Someone please help me with economics questions?????????

Posted on 2014-11-27 07:19:00 in Economics by TELLY

Multiple Choice

Identify the choice that best completes the statement or answers the question.

Q 1. At a price of $10 there would be a

a. shortage of 15 units.

b. surplus of 15 units.

c. shortage of 30 units.

d. surplus of 30 units.

Q 2. At a price of $6 there would be a

a. shortage of 15 units.

b. surplus of 15 units.

c. shortage of 30 units.

d. surplus of 30 units.

Q 3. In equilibrium, the market price is ________ dollars and the quantity exchanged is _______ units.

a. 8; 22

b. 22; 8

c. 10; 15

d. 6; 15

Q 4. When the price of an hour of tutoring increases,

a. the quantity demanded for tutoring decreases.

b. the demand curve for tutoring shifts to the left.

c. the quantity demanded for tutoring increases.

d. the demand curve for tutoring shifts to the right.

Q 5. The law of supply states that, all other things being equal, an increase in the price of gasoline will

a. Shift the supply curve for gasoline to the left.

b. Shift the supply curve for gasoline to the right.

c. Increase the quantity of gasoline supplied.

d. Decrease the quantity of gasoline supplied.

Refer to the following figure for the questions that follow.

Q 6. Assume that the above graphs represent the demand and supply curves for Gatorade. Which panel best

describes what happens in this market if the price of Powerade (a substitute) increases?

a. Panel (a)                             c. Panel (c)

b. Panel (b)                             d. Panel (d)

Q 7. Assume that the above graphs represent the demand and supply curves for bicycle helmets. Which panel best describes what happens in this market if the price of bicycles increases?

a. Panel (a)                                        c. Panel (c)

b. Panel (b)                                        d. Panel (d)

Q 8. Assume that the above graphs represent the demand and supply curves for almonds. Which panel best

describes what happens in this market if the wages paid to almond pickers (an input price) decreases?

a. Panel (a)                          c. Panel (c)

b. Panel (b)                          d. Panel (d)

Q 9. Assume that the above graphs represent the demand and supply curves for used clothing (an inferior good). Which panel best describes what happens in this market when there is a decrease in consumers' incomes?

a. Panel (a)                                  c. Panel (c)

b. Panel (b)                                  d. Panel (d)

Q 10. Assume that the above graphs represent the demand and supply curves for gasoline. Which panel best

describes what happens in this market if gas station owners expect the price of gasoline to rise in the future?

a. Panel (a)                                   c. Panel (c)

b. Panel (b)                                  d. Panel (d)

Q 11. When both the supply curve and demand curve simultaneously shift to the right, the

a. equilibrium price always rises.

b. equilibrium price always falls.

c. equilibrium quantity always falls.

d. equilibrium quantity always rises.

Q 12. Spam is considered an inferior good. What will happen to the equilibrium price and quantity of Spam if

consumer incomes decrease while, at the same time, the cost of producing Spam decreases?

a. Equilibrium price will go up and equilibrium quantity will go down.

b. Equilibrium price will go up and equilibrium quantity will go up.

c. Equilibrium price will go down, but equilibrium quantity could go up or down.

d. Equilibrium price could go up or down, but equilibrium quantity will go up.

Q 13. Suppose the price elasticity of demand for a good is -1.5. What does this mean?

a. A 1.5% increase in price causes a 1% decrese in quantity demanded.

b. a 1% increase in price causes a 1.5% decrease in quantity demanded.

c. A $1 increase in price casues a 1.5% decrease in quantity demanded.

d. A 1% increase in price casues a decrease in 1.5 units of the good demanded.

Q 14. The quantity demanded of hockey pucks increased from 100 to 150 when the price fell from $5 to $3 per

puck. Using the midpoint method, the price elasticity of demand for hockey pucks is:

a. 0.80

b. 0.40

c. 0.80

d. 1.25

Q 15. When there are fewer close substitutes available for a good, its demand tends to be

a. more scarce.                           c. less elastic.

b. perfectly inelastic.                   d. more elastic.

Q 16. A 15% increase in the price of cookies results in a 9% decrease in the quantity of cookies demanded. The revenue received by cookie suppliers will ________ because the demand for cookies is ________.

a. decrease; inelastic

b. not change; unitary elastic

c. decrease; elastic

d. increase; inelastic

Q 17. Super Economy Brand products have an income elasticity of 1.4. Thus, these products are __________ goods.

a. necessity

b. inferior

c. luxury

d. normal

Q 18. If the price of one good increases by 3% and causes the quantity demanded of another good to decrease by 2%, then the cross-price elasticity is ________ and the two goods are ________.

a. -3/2; complements c. -2/3; complements

b. -3/2; substitutes d. -2/3; substitutes

Q 19. Which one of the following pairs of goods is likely to have a positive cross-price elasticity of demand?

a. chocolate ice cream and sprinkles

b. ice cream shakes and hamburgers

c. fries and ketchup

d. Pepsi and Coke

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