1. ECONOMICS 211 CLICKER QUESTIONS Chapter 4 – Question Set #2

2. To say that government intervenes in the economy to promote efficiency is to say that government is attempting to 1. create a more fair distribution of income. 2. enlarge the economic pie. 3. change the way in which the economic pie is divided. 4. All of the above are correct.

3. Two goods are complements if a decrease in the price of one good 1. decreases the quantity demanded of the other good. 2. decreases the demand for the other good. 3. increases the quantity demanded of the other good. 4. increases the demand for the other good.

4. Suppose scientists provide evidence to the effect that chocolate pudding increases cholesterol. We would expect 1. no change in the demand for chocolate pudding. 2. a decrease in the demand for chocolate pudding. 3. an increase in the demand for chocolate pudding. 4. a decrease in the supply of chocolate pudding.

5. Holding the nonprice determinants of demand constant, a change in price would 1. result in either a decrease in supply or an increase in demand. 2. result in a movement along a stationary demand curve. 3. result in a shift of demand. 4. have no effect on the quantity demanded.