Practice_Quiz__1 - 4 When the price of a CD decreases A the...

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PRACTICE QUIZ #1 CLICKER TEST FEBRUARY 6, 2008 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Every society faces economic tradeoffs, which means: A) producing more of one good means less of another good can be produced. B) not everyone can have enough goods to survive. C) not everyone benefits from the economy. D) some people live better than others do. 2) For a profit-making seller, the best type of demand elasticity would be: A) highly elastic. B) unit elastic. C) highly inelastic. D) any elasticity as demand elasticity does not matter to the seller. 3) Which of the following is a result of a market economy? A) An equal income distribution B) Environmental protection C) Agreement on equity D) Voluntary exchange
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Unformatted text preview: 4) When the price of a CD decreases: A) the demand for CDs will increase. B) the demand for CDs will decrease. C) the quantity demanded of CDs will increase. D) the quantity demanded of CDs will decrease. 5) If the price of gasoline doubles while your income is constant: A) consumers consumption of all goods will remain exactly the same. B) consumers will continue to buy exactly the same amount of gasoline. C) consumers substitute gasoline for other products you once consumed. D) consumer purchasing power has decreased and consumers buy less of everything. 6) If there is a surplus in a market, then the market is brought back into equilibrium by: A) quantity demanded rising. B) price falling. C) quantity supplied falling. D) all of the above....
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