Which of the following will not cause the demand for product K to change?
answer
a change in the price of K
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If the demand curve for product B shifts to the right as the price of product A declines, then:
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A and B are complementary goods.
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An increase in money income:
answer
shifts the consumer's budget line to the right.
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The demand curve for a product might shift as the result of a change in:
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consumer tastes, consumer incomes, the prices of related goods.
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The term quantity demanded:
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refers to the amount of a product that will be purchased at some specific price.
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The upward slope of the supply curve reflects the:
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law of supply.
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A leftward shift of a product supply curve might be caused by:
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some firms leaving an industry.
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An improvement in production technology will:
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shift the supply curve to the right.
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The production possibility curve:
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is the boundary between attainable and unattainable outputs.
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All of the following are held to be constant when the supply curve for a product is drawn, except the:
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price of the product.
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Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
answer
an increase in supply.
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Economics is a social science concerned with:
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the best use of scarce resources to achieve the maximum satisfaction of economic
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Opportunity cost is best defined as:
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the value of the best foregone alternative.
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Graphically, the market demand curve is:
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the horizontal sum of individual demand curves.
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The income and substitution effects account for:
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the downward sloping demand curve.
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Which of the following statements is correct?
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If supply increases and demand decreases, equilibrium price will fall.
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When an economist says that the demand for a product has increased, this means that:
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consumers are now willing to purchase more of this product at each possible price.
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The purpose of the ceteris paribus assumption used in economic analysis is to:
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restrict the analysis to the effect of a single economic factor.
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In which of the following instances will the effect on equilibrium price be dependent on the magnitude of the shifts in supply and demand?
answer
demand rises and supply rises.
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The production possibilities curve bows outward from the origin because:
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opportunity costs increase as the production of a good increases.
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If the supply and demand curves for a product both decrease, then equilibrium:
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quantity must decline, but equilibrium price may either rise, fall, or remain
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A line or curve that shows the various combinations of two products a consumer can purchase with a specific amount of money income is:
answer
a budget line.
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In drawing a production possibilities curve we hold constant:
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both technology and resource supplies.
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With a downward sloping demand curve and an upward sloping supply curve for a product, an increase in consumer income will:
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increase equilibrium price and quantity if the product is a normal good.
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Given a downward sloping demand curve and an upward sloping supply curve for a product, an increase in the price of a substitute good will:
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increase equilibrium price and quantity.
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If an effective ceiling price is placed on hamburgers then:
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the quantity demanded will exceed the quantity supplied.
a black market for hamburger may evolve.
that consumers may want government to ration hamburger.
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If a consumer purchases just two goods, good X and good Y. The ratio of the
answer
D) slope of the budget line.
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