Suppose the price of burgers increases from 2 to 3

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Practice Exam One

Suppose the price of burgers increases from 2 to 3 each The degree to which from ECO 182 at SUNY Buffalo State College

26 )   A complement is a good
A ) of lower quality than another good .
B ) used in conjunction with another good .
C ) used instead of another good .
D ) of higher quality than another good .
Answer:  A )   used in conjunction with another good .
27 )   Ham and eggs are complements . If the price of ham rises , the demand for eggs will
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28 )   The price of a tomato increases and people buy more lettuce . You infer that lettuce and tomatoes are _ _______.
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29 )   Suppose the price of burgers increases from $ 2 to $ 3 each . The degree to which quantity demanded responds to this price increase depends on the
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30 )   The price elasticity of demand measures
A ) how often the price of a good changes .
B ) the slope of a budget curve .
C ) how sensitive the quantity demanded is to changes in demand .
D ) the responsiveness of the quantity demanded to changes in price .
Answer:  D )   The responsiveness of the quantity demanded to changes in price .
31 )   The price elasticity of demand equals magnitude of the
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32 )   The worst drought in over 50 years has decimated crops of soy beans and corn in the United States . ( Source : New York Times , August 10 , 2012 ) . Because the production of corn has decreased , prices are expected to increase by 25 percent . These data are insufficient for calculating the elasticity of demand because we also need to know the
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33 )   The price elasticity of demand for new cars is 1.2 . Hence , a 10 percent price increase will
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34 )   The price elasticity of demand can range between
A ) zero and one .
B ) negative infinity and infinity .
C ) zero and infinity .
D ) negative one and one .
Answer:  B )   zero and infinity .
35 )   If the quantity demanded changes by a relatively small amount for a given change in price , then demand is
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36 )   Demand is inelastic if
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37 )   In the United States , resources are most often allocated by
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38 )   Which of the following is true ?
A ) Lotteries work best when a resource can serve just one user at a time in a sequence .
B ) A market price always allocates resources better than a command system .
C ) In the United States , how tax dollars are allocated among competing uses is an example of how resources are allocated by majority rule .
D ) Force has never played an important role in allocating scarce resources .
Answer:  A )   In the United States , how tax dollars are allocated among competing uses is an example of how resources are allocated by majority rule .
39 )   As a method of resource allocation , market price
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40 )   When scarce resources can serve only one user at a time in sequence , which method works well for allocating the scarce resources ?
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41 )   Allocating resources by the order of someone in authority is a ________ allocation method .
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42 )   The value of one more unit of a good or service is the
A ) marginal benefit .
B ) minimum price that people are willing to pay for another unit of the good or service .
C ) marginal cost .
D ) opportunity cost of producing one more unit of a good or service .
Answer:  C )   marginal benefit .
43 )   A market demand curve measures
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Microeconomics: Private and Public Choice
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Chapter 9 / Exercise 11
Microeconomics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified
29) Suppose the price of burgers increases from $2 to $3 each. The degree to which quantity demanded responds to this price increase depends on theA) price elasticity of demand.B) the price elasticity of supply.C) income elasticity of demand.D) cross elasticity of demand.
30) The price elasticity of demand measures
31) The price elasticity of demand equals magnitude of the
32) The worst drought in over 50 years has decimated crops of soy beans and corn in the United States. (Source: New York Times, August 10, 2012). Because the production of corn has decreased, prices are expected to increase by 25 percent. These data are insufficient for calculating the elasticity of demand because we also need to know the
33) The price elasticity of demand for new cars is 1.2. Hence, a 10 percent price increase willA) decrease the quantity of new cars demanded by 1.2 percent.B) increase consumer expenditure on new cars by 1.2 percent.C) decrease the quantity of new cars demanded by 12 percent.D) increase consumer expenditure on new cars by 12 percent.
34) The price elasticity of demand can range between
5
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Microeconomics: Private and Public Choice
The document you are viewing contains questions related to this textbook.
Chapter 9 / Exercise 11
Microeconomics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified
35) If the quantity demanded changes by a relatively small amount for a given change in price, then demand is
36) Demand is inelastic if
37) In the United States, resources are most often allocated byA) market price.B) command system.C) lottery.D) contest.

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