Ch3_Practice_Test_Questions

# Ch3_Practice_Test_Questions - 3 C h a p t e r DEMANDAND...

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3 SUPPLY Markets and Prices Topic: Price and Opportunity Cost Skill: Conceptual 1) A relative price is A) the slope of the demand curve. B) the difference between one price and another. C) the slope of the supply curve. D) the ratio of one price to another. Answer: D Topic: Price and Opportunity Cost Skill: Conceptual 2) If the price of a candy bar is \$1 and the price of a fast food meal is \$5, A) the relative price of a candy bar is 5 fast food meals. B) the money price of a candy bar is 1/5 of a fast food meal. C) the relative price of a fast food meal is 5 candy bars. D) the money price of a fast food meal is 1/5 of a candy bar. Answer: C Topic: Price and Opportunity Cost Skill: Analytical 4) The opportunity cost of good A in terms of good B is equal to the A) price of good A minus the price of good B. B) price of good B minus the price of good A. C) ratio of the price of good A to the price of good B. D) ratio of the price of good B to the price of good A. Answer: C Topic: Price and Opportunity Cost Skill: Analytical 5) The opportunity cost of a hot dog in terms of hamburgers is A) the ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. B) the ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers. C) the price of a hot dog minus the price of a hamburger. D) the ratio of the price of a hot dog to the price of a hamburger. Answer: D Demand Topic: Demand Skill: Recognition 6) Wants, as opposed to demands, A) are the unlimited desires of the consumer B) are the goods the consumer plans to acquire. C) are the goods the consumer has acquired. D) depend on the price. Answer: A 93  C h a p t e r

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9 4 C H A P T E R   3 Topic: Demand Skill: Conceptual 7) Demands differ from wants in that A) demands are unlimited, whereas wants are limited by income. B) wants require a plan to acquire a good but de- mands require no such plan. C) wants imply a decision about which demands to satisfy, while demands involve no specific plan to acquire the good. D) demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good. Answer: D Topic: Demand Skill: Conceptual 8) Scarcity guarantees that A) demands will exceed wants. B) wants will exceed demands. C) demands will be equal to wants. D) most demands will be satisfied. Answer: B Topic: Law of Demand Skill: Conceptual 10) The law of demand states that, other things re- maining the same, the higher the price of a good, the A) smaller is the demand for the good. B) larger is the demand for the good. C) smaller is the quantity of the good demanded. D) larger is the quantity of the good demanded. .
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Ch3_Practice_Test_Questions - 3 C h a p t e r DEMANDAND...

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