Macro Economics Chapter 03 Quiz

Question 1

In economics, the demand for a good refers to the amount of the good people:
A: would like to have if the good were free.
B: are willing to buy at various prices.
C: will buy at alternative income levels.
D: need to achieve a minimum standard of living.

Answer 1

B

Question 2

Which of the following is true for the law of demand?
A: Sellers increase the quantity of a good available as the price of the good increases.
B: There is an inverse relationship between the price of a good and the quantity of the good demanded.
C: Prices increase as more units of a product are demanded.
D: An increase in price results from false needs.

Answer 2

B

Question 3

Other things being equal, the effect of a decrease in the price of Coca-Cola would cause which of the following?
A: An upward movement along the demand curve for Coca-Cola.
B: A rightward shift in the demand curve for Coca-Cola.
C: A downward movement along the demand curve for Coca-Cola.
D: A leftward shift in the demand curve for Coca-Cola.

Answer 3

C

Question 4

Other things being equal, the effects of a decrease in the price of orange juice, is represented by which of the following?
A: A rightward shift in the demand curve for orange juice.
B: An increase in the quantity demanded for orange juice.
C: A decrease in the quantity demanded orange juice.
D: A leftward shift in the demand curve for orange juice.

Answer 4

B

Question 5

Which of the following would cause a shift in the demand curve for a good?
A: An increase in consumers’ incomes.
B: All of these.
C: A decrease in the number of consumers.
D: The expectation that the price of a good will increase in the future.

Answer 5

B

Question 6

A rightward shift of a demand curve is called a(n): 
A: decrease in quantity demanded.
B: increase in supply.
C: decrease in demand.
D: increase in demand.
E: increase in quantity demanded.

Answer 6

D

Question 7

Assuming that wine is a normal good, an increase in consumer income, other things being equal, will:
A: cause an upward movement along the demand curve for wine.
B: shift the demand curve for wine to the left.
C: cause a downward movement along the demand curve for wine.
D: shift the demand curve for wine to the right.

Answer 7

D

Question 8

Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause:
A: a downward movement along the demand curve for bus travel.
B: an upward movement along the demand curve for air travel.
C: a rightward shift in the demand curve for bus travel.
D: no change in the demand curve for bus travel.

Answer 8

C

Question 9

Which of the following goods are most likely to be substitutes? 
A: potato chips and chip dip
B: ketchup and French fries
C: bananas and apples
D: bread and peanut butter

Answer 9

C

Question 10

Which of the following goods are most likely to be substitutes? 
A: potato chips and chip dip
B: ketchup and French fries
C: bananas and apples
D: bread and peanut butter

Answer 10

C

Question 11

Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:
A: rightward shift in the demand curve for hamburgers.
B: leftward shift in the demand curve for hot dogs.
C: leftward shift in the demand curve for hamburgers.
D: rightward shift in the demand curve for hot dogs.

Answer 11

D