If an increase in the price of bread leads to a decrease in the demand for butte, then blue jeans and tennis shoes are

a) complements. b) inferior goods.

c) normal goods. d) substitutes.

Opportunity cost is

a)the cost of incurred in the past before we make a decision about what to do in the future

b)that which we forgo, or give up, when we make choise or decision.

c)the additional benefit of buying an additional unit of a product.

d)a cost that cannot be avoided, regardless of what is done in the future.

If demand is ___________ then price cuts will __________ spending

a) inelastic, increase b) elastic, increase

c) elastic, decrease d) none of the above

If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely ________

a) increase b) not change

c) decrease d) shift

Adding up the quantities demanded of a good by different people facing the same price gives us the

a) Supply curve b) Market demand curve

c) Demand curve d) Market supply curve

35.If your income during one year is £10,000 and the following year it is £12,000, then it has grown by

a) 20% b) 2% c) 12% d) 16%

36. The word that comes from the Greek word for “one who manages a household” is

a) market. b) consumer. c) producer. d) economy.

Economics deals primarily with the concept of

a) poverty. b) scarcity. c) change. d) power.

38. Which of the following is NOT included in the decisions that every society must make?

a) what goods will be produced

b) who will produce goods

c) what determines consumer preferences

d) who will consume the goods

Both households and societies face many decisions because

a) populations may increase or decrease over time.

b) people, by nature, tend to disagree.

c) resources are scarce.

d) wages for households and therefore society fluctuate with business cycles.

If the demand for hybrid cars increases, then

a)the price of hybrid cars will decrease.
b) the quantity supplied of hybrid cars will decrease.
c) the quantity demanded of hybrid cars will decrease.
d) supply will increase to match the increase in demand.

When a market is in equilibrium

a. Quantity demanded equals quantity supplied

b. Excess demand and excess supply are zero

c. The market is cleared by the equilibrium price

d. All of the above

Good X and good Y are substitutes. If the price of good Y increases, then the

a. demand for good X will decrease.

b. market price of good X will decrease.

c. demand for good X will increase.

d. quantity demanded of good X will increase.

43. The "invisible hand" directs economic activity through

a. advertising.

b. prices.

c. central planning.

d. government regulations.

When we are studying the behavior of buyers, we are studying

a. supply

b. demand

c. government regulations

d. an entire market

Дата добавления: 2015-11-14