Question 1

Which will cause a movement up along a demand curve?

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 2

Dry cleaners charge men a lower price than they charge women because men get lower total benefits than women from having clean clothes.

Accepted Answer

A) True 
 B)False

Question 3

As the price of butter rises, smart consumers buy

Accepted Answer

A)  less margarine and the quantity demanded of butter decreases. 
B)  more margarine and the quantity demanded of butter decreases. 
C)  more margarine and the demand for butter decreases. 
D)  more margarine and the demand for butter increases. 
E)  less margarine and the quantity demanded of butter increases. 
A)  less margarine and the quantity demanded of butter decreases. 
B)  more margarine and the quantity demanded of butter decreases. 
C)  more margarine and the demand for butter decreases. 
D)  more margarine and the demand for butter increases. 
E)  less margarine and the quantity demanded of butter increases.

Question 4

Some sales managers are talking about business. Which quotation refers to a rightward shift of the demand curve?

Accepted Answer

A)  "Since our competitors raised their prices, our sales have tripled." 
B)  "Because it's been such a warm winter, our sales of wool scarves are down from last year." 
C)  "We decided to cut our prices, and there has been a big increase in our sales." 
D)  "The Green movement has hurt sales of our non-recyclable products." 
E)  None of the above 
A)  "Since our competitors raised their prices, our sales have tripled." 
B)  "Because it's been such a warm winter, our sales of wool scarves are down from last year." 
C)  "We decided to cut our prices, and there has been a big increase in our sales." 
D)  "The Green movement has hurt sales of our non-recyclable products." 
E)  None of the above

Question 5

Substitutes can be different products or services as long as they satisfy the same want.

Accepted Answer

A) True 
 B)False

Question 6

A Sociology class is a substitute for an Economics class if

Accepted Answer

A)  attending the two classes has the same opportunity cost. 
B)  the two classes satisfy the same want. 
C)  the tuition for the two classes is the same. 
D)  both classes are taught by the same professor. 
E)  both classes are at the same time. 
A)  attending the two classes has the same opportunity cost. 
B)  the two classes satisfy the same want. 
C)  the tuition for the two classes is the same. 
D)  both classes are taught by the same professor. 
E)  both classes are at the same time.

Question 7

Demand ________ if the price of a ________ product or service ________.

Accepted Answer

A)  decreases; substitute; rises 
B)  increases; substitute; falls 
C)  increases; substitute; rises 
D)  decreases; complement; falls 
E)  increases; complement; rises 
A)  decreases; substitute; rises 
B)  increases; substitute; falls 
C)  increases; substitute; rises 
D)  decreases; complement; falls 
E)  increases; complement; rises

Question 8

If Apple raises the price for a downloaded song at the iTunes store we will see a(n)

Accepted Answer

A)  increase in demand for iPods. 
B)  decrease in consumers' incomes if downloaded songs are inferior goods. 
C)  decrease in quantity demanded of downloaded songs. 
D)  decrease in demand for substitutes for downloaded songs. 
E)  increase in consumers' incomes if downloaded songs are normal goods. 
A)  increase in demand for iPods. 
B)  decrease in consumers' incomes if downloaded songs are inferior goods. 
C)  decrease in quantity demanded of downloaded songs. 
D)  decrease in demand for substitutes for downloaded songs. 
E)  increase in consumers' incomes if downloaded songs are normal goods.

Question 9

If the price of gasoline rises, the demand for automobiles decreases because the products are complements.

Accepted Answer

A) True 
 B)False

Question 10

Instead of advertising on television, Abercrombie and Fitch might increase your demand for their clothes by

Accepted Answer

A)  reducing your income, but this only works for normal products and services. 
B)  reducing the price of substitute products and services. 
C)  reducing the price of complementary products and services. 
D)  increasing the amount of time required to make a purchase. 
E)  making you think that the price of their clothes will be lower next month. 
A)  reducing your income, but this only works for normal products and services. 
B)  reducing the price of substitute products and services. 
C)  reducing the price of complementary products and services. 
D)  increasing the amount of time required to make a purchase. 
E)  making you think that the price of their clothes will be lower next month.

Question 11

Demand increases when there are

Accepted Answer

A)  expectations of lower prices tomorrow. 
B)  falls in the price of complementary products or services. 
C)  decreases in the number of consumers who buy this product or service. 
D)  decreases in income, but only for normal goods. 
E)  falls in the price of substitute products or services. 
A)  expectations of lower prices tomorrow. 
B)  falls in the price of complementary products or services. 
C)  decreases in the number of consumers who buy this product or service. 
D)  decreases in income, but only for normal goods. 
E)  falls in the price of substitute products or services.

Question 12

Your preferences measure

Accepted Answer

A)  the availability of alternatives. 
B)  how badly you want something. 
C)  the availability of substitutes. 
D)  how limited your time is. 
E)  the price of a product. 
A)  the availability of alternatives. 
B)  how badly you want something. 
C)  the availability of substitutes. 
D)  how limited your time is. 
E)  the price of a product.

Question 13

If a rise in the price of product A causes the demand curve for product B to shift leftward, then

Accepted Answer

A)  A and B are substitutes. 
B)  A and B complements. 
C)  B is an inferior good. 
D)  B is a normal good. 
E)  A and B are both inferior goods. 
A)  A and B are substitutes. 
B)  A and B complements. 
C)  B is an inferior good. 
D)  B is a normal good. 
E)  A and B are both inferior goods.

Question 14

If you spend the next hour studying instead of going out with a friend, that means overall, you value studying more than your friend.

Accepted Answer

A) True 
 B)False

Question 15

The law of demand states that, if nothing else changes,

Accepted Answer

A)  a rise in the price of a product or service causes a decrease in quantity demanded. 
B)  a rise in the price of a product or service causes a decrease in quantity supplied. 
C)  an increase in incomes causes a decrease in quantity demanded. 
D)  a rise in the price of a product or service causes an increase in quantity demanded. 
E)  an increase in incomes causes an increase in quantity demanded. 
A)  a rise in the price of a product or service causes a decrease in quantity demanded. 
B)  a rise in the price of a product or service causes a decrease in quantity supplied. 
C)  an increase in incomes causes a decrease in quantity demanded. 
D)  a rise in the price of a product or service causes an increase in quantity demanded. 
E)  an increase in incomes causes an increase in quantity demanded.

Question 16

If the minimum age for buying beer was lowered to 16, the increase in the number of buyers increases the demand for beer.

Accepted Answer

A) True 
 B)False

Question 17

If the price of automobiles falls, the demand for bicycles decreases and the demand for gasoline increases.

Accepted Answer

A) True 
 B)False

Question 18

The demand curve for gasoline has shifted rightward. One explanation is that

Accepted Answer

A)  consumer incomes are lower and gasoline is a normal good. 
B)  the price of automobiles is higher and gasoline and automobiles are complements. 
C)  consumer incomes are higher and gasoline is a normal good. 
D)  the number of consumers has decreased. 
E)  everyone expects tomorrow's gasoline price will be lower. 
A)  consumer incomes are lower and gasoline is a normal good. 
B)  the price of automobiles is higher and gasoline and automobiles are complements. 
C)  consumer incomes are higher and gasoline is a normal good. 
D)  the number of consumers has decreased. 
E)  everyone expects tomorrow's gasoline price will be lower.

Question 19

A once-in-a-lifetime trip to Paris will give you marginal benefits that will be the same as total benefits.

Accepted Answer

A) True 
 B)False

Question 20

Demand for gasoline increases on Fridays because

Accepted Answer

A)  everyone expects gasoline prices will fall on Saturday. 
B)  the prices of substitute products fall on Fridays. 
C)  the prices of complementary products rise on Fridays. 
D)  incomes are lower on Fridays and gasoline is a normal good. 
E)  everyone expects gasoline prices will rise on Saturday. 
A)  everyone expects gasoline prices will fall on Saturday. 
B)  the prices of substitute products fall on Fridays. 
C)  the prices of complementary products rise on Fridays. 
D)  incomes are lower on Fridays and gasoline is a normal good. 
E)  everyone expects gasoline prices will rise on Saturday.

Which will cause a movement up along a demand curve?

Dry cleaners charge men a lower price than they charge women because men get lower total benefits than women from having clean clothes.

As the price of butter rises, smart consumers buy

Some sales managers are talking about business. Which quotation refers to a rightward shift of the demand curve?

Substitutes can be different products or services as long as they satisfy the same want.

A Sociology class is a substitute for an Economics class if

Demand if the price of a product or service .

If Apple raises the price for a downloaded song at the iTunes store we will see a(n)

If the price of gasoline rises, the demand for automobiles decreases because the products are complements.

Instead of advertising on television, Abercrombie and Fitch might increase your demand for their clothes by

Demand increases when there are

Your preferences measure

If a rise in the price of product A causes the demand curve for product B to shift leftward, then

If you spend the next hour studying instead of going out with a friend, that means overall, you value studying more than your friend.

The law of demand states that, if nothing else changes,

If the minimum age for buying beer was lowered to 16, the increase in the number of buyers increases the demand for beer.

If the price of automobiles falls, the demand for bicycles decreases and the demand for gasoline increases.

The demand curve for gasoline has shifted rightward. One explanation is that

A once-in-a-lifetime trip to Paris will give you marginal benefits that will be the same as total benefits.

Demand for gasoline increases on Fridays because

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

Which will cause a movement up along a demand curve?

Dry cleaners charge men a lower price than they charge women because men get lower total benefits than women from having clean clothes.

As the price of butter rises, smart consumers buy

Some sales managers are talking about business. Which quotation refers to a rightward shift of the demand curve?

Substitutes can be different products or services as long as they satisfy the same want.

A Sociology class is a substitute for an Economics class if

Demand ________ if the price of a ________ product or service ________.

If Apple raises the price for a downloaded song at the iTunes store we will see a(n)

If the price of gasoline rises, the demand for automobiles decreases because the products are complements.

Instead of advertising on television, Abercrombie and Fitch might increase your demand for their clothes by

Demand increases when there are

Your preferences measure

If a rise in the price of product A causes the demand curve for product B to shift leftward, then

If you spend the next hour studying instead of going out with a friend, that means overall, you value studying more than your friend.

The law of demand states that, if nothing else changes,

If the minimum age for buying beer was lowered to 16, the increase in the number of buyers increases the demand for beer.

If the price of automobiles falls, the demand for bicycles decreases and the demand for gasoline increases.

The demand curve for gasoline has shifted rightward. One explanation is that

A once-in-a-lifetime trip to Paris will give you marginal benefits that will be the same as total benefits.

Demand for gasoline increases on Fridays because

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

Demand if the price of a product or service .