Ch 3 HW
The relative price of a Wii game in terms of textbooks is ___ textbooks.
.5
If the money price of a cup of coffee is $1 and the money price of gum is 50 cents per pack, then the relative price of coffee in terms of gum is _____. A. 2 packs per cup B. $1 per cup C. 50 cents per pack D. 1/2 cup per pack
A. 2 packs per cup
Which of the following statements by Aqua Springs demonstrates that the firm's selling plans obey the law of supply? A. If the price of bottled water falls and all the other influences on our selling plans remain the same, we will cut back on production and lay off some workers B. We've been hit by a rise in the price of plastic bottles and will lower production. C. At a price of $1 bottle, we plan to sell 2,000 bottles per day. D. We can easily decrease the production of plain water and increase the production of sparking water.
A. If the price of bottled water falls and all the other influences on our selling plans remain the same, we will cut back on production and lay off some workers
Low-fat milk and cream are _______. A. complements in production for a dairy and substititues for consumers B. complements for consumers but not complements for a dairy farmer C. substitutes for consumers and substitutes for a dairy farmer D. substitutes in production for a dairy and complements for consumers
A. complements in production for a dairy and substititues for consumers
A demand curve shows the relation between the _____ and _____ when all other influences on buying plans remain the same. A. quantity demanded of a good; its price B. quantity actually bought; the quantity demanded C. demand for; its price D. quantity demanded of; its cost
A. quantity demanded of a good; its price
The money price of a textbook is $90 and the money price of the Wii game Super Mario Galaxy is $45. What is the opportunity cost of a textbook in terms of the Wii game? What is the relative price of the Wii game in terms of textbooks? The opportunity cost of a textbook in terms of Wii games is ______. A. the number of Wii games you must give up to get the textbook B. $90 C. $45 D. the numbers of hours you must work to be able to afford to buy the textbook
A. the number of Wii games you must give up to get the textbook
A substitute is a good that is _____ another good, and a complement is a good that is _____ another good. A. consumed in place of; produced with B. consumed in place of; consumed together with C. produced in place of; sold with D. consumed together with; consumed in place of
B. consumed in place of; consumed together with
A competitive market is a market that has _____, so _____ can influence the price. A. many buyers and one seller; no buyer B. many buyers and sellers; no single buyer or seller C. one buyer and many sellers; no seller D. many buyers and sellers; both buyers and sellers
B. many buyers and sellers; no single buyer or seller
The law of demand states that ______, the ______ the price of a good, the smaller is the quantity demanded. A. even when other factors change; higher B. other things remaining the same; higher C. other things remaining the same; lower D. even when other factors change; lower
B. other things remaining the same; higher
Which of the following statements is about a normal good, which is about an inferior good, which is about both, and which is about neither? I With incomes falling in the recession, people are buying more chicken. II People are buying more beef now that incomes have increased. III People are buying more chicken because the price of chicken has fallen. IV With higher incomes people are switching from chicken to beef. A. IV is inferior, III is normal, II is neither, and I is both B. III is inferior, II is normal, IV is neither, and I is both C. I is inferior, II is normal, III is neither, and IV is both D. II is inferior, I is normal, III is neither, and IV is both
C. I is inferior, II is normal, III is neither, and IV is both
Which of the following is an example of money price? A. Megan earns $15 an hour at her job. B. The price of cashew has gone up by 4 percent. C. Joe paid $15 to buy a pizza box from McDonald's. D. Jim wants to buy a stereo player.
C. Joe paid $15 to buy a pizza box from McDonald's.
The substitution effect influences gasoline purchases because when the price of a gallon of gasoline rises, other things remaining the same, _______. Consumers _______. A. its relative price does not change because most likely the prices of all other goods will also rise because fuel is a productive resource in the production of all goods; continue to purchase gasoline, but in smaller quantities. B. the relative price of all vehicles rises; purchase fewer gas guzzlers and more fuel-efficient cars C. its relative price rises; look for alternate means of transportation D. the relative prices of all car accessories rises; continue to purchase gasoline, but in smaller quantities.
C. its relative price rises; look for alternate means of transportation
Diet coke and regular coke are _______. A. complements for producers but not complements in production for producers B. substitutes for consumers but not substitutes in production for producers C. substitutes for consumers and substitutes in production for producers D. complements for consumers and complements in production for producers
C. substitutes for consumers and substitutes in production for producers
The law of demand applies to gasoline because when the price of gasoline rises, ______. A. the demand for gasoline increases B. the quantity demanded increases C. the quantity demanded decreases D. the demand for gasoline decreases
C. the quantity demanded decreases
Supply is _____, when all other influences on buying plans remain the same. A. the relationship between the quantity supplied of a good and the cost of the inputs used to produce it B. the is the quantity of a good that producers would be willing to sell if costs were lower C. the relationship between the quantity supplied of a good and the price of the good D. the quantity of a good that producers plan to sell
C. the relationship between the quantity supplied of a good and the price of the good
The income effect influences gasoline purchases because when the price of gasoline rises, other things remaining the same, ______. Consumers ______. A. demand for gasoline decreases; buy less gasoline and more tickets for public transit B. demand for gasoline increases; buy more gasoline because it is a normal good C. demand for gasoline increases; believe that the price may rise even further so they buy more gasoline now D. the price of gasoline rises relative to income; cannot afford to buy all the things they previously bought, so they buy less gasoline
D. the price of gasoline rises relative to income; cannot afford to buy all the things they previously bought, so they buy less gasoline
Demand is _____, when all other influences on buying plans remain the same. A. the quantity of a good that people plan to buy B. the is the quantity of a good that people want but can't afford C. the relationship between the quantity demanded of a good and income D. the relationship between the quantity demanded of a good and the price of the good
D. the relationship between the quantity demanded of a good and the price of the good