Chapter 03 Testbankk k
Student: k
1. In k Cuba,kakbureaucratick committeek makesk thekproductionkdecisionskfork thekcountry'sk firmskandkfa
ctories.k Thereforek Cubak isk an k examplek of k a
A. centralizedkeconomy.
B. capitalistk economy.
C. mixedk economy.
D. purek free-marketk economy.
2. Thek entirek groupk of k buyersk andk sellersk of k ak particulark goodk ork servicek makesk up
A. onlyk thek demandk curve.
B. onlyk thek supplyk curve.
C. ak market.
D. equilibrium.
,3. In k orderk tok understandkhowkthekpricek of kakgoodkisk determinedkink thekfreekmarket,k onekmustk ac
countk fork thek desiresk of:
A. purchasersk exclusively.
B. sellersk exclusively.
C. governmental kagenciesk exclusively.
D. purchasersk andk sellers.
4. Buyersk andk sellersk of k ak particulark goodk comprisek the
A. marketk fork thek good.
B. demandk fork thek good.
C. supplyk fork thek good.
D. production kpossibilitiesk curvek fork thek good.
5. In k ak market,k thek demandersk arek thek andk thek suppliersk arek thek .
A. bosses;k workers
B. poor;k wealthy
C. buyers;k sellers
D. sellers;k buyers
,6. "Holdingkallkotherk relevantk factorsk constant,k consumersk will kpurchasekmorekof kakgoodk askthekpricekfa
lls."k Thisk statementk reflectsk thek behaviork underlying
A. thek demandk curve.
B. an k increasek in k demand.
C. thek supplyk curve.
D. ak decreasek in k thek demandk curve.
7. Thek demandk curvek illustratesk thek factk thatk consumers
A. tendk tok purchasek morek of k ak goodk ask itsk pricek rises.
B. purchasek namekbrandkproductsk morek frequentlyk than k generick products.
C. tendk tok purchasek morek of k ak goodk ask itsk pricek falls.
D. purchasek morek of k ak goodk ask theirk incomesk rise.
8. Which k of k thek followingk isk NOTk truek of k ak demandk curve?
A. Itk hask negativek slope.
B. Itk showsk thekamountkconsumersk arek willingk andkablektokpurchasekatkvariouskprices,kholdingkot
herk factorsk constant.
C. Itk relatesk thek pricek of k an k itemk tok thek quantityk demandedk of k thatk item.
D. Itk showsk how k an k increasek in k pricek leadsk tok an k increasek in k quantityk demandedk of k ak good.
, 9. Ak demandk curvek isk slopingk becausek .
A. downward;k of k increasingk opportunityk costs.
B. upward;k peoplek preferk tok purchasek high k qualityk consumerk goods.
C. downward;k reservation k pricesk tendk tok fall k overk time.
D. downward;k fewerk peoplek arek willingk tok buyk thek itemk atk higherk prices.
10. Ask coffeekbecomeskmorek expensive,k Jamal kstartsk drinkingktea,k thereforek quantitykdemandedk fork c
offeek decreases.k Thisk isk called
A. thek incomek effect.
B. thek changek in k equilibrium.
C. thek substitution k effect.
D. ak shiftk in k thek demandk curve.
Student: k
1. In k Cuba,kakbureaucratick committeek makesk thekproductionkdecisionskfork thekcountry'sk firmskandkfa
ctories.k Thereforek Cubak isk an k examplek of k a
A. centralizedkeconomy.
B. capitalistk economy.
C. mixedk economy.
D. purek free-marketk economy.
2. Thek entirek groupk of k buyersk andk sellersk of k ak particulark goodk ork servicek makesk up
A. onlyk thek demandk curve.
B. onlyk thek supplyk curve.
C. ak market.
D. equilibrium.
,3. In k orderk tok understandkhowkthekpricek of kakgoodkisk determinedkink thekfreekmarket,k onekmustk ac
countk fork thek desiresk of:
A. purchasersk exclusively.
B. sellersk exclusively.
C. governmental kagenciesk exclusively.
D. purchasersk andk sellers.
4. Buyersk andk sellersk of k ak particulark goodk comprisek the
A. marketk fork thek good.
B. demandk fork thek good.
C. supplyk fork thek good.
D. production kpossibilitiesk curvek fork thek good.
5. In k ak market,k thek demandersk arek thek andk thek suppliersk arek thek .
A. bosses;k workers
B. poor;k wealthy
C. buyers;k sellers
D. sellers;k buyers
,6. "Holdingkallkotherk relevantk factorsk constant,k consumersk will kpurchasekmorekof kakgoodk askthekpricekfa
lls."k Thisk statementk reflectsk thek behaviork underlying
A. thek demandk curve.
B. an k increasek in k demand.
C. thek supplyk curve.
D. ak decreasek in k thek demandk curve.
7. Thek demandk curvek illustratesk thek factk thatk consumers
A. tendk tok purchasek morek of k ak goodk ask itsk pricek rises.
B. purchasek namekbrandkproductsk morek frequentlyk than k generick products.
C. tendk tok purchasek morek of k ak goodk ask itsk pricek falls.
D. purchasek morek of k ak goodk ask theirk incomesk rise.
8. Which k of k thek followingk isk NOTk truek of k ak demandk curve?
A. Itk hask negativek slope.
B. Itk showsk thekamountkconsumersk arek willingk andkablektokpurchasekatkvariouskprices,kholdingkot
herk factorsk constant.
C. Itk relatesk thek pricek of k an k itemk tok thek quantityk demandedk of k thatk item.
D. Itk showsk how k an k increasek in k pricek leadsk tok an k increasek in k quantityk demandedk of k ak good.
, 9. Ak demandk curvek isk slopingk becausek .
A. downward;k of k increasingk opportunityk costs.
B. upward;k peoplek preferk tok purchasek high k qualityk consumerk goods.
C. downward;k reservation k pricesk tendk tok fall k overk time.
D. downward;k fewerk peoplek arek willingk tok buyk thek itemk atk higherk prices.
10. Ask coffeekbecomeskmorek expensive,k Jamal kstartsk drinkingktea,k thereforek quantitykdemandedk fork c
offeek decreases.k Thisk isk called
A. thek incomek effect.
B. thek changek in k equilibrium.
C. thek substitution k effect.
D. ak shiftk in k thek demandk curve.
