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Flash Quiz
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1
If the price of tea increases and the demand for sugar decreases, then
A)tea and sugar are complements.
B)tea is a normal good and sugar is inferior.
C)tea and sugar are substitutes.
D)tea is an inferior goods and sugar is normal.
E)tea and sugar are unrelated to each other.
2
If the demand for a good increases as consumer incomes rise, the good is termed a(n)
A)inferior good.
B)complement good.
C)normal good.
D)substitute good.
E)typical good.
3
Which of the following is not a characteristic of a market in equilibrium?
A)Quantity demanded equals quantity supplied.
B)Excess supply is zero.
C)All consumers are able to purchase as much as they wish.
D)Excess demand is zero.
E)The equilibrium price is stable, i.e., there is no pressure for it to change.
4
An increase in the demand for coal with no concurrent change in the supply of coal will result in a ________ equilibrium price and a(n) ________ equilibrium quantity.
A)higher; lower.
B)lower; lower.
C)higher; unchanged.
D)higher; higher.
E)lower; higher.
5
As the price of cookies increases, firms that produce cookies will
A)increase the supply of cookies.
B)increase the quantity of cookies supplied.
C)decrease the supply of cookies.
D)decrease the quantity of cookies supplied.
E)leave their production unchanged.
6
When is it not possible for individuals to arrange a transaction that creates additional economic surplus? When
A)price is above equilibrium.
B)price is below equilibrium.
C)price is at equilibrium.
D)there is a shortage.
E)there is a surplus.
7
When a firm pollutes,
A)markets will be efficient.
B)the output level is socially optimal.
C)the Smart-For-One-is-Sometimes-Dumb-for-All Principle does not hold.
D)the output level is above the socially optimal level.
E)the output level is below the socially optimal level.
8
An increase in price will
A)decrease demand.
B)decrease quantity demanded.
C)increase demand.
D)increase quantity demanded.
E)not affect quantity demanded.
9
An increase in the price of a complement will
A)decrease demand.
B)decrease quantity demanded.
C)increase demand.
D)increase quantity demanded.
E)not affect quantity demanded.
10
If an increase in income leads to a decrease in the demand for a good, the good is a(n)
A)substitute good.
B)complementary good.
C)inferior good.
D)normal good.
E)superior good.





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