Quiz
HW 3 ECON
Questions in this quiz (20)
1The downward slope of the demand curve again illustrates the pattern that as _____________ rises, _________________ decreases.
- Aquantity demanded, price
- Bquantity supplied, quantity demanded
- Cprice, quantity demanded
- Dprice, quantity supplied
2The nature of demand indicates that as the price of a good increases:
- Asuppliers wish to sell less of it
- Bmore of it is produced
- Cmore of it is desired
- Dbuyers desire to purchase less of it
3The term "ceteris paribus" means that:
- Aeverything is variable
- Ball variable except those specified are constant
- Cno one knows which variables will change and which will remain constant
- Dwhat is true for the individual is not necessarily true for the whole
4Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.
- Aincome gap
- Bmarket equilibrium
- Claw of demand
- Dprice model
5_________________ refers to the total number of units that are purchased at that price.
- Aquantity
- Bquantity demanded
- Csupply
- Dmarket quantity
6The demand curve for a typical good has a(n):
- Anegative slope because some consumers switch to other goods as the price rises.
- Bnegative slope because consumer incomes fall as the price of the good rises.
- Cnegative slope because the good has less "snob appeal" as its price falls.
- Dinverse slope because as the price goes up, the good has more profitability.
7But nearly all supply curves share a basic similarity: they slope _______________.
- Adown from left to right
- Bup from left to right
- Cup from right to left
- Ddown from right to left
8When quantity demanded decreases in response to a change in price:
- Ademand curve shifts to the right
- Bdemand curve shifts to the left
- Cthere is a movement down along the demand curve
- Dthere is movement up along the demand curve
9The ___________ is the only price where quantity demanded is equal to quantity supplied.
- Aequilibrium price
- Bhorizontal axis intercept
- Cvertical axis intercept
- Dmarket price
10After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is:
- Ano change; only the supply curve for beef is likely to be affected.
- Ba shift of the demand curve for beef to the left
- Ca movement down along the demand curve for beef to the right.
- Da shift of the demand curve for beef to the right.
11If a firm faces ________________________, while the prices for the output the firm produces remain unchanged, a firm’s profits will increase.
- Ahigher demand
- Blower costs of production
- Cequilibrium
- Dshift in demand
12When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.
- Aprices rise
- Bequilibrium is achieved
- Ccosts of production fall
- Dthere is a population increase
13A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:
- Athe supply curve
- Bthe demand curve, as consumers try to economize because of the shortage
- Cboth supply and demand curve
- Dthe supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price
14A change in price of a good or service typically causes ___________________________ for that specific good or service.
- Aa new equilibrium price
- Ba change along the supply curve
- Cthe supply curve to shift
- Da decreased demand
15According to the law of supply:
- Athere is a direct relationship between price and the quantity supplied.
- Bthere is an inverse relationship between price and the quantity supplied.
- Cthere is a direct relationship between price and quantity demanded.
- Dthere is an inverse relationship between price and quantity demanded
16Which of the following would reduce the supply of microcomputers?
- Aa technological improvement that lowers the cost of producing the computers
- Bhigher wage rates for the workers that assemble the computers
- Ca reduction in the price of computer chips used to produce the computers
- Da reduction in the price of computers.
17Interpret the following statement: "An increase in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."
- AThe statement is correct.
- BThe statement would be correct if "quantity of wheat demanded" were substituted for "quantity of wheat supplied."
- CThe statement is incorrect because it confuses a change in quantity supplied with a change in supply.
- DThe statement would be correct if it read that a "decrease in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."
18Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:
- AAndy's demand for pizza to increase.
- BAndy's demand for pizza to decrease.
- CAndy's quantity of pizza demanded to decrease.
- DAndy's demand for beer to increase.
19If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________
- Aexcess supply
- Bexcess demand
- Cceteris paribus
- Da price ceiling
20The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.
- Aquantity demanded
- Bequilibrium quantity
- Cdemand schedule
- Dsupply schedule
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- Asayena Viengmany
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