ECN 212 Certification Exam Questions and CORRECT Answers

The "law of demand" refers to the fact that, all other things remaining constant on the demand side of the market, when the price of a good rises A) there will be a movement up along the demand curve to a smaller quantity demanded. B) the demand curve will shift rightward. C) there will be a movement down along the demand curve to a larger quantity demanded. D) the demand curve will shift leftward A) there will be a movement up along the demand curve to a smaller quantity demanded. In the above figure, when 2000 bicycles are made each month, we can see that A) more bicycles should be produced to reach the efficient level of output. B) the marginal benefit from another bicycle is greater than the marginal cost of another bicycle. C) the economy is very efficient at the production of bicycles because the marginal benefit exceeds the marginal cost. D) Both answers A and B are correct. D) Both answers A and B are correct.