test2fall2005

# test2fall2005 - Dr Cliff Lipscomb Principles of...

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Dr. Cliff Lipscomb Version ___ Principles of Microeconomics Fall 2005 Exam 2 1. The law of demand: a. shows the positive relationship between price and quantity demanded, ceteris paribus . b. shows the negative relationship between price and quantity demanded, ceteris paribus . c. shows a list of time periods during which the quantity of a good is demanded. d. shows the order in which individual consumers arrive to demand a good or service. 2. Refer to the graphs below. Which move best illustrates a change in quantity demanded? a. The move from b to c on the graph in the left side. b. The move from b to d on the graph in the right side. c. A combination of the two moves above. d. None of the above. 3. Which of the following will NOT cause a shift in the demand curve for houses? a. a change in income b. a change in wealth c. a change in the price of condominiums d. a change in the price of houses e. a change in people's desire to live in houses rather than apartments 4. The change in consumption resulting from a change in the price of one good relative to the price of other goods is known as: a. the price effect. b. the income effect. c. the substitution effect. d. the real-nominal effect of a price change.

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Dr. Cliff Lipscomb Version ___ 5. Refer to the graphs below. If there are 100 identical pizzerias, how much is the quantity supplied when the market price equals \$8? a. 800 pizzas. b. 100 pizzas. c. 30,000 pizzas. d. 80,000 pizzas. e. 10,000 pizzas. 6. When supply and demand intersect, we have a situation called: a. consumer protection. b. market equilibrium. c. excess demand. d. excess supply. Refer to the graph below for questions 7 and 8.
Dr. Cliff Lipscomb Version ___ 7. Which of the above graphs best illustrates an increase in demand? a. A b. B c. C d. D 8. Which of the graphs above would best describe the impact of an increase in the wages and input prices firms must pay in order to produce output? a. A b. B c. C d. D 9. Which of the following will NOT cause an increase in the supply of apples? a. an increase in the number of apple orchards b. an improvement in fertilizer that makes apple trees more productive c. good weather that improves the apple harvest d. a fall in the wages of apple pickers e. an increase in the incomes of apple consumers (apples are a normal good) 10. If the wages of auto workers decrease, what will happen to the equilibrium price and quantity of automobiles? a. Price will increase; quantity will increase.

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## This note was uploaded on 11/16/2011 for the course ECON 2106 taught by Professor Staff during the Fall '08 term at Valdosta State University .

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test2fall2005 - Dr Cliff Lipscomb Principles of...

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