 |
1 | |
When we know the quantity of a product that buyers wish to purchase at each possible price, we know |
|
| | A) | demand |
| | B) | supply |
| | C) | excess demand |
| | D) | excess supply |
|
2 | |
The equilibrium price clears the market; it is the price at which ________ _________ |
|
| | A) | everything is sold |
| | B) | buyers spend all their money |
| | C) | quantity demanded equals quantity supplied |
| | D) | excess demand is zero |
| | E) | c and d |
|
3 | |
When a market is in equilibrium |
|
| | A) | Quantity demanded equals quantity supplied |
| | B) | Excess demand and excess supply are zero |
| | C) | The market is cleared by the equilibrium price |
| | D) | All of the above |
|
4 | |
________ and ________ do not directly affect the demand curve |
|
| | A) | the price of related goods, consumer incomes |
| | B) | consumer incomes, tastes |
| | C) | the costs of production, bank opening hours |
| | D) | the price of related goods, preferences |
|
5 | |
A demand curve can shift because of changing |
|
| | A) | incomes |
| | B) | prices of related goods |
| | C) | tastes |
| | D) | all of the above |
|
6 | |
A supply curve is directly affected by |
|
| | A) | technology |
| | B) | input costs |
| | C) | government regulation |
| | D) | all of the above |
|
7 | |
If a price increase of good A increases the quantity demanded of good B, then good B is a |
|
| | A) | substitute good |
| | B) | complementary good |
| | C) | bargain |
| | D) | inferior good |
|
8 | |
An increase in consumer income will increase demand for a _______ but decrease demand for a ________ |
|
| | A) | substitute good, inferior good |
| | B) | normal good, inferior good |
| | C) | inferior good, normal good |
| | D) | normal good, complementary good |
|
9 | |
Supply is the quantity of a good sellers wish to sell each time the market opens |
|
| | A) | TRUE |
| | B) | FALSE |
|
10 | |
An increase in price will cause a supply curve to shift to the left |
|
| | A) | TRUE |
| | B) | FALSE |
|
11 | |
Price ceilings are imposed increase price above the free market equilibrium price |
|
| | A) | TRUE |
| | B) | FALSE |
2002 A McGraw-Hill Online Learning Centre