Correct Answer:
A 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded
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2. Elasticity is the percentage change in quantity divided by the percentage change in _______.
Answer
Correct Answer:
Price
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3. A change in _____ does not shift the demand curve.
Answer
Correct Answer:
Opportunity costs
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4. Firms ________ in output markets and ________ in input markets.
Answer
Correct Answer:
Supply; demand
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5. Which of the following is an accurate statement?
Answer
Correct Answer:
Surpluses cause producers to cut prices.
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6. Which of the following is an accurate statement about equilibrium quantity?
Answer
Correct Answer:
The quantity demanded is exactly equal to the quantity supplied.
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7. Which of the following pairs are substitutes?
Answer
Correct Answer:
Coffee and tea
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8. The price of inputs increases significantly. Which of the following SPENT factors does this relate to?
Answer
Correct Answer:
S
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9. A shift of an entire supply curve either right or left is called a(n) ______.
Answer
Correct Answer:
Change in supply
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10. ______ prices for a good or service provide incentives for producers to make or sell more of it.
Answer
Correct Answer:
Higher
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11. Which of the following would show the amount of canned tuna that all canneries in Asia are willing to produce at various prices?
Answer
Correct Answer:
Market supply curve
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12. How does income relate to inferior goods?
Answer
Correct Answer:
A decline in income can often increase demand for inferior goods.
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13. In the acronym PYNTE, the letter “P” stands for which of the following?
Answer
Correct Answer:
Changes in price of related goods and services
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14. Which of the following will cause a rightward shift of the demand curve for the listed product?
Answer
Correct Answer:
Increased demand for apple juice
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15. Other things held equal, ______ usually leads to a leftward shift of the demand curve.
Answer
Correct Answer:
Declining income
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16. A market demand curve would show the quantities of coffee demanded by ______.
Answer
Correct Answer:
All buyers in a market
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17. “The law of demand is the law stating that the quantity of a good or service demanded varies inversely (negatively) with its price.” What is wrong with this definition?
Answer
Correct Answer:
It should include ceteris paribus at the end.
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18. What causes a stock to rise?
Answer
Correct Answer:
When people expect a company to do well in the future
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19. Which of the following is an accurate statement about the market?
Answer
Correct Answer:
It involves many buyers and sellers.
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20. Surplus is a situation where quantity ______ exceeds quantity _____
Answer
Correct Answer:
Supplied,demanded
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21. Goods for which an increase in the price of one good causes an increase in the demand for the other good is called
Answer
Correct Answer:
Substitutes
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22. Shortage us A situation where quantity demanded exceeds quantity____
Answer
Correct Answer:
Supplied
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23. Shifts in the demand curve A change in one of the variables, other than the ____ of the good itself.
Answer
Correct Answer:
Price
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24. In Case of Normal Goods IF Income Increases the _______ for a Good Increases
Answer
Correct Answer:
Demand
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25. Market supply curve is The ______ summation of the supply curves of producers
Answer
Correct Answer:
Horizontal
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26. The point at which the market supply and market demand curves intersect is called
Answer
Correct Answer:
Market equilibrium
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27. Market demand curve is The ______ summation of individual demand curves
Answer
Correct Answer:
Horizontal
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28. _____ is The process of buyers and sellers exchanging goods and services
Answer
Correct Answer:
Market
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29. The law stating that the higher the price of the good, the greater the quantity supplied is known as
Answer
Correct Answer:
Law of supply
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30. The law stating that the quantity of a good or service demanded varies inversely with its price is called
Answer
Correct Answer:
Law of Demand
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31. In case of _____ goods If income increases, the demand for a good decreases
Answer
Correct Answer:
Inferior goods
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32. A graphical representation that shows the positive relationship between price and quantity supplied is called
Answer
Correct Answer:
Individual supply curve
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33. A schedule that shows the relationship between price and quantity demanded is called
Answer
Correct Answer:
Individual Demand schedule
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34. A graphical representation that shows the inverse relationship between price and quantity demanded is called
Answer
Correct Answer:
Individual Demand curve
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35. Equilibrium quantity is The quantity at the _____of the market supply and demand curves
Answer
Correct Answer:
Intersection
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36. Equilibrium Price is The price at the _____of the market supply and demand curves
Answer
Correct Answer:
Intersection
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37. Goods for which an increase in the price of one good leads to a decrease in the demand for the other good
Answer
Correct Answer:
Complements
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38. _______ is where the many buyers and sellers have little market power
Answer
Correct Answer:
Competitive market
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39. A change in a good’s own price leads to a change in quantity demanded
Answer
Correct Answer:
True
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