Question

1. what would not cause a shift in the demand curve?

population
a
supply
b
consumer expectations
c
income
d

1. which of the following is an indirect mean, through which,

government can influence supply?
taxes
a
excise tax
b
subsidies
c
regulation
d

1. what is the foundation of the united states economy?

centrally planned economy
a
democratic economy
b
free market
c
traditional economy
d

1. what is the main difference between macroeconomics and

microeconomics?
macroeconomics is the study of the decision making of
small units, whereas microeconomics is the study of the
a
decision making of large units.
b
macroeconomics is the study of the decision making of
entire economies, whereas microeconomics is the study c
of the decision making of individuals, families,
households, and businesses.
microeconomics is the study of the decision making of
entire economies, but macr

Explanation:

• Question 4: The demand curve shifts due to non - price factors like population (number of buyers), consumer expectations (about future prices, availability etc.), and income (affecting purchasing power). Supply is a factor that affects the supply curve, not the demand curve.
• Question 5: Regulation is an indirect way. Taxes (including excise tax) and subsidies directly affect the cost of production (for taxes, they increase cost; for subsidies, they decrease cost). Regulation sets rules and standards that firms must follow, which can influence their production decisions (e.g., environmental regulations may force a firm to change production methods, thus influencing supply in an indirect way).
• Question 6: The United States has a free - market (capitalist) economy as its foundation. A centrally planned economy is more like in some socialist or communist countries. A democratic economy is not a standard economic system term in the same sense. A traditional economy is based on customs and traditions, which is not the case for the US.
• Question 7: Macroeconomics studies the economy as a whole (e.g., national income, inflation, unemployment at the national level). Microeconomics studies the behavior of individual economic units such as individuals, families, households, and businesses (e.g., how a single firm decides on production levels, how a consumer makes a purchasing decision).

Answer:

• Question 4: B. supply
• Question 5: D. regulation
• Question 6: C. free market
• Question 7: B. Macroeconomics is the study of the decision making of entire economies, whereas microeconomics is the study of the decision making of individuals, families, households, and businesses.