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- 1. Multiple Choice
What does this curve represent?demandsupplyequilibriumshortage - 2. Multiple ChoiceWhat does this curve represent?supplyequilibriumdemandsurplus
- 3. Multiple ChoiceAn increase in the price of aspirin is likely to be paired with a(n) ___________________ in the demand for Tylenol because the two goods are __________________.
increase; complements
increase; substitutesdecrease; complementsdecrease; substitutes - 4. Multiple Choice
If the price of printers goes down, what happens in the market for ink cartridges?
Supply increases.
Supply decreases.
Demand increases.
Demand decreases
- 5. Multiple ChoicePrinters and ink cartridges are typically purchased together. Economists would call theseStubstituesComplementsElasticInelastic
- 6. Multiple ChoiceAssume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?Pesticides on apples linked to mouth cancer.Storms destroy apple orchards.An apple a day really does keep the doctor away.New genetic strain leads to apple trees that produce twice as many apples.
- 7. Multiple ChoiceA government payment made to a business is ataxregulationsubsidyresource
- 8. Multiple Choice
The price of diamonds goes from $150 an ounce to $5 an ounce. What happens to the demand for diamonds?
increase; tastes and preferences
decrease; price of related goods (complements)
increase; change income
stays the same; price is not a determinant of demand
- 9. Multiple ChoiceThe following is a factor that will not cause the demand curve to shift:AdvertisingPopulationPriceConsumer expectations
- 10. Multiple ChoiceA change in quantity demanded is shownat various points on the demand curvewith a new demand curve drawn above or below the original demand curvewith a vertical line
- 11. Multiple ChoiceConsuming more of one good because of a change in price of another good is known as theincome effectsubstitution effectelasticity effectdemand effect
- 12. Multiple ChoiceIf a consumer knows that a product will be going on sale this week, how will his/her CURRENT demand be affected?it will go upit will go downit will stay the samewhat does this have to do with the price of tea in China?
- 13. Multiple ChoiceA table that lists the quantity of a good that a single person will buy at each price in a market.demand schedulemarket demand scheduleelasticity chartsupply and demand graph
- 14. Multiple Choice
When producers are left with a ____________________ of products, they may reduce prices.
surplus
shortage
scarcity
subsidy
- 15. Multiple ChoiceIn a market economy, who decides on the prices of goods and services?governmentbuyers and sellersfirmslocal leaders
- 16. Multiple ChoiceGenerally speaking, the lower the price, the greater the quantity demand.TrueFalse
- 17. Multiple ChoiceFor the law of demand, as price rises, what happens to quantity demanded?it goes upit goes downit stays the sameit is not effected
- 18. Multiple Choice
Demand is measured not only by a consumer’s ability to buy a product, but also by
the demand for similar products.
the demand for the product.
opportunity costs.
desire and willingness to buy.
- 19. Multiple Choice
For the law of supply, as price rises, what happens to quantity supplied?
it goes up
it goes down
it stays the same
it is not effected
- 20. Multiple Choice
If Michael Jordan did advertisements for Steak and Shake, this would cause the ___________ curve for Steak and Shake to shift ____________.
demand.........right
demand.........left
supply.......right
supply....... left
- 21. Multiple Choice
When CDs became popular, people stopped listening to tape cassettes. This caused the ___________ curve for tape cassettes to shift ____________.
demand.........right
demand.........left
supply.......right
supply....... left
- 22. Multiple ChoicePart of the reason that LeBron James earns millions of dollars each year while school teachers may earn $30,000 is because…consumers enjoy basketball to the point that they are willing to spend lots of money and time attending games and watching commercials.the supply of superstar basketball players is low, while the supply of competent teachers is much larger.demand for LeBron James' talents is very high since he can generate so much revenue for a firm.all of the choices
- 23. Multiple ChoiceWhich of the following could cause the price for automobiles to decrease?The local factory gives a big raise to its employees.None of the choicesA brand new automobile dealership opens in town.The price of gasoline falls.
- 24. Multiple ChoiceWhen college students leave town for the summer, the demand for meals at the local restaurants declines. This may result in…more people moving into town.a decrease in price.none of the choicesan increase in price.
- 25. Multiple ChoiceWhat is it called when the quantity which is demanded is higher than the quantity supplied?None of the choicesSurplusEquilibriumShortage
- 26. Multiple ChoiceWhat is the point called where the supply curve and the demand curve intersect?Sale PriceEquilibrium PriceEconomic PricePremium Price
- 27. Multiple ChoiceWhich graph below shows the SUPPLY CURVE?ABCD
- 28. Multiple Choice
Prices have the advantages of neutrality, ____________________, efficiency, and clarity.
total revenue
miscommunication
disparity
flexibility
- 29. Multiple Choice
If total revenue increases for a company after it raises the price of its product the product is said to be
inelastic in its demand.
elastic in its demand.
inelastic in its supply.
elastic in its demand.
- 30. Multiple ChoiceWhich graph below shows the DEMAND CURVE?ABCD
- 31. Multiple ChoiceThis states that consumers buy more of a good when its price decreases and less when its price increases.Law of DemandLaw of SupplyNewton’s Law of DemandCraig’s Demand Law
- 32. Multiple Choice
The minimum wage is the ____________________ for wages in the United States.
price ceiling
price floor
market price
equilibrium price
- 33. Multiple Choice
Latin phrase meaning all other things held constant
Ceteris Parabis
Cogito Ergo Sum
Seize the Day
Celery Parables
- 34. Multiple Choice
____________________ serve as signals to both producers and consumers.
Stocks
Equilibriums
Supply schedules
Prices
- 35. Multiple Choice
The government can affect supply through all of the following except…?
Subsidies
Taxes
Technology
Regulations
- 36. Multiple Choice
If the price of gas rises, what happens to its supply?
Supply Lowers
Stays the Same
Enter the Matrix
Supply Rises
- 37. Multiple Choice
If the price of gas rises, what happens to its supply?
Supply Lowers
Stays the Same
Enter the Matrix
Quantity Supplied Increases
- 38. Multiple Choice
Cheeseburgers and ice cream have relatively horizontal demand curves which are said to be
complementary.
upward sloping.
elastic.
inelastic.
- 39. Multiple Choice
Christina Aguilera launches the “Jeanie in a Bottle” jeans company. What will happen to the supply of jeans?
stays the same, there is no determinant of supply here
decrease, tastes and preferences
increase, number of sellers
increase, cost of inputs
- 40. Multiple Choice
The three stages of production are: increasing returns, ____________________ returns, and negative returns.
elastic
diminishing
substitution
input
- 41. Multiple Choice
The difference between a change in demand and a change in quantity demanded is that a change in demand
only occurs with a change in price.
only occurs when a determinant of supply changes.
represents a movement along the demand curve.
represents a shift or movement of the entire demand curve to the right or left.
- 42. Multiple Choice
Which of the following is NOT a reason why prices effectively perform the allocation function?
Prices favor neither the producer nor the consumer.
Prices remain surprisingly stable despite unexpected events.
Competitive markets find their own prices without interference.
Prices are easily understood.
- 43. Multiple Choice
In a market economy, a high price is a signal for
producers to supply more and consumers to buy less.
producers to supply less and consumers to buy less.
government to intervene to protect consumers.
producers to supply less and consumers to buy more.
- 44. Multiple Choice
A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred?
A sharp increase in revenues demonstrated the elasticity of the product.
A small increase in revenues demonstrated the unit elasticity of the product.
A dramatic decline in revenues demonstrated the elasticity of the product.
A dramatic decline in revues demonstrated the inelasticity of the product.
- 45. Multiple Choice
At a given price, a surplus occurs when
the quantity demanded is more than the quantity supplied.
the quantity demanded is the same as the quantity supplied.
the quantity supplied is less than the quantity demanded.
the quantity supplied is greater than the quantity demanded.
- 46. Multiple Choice
The federal minimum wage law demonstrates
market equilibrium.
a societal choice for economic equity over efficiency.
the function of equilibrium price in a competitive market.
government intervention to ensure the equilibrium price.
- 47. Multiple ChoiceWhat determines how a change in price will affect total revenue for a company?Elasticity of DemandThe company's pricing policyValues of ElasticityThe Consumer's Incomes
- 48. Multiple ChoiceAll of the following are true for goods with ELASTIC demand, EXCEPT _______They are luxuriesThey have lots of substitutesThey are necessitiesBuying habits change a lot when price changes
- 49. Multiple ChoiceA table that lists the quantity of a good that a single person will buy at each price in a market.demand schedulemarket demand scheduleelasticity chartsupply and demand graph
- 50. Multiple ChoiceWhich of the following is likely to decrease the demand for peanut butter?Fewer children in the populationNews that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.A big increase in the price of jelly.A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
- 51. Multiple ChoiceThousands of people leave a small town due to a factory closing down. Sales at the local grocery store become slow. What causes this change?Prices or availability of substitutesPrices or availability of complementary goodsChange in the weather or seasonChange in the number of buyers
- 52. Multiple ChoiceThis occurs when you feel like you have less money when the price of a good rises.Income EffectSubstitution EffectDemand EffectInflation Effect
- 53. Multiple ChoiceWhich economic concept is defined as the measure of how responsive consumers are to a price change?consumer expectationsconsumer tastedecreasing marginal utilityelasticity of demand
- 54. Multiple Choice
The movie theater increases its price from $8 to $12 and fewer people attended the movies. This represents a
change in demand
change in quantity demanded
- 55. Multiple Choice
On a curve, an increase in demand causes the demand curve to
fluctuate both right and left
shift to the left
shift to the right
stay in the same position
- 56. Multiple Choice
Candy and tacos have relatively horizontal demand curves which are said to be
elastic
inelastic
unit elastic
loss leader
- 57. Multiple Choice
When a price increase causes a small change in demand, the demand is said to be _________
elastic
inelastic
unitary
- 58. Multiple Choice
In elastic demand, as the price decreases, total revenue will...
increase
decrease
stay the same
- 59. Multiple Choice
In inelastic demand, as the price decreases, total revenue will...
increase
decrease
stay the same
- 60. Multiple Choice
The price of Chipotle goes from $7 a burrito to $.50. What will happen to the demand for Chipotle burritos?
increase; tastes and preferences
increase; change in income
decrease; change in income
stays the same; price is not a determinant of demand
- Answer choicesTagsAnswer choicesTags