Economics chapter 7 Basics

Question 1

When people’s income goes up, they usually consume less of a good or service.

Accepted Answer

False

Question 2

Using the graph, how many Beanie Babies were demanded at a price of $6 after they became a fad?

Accepted Answer

300

Question 3

Which of the following choices could causethe movement shown in this graph?

Accepted Answer

a decrease in the price ofBlu-ray players

Question 4

The law of supply states: producers are willing to supply more if the price increases.

Accepted Answer

True

Question 5

Which of the following choices could causethe movement shown in graph C?

Accepted Answer

taxes increase

Question 6

If the price of an item's substitute decreases, demand for that item increases.

Accepted Answer

False

Question 7

Which of the following choices could causethe movement shown in this graph?

Accepted Answer

a decrease in income

Question 8

The law of demand states: when the price of an item increases, the quantity demanded decreases.

Accepted Answer

True

Question 9

Which of the following choices could causethe movement shown in the graph?

Accepted Answer

Technology improves production

Question 10

If the price of an item’s complement decreases, demand for the item increases.

Accepted Answer

True

Question 11

Using the graph, how many Beanie Babies were demanded at a price of $6 beforethey became a fad?

Accepted Answer

200

Question 12

As you buy more of an item, the additional satisfaction you receive increases.

Accepted Answer

False

Questions 12