Question 1

Economists describe all of your wants - and how intense each want is - as your preferences.

Accepted Answer

A) True 
 B)False

Question 2

An increase in quantity demanded is represented by a

Accepted Answer

A)  rightward shift of the supply curve. 
B)  rightward shift of the demand curve. 
C)  leftward shift of the demand curve. 
D)  movement up along the demand curve. 
E)  movement down along the demand curve. 
A)  rightward shift of the supply curve. 
B)  rightward shift of the demand curve. 
C)  leftward shift of the demand curve. 
D)  movement up along the demand curve. 
E)  movement down along the demand curve.

Question 3

Some sales managers are talking about business. Which quotation refers to a leftward 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 made our biodegradable products best-sellers." 
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 made our biodegradable products best-sellers." 
E)  None of the above

Question 4

When the price of gasoline rises, the demand for gasoline decreases.

Accepted Answer

A) True 
 B)False

Question 5

At a price of $2, Michael buys 4 muffins and Matthew buys 6 muffins. The market demand for these two individuals at a price of $2 is

Accepted Answer

A)  6 muffins. 
B)  2 muffins. 
C)  20 dollars. 
D)  10 muffins. 
E)  2 dollars. 
A)  6 muffins. 
B)  2 muffins. 
C)  20 dollars. 
D)  10 muffins. 
E)  2 dollars.

Question 6

If Hamburger Helper is an inferior good, a decrease in income causes

Accepted Answer

A)  a decrease in demand for Hamburger Helper. 
B)  an increase in demand for Hamburger Helper. 
C)  a decrease in the quantity demanded of Hamburger Helper. 
D)  an increase in the quantity demanded of Hamburger Helper. 
E)  none of the above. 
A)  a decrease in demand for Hamburger Helper. 
B)  an increase in demand for Hamburger Helper. 
C)  a decrease in the quantity demanded of Hamburger Helper. 
D)  an increase in the quantity demanded of Hamburger Helper. 
E)  none of the above.

Question 7

Smart consumers who will not pay $150 for a designer T-shirt make this choice because

Accepted Answer

A)  their marginal costs from this t-shirt are less than $150. 
B)  they are willing to pay more than $150. 
C)  their marginal benefits from this t-shirt are less than $150. 
D)  their quantity demanded is greater than one t-shirt. 
E)  their marginal benefits from this t-shirt are more than $150. 
A)  their marginal costs from this t-shirt are less than $150. 
B)  they are willing to pay more than $150. 
C)  their marginal benefits from this t-shirt are less than $150. 
D)  their quantity demanded is greater than one t-shirt. 
E)  their marginal benefits from this t-shirt are more than $150.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

If commodity traders expect the price of gold to rise tomorrow, they increase their demand for gold today.

Accepted Answer

A) True 
 B)False

Question 10

What you can afford is limited by more than just money.

Accepted Answer

A) True 
 B)False

Question 11

Which will cause an increase in quantity demanded?

Accepted Answer

A)  a rise in the price of a substitute product 
B)  a fall in the price of a complement product 
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 rise in the price of a substitute product 
B)  a fall in the price of a complement product 
C)  an increase in income 
D)  a rise in the price of the product 
E)  a fall in the price of the product

Question 12

Quantity demanded is the amount you actually plan to buy at a given price.

Accepted Answer

A) True 
 B)False

Question 13

Which could not cause a rightward shift of the demand curve for a service?

Accepted Answer

A)  an increase in income 
B)  a decrease in income 
C)  a decrease in the price of a substitute 
D)  a decrease in the price of a complement 
E)  an increase in preferences for the service 
A)  an increase in income 
B)  a decrease in income 
C)  a decrease in the price of a substitute 
D)  a decrease in the price of a complement 
E)  an increase in preferences for the service

Question 14

Which statements are true? 1 Read a demand curve over and down.
2 Read a marginal benefit curve over and down.
3 Read a demand curve up and over.
4 Read a marginal benefit curve up and over.

Accepted Answer

A)  3 only 
B)  1 and 2 
C)  1 and 4 
D)  2 and 3 
E)  2 and 4 
A)  3 only 
B)  1 and 2 
C)  1 and 4 
D)  2 and 3 
E)  2 and 4

Question 15

Which statements are true? 1 Read a demand curve up and over.
2 Read a marginal benefit curve up and over.
3 Read a demand curve over and down.
4 Read a marginal benefit curve over and down.

Accepted Answer

A)  3 only 
B)  1 and 2 
C)  1 and 4 
D)  2 and 3 
E)  2 and 4 
A)  3 only 
B)  1 and 2 
C)  1 and 4 
D)  2 and 3 
E)  2 and 4

Question 16

What you can afford is limited by

Accepted Answer

A)  preferences. 
B)  externalities. 
C)  substitutes. 
D)  demand. 
E)  time. 
A)  preferences. 
B)  externalities. 
C)  substitutes. 
D)  demand. 
E)  time.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The term demand describes a consumer's willingness and ability to pay for a product or service.

Accepted Answer

A) True 
 B)False

Question 19

The additional benefit from your second hamburger is less than the additional benefit from your first hamburger because your total benefits are decreasing.

Accepted Answer

A) True 
 B)False

Question 20

For economists, the terms wants and demands mean the same thing.

Accepted Answer

A) True 
 B)False

Economists describe all of your wants - and how intense each want is - as your preferences.

An increase in quantity demanded is represented by a

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

When the price of gasoline rises, the demand for gasoline decreases.

At a price of $2, Michael buys 4 muffins and Matthew buys 6 muffins. The market demand for these two individuals at a price of $2 is

If Hamburger Helper is an inferior good, a decrease in income causes

Smart consumers who will not pay $150 for a designer T-shirt make this choice because

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

If commodity traders expect the price of gold to rise tomorrow, they increase their demand for gold today.

What you can afford is limited by more than just money.

Which will cause an increase in quantity demanded?

Quantity demanded is the amount you actually plan to buy at a given price.

Which could not cause a rightward shift of the demand curve for a service?

Which statements are true? 1 Read a demand curve over and down. 2 Read a marginal benefit curve over and down. 3 Read a demand curve up and over. 4 Read a marginal benefit curve up and over.

Which statements are true? 1 Read a demand curve up and over. 2 Read a marginal benefit curve up and over. 3 Read a demand curve over and down. 4 Read a marginal benefit curve over and down.

What you can afford is limited by

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

The term demand describes a consumer's willingness and ability to pay for a product or service.

The additional benefit from your second hamburger is less than the additional benefit from your first hamburger because your total benefits are decreasing.

For economists, the terms wants and demands mean the same thing.

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

Economists describe all of your wants - and how intense each want is - as your preferences.

An increase in quantity demanded is represented by a

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

When the price of gasoline rises, the demand for gasoline decreases.

At a price of $2, Michael buys 4 muffins and Matthew buys 6 muffins. The market demand for these two individuals at a price of $2 is

If Hamburger Helper is an inferior good, a decrease in income causes

Smart consumers who will not pay $150 for a designer T-shirt make this choice because

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

If commodity traders expect the price of gold to rise tomorrow, they increase their demand for gold today.

What you can afford is limited by more than just money.

Which will cause an increase in quantity demanded?

Quantity demanded is the amount you actually plan to buy at a given price.

Which could not cause a rightward shift of the demand curve for a service?

Which statements are true? 1 Read a demand curve over and down. 2 Read a marginal benefit curve over and down. 3 Read a demand curve up and over. 4 Read a marginal benefit curve up and over.

Which statements are true? 1 Read a demand curve up and over. 2 Read a marginal benefit curve up and over. 3 Read a demand curve over and down. 4 Read a marginal benefit curve over and down.

What you can afford is limited by

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

The term demand describes a consumer's willingness and ability to pay for a product or service.

The additional benefit from your second hamburger is less than the additional benefit from your first hamburger because your total benefits are decreasing.

For economists, the terms wants and demands mean the same thing.

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