Chapter 03 Testbank
u u
Student:u
1. InuCuba,uaubureaucraticucommitteeumakesutheuproductionudecisionsuforutheucountry'sufirmsuanduf
actories.uThereforeuCubauisuanuexampleuofua
A. centralizedueconomy.
B. capitalistueconomy.
C. mixedueconomy.
D. pureufree-marketueconomy.
2. Theuentireugroupuofubuyersuandusellersuofuauparticularugooduoruserviceumakesuup
A. onlyutheudemanducurve.
B. onlyutheusupplyucurve.
C. aumarket.
D. equilibrium.
,3. Inuorderutouunderstanduhowutheupriceuofuaugooduisudetermineduinutheufreeumarket,uoneumustua
ccountuforutheudesiresuof:
A. purchasersuexclusively.
B. sellersuexclusively.
C. governmentaluagenciesuexclusively.
D. purchasersuandusellers.
4. Buyersuandusellersuofuauparticularugooducompriseuthe
A. marketuforutheugood.
B. demanduforutheugood.
C. supplyuforutheugood.
D. productionupossibilitiesucurveuforutheugood.
5. Inuaumarket,utheudemandersuareutheu andutheusuppliersuareutheu .
A. bosses;uworkers
B. poor;uwealthy
C. buyers;usellers
D. sellers;ubuyers
,6. "Holdingualluotherurelevantufactorsuconstant,uconsumersuwillupurchaseumoreuofuaugooduasutheupriceuf
alls."uThisustatementureflectsutheubehavioruunderlying
A. theudemanducurve.
B. anuincreaseuinudemand.
C. theusupplyucurve.
D. audecreaseuinutheudemanducurve.
7. Theudemanducurveuillustratesutheufactuthatuconsumers
A. tendutoupurchaseumoreuofuaugooduasuitsupriceurises.
B. purchaseunameubranduproductsumoreufrequentlyuthanugenericuproducts.
C. tendutoupurchaseumoreuofuaugooduasuitsupriceufalls.
D. purchaseumoreuofuaugooduasutheiruincomesurise.
8. WhichuofutheufollowinguisuNOTutrueuofuaudemanducurve?
A. Ituhasunegativeuslope.
B. Itushowsutheuamountuconsumersuareuwillinguanduableutoupurchaseuatuvariousuprices,uholdinguo
therufactorsuconstant.
C. Iturelatesutheupriceuofuanuitemutoutheuquantityudemandeduofuthatuitem.
D. Itushowsuhowuanuincreaseuinupriceuleadsutouanuincreaseuinuquantityudemandeduofuaugood.
, 9. Audemanducurveuisu slopingubecauseu .
A. downward;uofuincreasinguopportunityucosts.
B. upward;upeopleupreferutoupurchaseuhighuqualityuconsumerugoods.
C. downward;ureservationupricesutendutoufalluoverutime.
D. downward;ufewerupeopleuareuwillingutoubuyutheuitemuatuhigheruprices.
10. Asucoffeeubecomesumoreuexpensive,uJamalustartsudrinkingutea,uthereforeuquantityudemandeduforuc
offeeudecreases.uThisuisucalled
A. theuincomeueffect.
B. theuchangeuinuequilibrium.
C. theusubstitutionueffect.
D. aushiftuinutheudemanducurve.
u u
Student:u
1. InuCuba,uaubureaucraticucommitteeumakesutheuproductionudecisionsuforutheucountry'sufirmsuanduf
actories.uThereforeuCubauisuanuexampleuofua
A. centralizedueconomy.
B. capitalistueconomy.
C. mixedueconomy.
D. pureufree-marketueconomy.
2. Theuentireugroupuofubuyersuandusellersuofuauparticularugooduoruserviceumakesuup
A. onlyutheudemanducurve.
B. onlyutheusupplyucurve.
C. aumarket.
D. equilibrium.
,3. Inuorderutouunderstanduhowutheupriceuofuaugooduisudetermineduinutheufreeumarket,uoneumustua
ccountuforutheudesiresuof:
A. purchasersuexclusively.
B. sellersuexclusively.
C. governmentaluagenciesuexclusively.
D. purchasersuandusellers.
4. Buyersuandusellersuofuauparticularugooducompriseuthe
A. marketuforutheugood.
B. demanduforutheugood.
C. supplyuforutheugood.
D. productionupossibilitiesucurveuforutheugood.
5. Inuaumarket,utheudemandersuareutheu andutheusuppliersuareutheu .
A. bosses;uworkers
B. poor;uwealthy
C. buyers;usellers
D. sellers;ubuyers
,6. "Holdingualluotherurelevantufactorsuconstant,uconsumersuwillupurchaseumoreuofuaugooduasutheupriceuf
alls."uThisustatementureflectsutheubehavioruunderlying
A. theudemanducurve.
B. anuincreaseuinudemand.
C. theusupplyucurve.
D. audecreaseuinutheudemanducurve.
7. Theudemanducurveuillustratesutheufactuthatuconsumers
A. tendutoupurchaseumoreuofuaugooduasuitsupriceurises.
B. purchaseunameubranduproductsumoreufrequentlyuthanugenericuproducts.
C. tendutoupurchaseumoreuofuaugooduasuitsupriceufalls.
D. purchaseumoreuofuaugooduasutheiruincomesurise.
8. WhichuofutheufollowinguisuNOTutrueuofuaudemanducurve?
A. Ituhasunegativeuslope.
B. Itushowsutheuamountuconsumersuareuwillinguanduableutoupurchaseuatuvariousuprices,uholdinguo
therufactorsuconstant.
C. Iturelatesutheupriceuofuanuitemutoutheuquantityudemandeduofuthatuitem.
D. Itushowsuhowuanuincreaseuinupriceuleadsutouanuincreaseuinuquantityudemandeduofuaugood.
, 9. Audemanducurveuisu slopingubecauseu .
A. downward;uofuincreasinguopportunityucosts.
B. upward;upeopleupreferutoupurchaseuhighuqualityuconsumerugoods.
C. downward;ureservationupricesutendutoufalluoverutime.
D. downward;ufewerupeopleuareuwillingutoubuyutheuitemuatuhigheruprices.
10. Asucoffeeubecomesumoreuexpensive,uJamalustartsudrinkingutea,uthereforeuquantityudemandeduforuc
offeeudecreases.uThisuisucalled
A. theuincomeueffect.
B. theuchangeuinuequilibrium.
C. theusubstitutionueffect.
D. aushiftuinutheudemanducurve.
