Question 1
Which statement is true?
a
When there is an increase in demand, the demand curve shifts to the left.
b
When there is an increase in demand, the demand curve shifts to the right.
c
When there is an increase in demand, the supply curve shifts to the left.
d
When there is an increase in demand, the supply curve shifts to the right.
Question 2
As income falls, the demand for inferior goods should
a
rise
b
fall
c
stay the same
d
none of the above are true because there is no relationship between demand and inferior goods.
Question 3
As income rises, the quantity demanded for normal goods should
a
rise
b
fall
c
stay the same
d
None of the above is true because there is no relationship between income and the quantity demanded for normal goods.
Question 4
Assume that the price of almonds--a principal raw material for producing almond skin oil--rises significantly. What should happen in the market for almond skin oil?
a
an increase in production costs and an increase in supply
b
an increase in productions costs and a decrease in demand
c
a decrease in production costs and a decrease in demand
d
an increase in production costs and a decrease in supply
Question 5 (2 points)
Which of the following would not be considered a complementary product/service to a car?
Question 5 options:
a Gasoline to run the car.
b auto insurance
c the purchase price of the car
d auto financing services
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Question 6 (2 points)
If there is advancement in the production technology used to make headphones and production costs fell significantly, this should cause which of the following changes in the headphones market?
Question 6 options:
a higher profits for producers and an increase in supply
b higher consumer demand
c lower profits for producers and an decrease in supply
d lower consumer demand
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Question 7 (2 points)
Which of the following would not change the supply of a particular good?
Question 7 options:
a Changes in production technology
b Changes in consumer population
c Changes in the prices of other goods that can be produced by the same firms
d Changes in producer expectations about future price movements.
Question 1
Which statement is true?
a | When there is an increase in demand, the demand curve shifts to the left. |
b | When there is an increase in demand, the demand curve shifts to the right. |
c | When there is an increase in demand, the supply curve shifts to the left. |
d | When there is an increase in demand, the supply curve shifts to the right. |
Question 2
As income falls, the demand for inferior goods should
a | rise |
b | fall |
c | stay the same |
d | none of the above are true because there is no relationship between demand and inferior goods. |
Question 3
As income rises, the quantity demanded for normal goods should
a | rise |
b | fall |
c | stay the same |
d | None of the above is true because there is no relationship between income and the quantity demanded for normal goods. |
Question 4
Assume that the price of almonds--a principal raw material for producing almond skin oil--rises significantly. What should happen in the market for almond skin oil?
a | an increase in production costs and an increase in supply |
b | an increase in productions costs and a decrease in demand |
c | a decrease in production costs and a decrease in demand |
d | an increase in production costs and a decrease in supply |
Question 5 (2 points)
Which of the following would not be considered a complementary product/service to a car?
Question 5 options:
a | Gasoline to run the car. |
b | auto insurance |
c | the purchase price of the car |
d | auto financing services |
Save
Question 6 (2 points)
If there is advancement in the production technology used to make headphones and production costs fell significantly, this should cause which of the following changes in the headphones market?
Question 6 options:
a | higher profits for producers and an increase in supply |
b | higher consumer demand |
c | lower profits for producers and an decrease in supply |
d | lower consumer demand |
Save
Question 7 (2 points)
Which of the following would not change the supply of a particular good?
Question 7 options:
a | Changes in production technology |
b | Changes in consumer population |
c | Changes in the prices of other goods that can be produced by the same firms |
d | Changes in producer expectations about future price movements. |