QUESTION 1
(from Hotseat questions, Class 1-1) What is the unemployment rate for 2016?
a. 7,759
b. 95.1%
c. 5.1%
d. 4.9%
QUESTION 2
(from Class 1-2) In what year was the purchasing power of the minimum wage the highest?
a. 1960
b. 1968
c. 1978
d. 1983
e. each year 2010-2015.
f. 2015 only.
QUESTION 3
(from Class 1-3) The price of animal feed increases. What happens in the market for pork products?
a. Demand decreases, and the price of pork products increases.
b. Demand decreases, and the price of pork products decreases.
c. Demand increases, and the price of pork products increases.
d. Supply decreases, and the price of pork products decreases.
e. Supply decreases, and the price of pork products increases.
f. Supply increases, and the price of pork products decreases.
QUESTION 4
On a price-quantity graph, plot the quantity demanded for pizza for this class at the three prices $12, $16 and $7 (the answers to the first three survey questions). Which of the following is true?
a. The pizza poll data from this class violates the Law of Demand, because the demand curve slopes upward.
b. The pizza poll data from this class violates the Law of Demand, because the demand curve slopes downward.
c. The pizza poll data from this class provides evidence for the Law of Demand, because the demand curve slopes upward.
d. The pizza poll data from this class provides evidence for the Law of Demand, because the demand curve slopes downward.
QUESTION 5
According to the original demand curve (from the first 3 questions), about how many pizzas would this class buy if the price were $10?
Less than 400.
About 500.
About 700.
More than 1,000.
QUESTION 6
Suppose a survey of West Lafayette pizza restaurants found the following supply schedule:
Number of Pizzas
Price $12 1000
Price $7 700
Price $16 1200
Combine this supply schedule with the demand schedule from the pizza poll. The equilibrium price would be
a. About $7.
b. About $9.
c. About $11.
d. About $13.
e. About $15.
f. About $17.
g. More than $18.
QUESTION 7
Combine the above supply schedule with the demand schedule from the pizza poll. Now suppose the government imposed a price ceiling on pizza of $7-no pizza could be priced higher. Which of the following best describes the results of this policy in the pizza market?
a. There would be a shortage of pizza, with several hundred more pizzas demanded than supplied.
b. There would be a shortage of pizza, with several hundred more pizzas supplied than demanded.
c. There would be a surplus of pizza, with several hundred more pizzas demanded than supplied.
d. There would be a surplus of pizza, with several hundred more pizzas supplied than demanded.
QUESTION 8
When the price increased from $12 to $16, the elasticity of demand for pizza was closest to
a. +0.6
b. +1.6
c. -0.6
d. -1.6
QUESTION 9
When the price decreased from $12 to $7, the elasticity of demand for pizza was closest to
a. -0.5
b. -1.0
c. -1.6
d. -2.1