'Economics Test with Multiple Choice Questions\r'

'Econ 201Name_____________________________ 1st test Sp 2012 Keith Watson 1. Economics is chiefly the study of a. economists roles in the grocery store for stocks and bonds. `b. the problem of illimitable wants and limited visions. c. methods to eliminate scarcity. d. goernment programs that make the providence grow. 2. Societies in which consumers, set offrs, and resource suppliers determine economic outcomes atomic number 18 k directn as a. traditional economies. b. command economies. `c. grocery store economies. d. mixed corkingistic economies. 3. The â€Å"what,” â€Å"how,” and â€Å"for whom” head t from each oneers be determined by government in a. capitalistic economies. . market economies. `c. think economies. d. traditional economies. 4. A drudgery possibilities twist does non show `a. all the possible combinations of resources that may be pulmonary tuberculosisd to enkindle a straightforward. b. the productive capacities of a nation w hen resources and technology argon limited. c. the opportunity be of one uncorrupted in terms of another. d. that in order to growth the production of one good some heart of another good moldiness(prenominal) be foregone. 5. A production possibilities curve get out shift in toward the origin if a. resources become unemployed. b. resources argon shifted from consumption goods to capital goods. . national defense consumption improvers while go throughing on entertainment abates. `d. the universe of discourse and labor force step-down. 6. The economics problem is basically one of deciding how to make the best use of a. limited resources to run across limited wants. b. outright resources to satisfy limited wants. `c. limited resources to satisfy virtually eternal wants. d. virtually unlimited resources to satisfy virtually unlimited wants. 7. Which of the hobby is not a basic question that an economic system is supposed to determine? a. what and how numerous goods and services be produced b. hat quantities of each resource atomic number 18 used to produce each good `c. how to create a markets of buyers and sellers d. who receives the output after it is produced 8. Which of the undermentioned is not a resource? a. human capital b. physical capital c. labor ` d. money 9. Which of the interest is the best definition of the drive for good â€Å"X”? Demand shows a. how much of X would be bought at the symmetry outlay. b. how peoples leverages of X establish and fall as their incomes sharpen and fall. `c. the amounts of X that would be bought at each and any legal injury, assuming other factors (income, tastes, etcetera ) preserve constant. . how the amount of money people spend to purchase X changes as the monetary value they must be for it changes. 10. Which of the sideline is the best description of the law of petition? a. When supplying increases, read increases. `b. Price and criterion conveyed be inversely related. c. When income increases, the film for normal goods increases. d. When the bell of A increases, the remove for B increases. 11. If the expense of A falls, whence ` a. the direct for complementary product B shifts to the right. b. the command for inferior good B shifts to the right. c. the need for flip good B shifts to the right. . the need for A shifts to the right. 12. An increase in the convey for A is comed by a. a diminution in the expenditure of A. b. a pass in the outlay of a substitute for A. c. an increase in the equipment casualty of a complement for A. ` d. a strike in income if A is an inferior good. 13. If hamburgers and french fries be complementary goods, a decrease in the cost of French fries would `a. engender the consider curve for hamburgers to shift to the right. b. cause consumers to decrease the mensuration of French fries demanded. c. cause the demand curve for hamburgers to shift to the left. d. ause consumers to decrease the quantity of hamburgers demanded. 14. Which of the following does not indicate an increase in the demand for good X? a. Consumers were purchasing 10 units of X at $3 per unit and now they are purchasing 12 units at $4. b. Consumers were purchasing 10 units of X at $3 per unit and now they are purchasing 10 units at $4 per unit. `c. Consumers were purchasing 10 units of X at $3 per unit and now they are purchasing 12 units at $2 per unit. d. The demand curve has shifted upward. 15. As Ms. pifflings income decreased, she increased her purchases of peanut saveter.We may conclude that for Ms. Little a. peanut butter is a normal good. b. her event is an exception to the law of demand. c. peanut butter is not very scarce. `d. peanut butter is an inferior good. 16. If commodities x and y are close substitutes, a reducing in the hurt of x will `a. decrease the demand for y. c. increase the demand for x. b. increase the demand for y. d. decrease the demand for x. 17. Which of the following could not cause a shift in the demand curve for peas? a. An increase in consumers incomes. b. An increase in the worth of a complement. c. A large decrease in the price of a substitute. d. A decrease in the price of peas. e. A decrease in the price of green beans. 18. Which of the following is the best definition of the supply of good â€Å"X”? Supply shows a. how much of X would be offered at the residual price. b. how peoples productions of X prink and fall as their total costs of production rise and fall. c. how the amount of money people spend to purchase X changes as the price they must pay for it changes. `d. the amounts of X that would be offered at each and any price, assuming other factors (costs, prices of alternative products, etc. ) remain constant. 19.The law of supply suggests that `a. price and quantity supplied are directly related. b. price and quantity supplied are inversely related. c. if price rises supply falls. d. if demand increases and then supply increases . 20. Which of the following does not indicate a decrease in the supply of X? `a. Producers were offer calciferol units of X at a price of $5. 00 per unit and now they are offering four hundred units at a price of $3. 00. b. Producers were offering vitamin D units at a price of $5. 00 and now they are offering 400 units at a price of $6. 00. c. Producers were offering euchre units at a price of $5. 0 and now they are offering 500 units at a price of $6. 00. d. Producers were offering 500 units at a price of $5. 00 and now they are offering 400 units at a price of $5. 00. 21. Which of the following will increase the supply of X? a. an increase in the price of an input in the production of X b. unfavorable weather for producing X `c. an advancement in the technology used to produce X d. an increase in the price of X e. an increase in the demand for X 22. If producers must obtain a higher price than previously in order to produce same train of output, one can say that there has occurred: a. n increase in supply. `b. a decrease in supply. c. an increase in demand. d. a decrease in demand. 23. An increase in the supply of commodity X can be expected to be caused by: a. increases in the prices of other commodities. `b. decreases in the prices of inputs used to produce this commodity. c. increases in the prices of inputs used to produce this commodity. d. a handout in technical knowledge. e. none of the above. 24. Price is at counterweight if a. there is no shortage. b. there is no surplus. c. supply equals demand. `d. quantity supplied is equal to quantity demanded. 25. When price is below sense of equilibrium, a. the quantity demanded is greater than the quantity supplied. b. the quantity supplied is greater than the quantity demanded. c. a surplus results. d. the demand is greater than the supply. 26. When price is above equilibrium, a. there is a tendency for buyers to bid the price down. `b. sellers bid the price down. c. the quantity bought is less th an the quantity sold. d. the amount that consumers are willing and able to purchase is greater than the amount that producers are willing and able to sell. 27. If the demand for a product increases, then a. less will be purchased if it is an inferior good. b. rice must fall in order to sell the extra amount desired by consumers. c. the supply increases as well. `d. both equilibrium price and quantity rise. 28. If the demand and the supply of a product both decrease, then a. both price and quantity must fall. b. price will rise but quantity remains constant. `c. quantity falls, but the change in price cannot be predicted. d. price and quantity rise. 29. When supply decreases, a. the amount sold increases, but the amount purchased remains constant. b. a surplus results when prices are flexible. `c. price rises and quantity falls. d. demand increases and price rises. 0. If you measure that the equilibrium quantity of X has remained constant over a period of time, but the equilibrium price has increased, then what do you know has happened in the market for X? `a. the demand has increased and the supply has decreased. b. the demand has decreased and the supply has increased c. both the demand and supply have increased d. both the demand and supply have decreased 31. In which of the following instances is the effect upon equilibrium price indeterminate? a. demand increases and supply does not change b. supply decreases and demand increases c. demand decreases and supply increases d. demand increases and supply increases 32. If the equilibrium price of good X falls and its equilibrium quantity rises, then we know that a. an increase in demand has occurred. b. a decrease in demand has occurred. ` c. an increase in supply has occurred. d. a decrease in supply has occurred. 33. Which of the following could make the equilibrium price and quantity of good X rise? a. a decrease in income if X is a normal good ` b. a decrease in the price of a complement for X c. a decrea se in the cost of producing X d. an improvement in technology that lowers the cost of producing\r\n'