quiz #1
If the demand for tortillas increase as income increases, tortillas are a___
normal good.
When there is a shortage of a product in an unregulated market, there is a tendency for___
price to rise.
According to the law of demand, as prices rise, ceteris paribus___
quantity demand decreases.
The concept of trade-offs would become irrelevant if___
scarcity were eliminated.
Rapid increases in the price level during periods of recession or high unemployment are known as___
stagflation.
Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are___
sticky prices.
People scalping tickets for the Super Bowl will be successful___
when the price set by the NFL is less than the market equilibrium price.
For inferior goods, an increase in income will cause___
demand to fall.
Factors of production are traded in the product market.
False
The market for blue jeans is in equilibrium at a price of ___ and a quantity of ___ blue jeans.
$30, $175
This market will be in equilibrium if the price per pizza is___
$8.
If cameras and film are compliments, then a decrease in the price of cameras will result in a decrease in the demand for film.
False
A minimum price, set by the government, that sellers may charge for a good is known as___
a price floor.
An efficient market is a market___
in which profit opportunities are eliminated almost instantaneously.
A movement from Point C to Point B on supply curve S2 would be caused by an___.
increase in the demand for gardenburgers.
In the Rollerblade market, you accurately predict that price will___
increase, the quantity demanded will fall, and the quantity supplied will rise.
An increase in the overall price level is known as___
inflation.
You own "The Wizard of Oz" on DVD. The opportunity cost of watching this DVD for the second time___
is the value of the alternative use of the time you spend watching the DVD.
An economy in which individual people and firms pursue their own self-interest without any central direction or regulation is a___
laissez-faire economy.
Which of the following is not a resource as the term used by economics?
money.
The rise of the modern factory system in England during the ate eighteenth and early nineteenth centuries is know as the___
Industrial Revolution.
A change in the price of a good or service leads to a change in quantity demanded of the good.
True
Quantity supplied is determined by how much suppliers are willing and able to supply.
True
Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?
a decrease in income, assuming that Dr. Pepper is a normal good.
A price ceiling is___
a maximum price set by government that sellers may charge for a good.
Fundamental concepts in economics are___
all of the above.
The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and the price of burritos remains constant at $3,000, there will be___
an excess demand of 150 million pounds of burritos.
The price of computer chips used in the manufacturing of personal computers has fallen. This will lead to ___ personal computers.
an increase in the supply of
During an economic downturn when consumer income falls, the demand for ice cream cones increases and the demand for chocolate cheesecake decreases. This implies ice cream cones___
are an inferior good and chocolate cheesecake is a normal good.
The "law of demand" implies that___
as prices fall, quantity demand increases.
The concept of opportunity cost___
can be applied to the analysis of any decision-making process.
The idea that consumers ultimately dictate what will be produced by choosing what to purchase is known as___
consumer sovereignty.