Question 1

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

Accepted Answer

A)  a leftward shift in the demand curve for turnips. 
B)  a rightward shift in the demand curve for turnips. 
C)  a leftward shift in the supply curve of turnips. 
D)  a rightward shift in the supply curve of turnips. 
E)  none of the above. 
A)  a leftward shift in the demand curve for turnips. 
B)  a rightward shift in the demand curve for turnips. 
C)  a leftward shift in the supply curve of turnips. 
D)  a rightward shift in the supply curve of turnips. 
E)  none of the above.

Question 2

Economists use the term demand to summarize the influences of factors other than price on the number of units that consumers want to buy.

Accepted Answer

A) True 
 B)False

Question 3

If the price of hamburgers at McDonald's rises, the demand for french fries at McDonald's decreases because the products are substitutes.

Accepted Answer

A) True 
 B)False

Question 4

Sam will drink anything that is cold, while Dave will only drink Gatorade. We expect Dave is willing to pay more for Gatorade than is Sam.

Accepted Answer

A) True 
 B)False

Question 5

A person's marginal growth (in height) decreases as they age because

Accepted Answer

A)  people grow more quickly when they are younger. 
B)  older people prefer Pepsi over Coke. 
C)  our parents lose their ability to measure us as we get older. 
D)  circumstances change as we age. 
E)  total growth is decreasing; we begin to get shorter once we get old enough. 
A)  people grow more quickly when they are younger. 
B)  older people prefer Pepsi over Coke. 
C)  our parents lose their ability to measure us as we get older. 
D)  circumstances change as we age. 
E)  total growth is decreasing; we begin to get shorter once we get old enough.

Question 6

Your marginal benefits from a choice do not reflect how intensely you want it.

Accepted Answer

A) True 
 B)False

Question 7

Economists use the term quantity demanded to summarize

Accepted Answer

A)  the activities of profit-oriented businesses. 
B)  how the concept of scarcity applies to the world. 
C)  how changes in price influence the quantity we want to buy. 
D)  the behaviour of irrational consumers interacting with government in the marketplace. 
E)  how changes in factors other than price will influence the quantity we want to buy. 
A)  the activities of profit-oriented businesses. 
B)  how the concept of scarcity applies to the world. 
C)  how changes in price influence the quantity we want to buy. 
D)  the behaviour of irrational consumers interacting with government in the marketplace. 
E)  how changes in factors other than price will influence the quantity we want to buy.

Question 8

The demand curve shifts rightward 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 9

Your demand for a product or service depends only on your preferences, not on your income.

Accepted Answer

A) True 
 B)False

Question 10

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 low. 
D)  marginal benefits from diamonds are relatively low. 
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 low. 
D)  marginal benefits from diamonds are relatively low. 
E)  none of the above is true.

Question 11

Figure 2.3.1. 
-Look at the market for water in Figure 2.3.1. At point C,

Accepted Answer

A)  people plan to spend $2 on water. 
B)  the maximum price people are willing and able to pay for all 3,000 cubic metres of water is $2. 
C)  the minimum price people are willing and able to pay for all 3,000 cubic metres of water is $2. 
D)  the minimum price people are willing and able to pay for the 3,000th cubic metre of water is $2. 
E)  the maximum price people are willing and able to pay for the 3,000th cubic metre of water is $2. 
A)  people plan to spend $2 on water. 
B)  the maximum price people are willing and able to pay for all 3,000 cubic metres of water is $2. 
C)  the minimum price people are willing and able to pay for all 3,000 cubic metres of water is $2. 
D)  the minimum price people are willing and able to pay for the 3,000th cubic metre of water is $2. 
E)  the maximum price people are willing and able to pay for the 3,000th cubic metre of water is $2.

Question 12

When income increases, the quantity demanded of inferior goods decreases.

Accepted Answer

A) True 
 B)False

Question 13

Tourists are typically willing to pay more for products or services than local consumers because tourists get larger marginal benefits from these items.

Accepted Answer

A) True 
 B)False

Question 14

The law of demand says that when price rises, quantity demanded decreases.

Accepted Answer

A) True 
 B)False

Question 15

Quantity demanded is the sum of demands of all individuals willing and able to buy a particular product or service.

Accepted Answer

A) True 
 B)False

Question 16

The demand curve shifts ________ if the price of a ________ product or service ________.

Accepted Answer

A)  leftward; substitute; rises 
B)  rightward; substitute; falls 
C)  rightward; substitute; rises 
D)  leftward; complement; falls 
E)  rightward; complement; rises 
A)  leftward; substitute; rises 
B)  rightward; substitute; falls 
C)  rightward; substitute; rises 
D)  leftward; complement; falls 
E)  rightward; complement; rises

Question 17

Economists use the term quantity demanded to summarize the influences of factors other than price on the number of units that consumers want to buy.

Accepted Answer

A) True 
 B)False

Question 18

An online music store charges $1 per song. Your VISA bill shows that you spent $300 on songs last month. This means that your

Accepted Answer

A)  marginal benefits must be less than $1 per song. 
B)  quantity demanded was 1 dollar. 
C)  marginal costs must be more than $1 per song. 
D)  quantity demanded was 300 songs. 
E)  quantity demanded was 300 dollars. 
A)  marginal benefits must be less than $1 per song. 
B)  quantity demanded was 1 dollar. 
C)  marginal costs must be more than $1 per song. 
D)  quantity demanded was 300 songs. 
E)  quantity demanded was 300 dollars.

Question 19

If the price of hamburgers at McDonald's rises, the demand for hamburgers at Wendy's increases because the products are substitutes.

Accepted Answer

A) True 
 B)False

Question 20

Sam will drink anything that is cold, while Dave will only drink Gatorade. We expect Sam is willing to pay more for Gatorade than is Dave.

Accepted Answer

A) True 
 B)False

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

Economists use the term demand to summarize the influences of factors other than price on the number of units that consumers want to buy.

If the price of hamburgers at McDonald's rises, the demand for french fries at McDonald's decreases because the products are substitutes.

Sam will drink anything that is cold, while Dave will only drink Gatorade. We expect Dave is willing to pay more for Gatorade than is Sam.

A person's marginal growth (in height) decreases as they age because

Your marginal benefits from a choice do not reflect how intensely you want it.

Economists use the term quantity demanded to summarize

The demand curve shifts rightward when there are

Your demand for a product or service depends only on your preferences, not on your income.

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

Figure 2.3.1. -Look at the market for water in Figure 2.3.1. At point C,

When income increases, the quantity demanded of inferior goods decreases.

Tourists are typically willing to pay more for products or services than local consumers because tourists get larger marginal benefits from these items.

The law of demand says that when price rises, quantity demanded decreases.

Quantity demanded is the sum of demands of all individuals willing and able to buy a particular product or service.

The demand curve shifts if the price of a product or service .

Economists use the term quantity demanded to summarize the influences of factors other than price on the number of units that consumers want to buy.

An online music store charges $1 per song. Your VISA bill shows that you spent $300 on songs last month. This means that your

If the price of hamburgers at McDonald's rises, the demand for hamburgers at Wendy's increases because the products are substitutes.

Sam will drink anything that is cold, while Dave will only drink Gatorade. We expect Sam is willing to pay more for Gatorade than is Dave.

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

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

Economists use the term demand to summarize the influences of factors other than price on the number of units that consumers want to buy.

If the price of hamburgers at McDonald's rises, the demand for french fries at McDonald's decreases because the products are substitutes.

Sam will drink anything that is cold, while Dave will only drink Gatorade. We expect Dave is willing to pay more for Gatorade than is Sam.

A person's marginal growth (in height) decreases as they age because

Your marginal benefits from a choice do not reflect how intensely you want it.

Economists use the term quantity demanded to summarize

The demand curve shifts rightward when there are

Your demand for a product or service depends only on your preferences, not on your income.

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

Figure 2.3.1. -Look at the market for water in Figure 2.3.1. At point C,

When income increases, the quantity demanded of inferior goods decreases.

Tourists are typically willing to pay more for products or services than local consumers because tourists get larger marginal benefits from these items.

The law of demand says that when price rises, quantity demanded decreases.

Quantity demanded is the sum of demands of all individuals willing and able to buy a particular product or service.

The demand curve shifts ________ if the price of a ________ product or service ________.

Economists use the term quantity demanded to summarize the influences of factors other than price on the number of units that consumers want to buy.

An online music store charges $1 per song. Your VISA bill shows that you spent $300 on songs last month. This means that your

If the price of hamburgers at McDonald's rises, the demand for hamburgers at Wendy's increases because the products are substitutes.

Sam will drink anything that is cold, while Dave will only drink Gatorade. We expect Sam is willing to pay more for Gatorade than is Dave.

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

The demand curve shifts if the price of a product or service .