Practice for EOCT

The main concern of economics is

To say that a country has a comparative advantage in the production of chocolate is to say that

If the price of product L increases, the demand curve for a close substitute product M will:

Operating inside a society's production possibilities frontier is a

Which of the following is not a factor of production in the making of Tshirts

Who is most hurt by unexpected inflation?

The value of net exports is

If the government increases the building of schools, one could expect

The most basic institution of a market system is:

In the official statistics, a worker who is so discouraged that he has stopped looking for employment is counted as:

In which of the following markets would one find many sellers, homogeneous products, and easy entry

In order to produce more fuel efficient cars, U.S. auto makers have used less steel and more light weight materials. The unemployment it causes in the steel industry is an example of:

Which of the following will generate additional American demand for the Mexican peso

According to Graph 1, a price of $1 would be a

Automotive industry in the United States is

With an increase in profits in a particular industry, we might expect

The price of a good dropped from $50 to $40. The number of the good sold went from 1000 to 2000. The demand for this good is

Quotas tend to be associated with efforts to

Which of the following might cause a decrease in supply?

Which of the following items is excluded from the calculation of GDP:

Open-market purchases of government securities by the Federal Reserve System will have the tendency to

If the United States can produce 1 computer in an hour or 1 TV in an hour, and Germany can produce 1 computer in 2 hours or 1 TV in an hour and a half, then which of the following is true?

A tax imposed only on an imported good is a

If the percentage change in quantity demanded for a product is smaller than the percentage change in price, then demand for the good is

Assume that an economy is producing only two goods: apples and butter. Suppose that a new fertilizer is invented which greatly increases the productivity of apple trees. according to graph 3, choose the one which best illustrates the change in the production possibilities caused by this increased productivity, all other things unchanged

Which of the following is correct with respect to a firm's supply of a given product? The supply curve shows

Which of the following is the primary incentive in determining WHAT to produce in a free market price system? Produce those products that

In order to serve as money, a thing must

Which one of the following will cause the demand curve for gasoline to shift to the right?

According to graph 1, a price of $1.00 per unit will result in:

The Consumer Price Index rose from 340 in 1987 to 354 in 1988. The inflation rate from l987 to 1988 was:

look at graph 2. a shift in the production-possibilities frontier from A-A to B-B could result from

Suppose the price of a certain good fell from $1.00 to $0.50 and, as a result, the quantity demanded increased from 500 to 750 units. Over this range, the demand curve is:

Which of the following is a macroeconomic decision?

Real GDP (or GDP in "constant dollars") means