hybrid_sample_final

hybrid_sample_final - Final.EC201.hybrid.Spr07 Multiple...

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Final.EC201.hybrid.Spr07 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Two goods are substitutes if a decrease in the price of one good a. decreases the demand for the other good. b. decreases the quantity demanded of the other good. c. increases the demand for the other good. d. increases the quantity demanded of the other good. ____ 2. The negative relationship between price and quantity demanded a. applies to most goods in the economy. b. is represented by a downward-sloping demand curve. c. is referred to as the law of demand . d. All of the above are correct. The table shows individual demand schedules for a market. Table 4-1 Price of the Good Aaron Angela Austin Alyssa $0.00 20 16 4 8 0.50 18 12 6 6 1.00 14 10 2 5 1.50 12 8 0 4 2.00 6 6 0 2 2.50 0 4 0 0 ____ 3. Refer to Table 4-1 . When the price of the good is $1.00, the quantity demanded in this market would be a. 42 units. b. 31 units. c. 24 units. d. 14 units. ____ 4. Refer to Table 4-1 . For whom is the good a normal good? a. for Aaron b. for Austin c. for all of the four demanders d. This cannot be determined from the table. ____ 5. If a study by medical researchers found that brown sugar caused weight loss while white sugar caused weight gain we likely would see a. an increase in demand for brown sugar and a decrease in demand for white sugar. b. an increase in demand for brown sugar, but no change in the demand for white sugar. c. a decrease in the demand for white sugar, but no change in the demand for brown sugar. d. no change in either demand because weight loss is not a nonprice determinant of demand. ____ 6. When we compare an increase in supply with an increase in quantity supplied, we know that a. the former is depicted by a movement along the supply curve and the latter is depicted by a shift of the curve. b. the former could be caused by a decrease in input costs and the latter would be caused by an increase in the price of the good. c. both are always caused by a change in demand.
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d. both are always caused by a change in the number of market participants. Figure 4-6 ____ 7. Refer to Figure 4-6 . Suppose the supply curves that are drawn represent supply curves for single-family res- idential houses. Then the movement from S to S 1 could be caused by a. an increase in the price of apartments (a substitute for single-family houses for many people looking for a place to live). b. a newly-formed expectation by house-builders that prices of houses will increase signific- antly in the next six months. c. a decrease in the price of lumber. d. All of the above are correct. ____ 8. If excess demand exists in a market we know that the actual price is a. below equilibrium price and quantity demanded is greater than quantity supplied. b.
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hybrid_sample_final - Final.EC201.hybrid.Spr07 Multiple...

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