Asayena Viengmany
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Asayena Viengmany
Created by Asayena Viengmany over 6 years ago
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HW 3 ECON

Question 1 of 20

1

The downward slope of the demand curve again illustrates the pattern that as _____________ rises, _________________ decreases.

Select one of the following:

  • quantity demanded, price

  • quantity supplied, quantity demanded

  • price, quantity demanded

  • price, quantity supplied

Explanation

Question 2 of 20

1

The nature of demand indicates that as the price of a good increases:

Select one of the following:

  • suppliers wish to sell less of it

  • more of it is produced

  • more of it is desired

  • buyers desire to purchase less of it

Explanation

Question 3 of 20

1

The term "ceteris paribus" means that:

Select one of the following:

  • everything is variable

  • all variable except those specified are constant

  • no one knows which variables will change and which will remain constant

  • what is true for the individual is not necessarily true for the whole

Explanation

Question 4 of 20

1

Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.

Select one of the following:

  • income gap

  • market equilibrium

  • law of demand

  • price model

Explanation

Question 5 of 20

1

_________________ refers to the total number of units that are purchased at that price.

Select one of the following:

  • quantity

  • quantity demanded

  • supply

  • market quantity

Explanation

Question 6 of 20

1

The demand curve for a typical good has a(n):

Select one of the following:

  • negative slope because some consumers switch to other goods as the price rises.

  • negative slope because consumer incomes fall as the price of the good rises.

  • negative slope because the good has less "snob appeal" as its price falls.

  • inverse slope because as the price goes up, the good has more profitability.

Explanation

Question 7 of 20

1

But nearly all supply curves share a basic similarity: they slope _______________.

Select one of the following:

  • down from left to right

  • up from left to right

  • up from right to left

  • down from right to left

Explanation

Question 8 of 20

1

When quantity demanded decreases in response to a change in price:

Select one of the following:

  • demand curve shifts to the right

  • demand curve shifts to the left

  • there is a movement down along the demand curve

  • there is movement up along the demand curve

Explanation

Question 9 of 20

1

The ___________ is the only price where quantity demanded is equal to quantity supplied.

Select one of the following:

  • equilibrium price

  • horizontal axis intercept

  • vertical axis intercept

  • market price

Explanation

Question 10 of 20

1

After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is:

Select one of the following:

  • no change; only the supply curve for beef is likely to be affected.

  • a shift of the demand curve for beef to the left

  • a movement down along the demand curve for beef to the right.

  • a shift of the demand curve for beef to the right.

Explanation

Question 11 of 20

1

If a firm faces ________________________, while the prices for the output the firm produces remain unchanged, a firm’s profits will increase.

Select one of the following:

  • higher demand

  • lower costs of production

  • equilibrium

  • shift in demand

Explanation

Question 12 of 20

1

When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.

Select one of the following:

  • prices rise

  • equilibrium is achieved

  • costs of production fall

  • there is a population increase

Explanation

Question 13 of 20

1

A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:

Select one of the following:

  • the supply curve

  • the demand curve, as consumers try to economize because of the shortage

  • both supply and demand curve

  • the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price

Explanation

Question 14 of 20

1

A change in price of a good or service typically causes ___________________________ for that specific good or service.

Select one of the following:

  • a new equilibrium price

  • a change along the supply curve

  • the supply curve to shift

  • a decreased demand

Explanation

Question 15 of 20

1

According to the law of supply:

Select one of the following:

  • there is a direct relationship between price and the quantity supplied.

  • there is an inverse relationship between price and the quantity supplied.

  • there is a direct relationship between price and quantity demanded.

  • there is an inverse relationship between price and quantity demanded

Explanation

Question 16 of 20

1

Which of the following would reduce the supply of microcomputers?

Select one of the following:

  • a technological improvement that lowers the cost of producing the computers

  • higher wage rates for the workers that assemble the computers

  • a reduction in the price of computer chips used to produce the computers

  • a reduction in the price of computers.

Explanation

Question 17 of 20

1

Interpret the following statement: "An increase in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."

Select one of the following:

  • The statement is correct.

  • The statement would be correct if "quantity of wheat demanded" were substituted for "quantity of wheat supplied."

  • The statement is incorrect because it confuses a change in quantity supplied with a change in supply.

  • The statement would be correct if it read that a "decrease in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."

Explanation

Question 18 of 20

1

Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:

Select one of the following:

  • Andy's demand for pizza to increase.

  • Andy's demand for pizza to decrease.

  • Andy's quantity of pizza demanded to decrease.

  • Andy's demand for beer to increase.

Explanation

Question 19 of 20

1

If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________

Select one of the following:

  • excess supply

  • excess demand

  • ceteris paribus

  • a price ceiling

Explanation

Question 20 of 20

1

The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.

Select one of the following:

  • quantity demanded

  • equilibrium quantity

  • demand schedule

  • supply schedule

Explanation

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