Question 1

Your preferences can be affected by advertising.

Accepted Answer

A) True 
 B)False  True

Question 2

Turnips are an inferior good. If nothing else changes, a rise in the price of turnips causes

Accepted Answer

A)  a decrease in demand for turnips. 
B)  an increase in demand for turnips. 
C)  a decrease in the supply of turnips. 
D)  an increase in the supply of turnips. 
E)  none of the above. 
A)  a decrease in demand for turnips. 
B)  an increase in demand for turnips. 
C)  a decrease in the supply of turnips. 
D)  an increase in the supply of turnips. 
E)  none of the above. E

Question 3

Figure 2.4.1.
-Look at Figure 2.4.1. An increase in demand is

Accepted Answer

A)  a shift from D0 to D1. 
B)  a shift from D1 to D0. 
C)  a movement from point B to D. 
D)  a movement from point D to B. 
E)  none of the above. 
A)  a shift from D0 to D1. 
B)  a shift from D1 to D0. 
C)  a movement from point B to D. 
D)  a movement from point D to B. 
E)  none of the above. A

Question 4

Consumers economize on products and services that become more expensive by switching to substitutes.

Accepted Answer

A) True 
 B)False

Question 5

You are generally willing to pay more for a product or service that has no close substitutes.

Accepted Answer

A) True 
 B)False

Question 6

Market demand is the

Accepted Answer

A)  sum of the prices each individual is willing and able to pay for each quantity demanded. 
B)  sum of the quantities demanded by all individuals at each price. 
C)  difference between the maximum amount each individual is willing to pay and the market price. 
D)  difference between the minimum amount each individual is willing to pay and the market price. 
E)  demand for stock markets. 
A)  sum of the prices each individual is willing and able to pay for each quantity demanded. 
B)  sum of the quantities demanded by all individuals at each price. 
C)  difference between the maximum amount each individual is willing to pay and the market price. 
D)  difference between the minimum amount each individual is willing to pay and the market price. 
E)  demand for stock markets.

Question 7

The economist's distinction between quantity demanded and demand is an attempt to copy a controlled experiment.

Accepted Answer

A) True 
 B)False

Question 8

The law of demand works as long as nothing else besides the price of the product changes.

Accepted Answer

A) True 
 B)False

Question 9

When income increases, the quantity demanded of normal goods increases.

Accepted Answer

A) True 
 B)False

Question 10

Which will cause a decrease in quantity demanded?

Accepted Answer

A)  a decrease in the number of consumers 
B)  a decrease in income 
C)  an increase in income 
D)  a rise in the price of the product 
E)  a fall in the price of the product 
A)  a decrease in the number of consumers 
B)  a decrease in income 
C)  an increase in income 
D)  a rise in the price of the product 
E)  a fall in the price of the product

Question 11

People pay more for diamonds than for water because

Accepted Answer

A)  total benefits from diamonds are high and total benefits from water are low. 
B)  there are no substitutes for water. 
C)  people don't make smart choices. 
D)  water is scarce. 
E)  marginal benefits from water are low and marginal benefits from diamonds are high. 
A)  total benefits from diamonds are high and total benefits from water are low. 
B)  there are no substitutes for water. 
C)  people don't make smart choices. 
D)  water is scarce. 
E)  marginal benefits from water are low and marginal benefits from diamonds are high.

Question 12

Because drivers expect the price on Saturdays will be higher, they increase the quantity demanded of gasoline on Fridays.

Accepted Answer

A) True 
 B)False

Question 13

The high price of diamonds relative to the price of water is due to the fact that

Accepted Answer

A)  total benefits from water are relatively low. 
B)  total benefits from diamonds are relatively high. 
C)  marginal benefits from water are relatively high. 
D)  marginal benefits from diamonds are relatively high. 
E)  none of the above is true. 
A)  total benefits from water are relatively low. 
B)  total benefits from diamonds are relatively high. 
C)  marginal benefits from water are relatively high. 
D)  marginal benefits from diamonds are relatively high. 
E)  none of the above is true.

Question 14

If you feel strongly about protecting the environment, this affects your demand for cars and your demand for public transit.

Accepted Answer

A) True 
 B)False

Question 15

Products or services that are essential to survival always have low marginal benefits.

Accepted Answer

A) True 
 B)False

Question 16

Willingness to pay depends on total benefit, not marginal benefit.

Accepted Answer

A) True 
 B)False

Question 17

A phone provider who offers lower prices per minute to customers who use a lot of minutes is violating the law of demand.

Accepted Answer

A) True 
 B)False

Question 18

Willingness to pay depends on marginal benefit, not total benefit.

Accepted Answer

A) True 
 B)False

Question 19

Gina and George had a cash bar at their party last week. At $2 a ticket, the 50 people at their party bought 2,000 tickets. Market demand at Gina and George's party was

Accepted Answer

A)  2,000 tickets. 
B)  4,000 dollars. 
C)  400 tickets. 
D)  50 people. 
E)  100 dollars. 
A)  2,000 tickets. 
B)  4,000 dollars. 
C)  400 tickets. 
D)  50 people. 
E)  100 dollars.

Question 20

Your preferences are determined only by your logical needs.

Accepted Answer

A) True 
 B)False

Your preferences can be affected by advertising.

Turnips are an inferior good. If nothing else changes, a rise in the price of turnips causes

Figure 2.4.1. -Look at Figure 2.4.1. An increase in demand is

Consumers economize on products and services that become more expensive by switching to substitutes.

You are generally willing to pay more for a product or service that has no close substitutes.

Market demand is the

The economist's distinction between quantity demanded and demand is an attempt to copy a controlled experiment.

The law of demand works as long as nothing else besides the price of the product changes.

When income increases, the quantity demanded of normal goods increases.

Which will cause a decrease in quantity demanded?

People pay more for diamonds than for water because

Because drivers expect the price on Saturdays will be higher, they increase the quantity demanded of gasoline on Fridays.

The high price of diamonds relative to the price of water is due to the fact that

If you feel strongly about protecting the environment, this affects your demand for cars and your demand for public transit.

Products or services that are essential to survival always have low marginal benefits.

Willingness to pay depends on total benefit, not marginal benefit.

A phone provider who offers lower prices per minute to customers who use a lot of minutes is violating the law of demand.

Willingness to pay depends on marginal benefit, not total benefit.

Gina and George had a cash bar at their party last week. At $2 a ticket, the 50 people at their party bought 2,000 tickets. Market demand at Gina and George's party was

Your preferences are determined only by your logical needs.

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters

Exam 2: Making Smart Choices: the Law of Demand

Your preferences can be affected by advertising.

Turnips are an inferior good. If nothing else changes, a rise in the price of turnips causes

Figure 2.4.1. -Look at Figure 2.4.1. An increase in demand is

Consumers economize on products and services that become more expensive by switching to substitutes.

You are generally willing to pay more for a product or service that has no close substitutes.

Market demand is the

The economist's distinction between quantity demanded and demand is an attempt to copy a controlled experiment.

The law of demand works as long as nothing else besides the price of the product changes.

When income increases, the quantity demanded of normal goods increases.

Which will cause a decrease in quantity demanded?

People pay more for diamonds than for water because

Because drivers expect the price on Saturdays will be higher, they increase the quantity demanded of gasoline on Fridays.

The high price of diamonds relative to the price of water is due to the fact that

If you feel strongly about protecting the environment, this affects your demand for cars and your demand for public transit.

Products or services that are essential to survival always have low marginal benefits.

Willingness to pay depends on total benefit, not marginal benefit.

A phone provider who offers lower prices per minute to customers who use a lot of minutes is violating the law of demand.

Willingness to pay depends on marginal benefit, not total benefit.

Gina and George had a cash bar at their party last week. At $2 a ticket, the 50 people at their party bought 2,000 tickets. Market demand at Gina and George's party was

Your preferences are determined only by your logical needs.

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters