1251. A subsidy paid to producers :
A. Shifts the supply curve *
B. Shifts the demand curve
C. Leads to a contraction in supply
D. Leads to an extension of supply
1252. A movement along the supply curve may be caused by :
A. A change in technology
B. A rise in the number of producers
C. A shift demand *
D. A change in costs
1253. The price mechanism cannot :
A. Act as a signal
B. Act as a incentive
C. Act as a rationing device
D. Shift the demand curve *
1254. Which best describes consumer surplus ?
A. The selling price that customers are willing to pay for a product
B. The cost of providing a unit
C. The profits made by a firm
D. The distinction the value a customer follows through on for a thing and the cost he/she will pay *
1255.The price mechanism does not act as a :
A. Signal
B. Incentive
C. Rationing device
D. Indicator of income *
1256. The law of demand states that :
A. As the quantity demanded rises, the price rises
B. As the cost rises, the amount request rises
C. AS THE Price rise, the quantity demand falls *
D. As supply rises the demand rises
1257. A decrease in demand for a product should :
A. Increase equilibrium price and quantity
B. Decrease equilibrium price and quantity *
C. Increase equilibrium price and quantity
D. Decrease equilibrium price and quantity
1258. An increase in demand for a product should :
A. Increase equilibrium price and quantity *
B. Decrease equilibrium price and quantity
C. Increase equilibrium price and decrease quantity
D. Decrease equilibrium price and increase quantity
1259. ” Pay imbalance can be high in the unrestricted economy and ought to be decreased . What is an illustration of?
A. Judicial economic statement
B. Positive economic statement
C. Formative economic statement
D. Normative economic statement *
1260. A public good will :
A. Be underprovided in the free market
B. Be overprovided in the free market
C. Not be provided in the free market *
D. Has not opportunity cost