Quiz
Econ Chapter 5
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Fragen in diesem Quiz (10)
1A city wants to raise revenues to build a new municipal swimming pool next year. The mayor suggests that the city raise the price of admission to the current municipal pools this year to raise revenues. The city manager suggests that the city lower the price of admission to raise revenues. Who is correct?
- Athe city manager
- Bthe mayor
- CThe answer depends on the costs of construction of the new municipal swimming pool.
- DThe answer depends on the price elasticity of demand.
2 A drug interdiction program that successfully reduces the supply of illegal drugs in the United States likely will
- Araise the price, increase the quantity, decrease total revenues, and increase crime.
- Braise the price, reduce the quantity, decrease total revenues, and decrease crime.
- Clower the price, increase the quantity, increase total revenues, and increase crime.
- Draise the price, reduce the quantity, increase total revenues, and increase crime.
3A key determinant of the price elasticity of supply is
- Athe ability of sellers to change the price of the good they produce.
- Bthe ability of sellers to change the amount of the good they produce.
- Cthe slope of the demand curve.
- Dhow responsive buyers are to changes in sellers' prices.
4A perfectly inelastic demand implies that buyers
- Apurchase the same amount as before when the price rises or falls.
- Bincrease their purchases only slightly when the price falls.
- Crespond substantially to an increase in price.
- Ddecrease their purchases when the price rises.
5Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is
- Anegative, and the good is an inferior good.
- Bpositive, and the good is an inferior good.
- Cnegative, and the good is a normal good.
- Dpositive, and the good is a normal good.
6Charles purchases 20 basketball tickets per year when his annual income is $50,000 and 25 basketball tickets when his annual income is $60,000. Charles's income elasticity of demand for basketball ticket is
- A0.82, and basketball tickets are a normal good.
- B0.82, and basketball tickets are an inferior good.
- C1.22, and basketball tickets are a normal good.
- D1.22, and basketball tickets are an inferior good.
7Demand is said to be inelastic if
- Ademand shifts only slightly when the price of the good changes.
- Bbuyers respond substantially to changes in the price of the good.
- Cthe quantity demanded changes only slightly when the price of the good changes.
- Dthe price of the good responds only slightly to changes in demand.
8Elasticity is
- Athe maximum amount that a buyer will pay for a good.
- Bthe value of everything a seller must give up to produce a good.
- Cthe study of how the allocation of resources affects economic well-being
- Da measure of how much buyers and sellers respond to changes in market conditions.
9Between point A and point B, the slope is equal to
- A-2/3, and the price elasticity of demand is equal to 3/2.
- B-3/2, and the price elasticity of demand is equal to 1/4.
- C-1/4, and the price elasticity of demand is equal to 2/3.
- D-1/4, and the price elasticity of demand is equal to 3/2.
10For a particular good, an 8 percent increase in price causes a 4 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
- AThe relevant time horizon is long.
- BThere are many close substitutes for this good.
- CThe good is a luxury.
- DThe market for the good is broadly defined.
Informationen
- Beschreibung
- Business/Economics Quiz am Econ Chapter 5, erstellt von Dylan Halberstadt am 28/10/2021.
- Autor
- Dylan Halberstadt
- Sprache
- English
- Aufrufe
- 1
- Schlagwörter
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