stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Intro to Econ Flashcards | StudBud
Explore
/
Intro to Econ
Intro to Econ
15 terms
·
StudBud Administration
·
51 plays
Imported from external platform
Flashcards
15 cards
F
Practice quiz
P
Host live
L
Questions
15
Answers
1
A fall in the price of a substitute good will shift the demand curve rightward.
False
True
2
Suppose that a 10% increase in price results in a 50% decrease in quantity demanded. What is price elasticity of demand?
5
0.5
10
0.2
3
The price elasticity of supply equal 0.5. Which of the following is the correct interpretation of this number?
A 1% increase in price will result in a 2% increase in quantity supplied.
A 1% increase in price will result in a 50% increase in quantity supplied.
A 1% increase in price will result in a 0.5% increase in quantity supplied.
A 1% increase in price will result in a 5% increase in quantity supplied.
4
As a household's average income rises, we usually expect:
the income allocated to food to increase a lot, as food is a necessity
its expenditure habits to remain constant, as incomehas no effect on demand
its demand for luxuries to increase.
its demand for goods to increase as the price of these goods will decline
5
If pizza is a normal good, then which of the following could be the value of income elasticity of demand?
0.2
0.8
1.4
All of the answers
6
The price of 1 kg apples, which was 5$ last month, is 6$ today. The demand curve for apples must have shifted rightward.
True
False
7
The demand curve for an inferior good will shift rightward if there is an increase in income
False
True
8
If goods X and Y are SUBSTITUTES which of these could be the value of the cross price elasticity of demand for good Y?
Neither red, nor green.
-2
Both are correct.
-1
9
Consider the market for hamburgers. An innovation in meat processing technology allows to produce more hamburgers.
It will lead to change in Supply
No change at all
It will lead to change in Demand
It will lead to change in Demand & Supply
10
Consider the market for cereal in Astana. Suppose the Health. Ministry issues a statement that cereal is bad for you.
No change at all
It will lead to change in Demand & Supply
It will lead to change in Demand
It will lead to change in Supply
11
A rise in the price of a complementary good will shift the demand curve leftward.
False
True
12
A decrease in the cost of cocoa beans will lead to the increase in supply of chocolate.
False
True
13
With the same resources, Country can produce 25 t of chicken or 50 t of wheat. What is opportunity cost of chicken?
50 t of wheat
2 t of wheat
1/2 t of wheat
25 t of wheat
14
A rise in the number of buyers will shift the demand curve rightward.
False
True
15
If goods X and Y are COMPLEMENTS, the which of the following could be the value of cross price elasticity of demand?
0
-1
All of the above could be the value of cross price elasticity of demand.
1
