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Session 2 Flashcards | StudBud
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Session 2
Session 2
45 terms
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StudBud Administration
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45 cards
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Practice quiz
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Questions
45
Answers
1
.
C
A
D
B
2
Which of the following is most likely to shift the supply of milk to the right?
A decrease in the price of feed given to dairy cows
A tax on each gallon of milk produced
The bankruptcy of many small dairy farms
An increase in household income and milk is a normal good
3
If people demand more of product A when the price of B falls, then A and B are
Inferiour goods
Complements
Substitutes
Not related
4
If goods A and B are substitutes, a decrease in the price of good B will:
Decrease the demand for good A
Increase the demand for good A
Increase the demand for good B and decrease the demand for good A
Increase the demand for good B
5
Berries production is enhanced and scientist find that berries are healthy. The result is (E is equilibrium)
An increase in the E quantity and an uncertain impact on the E price
An increase in the E price and an uncertain impact on the E quantity
A decrease in both the equilibrium price and quantity
An increase in both the equilibrium price and quantity
6
coconuts are the normal good and the income level of consumers falls, it will be represented as a movement from
A to C
E to B
B to A
C to A
7
a hurricane hits Florida, where oranges are grown. What will be the most likely new equilibrium point in the market?
B
A
E
D
8
Decrease in supply means
A movement down the supply cure as prices go down
That less will be demanded at every price
A shift to the left of the entire supply curve
That more will be supplied at every price
9
If the price of coconuts decreased, it would be represented in the figure as a movement from:
A to B
C to A
E to B
B to A
10
An improvement in the technology used to harvest coconuts would be represented in the figure as a movement from
B to A
A to C
B to E
C to A
11
-.-
Fall, rise or stay the same; decrease
Fall; rise
Decrease; fall, rise or stay the same
Fall; fall
12
if the supply curve for good Z is linear, it can be expressed as:
Qs = 100 – 2P
Qs = Qd
Qs = 3P
Qs = 50 - 2P
13
Which of the following influences does not shift the supply curve?
A decrease in the price firms expect to receive in the future
People deciding that they want to buy more of the product
A rise in the wages paid to workers
The development of a new production technology
14
If the current price of good Z is £15, there will be:
Excess demand of 25 units
A shortage of 20 units
A surplus of 45 units
Excess supply of 25 units
15
The equilibrium price and quantity in this market are, respectively:
£5 and 40 units
£15 and 20 units
£10 and 30 units
£20 and 60 units
16
The typical supply curve illustrates that:
Price and quantity supplied are unrelated
the supply of the good creates its own demand for the good
the quantity supplied for a good is inversely related to the price of a goo
the quantity supplied for a good is positively related to its price
17
Markets are characterized by many buyers and many sellers are referred to as:
Monopolies
Inefficient
Competitive
Foreign
18
If the prices of inputs used to produce and transport coconuts increased, it would be represented as a movement from
B to A
E to B
A to B
C to A
19
A shortage of the good will exist at a price of:
P1
There are not shortages on this market
P2
P3
20
Which of the following is not a determinant of supply?
Consumer tastes
Expectations regarding future prices
The cost of production
The technology production
21
Equilibrium occurs at a price of _______, and the equilibrium quantity is equal to _______:
P1; Q3
P1; Q5
P3; Q2
P2; Q3
22
If the demand curve for good Z is linear, it can be expressed as:
Qd = 50 - 2P
Qd = Qs
Qd = 100 – 2P
Qd = 3P
23
A negative relationship between the quantity demanded and price is called the
Law of
:
Increasing returns
Supply
Market clearing
Demand
24
Which of the following statement is correct?
D
C
A
B
25
If there is an increase in preference for coconuts, it will be represented in the figure as a movement from
A to C
B to A
B to E
C to A
26
If goods A and Z are complements, an increase in the price of good Z will:
Decrease the demand for good A
Decrease the demand for both good A and Z
Increase the demand for good A
Decrease the demand for good Z
27
A surplus of the good will exist at a price of:
P3
There are not surpluses on this market
P1
P2
28
A shift of the demand curve for thin-crust pizza would not be caused by a change in
The price of thin-crust pizza
Buyer’s incomes
The price of thick-crust pizza
The popularity of thin-crust pizza
29
The demand curve for videos has shifted to the right. What could have caused it?
An increase in the supply of videos
A fall in the price of videos
An increase in the incomes of buyers
An increase in the price of videos
30
If fish is a substitute good for coconuts and the price of fish increases, it will be represented in the figure as
A to B
C to A
A to C
B to A
31
Coconuts are a normal good; consumers believe that the price of coconuts will rise soon. What Movement?
B to E
C to A
E to B
A to B
32
Which of the following examples illustrates the law of demand?
Fewer people play golf because incomes are lower
Consumers buy more personal computers because prices have fallen
Increase in tuition encourages students to enrol because edu quality rised
Oil companies drill for new sources of oil because oil prices are higher
33
homeowners choose to heat their houses with either natural gas or home heating oil. Which would change the demand of gas
A change in income
A change in the price of home heating oil
An increase on consumer tastes for natural gas as an energy source
All of above / all of these
34
Which of the following factors would cause a movement along the demand curve for a particular good?
Both a change in the price of the good and a change in size of the populati
A change in the prices of related goods
A change in the size of the population
A change in the price of that good
35
When incomes of many people decrease vacationers are more likely to take car trips than to fly. Which explains this?
Air travel and vacation travel by car are complementary goods
Air travel is a normal good and vacation travel by car is inferior good
Air travel is and inferior good and vacation travel by car is a normal good
Air travel and vacation travel by car are both normal goods
36
Most people drink Juice with Champagne. If alcohol is banned, what's the new equilibrium for juice?
A
B
D
E
37
Which of the following will cause a decrease in the supply of good X?
An improvement in the technology used to produce good X
A decrease in the price of inputs used to produces good X
A decrease in the price of good Y, a substitute in co-production
An increase in the price of inputs used to produce good X
38
If coconuts are a normal good and the price of coconuts increases, it would be represented as a movement from
B to A
E to B
A to B
C to A
39
When a market is in equilibrium, one will find that the:
Quantity demanded is greater than quantity supplied
Quantity demanded is equal to quantity supplied
Quantity supplied is zero
Quantity demanded is zero
40
-.-
Increase the supply of beef and increase the demand for pork
Increase the supply of beef and decrease the demand for pork
Decrease the supply of beef and decrease the demand for pork
Decrease the supply of beef and increase the demand for pork
41
A surplus of the good will occur at a price of:
5£
10£
0£
15£
42
A decrease in a price of a good will result in:
More being supplied
An increase in the quantity demanded
An increase in demand
An increase in supply
43
a scientific publication states that drinking orange juice will increase your life span. What will be the new E?
E
B
D
A
44
The law of demand is illustrated by a demand curve that is:
Horizontal
Downward sloping
Vertical
Upward sloping
45
When the price of lamps increases, the:
Quantity supplied decreases
Quantity supplied increases
Supply increases
Supply decreases
