COBA Exam Questions With Correct
Answers
If the average household income increases and there is relatively little change in
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the price of a normal good then
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A) Supply curve will shift to the left
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B) Quantity demanded will move farther down the demand curve
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C) Demand will shift to the left
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D) Demand will shift to the right - CORRECT ANSWER✔✔-D) Demand will shift to
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the right|
The demand curve for a normal good is
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A) Upward sloping because firms produce more at higher prices
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B) Upward sloping because higher-priced goods are of higher quality
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C) Vertical
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D) Downward sloping because of the income and substitution effects of price
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changes - CORRECT ANSWER✔✔-D) Downward sloping because of the income
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and substitution effects of price changes
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A decrease in the price of a complementary good will
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A) Shift the demand curve of the other commodity to the left
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B) Increase the price paid for a substitute good
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C) Shift the supply curve of the other commodity to the left
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,D) Shift the demand curve of the other commodity to the right - CORRECT
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ANSWER✔✔-D) Shift the demand curve of the other commodity to the right
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Which one of the following changes will cause the demand curve for gasoline to
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shift to the left
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A) The price of gasoline increases
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B) The supply of gasoline decreases
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C) The price of cars increase
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D) The price of cars decrease - CORRECT ANSWER✔✔-C) The price of cars
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increase
Tennis rackets and tennis balls are
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A)Substitute goods |
B) Independent goods
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C) Inferior goods
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D) Complementary goods - CORRECT ANSWER✔✔-D) Complementary goods
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A supply curve illustrates the relationship between
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A) Price and quantity supplied
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B)Price and consumer tastes
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C) price and quantity demanded
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D) Supply and demand - CORRECT ANSWER✔✔-A) Price and quantity supplied
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In relation to the laws of supply and demand, an increase in supply will
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, A) Increase the equilibrium price and the equilibrium quantity exchanged
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B) Decrease the equilibrium price and the equilibrium quantity exchanged
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C) Increase the equilibrium price and decrease the equilibrium quantity
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exchanged
D) Decrease the equilibrium price and increase the equilibrium quantity
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exchanged - CORRECT ANSWER✔✔-D) Decrease the equilibrium price and
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increase the equilibrium quantity exchanged
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An increase in the market supply of beef would result in a(n)
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A) increase in the price of beef
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B) Decrease in the price of beef
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C) Increase in the price of pork
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D) Increase in the quantity of the beef demanded - CORRECT ANSWER✔✔-D)
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Increase in the quantity of the beef demanded
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In any competitive market, an increase in both demand and supply can be
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expected to always | |
A) Increase both price and market-clearing quantity
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B) Decrease both price and market-clearing quantity
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C) Increase market-clearing quantity
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D) Increase price - CORRECT ANSWER✔✔-C) Increase market-clearing quantity
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If both the supply and demand for a good increase, the market price will
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A) Rise only in the case of an inelastic supply function
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B) Fall only in the case of an inelastic supply function
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Answers
If the average household income increases and there is relatively little change in
| | | | | | | | | | | | |
the price of a normal good then
| | | | | |
A) Supply curve will shift to the left
| | | | | | |
B) Quantity demanded will move farther down the demand curve
| | | | | | | | |
C) Demand will shift to the left
| | | | | |
D) Demand will shift to the right - CORRECT ANSWER✔✔-D) Demand will shift to
| | | | | | | | | | | | | |
the right|
The demand curve for a normal good is
| | | | | | |
A) Upward sloping because firms produce more at higher prices
| | | | | | | | |
B) Upward sloping because higher-priced goods are of higher quality
| | | | | | | | |
C) Vertical
|
D) Downward sloping because of the income and substitution effects of price
| | | | | | | | | | | |
changes - CORRECT ANSWER✔✔-D) Downward sloping because of the income
| | | | | | | | | |
and substitution effects of price changes
| | | | |
A decrease in the price of a complementary good will
| | | | | | | | |
A) Shift the demand curve of the other commodity to the left
| | | | | | | | | | |
B) Increase the price paid for a substitute good
| | | | | | | |
C) Shift the supply curve of the other commodity to the left
| | | | | | | | | | |
,D) Shift the demand curve of the other commodity to the right - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-D) Shift the demand curve of the other commodity to the right
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Which one of the following changes will cause the demand curve for gasoline to
| | | | | | | | | | | | | |
shift to the left
| | |
A) The price of gasoline increases
| | | | |
B) The supply of gasoline decreases
| | | | |
C) The price of cars increase
| | | | |
D) The price of cars decrease - CORRECT ANSWER✔✔-C) The price of cars
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increase
Tennis rackets and tennis balls are
| | | | |
A)Substitute goods |
B) Independent goods
| |
C) Inferior goods
| |
D) Complementary goods - CORRECT ANSWER✔✔-D) Complementary goods
| | | | | | |
A supply curve illustrates the relationship between
| | | | | |
A) Price and quantity supplied
| | | |
B)Price and consumer tastes
| | |
C) price and quantity demanded
| | | |
D) Supply and demand - CORRECT ANSWER✔✔-A) Price and quantity supplied
| | | | | | | | | |
In relation to the laws of supply and demand, an increase in supply will
| | | | | | | | | | | | |
, A) Increase the equilibrium price and the equilibrium quantity exchanged
| | | | | | | | |
B) Decrease the equilibrium price and the equilibrium quantity exchanged
| | | | | | | | |
C) Increase the equilibrium price and decrease the equilibrium quantity
| | | | | | | | | |
exchanged
D) Decrease the equilibrium price and increase the equilibrium quantity
| | | | | | | | | |
exchanged - CORRECT ANSWER✔✔-D) Decrease the equilibrium price and
| | | | | | | | |
increase the equilibrium quantity exchanged
| | | |
An increase in the market supply of beef would result in a(n)
| | | | | | | | | | |
A) increase in the price of beef
| | | | | |
B) Decrease in the price of beef
| | | | | |
C) Increase in the price of pork
| | | | | |
D) Increase in the quantity of the beef demanded - CORRECT ANSWER✔✔-D)
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Increase in the quantity of the beef demanded
| | | | | | |
In any competitive market, an increase in both demand and supply can be
| | | | | | | | | | | | |
expected to always | |
A) Increase both price and market-clearing quantity
| | | | | |
B) Decrease both price and market-clearing quantity
| | | | | |
C) Increase market-clearing quantity
| | |
D) Increase price - CORRECT ANSWER✔✔-C) Increase market-clearing quantity
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If both the supply and demand for a good increase, the market price will
| | | | | | | | | | | | |
A) Rise only in the case of an inelastic supply function
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B) Fall only in the case of an inelastic supply function
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