makers choose the best way to satisfy their unlimited material wants with a scarce supply of resources.

d.

The study of how unlimited material wants can best be satisfied by allocating limitless amounts of productive resources.

e.

The study of how capitalism is superior to any other economic system.

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