Which of the following is not one of the three fundamental economic questions? O a. What to produce? O b. How to produce? Oc. Where to produce? O d. For whom to produce? 2. If equilibrium is present in a market: O a. the quantity supplied exceeds quantity demanded. O b. the quantity demanded exceeds quantity supplied. C. the quantity demanded equals quantity supplied. Od. there is either a shortage or a surplus. 3. The central question in economics is how to: O a. change government economic policy. O b. manage money and become wealthy. O C. change people's wants to match their needs. O d. deal with the problem of scarcity. 4. A movement along a demand curve is called a change in: O a. demand. O b. tastes. c. income. O d. quantity demanded.

Several advertisements announce that the price of hand sanitizer will be decreasing next month. At the same time, the price of rubbing alcohol, an ingredient used to make hand sanitizer has decreased. Given these two effects, what can we say about the current equilibrium price and quantity of hand sanitizer? → a. Equilibrium price will increase, equilibrium quantity will decrease. O b. Equilibrium quantity will decrease; the effect on price is ambiguous. O c. Equilibrium quantity will increase; the effect on price is ambiguous. O d. Equilibrium price will decrease; the effect on quantity is ambiguous.

Question 3 In 2018 there was a decrease in the supply of tequila in the United States. Which of the following would explain why? (Select all that apply.) O a. Drought in agave (main ingredient of tequila) farming regions. O b. Increased price of glass. O. More efficient tahonas (grinds agave to extract the juice used for tequila). O d. Distillery workers' wage increases. O e. Increase in number of distilleries. O f. Decrease in price of agave syrup (made in same ingredients).

In the market for some good, demand decreases and supply decreases. What prediction would you make for this market? Select one: O a. Price rises. O b. Price falls. O c. Quantity falls. O d. Quantity rises.