rq_03s - Review Questions - Chapter 3 _ 01. _ 02. _ 03. _...

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Review Questions --- Chapter 3 _______ 01. The relationship between price and quantity demanded is: (A) positive (B) negative (C) zero (D) horizontal (E) non-existent _______ 02. Utility is a measure of: (A) price (B) cost (C) technology (D) satisfaction (E) supply _______ 03. The Law of diminishing marginal utility explains the shape of the: (A) demand curve (B) supply curve (C) PPC curve (D) neither demand nor supply _______ 04. Which of the following is an explanation of the downward slope of the typical demand curve? (A) increasing cost (B) inefficient resources (C) decrease in technology (D) substitution effect _______ 05. An inferior good is a good whose demand varies: (A) inversely with income (B) positively with income (C) positively with price (D) inversely with tastes _______ 06. Which of the following pairs of goods are complements? (A) Pepsi and Coke (B) beef and chicken (C) ham and eggs (D) beer and wine (E) shoes and sandals _______ 07. A change in taste, number of consumers, consumer incomes, prices of related goods, and consumer expectations will all cause the demand curve to shift. (A) true (B) false _______ 08. An increase in the price of a substitute good will cause the demand curve to shift: (A) right (B) left (C) not cause a shift _______ 09. A change in which of the following would cause the demand curve to shift? (A) input prices (B) technology (C) income (D) all will cause a shift _______ 10. An increase in the quantity demanded is shown by a: (A) movement down the demand curve (B) movement up the demand curve (C) leftward shift of demand (D) rightward shift of demand _______ 11. An increase in the price of the product under consideration will cause: (A) movement down the demand curve (B) movement up the demand curve (C) leftward shift of the demand curve (D) rightward shift of the demand curve _______ 12. Which of the following explains the upward slope of the typical supply curve?
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rq_03s - Review Questions - Chapter 3 _ 01. _ 02. _ 03. _...

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