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ETS MFT Business Exam Version 3 Newest 2025
Complete All Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Brand New
Version!!
Which of the following occurs when price level rises?
a) the government responds to the higher prices by reducing its
purchases
b) the value of the dollar rises on foreign exchange markets
c) people need to hold more money, so interest rates rise,
making firms borrow and invest less
d) consumers feel wealthier, which encourages them to spend
more - ANSWER-c) people need to hold more money, so
interest rates rise, making firms borrow and invest less
The Federal government enacted regulation in the 1960's
requiring people to wear seatbelts in their cars. All of the
following resulted from this regulation, EXCEPT;
a) fewer deaths occurred per accident
b) overall death due to car accidents changed very little in the
United States
c) the frequency of accidents increased
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d) fewer pedestrians were killed in car accidents - ANSWER-d)
fewer pedestrians were killed in car accidents
Which of the following is true regarding Production Possibilities
Frontier Model of the economy?
a) the opportunity cost of producing more unit of one of the
goods represented in the PPF remains the same at any point
along the PPF.
b) increases in the resources available for production will cause
the PPF to shift towards the origin
c) any point along the PPF represents an efficient level of
production
d) any point in the area below the PPF represents a combination
of production that is not feasible - ANSWER-c) any point along
the PPF represents an efficient level or production
If the price in a market happens to be above equilibrium, there
will be a _____ in the market, and the price will tend to _____.
a) surplus, drop
b) surplus, rise
c) shortage, drop
d) shortage, rise - ANSWER-a) surplus, drop
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The price of elasticity of demand tends to be more elastic
a) when the demand curve is vertical
b) at points further down and to the right along the demand
curve
c) when the demand curve becomes steeper
d) at points further up and to the left along the demand curve -
ANSWER-d) at points further up and to the left along the
demand curve
If a tax is imposed on a good and the incidence of the tax ends
up falling more heavily on the buyers than on the sellers, this
well be because
a) demand is less elastic than supply for that good
b) the tax was imposed on the buyers of the good
c) demand is more elastic than supply for that good
d) the tax was imposed on the sellers of the good - ANSWER-a)
demand is less elastic than supply for that good
If the quantity traded in a market is less than the equilibrium
quantity,
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a) the market will decrease its total surplus if modernist are
produced
b) the value to consumers for additional units is greater than the
cost to sellers of producing those units
c) the value to consumers for additional units is less than the
cost to sellers of producing those units
d) total surplus is larger than in equilibrium - ANSWER-b) the
value to consumers for additional units is greater than the cost to
sellers of producing those units
A given tax will cause a bigger deadweight loss if demand and
supply are
a) perfectly inelastic
b) elastic
c) inelastic
d) unit elastic - ANSWER-b) elastic
Which of the following statements is true regarding international
trade?
a) the importing country should restrict trade, but not eliminate
it completely
ETS MFT Business Exam Version 3 Newest 2025
Complete All Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Brand New
Version!!
Which of the following occurs when price level rises?
a) the government responds to the higher prices by reducing its
purchases
b) the value of the dollar rises on foreign exchange markets
c) people need to hold more money, so interest rates rise,
making firms borrow and invest less
d) consumers feel wealthier, which encourages them to spend
more - ANSWER-c) people need to hold more money, so
interest rates rise, making firms borrow and invest less
The Federal government enacted regulation in the 1960's
requiring people to wear seatbelts in their cars. All of the
following resulted from this regulation, EXCEPT;
a) fewer deaths occurred per accident
b) overall death due to car accidents changed very little in the
United States
c) the frequency of accidents increased
,2|Page
d) fewer pedestrians were killed in car accidents - ANSWER-d)
fewer pedestrians were killed in car accidents
Which of the following is true regarding Production Possibilities
Frontier Model of the economy?
a) the opportunity cost of producing more unit of one of the
goods represented in the PPF remains the same at any point
along the PPF.
b) increases in the resources available for production will cause
the PPF to shift towards the origin
c) any point along the PPF represents an efficient level of
production
d) any point in the area below the PPF represents a combination
of production that is not feasible - ANSWER-c) any point along
the PPF represents an efficient level or production
If the price in a market happens to be above equilibrium, there
will be a _____ in the market, and the price will tend to _____.
a) surplus, drop
b) surplus, rise
c) shortage, drop
d) shortage, rise - ANSWER-a) surplus, drop
,3|Page
The price of elasticity of demand tends to be more elastic
a) when the demand curve is vertical
b) at points further down and to the right along the demand
curve
c) when the demand curve becomes steeper
d) at points further up and to the left along the demand curve -
ANSWER-d) at points further up and to the left along the
demand curve
If a tax is imposed on a good and the incidence of the tax ends
up falling more heavily on the buyers than on the sellers, this
well be because
a) demand is less elastic than supply for that good
b) the tax was imposed on the buyers of the good
c) demand is more elastic than supply for that good
d) the tax was imposed on the sellers of the good - ANSWER-a)
demand is less elastic than supply for that good
If the quantity traded in a market is less than the equilibrium
quantity,
, 4|Page
a) the market will decrease its total surplus if modernist are
produced
b) the value to consumers for additional units is greater than the
cost to sellers of producing those units
c) the value to consumers for additional units is less than the
cost to sellers of producing those units
d) total surplus is larger than in equilibrium - ANSWER-b) the
value to consumers for additional units is greater than the cost to
sellers of producing those units
A given tax will cause a bigger deadweight loss if demand and
supply are
a) perfectly inelastic
b) elastic
c) inelastic
d) unit elastic - ANSWER-b) elastic
Which of the following statements is true regarding international
trade?
a) the importing country should restrict trade, but not eliminate
it completely
