Eco week 1 quiz

Question 11 pts

If the demand for coffee decreases as income decreases, coffee is a(n):

complementary good.substitute good.inferior good.normal good.

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Question 21 pts

If there is a need to increase the quantity and supply of oil, the most effective way to get it quickly is to

improve technology.reduce the prices of the resources that produce oil.increase the price of oil.put a limit on the price of oil.ban imports.

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Question 31 pts

Macroeconomics is the study of

the small aspects of large entities.the overall price level and the levels of unemployment and output.the interaction of consumers and producers in markets for particular goods and services.anything large.individuals in an economy.

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Question 41 pts

The interactions of producers and consumers in individual markets are part of the study of

microeconomics.normative economics.monetary economics.macroeconomics.consumer economics.

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Question 51 pts

The measure of the cost of a particular good in terms of what is given up to produce that good is called

an explicit cost.an opportunity cost.a necessary cost.a dollar cost.a fixed cost.

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Question 61 pts

In what type of economic system are the basic economic questions answered in the same way as in the past?

A planned economyA traditional economyA command economyA market economy

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Question 71 pts

Capital consists of

stocks and bonds.aids to production created by humans.the assets of upper-income groups.the assets of the government.the assets of a firm.

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Question 81 pts

Sales of bananas have dropped from 100,000 pounds to 75,000 pounds per day because a freeze resulted in a smaller supply. In the process, the average price of a pound of bananas has risen from $0.80 to $1.00. Which of the following is most likely true?

The demand for bananas has increased because of the increase in price.The demand for ice cream (used in banana splits) is likely to decrease.The price of tapes will rise about 25 percent.The total revenue (P times Q) from sales has risen.The quantity demanded of ice cream will increase.

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Question 91 pts

Demand for a good will always rise when

the price of a complementary good falls.the price of a substitute good falls.tastes change.incomes decrease.the price of the good falls.

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Question 101 pts

What will cause a change along the supply curve?

The supplier's expectationsThe supplier's costsThe price of the goodThe price of all other goods