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Microeconomics Practice Test 2

Microeconomics Practice Test 2 - 1 The consumers demand...

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1. The consumers' demand curve for a good does NOT depend on: Student Response Value Correct Answer Feedback A. Consumer tastes 0% B. Consumer income 0% C. Prices of resources used to make the good 100% D. Prices of substitute goods 0% Score: 0/3 2. In the relationship illustrated by a demand curve, which variable is the dependent variable? Student Response Value Correct Answer Feedback A. The price of the good 0% B. Consumer income 0% C. Consumer preferences 0% D. Quantity demanded of the good 100% Score: 0/3 3.
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The Law of Demand causes demand curves to be: Student Response Value Correct Answer Feedback A. Downward sloping 100% B. Upward sloping 0% C. Perfectly vertical 0% D. Bowed out in shape 0% Score: 0/3 4.
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Which of the following partly explains the Law of Demand? Student Response Value Correct Answer Feedback A. Smaller quantities will be purchased at lower prices than at higher prices. 0% B. A lower price has the effect of increasing a person's real income. 100% C. A lower price encourages substitution away from that good into other goods. 0% D. A lower price makes it less profitable to produce a good than at a higher price. 0% Score: 0/3 5.
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Which of the following will cause a rightward shift in the demand curve for compact cars? Student Response Value Correct Answer Feedback A. A rise in the price of compact cars. 0% B. A fall in the price of full- size cars. 0% C. A fall in the price of the steel that is used to make cars. 0% D. A rise in the price of gasoline. 100% Score: 0/3 6.
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Other things constant, which of the following would cause the demand curve for a normal good to shift to the right? Student Response Value Correct Answer Feedback A. A decrease in the price of the good. 0% B. A decrease in consumer income. 0% C. An increase in the supply of the good. 0% D. An increase in the price of a substitute good. 100% Score: 0/3 7.
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Other things constant, if the price of a good decreases, which of the following occurs in the demand graph? Student Response Value Correct Answer Feedback A. The demand curve shifts to the left. 0% B. The demand curve shifts to the right. 0% C. The demand curve becomes steeper. 0% D. The demand curve stays still but there is a movement along it. 100% Score: 0/3 8.
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An inferior good is one for which: Student Response Value Correct Answer Feedback A. The demand curve is upward sloping. 0% B. Price elasticity of demand is very elastic due to the income effect. 0% C. Demand decreases when income increases. 100% D. There are no substitutes. 0% Score: 0/3 9. If a 9 percent rise in the price of chicken causes a 15 percent fall in quantity demanded, other things constant, then the price elasticity of demand is Student Response Value Correct Answer Feedback A. 0.06 0% B. 0.15 0% C. 0.60 0% D. 1.67 100% Score: 0/3 10
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Consider the following information about demand in the local market for "deluxe" hamburgers: Price $6 $5 $4 $3 $2 $1 Q demanded 1,000 3,000 5,000 8,000 12,000 20,000 The price elasticity of demand, measured in the price range bewteen $2 and $3 and calculated using the "midpoint" (average) method, is: Student Response Value Correct Answer Feedback A. 0.4 0% B. 1.0 100% C. 2.0 0% D. 4.0 0% Score: 0/3 11
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