ECON 2110 EXAM 2 CLEMSON QUIZZES
WITH ACTUAL ANSWERS .
1. Which of the following will not increase the demand for burritos?
a. A big burritos sale.
b. The discovery that eating burritos cures cancer.
c. A rise in the price of burgers, a substitute.
d. A fall in the price of guacamole, a complement.
e. All of the above will increase the demand for burritos. - Correct Answer -a. A big burritos
sale.
2. Which of the following will not decrease the supply of burritos. a. the discovery that eating
burritos causes cancer.
b. a rise in the price of the tortillas used to make burritos.
c. a rise in the price of wages paid to burrito-making employees. d. All of the above will
decrease the supply of burritos. - Correct Answer -a. the discovery that eating burritos causes
cancer.
3. A supply curve shows a. the relationship between price and quantity supplied. b. how
many units of the good will be supplied at various prices. c. the cost of supplying the good. d.
All of the above. ** - Correct Answer -d. All of the above.
4. If the supply of peanut butter increases, what would we expect to happen in the market for
tuna (a substitute for peanut butter on sandwiches)?
a. Demand to increase.
b. Demand to decrease.
c. Supply to increase.
d. Supply to decrease.
e. Neither the demand nor the supply of tuna would be affected. - Correct Answer -b.
Demand to decrease.
1
,5. Buyers and sellers communicate primarily
a. through surveys.
b. through government agencies.
c. through advertising.
d. through their willingness to buy and sell at various prices.
e. All of the above. - Correct Answer -d. through their willingness to buy and sell at various
prices.
6. Anything that increases the value that potential buyers receive from a good may be
expected to
a. increase demand.
b. increase supply.
c. increase both demand and supply.
d. increase demand but decrease supply. - Correct Answer -a. increase demand.
7. If the supply of "roots" (an input) increases, what would we expect to happen in the market
for root beer?
a. Demand to increase.
b. Demand to decrease.
c. Supply to increase.
d. Supply to decrease. - Correct Answer -c. Supply to increase.
8. Which of the following will increase the demand for tea?
a. A blight destroys 30% of the tea crop in India.
b. Wonderful weather doubles the usual tea crop.
c. A rise in the price of coffee.
d. New technology allows tea to be made more cheaply.
e. All of the above. - Correct Answer -c. A rise in the price of coffee.
9. A rational decision-maker takes action only if
2
, a. the average benefit is greater than the average cost.
b. the marginal benefit is greater than the marginal cost.
c. the total benefit is positive.
d. society will be made better off.
e. All of the above - Correct Answer -b. the marginal benefit is greater than the marginal cost.
10. Doug likes tomatoes now more than he did last year. Therefore
a. Doug must have received an increase in income.
b. tomatoes must be a necessity.
c. the supply of tomatoes has increased.
d. Doug is willing to pay more for tomatoes than last year. - Correct Answer -d. Doug is
willing to pay more for tomatoes than last year.
11. At what price is quantity demanded greatest? At what price is quantity supplied greatest?
a. 1, 7
b. 3, 5
c. 5, 3
d. 7, 1 - Correct Answer -a. 1, 7
12. At what which of the following prices will the most kumquats actually be sold (i.e.,
change hands from seller to buyer)?
a. 1.
b. 3.
c. 5.
d. 7. - Correct Answer -b. 3.
13. The two graphs above show (in order from top to bottom)
a. An increase in demand, a decrease in supply
b. An increase in supply, a decrease in demand
c. A decrease in demand, a decrease in supply
d. An increase in supply, an increase demand
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WITH ACTUAL ANSWERS .
1. Which of the following will not increase the demand for burritos?
a. A big burritos sale.
b. The discovery that eating burritos cures cancer.
c. A rise in the price of burgers, a substitute.
d. A fall in the price of guacamole, a complement.
e. All of the above will increase the demand for burritos. - Correct Answer -a. A big burritos
sale.
2. Which of the following will not decrease the supply of burritos. a. the discovery that eating
burritos causes cancer.
b. a rise in the price of the tortillas used to make burritos.
c. a rise in the price of wages paid to burrito-making employees. d. All of the above will
decrease the supply of burritos. - Correct Answer -a. the discovery that eating burritos causes
cancer.
3. A supply curve shows a. the relationship between price and quantity supplied. b. how
many units of the good will be supplied at various prices. c. the cost of supplying the good. d.
All of the above. ** - Correct Answer -d. All of the above.
4. If the supply of peanut butter increases, what would we expect to happen in the market for
tuna (a substitute for peanut butter on sandwiches)?
a. Demand to increase.
b. Demand to decrease.
c. Supply to increase.
d. Supply to decrease.
e. Neither the demand nor the supply of tuna would be affected. - Correct Answer -b.
Demand to decrease.
1
,5. Buyers and sellers communicate primarily
a. through surveys.
b. through government agencies.
c. through advertising.
d. through their willingness to buy and sell at various prices.
e. All of the above. - Correct Answer -d. through their willingness to buy and sell at various
prices.
6. Anything that increases the value that potential buyers receive from a good may be
expected to
a. increase demand.
b. increase supply.
c. increase both demand and supply.
d. increase demand but decrease supply. - Correct Answer -a. increase demand.
7. If the supply of "roots" (an input) increases, what would we expect to happen in the market
for root beer?
a. Demand to increase.
b. Demand to decrease.
c. Supply to increase.
d. Supply to decrease. - Correct Answer -c. Supply to increase.
8. Which of the following will increase the demand for tea?
a. A blight destroys 30% of the tea crop in India.
b. Wonderful weather doubles the usual tea crop.
c. A rise in the price of coffee.
d. New technology allows tea to be made more cheaply.
e. All of the above. - Correct Answer -c. A rise in the price of coffee.
9. A rational decision-maker takes action only if
2
, a. the average benefit is greater than the average cost.
b. the marginal benefit is greater than the marginal cost.
c. the total benefit is positive.
d. society will be made better off.
e. All of the above - Correct Answer -b. the marginal benefit is greater than the marginal cost.
10. Doug likes tomatoes now more than he did last year. Therefore
a. Doug must have received an increase in income.
b. tomatoes must be a necessity.
c. the supply of tomatoes has increased.
d. Doug is willing to pay more for tomatoes than last year. - Correct Answer -d. Doug is
willing to pay more for tomatoes than last year.
11. At what price is quantity demanded greatest? At what price is quantity supplied greatest?
a. 1, 7
b. 3, 5
c. 5, 3
d. 7, 1 - Correct Answer -a. 1, 7
12. At what which of the following prices will the most kumquats actually be sold (i.e.,
change hands from seller to buyer)?
a. 1.
b. 3.
c. 5.
d. 7. - Correct Answer -b. 3.
13. The two graphs above show (in order from top to bottom)
a. An increase in demand, a decrease in supply
b. An increase in supply, a decrease in demand
c. A decrease in demand, a decrease in supply
d. An increase in supply, an increase demand
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