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Quiz 2B

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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)
Surplus is a condition of:
  1. excess supply.
  2. a deficiency in supply.
  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 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 6 (1 point)
Holding all else equal, an unnecessary increase in federally-mandated auto safety requirements leads to a decrease in:
  1. auto demand.
  2. the quantity of autos supplied.
  3. auto supply.
  4. the quantity of autos demanded.
Question 7 (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 8 (1 point)
Demand is the total quantity of a good or service that customers:
  1. are willing to purchase.
  2. are able to purchase.
  3. are willing and able to purchase.
  4. need.
Question 9 (1 point)
The demand function for a product states the relation between the aggregate quantity demanded and:
  1. all factors that influence demand.
  2. the aggregate quantity supplied.
  3. consumer utility.
  4. the market price, holding all the other factors that influence demand constant.
Question 10 (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 11 (1 point)
Change in the quantity supplied is caused by a change in:
  1. income.
  2. weather.
  3. energy costs.
  4. price.
Question 12 (1 point)
The supply of a product does not depend on:
  1. raw material costs.
  2. wage rates.
  3. consumer incomes.
  4. technology.
Question 13 (1 point)
If the production of two goods is complementary a decrease in the price of one will:
  1. increase supply of the other.
  2. increase the quantity supplied of the other.
  3. decrease the price of the other.
  4. decrease supply of the other.
Question 14 (1 point)
Oil refiners can vary the mix of gasoline versus diesel fuel derived from a barrel of oil. If the price of diesel fuel increases relative to the price of gasoline:
  1. supply of gasoline will shift to the right.
  2. supply of gasoline will shift to the left.
  3. supply of both diesel fuel and gasoline will shift, but in opposite directions.
  4. supply of diesel fuel will shift to the right.
Question 15 (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 16 (1 point)
The equilibrium market price of a service is the:
  1. price that buyers are willing and able to pay.
  2. price where shortages exceed surpluses.
  3. price that maximizes profit for sellers.
  4. price where the quantity demanded equals the quantity supplied.
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 word processors decreased.
  4. the price of pens, a substitute for pencils, increased.
Question 20 (1 point)
If demand and supply both increase, the:
  1. equilibrium price will decrease while the quantity produced and sold could increase, decrease or remain constant.
  2. quantity produced and sold will increase while the equilibrium price could increase, decrease, or remain constant.
  3. quantity produced and sold will decrease while the equilibrium market price could increase, decrease, or remain constant.
  4. 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 2B. Retrieved January 07, 2011, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/economics/managerial-economics/quiz2b.htm. This work is licensed under a Creative Commons License Creative Commons License