demand shift questiions economics
Which of the following is NOT an example of a demand shift?
a. A promotion at works leads to increased spending on vacation travel. |
|
b. A shoe store’s announced sale for the following week leads to lower demand for its shoes for the current week. |
|
c. A safety recall of the Toyota Prius leads to higher demand for the Honda Civic. |
|
d. An increase in coffee prices leads to a fall in demand for coffee. |
Which is an example of the subsitution effect in demand?
Question 7 options:
a. the price of coffee rises, so you buy less coffee. |
|
b. the price of coffee rises, so you buy more coffee. |
|
c. the price of coffee rises, so you buy more tea and less coffee. |
|
d. the price of coffee rises, so you buy less tea and more coffee. |
If the demand for a product is elastic then
Question 8 options:
a. consumers will increase their purchases more than 10 percent when price falls 10 percent. |
|
b. consumers will increase their purchases less than 10 percent when price falls 10 percent. |
|
c. consumers will decrease their purchases more than 10 percent when price falls 10 percent. |
|
d. consumers will increase their purchases equal to 10 percent when price falls 10 percent. |
In perfect competition, the equilibrium quantity exchanged of a product or service occurs when
Question 9 options:
a. the marginal benefit is less than the marginal cost for the consumer. |
|
b. the marginal benefit is more than the marginal cost for the consumer. |
|
c. the marginal benefit is equal to the marginal cost for the consumer. |
|
d. at the point where the quantity demanded is above the line of the demand curve. |
Which situation describes the increasing returns stage of the production function?
Question 10 options:
a. Hiring one more tailor results in three more suits produced per hour. |
|
b. Hiring one more baker results in less than one oven available per baker. |
|
c. Buying one more office computer causes there to be more computers than workers. |
|
d. Extending the workday results in more tired and less productive workers. |
Question 11 options:
Prices of inputs
|
|
Expected future prices |
|
Extent of competition in the market |
|
Use of fiat money |
Suppose there is a drought in California damaging orange groves.
Question 12 options:
a. price will increase, quantity will increase |
|
b. price will decrease, quantity will decrease |
|
c. price will decrease, quantity will increase |
|
d. price will increase, quantity will decrease |
Price discrimination is a situation where a producer
Question 13 options:
a. charges different prices in different markets. |
|
b. charges the same price in different markets. |
|
c. colludes with other companies on setting prices in all markets. |
|
d. all of the above. |
In a market economy, the ideal solution to the problem of externalities would be to:
Question 14 options:
a. prohibit all production involving spillover costs. |
|
b. regulate both the amount people may consume and the price they pay for goods whose production involves spillover costs. |
|
c.charge or tax producers so that the price of a good reflects the true social cost of the externality generated in production. |
|
d.Allow producers to produce the output level where both the marginal private benefit and the marginal private cost equal the price. |
Which of the following situations is NOT an example of how imperfect information affects a market?
Question 15 options:
a. A healthy person with a known family history of a disease takes out a large life insurance policy. |
|
b. A used-car buyer looks up the free history report on an auto before purchasing it. |
|
c. A doctor orders a series of medical tests at his clinic to rule out alternative diagnoses. |
|
d. Travelers choose to stop at McDonalds for a Big Mac and milkshakes, rather than Bob’s Real Home Cooking. |
Which is an example of the adverse selection problem
Question 16 options:
a. consumers limit their purchases of U.S. manufactured cars. |
|
b. A company’s chief executive officer takes action to merge with another firm so stock prices can rise. |
|
c. A cashier purposely forgets to ring up a sale and does not give the customer a receipt |
|
d. A young man who is a heavy smoker decides to purchase health insurance. |
Which of the following products is least likely to be sold in a monopolistic competitive market?
Question 17 options:
a. video games |
|
b. internet service |
|
c. beer |
|
d. cotton |
Which of the following describes product differentiation?
Question 18 options:
a. a movie theater that charges differenti prices to students and seniors. |
|
b. Coach manufacturing different model hand bags for Macys and Costco. |
|
c. Microsoft producing XBox and Windows. |
|
d. Google developing an operating system for mobile phones. |