eco 202 test one

A

a demand curve which is ______ represents perfectly inelastic demand, and a demand curve which is _______ represents inelastic demand A) vertical; downward sloping B) horizontal; downward sloping C) upward sloping; horizontal D) downward sloping; vertical

A

holding everything else constant, an decrease in the price of MP3 players will result in A) a increase in the quantity of MP3 players demanded B) a decrease in the quantity of MP3 playerd supplied C) a decrease in the demand for MP3 players D) an increase in the supply of MP3 players

A

if a 5 percent increase in income leads to a 10 percent decrease in quantity demanded for a product, this product is A) an inferior good B) a luxury good C) a necessity D) an income elastic good

C

if a demand curve shifts to the right, then A) quantity demanded has decreased B) quantity demanded has increased C) demand has increased D) demand has decreased

B

if an increase income leads to in an increase in the demand for peanut better, then peanut butter is A) a neutral good B) a normal good C) a necessity D) a complement

D

if the cross-price elasticity of demand for computers and software is negative, this means the two goods are A) substitutes B) inferior C) normal D) complements

B

if the demand for a product is perfectly inelastic, a decrease in the price of the product A) will increase total revenue B) will decrease total revenue C) will not change total revenue D) any of the above are possible

A

in economics, choices must be made because we live in a world of A) scarcity B) unemployment C) greed D) unlimited resources

A

in economics, the accumulated skills and training that workers have is known as A) human capital B) entrepreneurship C) physical capital D) innovation

D

in economics, the term______ means "additional" or "extra" A) equity B) allocative C) optimal D) marginal

D

in recent years, the cost of producing organic produce in the US has decreased largely due technological advancement. at the same time, more and more Americans prefer organic produce over conventional produce. which of the following best explains the effect of these events in the organic produce market? A) both the supply and demand curves have shifted to the right. as a result, there has been an increase in both the equilibrium price and the equilibrium quantity B) the supply curve had shifted to the left and the demand curve has shifted to the right. as a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity C) the supply curve has shifted to the left and the demand curve has shifted to the right. as a result, there has been an increase in the equilibrium quantity and uncertain effect on the equilibrium price D) both the supply and the demand curves have shifted to the right. as a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price

D

microeconomics is the study of A) topics such as unemployment, inflation, and economic growth B) the economy as a whole C) the global economy D) how households and firms make choices

A

on January, buyers of gold expect that the price of gold will rise in February. what happens in the gold market in January, holding all else constant? A) the demand curve shifts to the right B) the quantity demanded increases C) the supply curve shifts to the right D) the demand curve shifts to the left

C

studies have shown links between calcium consumption and a reduction in osteoporosis. how does this affect the market for calcium? A) the calcium supply curve shifts to the left because this new information will increase the price of calcium B) the calcium demand curve shifts to the left because this new information will increase the price of calcium C) the calcium demand curve shifts to the right because of a change in tastes in favor of calcium D) the calcium supply curve shifts to the right because of a change in tastes in favor of calcium

B

suppose that some investors decided that economic and financial uncertainty have made the prospect of investing in domestic stock markets more risky than investing in foreign stock markets, and therefore choose to invest in foreign markets. by using all available information as they act to achieve their goals, these investors are exemplifying the economic idea that A) people respond to economic incentives B) people are rational C) optimal decisions are made at the margin D) equity is more important than efficiency

D

the determinants of elasticity include A) price relative to income B) availability of substitutes C) time D) all of the above

D

the internet has created a new category in the book selling market, namely, the "barely used" book. how does the availability of barely used books affect the market for new books? A) the demand curve for new books shifts to the right B) the supply curve for the new book shifts to the right C) the supply curve for the new books shifts to the left D) the demand curve for new books shifts to the left

B

the price elasticity of demand measures which of the following? A) the rate at which demand changes when price changes B) how responsive the quantity demanded is to changes in price C) the slope of the demand curve D) the percentage-slop of the demand curve

A

the slope of a production possibilities frontier A) measures the opportunity cost of producing one more unit of a good B) is always varying C) has no economic relevance or meaning D) is always constant

B

the term_____ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade A) collective B) market C) trade-off D) cooperative

B

the three fundamental questions that any economy must address are A) how much will be saved; what will be produced; and how can these goods and services be fairly distributed B) what goods and services to produce; how will these goods and services be produced; and who receives them? C) what will be the prices of goods and services; how will these goods and services be produced; and who will receive them? D) who gets jobs; what wages do workers earn; and who owns what property?

C

vineyards can grow either red wine grapes or white wine grapes on their land. which of the following would cause the supply of red wine grapes to decrease? A) an increase in the price of red wine B) an increase in the demand for red wine grapes C) an increase in the price of white wine grapes D) a decrease in the price of white wine grapes

A

what is the difference between an "increase in supply" and an "increase in quantity supplied"? A) an "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price B) there is no difference between the two terms; they both refer to a movement along a given supply curve C) an "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased D) there is no difference between the two terms; they both refer to a shift of the supply curve

B

which of the following is a factor of production? A) a share f General Motors' stock B) an oven in a bakery C) a credit card D) a $500 Treasury bond

D

which of the following is a positive economic statement? A) the U.S government should increase regulations on the banking industry B) the government should implement a national consumption tax C) the standard of living in the United States is too low D) if the price of beef falls, a larger quantity of it will be bought

D

which of the following is the correct way to describe equilibrium in a market? A) at equilibrium, market forces no longer apply B) at equilibrium, demand equals supply C) at equilibrium, scarcity is eliminated D) at equilibrium, quantity demanded equals quantity supplied

A

which of the following would shift the supply curve for MP3 players to the left? A) an increase in the number of firms that produce MP3 players B) an increase in the productivity of the workers who produce MP3 players C) a decrease in consumer tastes for MP3 players D) an increase in the price of an input used to produce MP3 players