# Saint ECO202 Final Exam latest may 2016 - 96788

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Question

1. Question :

When the price of a good falls, there will be __________.

an outward shift in the good's demand curve

both an outward shift in the good's demand curve and a movement along the good's demand curve

a movement along the good's demand curve

no change in quantity demanded

Question 2. Question :

If the price of Pepsi increases, then there will be ________ of Pepsi.

a decrease in the supply

an increase in the supply

an increase in the quantity supplied

a decrease in the quantity supplied

Question 3. Question :

Refer to the figure below. The equilibrium price and quantity are __________.

image

\$2 and 12 units

\$6 and 9 units

\$8 and 6 units

\$10 and 1 unit

Question 4. Question :

In the automobile industry, workers have just negotiated a new contract giving workers a large raise. There has also been an increase in the number of licensed drivers who are in the market for a new car. In the market for new automobiles, the effects that these changes will have on the equilibrium price and quantity are: __________.

price will increase, and quantity will decrease

price will increase, and the effect on quantity is indeterminate

price will decrease, and quantity will increase

price will decrease, and the effect on quantity is indeterminate

Question 5. Question :

In a market, the rationing function of prices results in __________.

long queues or waiting lines

a price ceiling

equilibrium

a shortage or surplus

Question 6. Question :

If a price floor is set below the current market clearing price, then __________.

a surplus must immediately occur

a shortage must immediately occur

there will be incentives for black markets to develop

quantity demanded will remain equal to quantity supplied at the current market clearing price

Question 7. Question :

A result of a positive externality in the production of a good is that __________.

the price system will over-allocate resources to the production of that good or service

the price system will under-allocate resources to the production of that good or service

the mar