Economics CC 2 Sec ON 1 Week 5 Quiz 4

Economics CC 2 Sec ON 1 Week 5 Quiz 4 | chatbot las positas  community college

Question 1

At a price for which quantity demanded exceeds quantity supplied, a __________ is experienced, which pushes the price __________ toward its equilibrium value.  

·         surplus; downward  

·         surplus; upward  

·         shortage; downward  

·         shortage; upward

 

Question 2

A market is said to be in disequilibrium if

  

·         it exhibits either a surplus or a shortage.  

·         the number of units that individuals are willing to buy exceeds the number of units they can afford.  

·         it is a market for an inferior good.  

·         none of the above

 

Question 3

A decrease in the expected price of corn would likely do the following to the current supply and demand for corn:  

·         increase both the demand and the supply.  

·         decrease both the demand and the supply.  

·         increase the demand, but decrease the supply.  

·         increase the supply, but decrease the demand.

 

Question 4

Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogurt would be predicted to do all of the following EXCEPT  

·         raise the equilibrium price of frozen yogurt.  

·         increase the equilibrium quantity of frozen yogurt.  

·         increase the supply of frozen yogurt.  

·         increase the demand for frozen yogurt.

 

Question 5

If a market is in disequilibrium, economists would predict that the product’s price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.  

·         rise; greater  

·         fall; greater  

·         rise; less

 

Question 6

Demand refers to  

·         how much of a good people are willing and able to buy at a particular price.  

·         the different quantities of a good people are willing and able to buy at different prices.  

·         the different quantities of a good people are willing and able to buy at a particular price.  

·         none of the above

 

Question 7

"As the price of apples goes up, the demand for apples goes down." The author of this statement  

·         implies that price and demand are unrelated.  

·         uses the word "demand" when he should use the word "supply."  

·         uses the word "demand" when he should use the words "quantity demanded."  

·         implies that demand and price have a direct relationship.

 

Question 8

At a price of $15 each, Marta buys 4 books per month. When the price increases to $20, Marta buys 3 books per month. Luz says that Marta's demand for books has decreased. Is Luz correct?  

·         Yes, Luz is correct.  

·         No, Luz is incorrect. Marta's demand has increased.  

·         No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same.  

·         No, Luz is incorrect. Marta's quantity demanded has increased, but her demand has stayed the same.  

·         No, Luz is incorrect. Marta's quantity demanded has decreased and her demand has increased.

 

Question 9

·         If a supply curve shifts rightward, this means  

·         suppliers are willing and able to offer less of the good for sale at every price.  

·         suppliers are willing and able to offer more of the good for sale at every price.  

·         suppliers are willing and able to offer more of the good for sale only at a particular price.

 

Question 10

An economist says, "Technological advances have the power to lower the prices of many of the goods we buy." Here is how this works:  

·         Technological advances lead to lower demand, which leads to lower prices.  

·         Technological advances lead to greater supply, which leads to lower prices.  

·         Technological advances lead to greater quantity supplied, which leads to lower prices.  

·         Technological advances lead to lower taxes, which lead to greater supply, which leads to lower prices.  

·         Technological advances lead to higher taxes, which lead to fewer subsidies, which lead to greater supply, which leads to lower prices.