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- 1. Multiple Choice
As a result of an increase in consumer incomes, the demand from Meeps decreased.
its an inferior good
its a normal good
its a substitute good
its a complement good
- 2. Multiple Choice
Which of the two following movements in this graph would represent an increase in quantity demanded but not a change in demand?
from point U to point T
from point S to point U
from point R to point U
from point S to point T
- 3. Multiple Choice
which best described the quantity of demand
this occurs when price changes
its the movement of the entire curve
this is the movement along a curve
occurs when the cost of inputs to products decrease
- 4. Multiple Choice
what is the best way to describe the change in demand?
the movement of the entire curve
the movement along the curve
occurs when the price of inputs to products decreases
occurs when price changes
- 5. Multiple Choice
Penny thinks the price of books will decrease next week
If everything else is equal, which of the following would reflect how Penny's behavior will change in response to her expectations?
Penny's demand for books today will decrease
Penny's demand for books today will increase
Penny will demand more complimentary goods to books
penny will move to a lower quantity along her demand curve
- 6. Multiple Choice
which best describes the law of demand?
sellers set the price that demanders pay
when the price decreases the quantity demanded increases
demand deceases for a normal good when income increases
legal authorities regulate price
- 7. Multiple Choice
As a result of an increase in consumer incomes, the demand for ebooks has decreased.
Based on this information, what can we definitely say about what type of good a ebook is?
an inferior good
a normal good
a substitute good
a complement good
- 8. Multiple Choice
what could cause the shift shown in the graph?
an increase in the number of buyer of a good
people don't like good X as much as they did before
the increase to a complement good related to good X
an increase of good X if its an inferior good
- 9. Multiple Choice
A government is concerned about whether young children in a community are receiving enough healthcare.
Which of the following is the LEAST likely to increase the amount of healthcare that people provide their children?
subsidize healthcare
provide coupons for free health care
increase the price of healthcare
reduce the distance traveled for healthcare
- 10. Multiple Choice
Which of the following changes could this graph represent?
People do not like hats as much as they did before, so their demand has decreased
People do not like hats as much as they did before, resulting in an increase in the quantity demanded for hats
People like hats more than they did before, and their demand for hats has increased
There has been a decrease in the price of hats, resulting in an increase in the quantity demanded for hats
- 11. Multiple Choice
Owen saw that the price of peaches had gone down, and so he decided to buy more peaches.
Based on this information only, what does Owen's reaction reflect?
Owen's demand for peaches has increased.
Owen has experienced an increase in income.
Owen's quantity demanded for peaches has increased.
Owen observed that there has been an increase in the price of other fruit, a substitute for peaches.
- 12. Multiple Choice
Pam considers t-shirts and gym classes to be complementary goods.
How will Pam react if the price of gym classes increase?
Her quantity demanded of gym classes will increase, and her demand for t-shirts will increase.
Her quantity demanded of gym classes will increase, and her demand for t-shirts will decrease.
Her quantity demanded of gym classes will decrease, and her demand for t-shirts will be unaffected.
Her quantity demanded of gym classes will decrease, and her demand for t-shirts will decrease.
- 13. Multiple Choice
The government of a small town is concerned about the litter created when people leave styrofoam cups used to serve large beverages on the ground. The government decides to tax these by implementing a $1 tax on these drinks.
What is the most likely purpose of this tax?
Reward sellers of this good
Reduce the number of beverages sold in styrofoam cups
Raise tax revenue for a new park
Increase the demand for these drinks
- 14. Multiple Choice
Economists have observed that when average incomes increase, purchases of fast food tends to decline.
Based on this information, what can we definitely say about fast food?
Fast food has no substitutes
Demand for fast food is upward sloping
The price of a complement to fast food has risen
Fast food is an inferior good
- 15. Multiple Choice
All of the following will result in a shift in a demand curve except:
A change in the income of buyers
A change in the supply of a goo
A change in expected future prices
A change in the price of related goods
- 16. Multiple Choice
What happens to the demand curve when people expect future prices to increase and people buy now rather than later?
it stays the same
shifts to the left
shift to the right
moves up
- 17. Multiple Choice
What happens to the demand curve when people expect the future price to lower and people wait to buy?
it stays the same
it shifts right
it shifts left
it moves up
- 18. Multiple Choice
If income increases, what best describes normal goods?
at any price there will be an increase to demand
only at low prices there will be an increase to demand
only at higher prices there will be an increase to demand
there will be no change
- 19. Multiple Choice
If income increases, what will happen to the demand curve for an inferior good?
shift to the left
shift to the right
stay the same
move down
- 20. Multiple Choice
What type of good can be summed up with the following statement: If you had an increase in income you would not own this car.
inferior good
complement good
substitute good
normal good
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