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ECO.5
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Questions in this quiz (16)
11. In general, elasticity is
- A• the friction that develops between buyer and seller in a market.
- B• a measure of how much government intervention is prevalent in a market.
- C• a measure of how much buyers and sellers respond to changes in market conditions.
- D• a measure of the competitive nature of a market.
22. Demand is said to be elastic
- A• if the price of the good responds substantially to changes in demand.
- B• if demand shiftssubstantially when the price of the good changes.
- C• if the quantity demanded responds substantially to changes in the price of the good.
- D• if buyers don’t respond much to changes in the price of the good.
33. Demand is said to be inelastic
- A• if the price of the good responds only slightly to changes in demand.
- B• if demand shiftsonly slightly when the price of the good changes.
- C• if buyers respond substantially to changes in the price of the good.
- D• if the quantity demanded changes only slightly when the price of the good changes.
44. If a good is a necessity, demand for the good would tend to be
- A• elastic.
- B• inelastic.
- C• unit elastic.
- D• horizontal.
55. If a good is a luxury, demand for the good would tend to be
- Aelastic
- Binelastic
- Cunelestic
- Dhorizontal
66. If a person has very little concern for his/her health, demand for health care would tend to be
- A• elastic.
- B• inelastic.
- C• unit elastic.
- D• horizontal
77. A person who lives to be on the sea in a boat would tend to have what type of demand for boats?
- A• elastic.
- B• inelastic.
- C• unit elastic.
- D• weak.
88. Demand for a good would tend to be more elastic
- A• the greater the availability of complements.
- B• the longer the period of time considered.
- C• the broader the definition of the market .
- D• the fewer substitutes there are.
99. If there are very few, if any, good substitutes for good A, then
- A• the supply of good A would tend to be price elastic.
- B• the demand for good A would tend to be price elastic.
- C• the demand for good A would tend to be price inelastic.
- D• the demand for good A would tend to beincome elastic.
1010. Demand for a good would tend to be more elastic
- A• the greater the availability of close substitutes.
- B• the narrower the definition of the market.
- C• the longer the period of time.
- D• All of the above are correct.
1111. Economists compute the price elasticity of demand as
- A• the percentage change in the price divided by the percentage change in quantity demanded.
- B• the percentage change in the quantity demanded divided by the percentage change in price.
- C• the change in the quantity demanded divided by the change in price.
- D• the percentage change in the quantity demanded divided by the percentage change in income.
1212. Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded. Price elasticity of demand for X is
- A1
- B0
- C6
- Dinfinite
1313. Suppose the price of product X is reduced from $1.45 to $1.25 and, as a result, the quantity of X demanded increases from 2,000 to 2,200. Using the midpoint method, the price elasticity of demand for X in the given price range is
- A• 2.00.
- B• 1.55.
- C• 1.00.
- D• .64.
1414. If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price would result in a
- A• 4.0 percent decrease in the quantity demanded.
- B• 10 percent decrease in the quantity demanded.
- C• 40 percent decrease in the quantity demanded.
- D• 400 percent decrease in the quantity demanded.
1515. The main reason for using the midpoint method is that it
- A• gives the same answer regardless of the direction of change.
- B• uses fewer numbers.
- C• rounds prices to the nearest dollar.
- D• rounds quantities to the nearest whole unit.
1616. The local pizza restaurant makes such great bread sticks that consumers do not respond much to a change in the price. If the owner is only interested in increasing revenue, he should
- A• lower the price of the bread sticks.
- B• Raise the price of the bread sticks.
- C• Reduce costs
- D• Leave the price of the bread sticks alone.
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- Economics Quiz on ECO.5, created by хомяк убийца on 26/05/2017.
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- хомяк убийца
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- English
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