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12 Cards in this Set
- Front
- Back
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A Market is
a - group of demanders and suppliers of a particular good or service b - group of people with common desires c - place where only sellers meet d - place where only buyers come together |
a - group of demanders and suppliers of a particular good or service
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Suppose there is an increase in input prices. We would expect supply to
a - to decrease b - to increase c - could increase or decrease d - to remain unchanged |
a - to decrease
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For each good produced in a market economy, demand and supply determine
a - the proce of the good but not the quantity b - the quantity of the good but not the price c - both price and quantity d - neither price nor quantity is determined by demand and supply, because prices are ultimatley set by producers |
c - both price and quantity
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A persons expectations about the future
a - cannot affect demand because expectations change b - can affect future demand c - can affect current demand d - cannot shift a demand curve |
c - can affect current demand
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The amount of the good buyers are willing and able to purchase is the
a - demand b - quantity supplied c - quantity demanded d - supply |
c - quantity demanded
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If a good is "normal" then an increase in income will result in
a - no change in the demand for the good b - an increase in the demand for the good c - a decrease in the demand for the good d - a lower market price |
b - an increase in the demand for the good
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If the price of a substitute to good X increases, then the
a - demand for good X will decrease b - market price of good X will decrease c - demand for good X will increase d - quantity demanded for good X will increase |
c - demand for good X will increase
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Which of the following would NOT shift the demand curve for a good or service
a - a change in income b - a change in the price of the good or service c - a change in expectations about the price of the good or service d - a change in the price of a related good |
b - a change in the price of the good or service
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Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are
a - complementary goods b - normal goods c - inferior goods d - substitute goods |
d - substitute goods
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two goods are complements if a decrease in the price of one good
a - increases the quantity of the other good b - reduces the deamnd for the other good c - reduces the quantity demanded of the other good d - raises the demand for the other good |
d - reaised the demand for the other good
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The law of demand says that when price
a - rises, quantity demanded falls b - rises, quantity demanded rises also c - falls, quantity supplied rises d - falls, quantity supplied falls also |
a - rises, quantity demand falls
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if a decrease in income increases the demand for a good then the good is
a - substitute b - a complement good c - normal good d - inferior good |
d - inferior good
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