practive test 2

practive test 2 - Exam Name_ MULTIPLE CHOICE. Choose the...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises, A) there is a movement up along the demand curve to a smaller quantity demanded. B) there is a movement down along the demand curve to a larger quantity demanded. C) the demand curve shifts rightward. D) the demand curve shifts leftward. 1) 2) Over the next several months, gasoline prices increase by 50 percent and other things remain the same. As a result, there is A) a decrease in the demand for gasoline. B) no change in the quantity of gasoline demanded. C) an increase in the demand for gasoline. D) a decrease in the quantity of gasoline demanded. 2) 3) The quantity demanded of a good or service is A) one quantity at one price. B) the one quantity that is demanded at several different prices. C) the list of all quantities at different prices, as illustrated by a supply schedule and a supply curve because the supply shows how much people will be able to buy. D) the list of all quantities at different prices, as illustrated by a demand schedule and demand curve. E) none of the above. 3) 4) The "quantity demanded" of any good or service is ____ during a specified time period and at a specified price. A) the amount people are willing to buy B) the amount people are willing and able to buy C) the amount people are willing and able to offer D) the amount people are able to buy 4) 5) The price of lumber increases. What will be the effect in the housing market? A) Supply will shift to the left and the quantity demanded will remain the same. B) Supply will shift to the right and the quantity demanded will decrease. C) Supply will shift to the left and the quantity demanded will decrease. D) Supply and demand will both shift to the left. E) None of the above. 5) 1
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6) Your college requires that starting this year, every business student must bring a laptop to school. This requirement A) decreases the quantity demanded of laptops. B) increases the quantity demanded of laptops. C) increases the demand for laptops. D) increases the supply of laptops. E) none of the above. 6) 7) The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result, A) the price of milk falls to encourage people to drink more milk. B) the demand for milk increases. C) the demand for milk is not affected. D) the quantity demanded of milk increases. 7) 8) A demand schedule A) shows the quantity demanded at one price. B) shows that demand is on schedule. C) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. D) is a graph showing a relationship between the quantity demanded and the price of a good.
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This note was uploaded on 10/19/2008 for the course ECON 1A taught by Professor Modjtahedi during the Fall '08 term at UC Davis.

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practive test 2 - Exam Name_ MULTIPLE CHOICE. Choose the...

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