Reference no: EM133495432

Questions

1. A(n) _____ investment will have more predictable returns than a (n)______________ investment.

large; small
domestic; international
old; new
low risk; high risk

2. In economics, the demand for a good refers to the amount of the good that people

Would be willing and able to buy at different prices.
want.
need to achieve a minimum standard of living.
can afford.

3. The nature of demand indicates that as the price of a good decreases,

suppliers wish to sell more of it.
more of it is produced.
buyers wish to purchase less.
buyers wish to purchase more.

4. After widespread press reports about the positive health effects of consuming Vitamin C, the likely economic effect on the U.S. citrus market is

no change in demand.
a shift of the demand curve for citrus fruit to the left.
a movement down along the demand curve for citrus fruit.
a shift of the demand curve for citrus fruit to the right.

5. If income elasticity for a commodity is negative, we can conclude that

consumers will buy more of it as their income rises.
consumers will buy less of it as their income rises.
firms should stop selling it.
nobody wants it.

6. A certificate of deposit offers lower ____ and higher ___than a savings account.

risk; liquidity
returns; liquidity
liquidity; returns
risk; returns

7. One basic difference between macroeconomics and microeconomics is:

microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.
microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of markets
microeconomics focuses on the private sector while macroeconomics focuses on the public sector
microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy

8. Macroeconomics primarily examines:

the behaviour of individual households and firms.
the behaviour of governments.
issues such as national output, employment and inflation
the output levels that maximize the profits of business firms

9. The term "Venture Capital "refers to:

buying stock in public companies
investing in risky corporate bonds
buying newly-issued government bonds
making financial investments in new companies

10. Are markets always in equilibrium?

No, but they tend to move towards it.
No, they are in constant flux.
Yes, because very few things tend to alter supply and demand.
Yes, they are always at the equilibrium point because of competition.