Monster quiz

Question 1

Which of the statements below applies to the shown demand curve?

Accepted Answer

PED falls as demand moves from B to C

Question 2

In the diagram, the shift in demand for smartphone applications is likely to be caused by . . .

Accepted Answer

A fall in the price of smartphones

Question 3

Demand function is Qd = 800 - 25P, at what price will the demand curve intercept the y-axis?

Accepted Answer

$32.0

Question 4

The price elasticity of demand for a product will be low if . . .

Accepted Answer

there are few close substitutes

Question 5

Which of the following is not an example of a common access resource?

Accepted Answer

National defence

Question 6

Which of the following is not a consequence of the imposition of a price ceiling?

Accepted Answer

Unstable prices

Question 7

Which of the following is not a basic economic problem that an economy must strive to solve?

Accepted Answer

Deciding what ought to be the priority of government policy

Question 8

Which supply condition suggests that firms can react quickly to changes in price?

Accepted Answer

Price elastic supply

Question 9

The existence of asymmetric information between buyers and sellers in a market will result in .

Accepted Answer

market failure and inefficiencies

Question 10

Which of the following is not an assumption made when drawing the PPC model?

Accepted Answer

Society wants more than it needs

Question 11

Which of the following would be described as a merit good?

Accepted Answer

Health Care

Question 12

Which of the following does not apply to merit goods and services? They . .

Accepted Answer

have the characteristic of non-excludability

Question 13

A change in the demand for a product does not occur as a result of a change in . .

Accepted Answer

Technological progress in production techniques

Question 14

Which of the following is most likely to represent the YED for custom made suits?

Accepted Answer

+3.3

Question 15

Which of the following is most likely to reduce the demand for a normal good?

Accepted Answer

An increase in the price of a complementary good

Question 16

Which of the factors below causes a change in the quantity supplied?

Accepted Answer

The price of the product

Question 17

Suppose the government imposes a price floor of $30 as in the diagram. What situation arises?

Accepted Answer

Excess supply of 40,000 units

Question 18

What is the opportunity cost of moving from point W to Z?

Accepted Answer

zero

Question 19

Which of the following does not apply to equilibrium price?

Accepted Answer

It exists when there is either excess demand or supply

Question 20

Supply function is Qs=-300+15P, what is the minimum price firms will accept to supply the good?

Accepted Answer

$20

Questions 20