Economics - Supply and Demand
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Question 1 of 84
1. Question
The law of demand implies that:
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Question 2 of 84
2. Question
The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce:
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Question 3 of 84
3. Question
What effect is working when the price of a good falls and consumers tend to buy it instead of other goods?
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Question 4 of 84
4. Question
The quantity demanded of Pepsi has decreased. The best explanation for this is that:
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Question 5 of 84
5. Question
Demand curves are derived while holding constant:
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Question 6 of 84
6. Question
When the decrease in the price of one good causes the demand for another good to decrease, the goods are:
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Question 7 of 84
7. Question
Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are:
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Question 8 of 84
8. Question
If the demand for coffee decreases as income decreases, coffee is:
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Question 9 of 84
9. Question
Which of the following will NOT cause a shift in the demand curve for compact discs?
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Question 10 of 84
10. Question
Which of the following is consistent with the law of supply?
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Question 11 of 84
11. Question
The price of computer chips used in the manufacture of personal computers has fallen. This will lead to ____ personal computer.
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Question 12 of 84
12. Question
When excess demand occurs in an unregulated market, there is a tendency for:
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Question 13 of 84
13. Question
An increase in aggregate demand if aggregate supply is totally inelastic will:
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Question 14 of 84
14. Question
Market equilibrium exists when ____ at the prevailing price.
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Question 15 of 84
15. Question
A movement along the demand curve to the left may be caused by:
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Question 16 of 84
16. Question
The price elasticity of demand is the:
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Question 17 of 84
17. Question
The price of apples falls by 5% and quantity demanded increases by 6% This means that demand is:
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Question 18 of 84
18. Question
The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is:
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Question 19 of 84
19. Question
If the cross-price elasticity of demand between two goods is negative, then the two goods are:
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Question 20 of 84
20. Question
If the quantity demanded of beef increases by 5% when the price of chicken increase by 20% the cross-price elasticity of demand between beef and chicken is:
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Question 21 of 84
21. Question
When the market operates without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as:
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Question 22 of 84
22. Question
Which best describes a demand curve?
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Question 23 of 84
23. Question
A fall in price:
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Question 24 of 84
24. Question
Demand for a normal product may shift outwards if:
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Question 25 of 84
25. Question
According to the law of diminishing utility:
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Question 26 of 84
26. Question
If marginal utility is zero:
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Question 27 of 84
27. Question
An increase in income should:
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Question 28 of 84
28. Question
An increase in the price of a complement for product A would:
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Question 29 of 84
29. Question
An increase in price all other things unchanged leads to:
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Question 30 of 84
30. Question
If a product is a vablen good:
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Question 31 of 84
31. Question
If a product is an inferior good:
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Question 32 of 84
32. Question
Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct?
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Question 33 of 84
33. Question
The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct?
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Question 34 of 84
34. Question
If the price elasticity of demand is unit then a fall in price.
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Question 35 of 84
35. Question
If the cross elasticity of demand is -2:
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Question 36 of 84
36. Question
The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now?
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Question 37 of 84
37. Question
The price elasticity of demand is a negative number this means:
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Question 38 of 84
38. Question
Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now?
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Question 39 of 84
39. Question
if demand is price inelastic
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Question 40 of 84
40. Question
For an inferior good:
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Question 41 of 84
41. Question
For a normal good:
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Question 42 of 84
42. Question
Which best describes a supply curve?
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Question 43 of 84
43. Question
If a 4% increase in price leads to a increase in the quantity supplied of 8%
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Question 44 of 84
44. Question
Supply is likely to be more price elastic:
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Question 45 of 84
45. Question
A supply curve that starts at the origin has:
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Question 46 of 84
46. Question
A contraction in supply occurs when:
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Question 47 of 84
47. Question
An increase in the costs of production will:
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Question 48 of 84
48. Question
An increase in price all other things unchanged leads to:
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Question 49 of 84
49. Question
An increase in productivity should:
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Question 50 of 84
50. Question
An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is:
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Question 51 of 84
51. Question
The price elasticity of supply is +4 The price increases by 15% sales were originally 200 units What will they be now?
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Question 52 of 84
52. Question
A shif in aggregate supply is likely to:
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Question 53 of 84
53. Question
Aggregate demand will increase if:
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Question 54 of 84
54. Question
An increase in aggregate demand will have most effect on prices if:
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Question 55 of 84
55. Question
Which of the following would increase aggregate demand?
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Question 56 of 84
56. Question
Which of the following would decease aggregate demand?
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Question 57 of 84
57. Question
Improved training of employees would?
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Question 58 of 84
58. Question
Increase unemployment benefits and less incentive to work would:
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Question 59 of 84
59. Question
Increased level consumption:
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Question 60 of 84
60. Question
Increased levels of spending on imports:
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Question 61 of 84
61. Question
The price elasticity of demand measures:
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Question 62 of 84
62. Question
If demand is ____ then price cuts will _____ spending
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Question 63 of 84
63. Question
The cross-price elasticity of demand measures how the quantity demanded of one good is related to consumer income
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Question 64 of 84
64. Question
Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are:
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Question 65 of 84
65. Question
A measurement showing how quantity demanded varies with income is the
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Question 66 of 84
66. Question
inferior goods have ____ and luxury goods have ____
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Question 67 of 84
67. Question
If your income doubles and the prices of the goods you buy double then your demand for these goods will likely:
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Question 68 of 84
68. Question
Any price change can be decomposed into an income effect and a complementary effect
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Question 69 of 84
69. Question
The income effect of a price increase of a normal good is to ____ of that good and the substitution effect is to ____ of that good
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Question 70 of 84
70. Question
The opportunity cost of a student is
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Question 71 of 84
71. Question
Economics assumes that people consume goods and services to achieve
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Question 72 of 84
72. Question
The extra utility from consuming one more unit of a good is called
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Question 73 of 84
73. Question
Adding up the quantities demanded of a good by different people facing the same price gives us the
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Question 74 of 84
74. Question
Firms are assumed to ____ costs and to ____ profits
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Question 75 of 84
75. Question
The increase in total cost when one more unit is produced is known as
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Question 76 of 84
76. Question
Marginal revenue is the ____ when output is ____
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Question 77 of 84
77. Question
Profits are maximized when:
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Question 78 of 84
78. Question
If a firm is producing a level of output where marginal cost is greater than marginal revenue, it should increase output of maximize profits
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Question 79 of 84
79. Question
If a firms wage costs increase this will cause _____ and ____
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Question 80 of 84
80. Question
An upward shift in marginal cost ___ output and an upward shift in marginal revenue ____ output
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Question 81 of 84
81. Question
A firm should close down if profits are zero
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Question 82 of 84
82. Question
A firm that breaks even after all economic costs are paid is earning
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Question 83 of 84
83. Question
A firm that makes profit in addition to normal profit is making
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Question 84 of 84
84. Question
If both marginal cost and marginal revenue increase, a firm:
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