ECON 102- Midterm Study Guide Ch.3
14) The law of demand implies that, other things remaining the same A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. C) as income increases, the quantity of cheeseburgers demanded will increase. D) as the demand for cheeseburgers increases, the price of a cheeseburger will fall.
A
A relative price is A) the ratio of one price to another price. B) also called the money price. C) not an opportunity cost. D) the number of dollars that must be given up in exchange for the good.
A
As the relative price of a good falls, the substitution effect implies that people buy A) more of that good and less of its substitutes. B) more of that good and more of its substitutes. C) less of that good and more of its substitutes. D) less of that good and less of its substitutes.
A
The "law of demand" states that, other things remaining the same, the quantity demanded of any good is A) inversely related to its price. B) directly related to the supply of the good. C) directly related to its price. D) positively related to its price.
A
The opportunity cost of a good is the same as its A) relative price. B) price index. C) money price. D) none of the above.
A
A relative price is the A) slope of the supply curve. B) ratio of one money price to another. C) slope of the demand curve. D) difference between one money price and another.
B
The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is A) 1/6 pizza per taco. B) 6 tacos per pizza. C) $12 per pizza. D) $24 per pizza.
B
The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips? A) $3 B) 3 bottles of soda per bag of corn chips C) 1/3 bottle of soda per bag of corn chips D) 33¢
B
15) A change in the price of a good A) neither shifts the good's demand curve nor causes a movement along it. B) shifts the good's demand curve and also causes a movement along it. C) does not shift the good's demand curve but does cause a movement along it. D) shifts the good's demand curve but does not cause a movement along it.
C
19) Which of the following decreases the demand for an inferior good? A) an increase in the price of a substitute B) a decrease in the price of a complement C) an increase in income D) a decrease in income
C
20) A complement is a good A) of lower quality than another good. B) of higher quality than another good. C) used in conjunction with another good. D) used instead of another good.
C
Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________. A) relative price; 1/2 basketball per football B) opportunity cost; $20.00 C) relative price; 2 basketballs per football D) opportunity cost; $10.00
C
An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is A) $0.75, the opportunity cost of a can of soda. B) 1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. C) $1.50, the opportunity cost of a can of soda. D) 2 cans of soda per soda, the opportunity cost of an ice cream cone
D
Joe pays $8,000.00 in tuition. The 8,000 dollar tuition Joe pays is an example of what economists call A) a relative price. B) an opportunity price. C) an indexed price. D) a money price.
D
The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bottle of soda? A) 3 bags of corn chips per bottle of soda B) $3 C) 33¢ D) 1/3 bag of corn chips per bottle of soda
D
The relative price of a good is A) equal to the money price of a good. B) what you get paid for babysitting your cousin. C) equal to the price of that good divided by the quantity demanded of the good. D) an opportunity cost.
D