Good Guy Beket
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Hell on Earth (Quizzes #2 & #3 [Chapters 1-3, 4-6, 13-17-18, 23-24]) Economics [Teacher: Abdinova Makpal ; Final Exam + Quizzes] ▼ Test sobre Quiz #2/3 [MCQ | Chapter 4-6], creado por Good Guy Beket el 02/12/2018.

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Quiz #2/3 [MCQ | Chapter 4-6]

Pregunta 1 de 60

1

A perfectly competitive market has

Selecciona una de las siguientes respuestas posibles:

  • firms that set their own prices.

  • only one seller.

  • at least a few sellers.

  • many buyers and sellers.

  • none of these answers.

Explicación

Pregunta 2 de 60

1

If an increase in the price of blue jeans leads to an increase in the demand for
tennis shoes, then blue jeans and tennis shoes are:

Selecciona una de las siguientes respuestas posibles:

  • complements.

  • inferior goods.

  • normal goods.

  • none of these answers.

  • substitutes.

Explicación

Pregunta 3 de 60

1

The law of demand states that an increase in the price of a good

Selecciona una de las siguientes respuestas posibles:

  • increases the supply of that good.

  • decreases the quantity demanded for that good.

  • decreases the demand for that good.

  • increases the quantity supplied of that good.

  • none of these answers.

Explicación

Pregunta 4 de 60

1

The law of supply states that an increase in the price of a good

Selecciona una de las siguientes respuestas posibles:

  • none of these answers.

  • increases the quantity supplied of that good.

  • increases the supply of that good.

  • decreases the demand for that good.

  • decreases the quantity demanded for that good.

Explicación

Pregunta 5 de 60

1

If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is

Selecciona una de las siguientes respuestas posibles:

  • a normal good.

  • none of these answers.

  • an inferior good.

  • a substitute good.

  • a complementary good.

Explicación

Pregunta 6 de 60

1

A monopolistic market has

Selecciona una de las siguientes respuestas posibles:

  • many buyers and sellers.

  • none of these answers.

  • firms that are price takers.

  • only one seller.

  • at least a few sellers.

Explicación

Pregunta 7 de 60

1

Which of the following shifts the demand for watches to the right?

Selecciona una de las siguientes respuestas posibles:

  • an increase in the price of watches

  • none of these answers

  • a decrease in the price of watch batteries if watch batteries and watches are complements

  • a decrease in consumer incomes if watches are a normal good

  • a decrease in the price of watches

Explicación

Pregunta 8 de 60

1

All of the following shift the supply of watches to the right except

Selecciona una de las siguientes respuestas posibles:

  • an advance in the technology used to manufacture watches.

  • an increase in the price of watches.

  • All of these answers cause an increase in the supply of watches.

  • a decrease in the wage of workers employed to manufacture watches.

  • manufacturers' expectation of lower watch prices in the future.

Explicación

Pregunta 9 de 60

1

If the price of a good is above the equilibrium price,

Selecciona una de las siguientes respuestas posibles:

  • there is a surplus and the price will rise.

  • there is a shortage and the price will fall.

  • there is a shortage and the price will rise.

  • the quantity demanded is equal to the quantity supplied and the price remains unchanged.

  • there is a surplus and the price will fall.

Explicación

Pregunta 10 de 60

1

If the price of a good is below the equilibrium price,

Selecciona una de las siguientes respuestas posibles:

  • there is a shortage and the price will rise.

  • the quantity demanded is equal to the quantity supplied and the price remains unchanged.

  • there is a shortage and the price will fall.

  • there is a surplus and the price will rise.

  • there is a surplus and the price will fall.

Explicación

Pregunta 11 de 60

1

If the price of a good is equal to the equilibrium price,

Selecciona una de las siguientes respuestas posibles:

  • there is a shortage and the price will fall.

  • the quantity demanded is equal to the quantity supplied and the price remains unchanged.

  • there is a surplus and the price will rise.

  • there is a shortage and the price will rise.

  • there is a surplus and the price will fall.

Explicación

Pregunta 12 de 60

1

An increase (rightward shift) in the demand for a good will tend to cause

Selecciona una de las siguientes respuestas posibles:

  • an increase in the equilibrium price and quantity.

  • none of these answers.

  • an increase in the equilibrium price and a decrease in the equilibrium quantity.

  • a decrease in the equilibrium price and an increase in the equilibrium quantity.

  • a decrease in the equilibrium price and quantity.

Explicación

Pregunta 13 de 60

1

A decrease (leftward shift) in the supply for a good will tend to cause

Selecciona una de las siguientes respuestas posibles:

  • an increase in the equilibrium price and quantity.

  • a decrease in the equilibrium price and an increase in the equilibrium quantity.

  • none of these answers.

  • a decrease in the equilibrium price and quantity.

  • an increase in the equilibrium price and a decrease in the equilibrium quantity.

Explicación

Pregunta 14 de 60

1

Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect

Selecciona una de las siguientes respuestas posibles:

  • the equilibrium quantity to rise and the equilibrium price to rise.

  • the equilibrium quantity to rise and the equilibrium price to fall.

  • the equilibrium quantity to rise and the equilibrium price to remain constant.

  • the change in the equilibrium quantity to be ambiguous and the equilibrium price to rise.

  • the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

Explicación

Pregunta 15 de 60

1

Suppose there is an increase in both the supply and demand for personal computers. Further, suppose the supply of personal computers increases more than demand for personal computers. In the market for personal computers, we would expect

Selecciona una de las siguientes respuestas posibles:

  • the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.

  • the equilibrium quantity to rise and the equilibrium price to rise.

  • the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

  • the equilibrium quantity to rise and the equilibrium price to fall.

  • the equilibrium quantity to rise and the equilibrium price to remain constant.

Explicación

Pregunta 16 de 60

1

Which of the following statements is true about the impact of an increase in the price of lettuce?

Selecciona una de las siguientes respuestas posibles:

  • Both the demand for lettuce will decrease and the equilibrium price and quantity of salad dressing will fall.

  • The supply of lettuce will decrease.

  • The demand for lettuce will decrease.

  • The equilibrium price and quantity of salad dressing will fall.

  • The equilibrium price and quantity of salad dressing will rise.

Explicación

Pregunta 17 de 60

1

Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice. What would we expect to happen to the equilibrium price and quantity in the market for orange juice?

Selecciona una de las siguientes respuestas posibles:

  • Price will decrease; quantity is ambiguous.

  • The impact on both price and quantity is ambiguous.

  • Price will increase; quantity will increase.

  • Price will increase; quantity will decrease.

  • Price will increase; quantity is ambiguous.

Explicación

Pregunta 18 de 60

1

Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?

Selecciona una de las siguientes respuestas posibles:

  • There is an increase in the quantity demanded of apples and in the supply for apples.

  • There is an increase in the demand and supply of apples.

  • There is an increase in the demand for apples and a decrease in the supply of apples.

  • There is a decrease in the quantity demanded of apples and an increase in the supply for apples.

  • There is an increase in the demand for apples and an increase in the quantity supplied of apples.

Explicación

Pregunta 19 de 60

1

Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today?

Selecciona una de las siguientes respuestas posibles:

  • The impact on both price and quantity is ambiguous.

  • Price will decrease; quantity is ambiguous.

  • Price will increase; quantity will decrease.

  • Price will increase; quantity is ambiguous.

  • Price will increase; quantity will increase.

Explicación

Pregunta 20 de 60

1

An inferior good is one for which an increase in income causes a(n)

Selecciona una de las siguientes respuestas posibles:

  • decrease in supply.

  • increase in demand.

  • increase in supply.

  • decrease in demand.

Explicación

Pregunta 21 de 60

1

If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is

Selecciona una de las siguientes respuestas posibles:

  • income inelastic.

  • price inelastic.

  • price elastic.

  • unit price elastic.

  • income elastic.

Explicación

Pregunta 22 de 60

1

The price elasticity of demand is defined as

Selecciona una de las siguientes respuestas posibles:

  • the percentage change in the quantity demanded divided by the percentage change in income.

  • the percentage change in income divided by the percentage change in the quantity demanded.

  • the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good.

  • none of these answers.

  • the percentage change in price of a good divided by the percentage change in the quantity demanded of that good.

Explicación

Pregunta 23 de 60

1

In general, a flatter demand curve is more likely to be

Selecciona una de las siguientes respuestas posibles:

  • price elastic.

  • unit price elastic.

  • none of these answers.

  • price inelastic.

Explicación

Pregunta 24 de 60

1

In general, a steeper supply curve is more likely to be

Selecciona una de las siguientes respuestas posibles:

  • price elastic.

  • none of these answers.

  • unit price elastic.

  • price inelastic.

Explicación

Pregunta 25 de 60

1

Which of the following would cause a demand curve for a good to be price inelastic?

Selecciona una de las siguientes respuestas posibles:

  • The good is a luxury.

  • There are a great number of substitutes for the good.

  • The good is a necessity.

  • The good is an inferior good.

Explicación

Pregunta 26 de 60

1

The demand for which of the following is likely to be the most price inelastic?

Selecciona una de las siguientes respuestas posibles:

  • transportation

  • taxi rides

  • bus tickets

  • airline tickets

Explicación

Pregunta 27 de 60

1

If the cross-price elasticity between two goods is negative, the two goods are likely to be

Selecciona una de las siguientes respuestas posibles:

  • substitutes.

  • complements.

  • necessities.

  • luxuries.

Explicación

Pregunta 28 de 60

1

If a supply curve for a good is price elastic, then

Selecciona una de las siguientes respuestas posibles:

  • the quantity supplied is sensitive to changes in the price of that good.

  • the quantity demanded is insensitive to changes in the price of that good.

  • the quantity demanded is sensitive to changes in the price of that good.

  • the quantity supplied is insensitive to changes in the price of that good.

  • none of these answers.

Explicación

Pregunta 29 de 60

1

If a fisherman must sell all of his daily catch before it spoils for whatever price he is offered, once the fish are caught the fisherman's price elasticity of supply for fresh fish is

Selecciona una de las siguientes respuestas posibles:

  • zero.

  • infinite.

  • one.

  • unable to be determined from this information.

Explicación

Pregunta 30 de 60

1

A decrease in supply (shift to the left) will increase total revenue in that market if

Selecciona una de las siguientes respuestas posibles:

  • demand is price inelastic.

  • supply is price elastic.

  • supply is price inelastic.

  • demand is price elastic.

Explicación

Pregunta 31 de 60

1

If an increase in the price of a good has no impact on the total revenue in that market, demand must be

Selecciona una de las siguientes respuestas posibles:

  • all of these answers.

  • price inelastic.

  • unit price elastic.

  • price elastic.

Explicación

Pregunta 32 de 60

1

If consumers always spend 15 percent of their income on food, then the income elasticity of demand for food is

Selecciona una de las siguientes respuestas posibles:

  • 1.50.

  • 1.15.

  • none of these answers.

  • 0.15.

  • 1.00.

Explicación

Pregunta 33 de 60

1

Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to

Selecciona una de las siguientes respuestas posibles:

  • increase total revenue to farmers as a whole because the demand for food is elastic.

  • increase total revenue to farmers as a whole because the demand for food is inelastic.

  • reduce total revenue to farmers as a whole because the demand for food is elastic.

  • reduce total revenue to farmers as a whole because the demand for food is inelastic.

Explicación

Pregunta 34 de 60

1

If supply is price inelastic, the value of the price elasticity of supply must be

Selecciona una de las siguientes respuestas posibles:

  • infinite.

  • zero.

  • less than 1.

  • none of these answers.

  • greater than 1.

Explicación

Pregunta 35 de 60

1

If there is excess capacity in a production facility, it is likely that the firm's supply curve is

Selecciona una de las siguientes respuestas posibles:

  • price inelastic.

  • none of these answers.

  • unit price elastic.

  • price elastic.

Explicación

Pregunta 36 de 60

1

Suppose that at a price of €30 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to €40 per month, the number of subscribers will fall to 20,000. Using the midpoint method for calculating the elasticity, what is the price elasticity of demand for cable TV in Small Town?

Selecciona una de las siguientes respuestas posibles:

  • 1.4

  • 0.66

  • 0.75

  • 2.0

  • 1.0

Explicación

Pregunta 37 de 60

1

Suppose that at a price of €30 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to €40 per month, the number of subscribers will fall to 20,000. At which of the following prices does Small Town Cablevision earn the greatest total revenue?

Selecciona una de las siguientes respuestas posibles:

  • €0 per month

  • €30 per month

  • €40 per month

  • Either €30 or €40 per month because the price elasticity of demand is 1.0.

Explicación

Pregunta 38 de 60

1

If demand is linear (a straight line), then price elasticity of demand is

Selecciona una de las siguientes respuestas posibles:

  • elastic in the upper portion and inelastic in the lower portion.

  • inelastic in the upper portion and elastic in the lower portion.

  • inelastic throughout.

  • constant along the demand curve.

  • elastic throughout.

Explicación

Pregunta 39 de 60

1

If the income elasticity of demand for a good is negative, it must be

Selecciona una de las siguientes respuestas posibles:

  • an elastic good.

  • an inferior good.

  • a normal good.

  • a luxury good.

Explicación

Pregunta 40 de 60

1

If consumers think that there are very few substitutes for a good, then

Selecciona una de las siguientes respuestas posibles:

  • supply would tend to be price elastic.

  • none of these answers.

  • demand would tend to be price inelastic.

  • demand would tend to be price elastic.

  • supply would tend to be price inelastic.

Explicación

Pregunta 41 de 60

1

For a price ceiling to be a binding constraint on the market, the government must set it

Selecciona una de las siguientes respuestas posibles:

  • above the equilibrium price.

  • below the equilibrium price.

  • precisely at the equilibrium price.

  • at any price because all price ceilings are binding constraints.

Explicación

Pregunta 42 de 60

1

A binding price ceiling creates

Selecciona una de las siguientes respuestas posibles:

  • a shortage or a surplus depending on whether the price ceiling is set above or below the equilibrium price.

  • a surplus.

  • a shortage.

  • an equilibrium.

Explicación

Pregunta 43 de 60

1

Suppose the equilibrium price for apartments is €500 per month and the government imposes rent controls of €250. Which of the following is unlikely to occur as a result of the rent controls?

Selecciona una de las siguientes respuestas posibles:

  • There may be long lines of buyers waiting for apartments.

  • Landlords may discriminate among apartment renters.

  • Landlords may be offered bribes to rent apartments.

  • There will be a shortage of housing.

  • The quality of apartments will improve.

Explicación

Pregunta 44 de 60

1

A price floor

Selecciona una de las siguientes respuestas posibles:

  • always determines the price at which a good must be sold.

  • sets a legal maximum on the price at which a good can be sold.

  • is not a binding constraint if it is set above the equilibrium price.

  • sets a legal minimum on the price at which a good can be sold.

Explicación

Pregunta 45 de 60

1

Which of the following statements about a binding price ceiling is true?

Selecciona una de las siguientes respuestas posibles:

  • The shortage created by the price ceiling is greater in the short run than in the long run.

  • The surplus created by the price ceiling is greater in the short run than in the long run.

  • The surplus created by the price ceiling is greater in the long run than in the short run.

  • The shortage created by the price ceiling is greater in the long run than in the short run.

Explicación

Pregunta 46 de 60

1

Which side of the market is more likely to lobby government for a price floor?

Selecciona una de las siguientes respuestas posibles:

  • the buyers

  • Neither buyers nor sellers desire a price floor.

  • the sellers

  • Both buyers and sellers desire a price floor.

Explicación

Pregunta 47 de 60

1

The surplus caused by a binding price floor will be greatest if

Selecciona una de las siguientes respuestas posibles:

  • demand is inelastic and supply is elastic.

  • supply is inelastic and demand is elastic.

  • both supply and demand are elastic.

  • both supply and demand are inelastic.

Explicación

Pregunta 48 de 60

1

Which of the following is an example of a price floor?

Selecciona una de las siguientes respuestas posibles:

  • the minimum wage

  • rent controls

  • restricting petrol prices to €1.00 per litre when the equilibrium price is €1.50 per litre

  • All of these answers are price floors.

Explicación

Pregunta 49 de 60

1

Which of the following statements is true if the government places a price ceiling on petrol at €1.50 per litre and the equilibrium price is €1.00 per litre?

Selecciona una de las siguientes respuestas posibles:

  • A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.

  • A significant increase in the supply of petrol could cause the price ceiling to become a binding constraint.

  • There will be a shortage of petrol.

  • There will be a surplus of petrol.

Explicación

Pregunta 50 de 60

1

Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate?

Selecciona una de las siguientes respuestas posibles:

  • A teenage worker with few qualifications.

  • A manual worker with fifteen years of work experience.

  • A professional worker with a university degree.

  • All three are equally likely to find it difficult to get a job.

Explicación

Pregunta 51 de 60

1

Within the supply and demand model, a tax collected from the buyers of a good shifts the

Selecciona una de las siguientes respuestas posibles:

  • supply curve downward by the size of the tax per unit.

  • supply curve upward by the size of the tax per unit.

  • demand curve upward by the size of the tax per unit.

  • demand curve downward by the size of the tax per unit.

Explicación

Pregunta 52 de 60

1

Within the supply and demand model, a tax collected from the sellers of a good shifts the

Selecciona una de las siguientes respuestas posibles:

  • demand curve downward by the size of the tax per unit.

  • supply curve downward by the size of the tax per unit.

  • demand curve upward by the size of the tax per unit.

  • supply curve upward by the size of the tax per unit.

Explicación

Pregunta 53 de 60

1

Which of the following takes place when a tax is placed a good?

Selecciona una de las siguientes respuestas posibles:

  • a decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold

  • an increase in the price buyers pay, a decrease in the price sellers receive, and an increase in the quantity sold

  • a decrease in the price buyers pay, an increase in the price sellers receive, and an increase in the quantity sold

  • an increase in the price buyers pay, a decrease in the price sellers receive, and a decrease in the quantity sold

Explicación

Pregunta 54 de 60

1

When a tax is collected from the buyers in a market,

Selecciona una de las siguientes respuestas posibles:

  • the tax burden falls most heavily on the buyers.

  • the buyers bear the burden of the tax.

  • the sellers bear the burden of the tax.

  • the tax burden on the buyers and sellers is the same as an equivalent tax collected from the sellers.

Explicación

Pregunta 55 de 60

1

A tax of €1.00 per litre on petrol

Selecciona una de las siguientes respuestas posibles:

  • places a tax wedge of €1.00 between the price the buyers pay and the price the sellers receive.

  • decreases the price the sellers receive by €1.00 per litre.

  • increases the price the buyers pay by €1.00 per litre.

  • increases the price the buyers pay by precisely €0.50 and reduces the price received by sellers by precisely €0.50.

Explicación

Pregunta 56 de 60

1

The burden of a tax falls more heavily on the sellers in a market when

Selecciona una de las siguientes respuestas posibles:

  • both supply and demand are elastic.

  • both supply and demand are inelastic.

  • demand is inelastic and supply is elastic.

  • demand is elastic and supply is inelastic.

Explicación

Pregunta 57 de 60

1

A tax placed on a good that is a necessity for consumers will likely generate a tax burden that

Selecciona una de las siguientes respuestas posibles:

  • falls more heavily on sellers.

  • falls entirely on sellers.

  • falls more heavily on buyers.

  • is evenly distributed between buyers and sellers.

Explicación

Pregunta 58 de 60

1

The burden of a tax falls more heavily on the buyers in a market when

Selecciona una de las siguientes respuestas posibles:

  • both supply and demand are inelastic.

  • demand is elastic and supply is inelastic.

  • both supply and demand are elastic.

  • demand is inelastic and supply is elastic.

Explicación

Pregunta 59 de 60

1

Which of the following statements about the burden of a tax is correct?

Selecciona una de las siguientes respuestas posibles:

  • The tax burden generated from a tax placed on a good consumers perceive to be a necessity will fall most heavily on the sellers of the good.

  • The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected.

  • The distribution of the burden of a tax is determined by the relative elasticities of supply and demand and is not determined by legislation.

  • The tax burden falls most heavily on the side of the market (buyers or sellers) that is most willing to leave the market when price movements are unfavourable to them.

Explicación

Pregunta 60 de 60

1

For which of the following products would the burden of a tax likely fall more heavily on the sellers?

Selecciona una de las siguientes respuestas posibles:

  • clothing

  • food

  • housing

  • entertainment

Explicación

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