11.
Which of the following is not held constant when looking at an individual's demand curve?
O income
O price
O preferences
O the availability of alternative goods
12.
In a certain economy, peanuts and books are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would
allow the economy to produce more peanuts and more books, relative to the quantities of those goods that are being produced now?
O Unemployed labor is put to work producing peanuts and books.
O The economy puts its idle capital to work producing peanuts and books.
O The economy experiences economic growth.
O All of the above are correct.
13.
Suppose there is an early freeze in California that ruins the lemon crop. What happens to consumer surplus in the market for lemons?
O It increases.
O It decreases.
O It is not affected by this change in market forces.
O It increases very briefly then decreases.
14.
Suppose a tax of $4 per unit is imposed on a good. The supply curve and the demand curve are straight lines. The tax decreases consumer surplus by $10 and it
decreases producer surplus by $10. The tax revenue is $160. From this information it follows that the tax decreased the equilibrium quantity of the good
O from 80 to 70.
O from 70 to 60.
O from 75 to 55.
O from 50 to 40.
O from 20 to 15.
O from 15 to 10.
