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Quiz 2A

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Question 1 (1 point)
If demand increases while supply decreases for a particular good:
  1. its equilibrium price will increase while the quantity of the good produced and sold could increase, decrease, or remain constant.
  2. the quantity of the good produced and sold will decrease while its equilibrium price could increase, decrease, or remain constant.
  3. the quantity of the good produced and sold will increase while its equilibrium price could increase, decrease or remain constant.
  4. its equilibrium price will decrease while the quantity of the good produced and sold could increase, decrease, or remain constant.
Question 2 (1 point)
Shortage is a condition of:
  1. excess supply.
  2. a deficiency in demand.
  3. market equilibrium.
  4. excess demand.
Question 3 (1 point)
The quantity of product X supplied can be expected to rise with a fall in:
  1. prices of competing products.
  2. price of X.
  3. energy-saving technical change.
  4. input prices.
Question 4 (1 point)
Derived demand is directly determined by:
  1. utility.
  2. the profitability of using inputs to produce output.
  3. the ability to satisfy consumer desires.
  4. personal consumption.
Question 5 (1 point)
Change in the quantity demanded is:
  1. a movement along a single demand curve.
  2. an upward shift from one demand curve to another.
  3. a reflection of change in one or more of the nonprice variables in the product demand function.
  4. a downward shift from one demand curve to another.
Question 6 (1 point)
A supply curve expresses the relation between the quantity supplied and:
  1. technology.
  2. wage rates.
  3. price.
  4. all of the above.
Question 7 (1 point)
Change in the quantity supplied reflects a:
  1. change in price.
  2. switch from one supply curve to another.
  3. change in one or more nonprice variables.
  4. shift in supply.
Question 8 (1 point)
Holding all else equal, an increase in mandatory payments by employers for universal health care coverage for workers would lead to a decrease in the:
  1. supply of workers.
  2. the quantity supplied of workers.
  3. the quantity demanded of workers.
  4. demand for workers.
Question 9 (1 point)
The demand for inputs is derived from the:
  1. profit motive.
  2. utility of supply.
  3. utility of consumption.
  4. market demand function.
Question 10 (1 point)
The effect on sales of an increase in price is a decrease in:
  1. the quantity demanded.
  2. demand.
  3. supply.
  4. the quantity supplied.
Question 11 (1 point)
Demand for consumption goods and services is:
  1. derived demand.
  2. direct demand.
  3. product demand.
  4. utility.
Question 12 (1 point)
Change in the quantity demanded is caused by a change in:
  1. advertising.
  2. wage rates.
  3. raw material costs.
  4. price.
Question 13 (1 point)
The demand curve for automobiles will shift to the right if:
  1. interest rates increase.
  2. advertising expenditures increase.
  3. the price of steel decreases.
  4. the price of automobiles decreases.
Question 14 (1 point)
The supply of a product does not depend on:
  1. raw material costs.
  2. wage rates.
  3. consumer incomes.
  4. technology.
Question 15 (1 point)
Farmers in certain areas of the U.S. can grow either wheat or corn. If the price of corn increases the:
  1. supply of wheat will shift to the right.
  2. supply of wheat will shift to the left.
  3. supply of both corn and wheat will shift, but in opposite directions.
  4. supply of corn will shift to the right.
Question 16 (1 point)
The supply curve expresses the relation between the aggregate quantity supplied and:
  1. price, holding constant the effects of all other variables.
  2. aggregate quantity demanded, holding constant the effects of all other variables.
  3. profit, holding constant the effects of all other variables.
  4. each factor that affects supply.
Question 17 (1 point)
If the market price is higher than the equilibrium price a:
  1. shortage exists and the equilibrium price will rise until it equals the market price and the shortage is eliminated.
  2. surplus exists and the market price will fall until it equals the equilibrium price and the surplus is eliminated.
  3. surplus exists and the equilibrium price will rise until it equals the market price and the surplus is eliminated.
  4. shortage exists and the market price will fall until it equals the equilibrium price and the shortage is eliminated.
Question 18 (1 point)
The equilibrium market price and quantity of beef would increase if:
  1. consumers increasingly view beef as unhealthy.
  2. the price of cattle feed decreased.
  3. consumer income increased.
  4. herd sizes fell following a severe drought.
Question 19 (1 point)
The equilibrium market price of lead pencils would decrease and the quantity of pencils produced and sold would increase if:
  1. the price of graphite (pencil lead) decreased.
  2. pencil workers obtained higher wages.
  3. the price of typewriters or word processors decreased.
  4. the price of pens, a substitute for pencils, increased.
Question 20 (1 point)
If demand and supply both increase:
  1. its equilibrium price will decrease while the quantity produced and sold could increase, decrease or remain constant.
  2. the quantity produced and sold will increase while its equilibrium price could increase, decrease, or remain constant.
  3. the quantity produced and sold will decrease while its equilibrium market price could increase, decrease, or remain constant.
  4. its equilibrium price will increase while the quantity produced and sold could increase, decrease, or remain constant.
Copyright 2008, by the Contributing Authors. Cite/attribute Resource. admin. (2009, January 27). Quiz 2A. Retrieved November 23, 2009, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/economics/managerial-economics/quiz2a.htm. This work is licensed under a Creative Commons License. Creative Commons License