ECO 302 MILESTONE 2 MACROECONOMICS QUESTIONS WITH VERIFIED ANSWERS,100%CORRECT

ECO 302 MILESTONE 2 MACROECONOMICS QUESTIONS WITH VERIFIED ANSWERS Milestone 2 – Macroeconomics 1 Economically speaking, which of the kinds of change below would be caused when fishermen along the coast of the Gulf of Mexico find that they have not caught nearly as many shrimp as the year before, due to an oil spill? • Movement along the supply curve • No change in supply or demand • Shift in the supply curve • Shift in the demand curve CONCEPT Law of Supply Shifts in Supply 2 Which of the following is an example of the Law of Demand? • The price of alpaca wool is increasing, so farmers are offering more of it. • The amount of lumber that a certain region can produce is stable. • The price of gas is decreasing, so vendors are offering less of it. • The price of gas is decreasing, so people are buying more of it. CONCEPT Law of Demand 3 Which graph accurately represents Rachel's consumer surplus if she is willing to pay up to $10,000 a year for college tuition, but she finds a school with a tuition of $5,000 a year?