ECON 2301 Week 1 Quiz 2

ECON 2301 Week 1 Quiz 2 | Assignment Help | Central Texas College

•             Question 1

 

               

                A leftward shift of a supply curve is called a(n)                                  

                Answers:             a.

Decrease in supply.

                b.

Increase in supply.

                c.

Increase in quantity supplied.

 

                d.

Decrease in quantity supplied.

                                               

•             Question 2

               

                A decrease in the price of a good will                                     

                               

Answers:             a.

Increase quantity demanded.

                b.

Increase demand.

                c.

Decrease quantity demanded.

                d.

Decrease demand.

 

Question 3

 

 

Refer to Figure 4-17. At a price of

                a.

$5, there is a shortage of $25.

                 b.

$2, there is a shortage of 6 units.

                c.

$5, there is a surplus of 25 units.

                d.

$7, there is a shortage of 4 units.

 

 

Question 4

               

                Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause                                   

               

Answers:             a.

both the equilibrium price and quantity to decrease.

                b.

both the equilibrium price and quantity to increase.

                c.

the equilibrium price to decrease and the equilibrium quantity to increase.

                d.

the equilibrium price to increase and the equilibrium quantity to decrease.

 

 

Question 5

 

 

Refer to Figure 4-7. If the demand curve for Good X shifts from Da to D b, then

Answers:             a.

people are willing to buy more of Good X than before at each possible price.

                b.

firms would be willing to supply less of Good X than before at each possible price.

                c.

the price of Good X has decreased.

                d.

people’s incomes must have decreased.

 

Question 6

               

                During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?                                       

                Answers:             a.

Beef producers, concerned about the health of their customers, decided to produce relatively less beef.

                b.

Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef.

                 c.

Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce.

                d.

Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace.

               

 

•             Question 7

               

                A likely example of complementary goods for most people would be                                    

                Answers:             a.

snow mobiles and sofas.

                 b.

canoes and paddles.

                c.

tennis balls and basketballs.

                d.

coffee and tea.

                                               

•             Question 8

               

                In a market economy, supply and demand are important because they                                

                Answers:             a.

play a critical role in the allocation of the economy’s scarce resources.

                b.

determine how much of each good gets produced.

                c.

can be used to predict the impact on the economy of various events and policies.

                 d.

All of the above are correct.

 

                                               

•             Question 9

               

                An example of a perfectly competitive market would be the                                      

                Answers:             a.

soybean market.

                b.

cable TV market.

                c.

breakfast cereal market.

 

                d.

shampoo market.

 

                                               

•             Question 10

               

                Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price                                               

               

                 a.

And quantity both increase.

                b.

Decreases, and the equilibrium quantity increases.

                c.

Increases, and the equilibrium quantity decreases.

                d.

And quantity both decrease.