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CIA4U - CH 4 - Test Review
CIA4U - CH 4 - Test Review
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Economics CIA4U - Chapter 4 M/C, T/F -> Test Review
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Supply is a major short run determinant of demand.
TRUE
FALSE
2
Determinants of supply do not include:
resource prices.
tastes and preferences.
government regulations.
prices for other producible goods.
3
No shortages or surpluses exist when:
a market is in equilibrium.
relative prices equal absolute prices.
quantity supplied equals market price.
central planners set prices that equal production costs.
4
In the 1950s the federal government improved interstate highways, thus reducing the:
growth rate of urban sprawl.
demand for intercity rail travel.
pollution caused by faster highway speeds.
demand for and volume of highway travel.
5
A market shortage can be resolved by cutting the market price.
FALSE
TRUE
6
The market demand curve for new houses would shift in response to a change in:
the cost of lumber
construction technology.
housing prices
expectations about future housing prices.
7
At a $20 price, Aggregate demanded is:
800
100
500
300
8
Price cuts of DVD & VCR players results in movement of "film rentals" from "a" to ??
to point e, reflecting an ↑ in S and a reduced Qd.
to point d , as an ↑ in S and a resulting ↑ Qd.
to point c, reflecting ↓ demand.
to point b, reflecting ↑ D.
9
A demand curve shows a (-) relationship between P and Qd because the Qd increases when ______??
consumers income is decreased
price of a substitute good is decreased
size of the family is reduced
relative price of the good is reduced
10
Demand is the most important short-run determinant of supply.
FALSE
TRUE
11
If group DIII leaves the market, the quantities demanded at P = $20 and P = $30 are:
300 at P = $20 and 100 at P = $30.
500 at P = $20 and 200 at P = $30.
300 at P = $20 and 0 at P = $30.
200 at P = $20 and 100 at P = $30.
12
The law of supply states that there is a positive relationship between:
supply and the demand it creates.
P & the Qs.
technology and production.
purchases and the availability of goods.
13
It is UNTRUE that a movement from point "
a
"
to point:
"b" reflects an increase in demand for film rentals.
"d " would reflect a ↓ in the supply of available films.
"c" reflects a decrease in demand for film rentals.
"e" reflects a ↓ in Qd for film rentals.
14
Sellers’ markets often exist when:
inventories are high.
there are widespread surpluses.
prices are rising.
the government imposes price floors.
15
The demand for a good falls when its production costs rise.
TRUE
FALSE
16
Other things constant, the market demand for a good is the sum of the:
firms’ utility-maximizing decisions.
quantities households demand at various income levels.
Qd by households at various prices.
prices that individuals would pay for various quantities.
17
The idea that demand will fall when the price of a good rises reflects the law of demand.
FALSE
TRUE
18
In addition to price, the amount of a good bought during a given period is determined by:
prices of related goods.
income.
numbers of buyers in the market.
All are correct.
19
A move from point "
a
"
to point "
e
"
would follow an increase in the
charges for premium cable TV channels
supply of films on DVD or VCR.
rental price of films on DVD or VCR.
demand for films on DVD or VCR
20
Beginning from point “
a
”
in this figure for film rentals, the movement to point:
"e" reflects an increase in the Qd.
"c" represents a decrease in Qd.
"b" shows an increase in demand.
"d" indicates an increase in demand.
