Download Chapter 4 Test

Chapter 4 - Demand
What term best fits these statements?
1.
2.
3.
4.
5.
A good consumed instead of one that’s price has risen.
Demand that is very sensitive to a change in price.
A good that is bought and used along with another good.
Change in consumption resulting from a change of real income.
A good for which the demand falls when income rises.
6.
7.
8.
9.
10.
Price goes up quantity demanded goes down.
Factors that shift the demand curve.
Pepsi and Coke.
Peanut Butter and Jelly.
A graphic representation of a demand schedule.
11.
12.
13.
14.
15.
P * Q.
Everything stays constant.
Demand that is not very sensitive to a change in price.
A good that consumers will demand more of when their income
increases.
What happens when consumers react to an increase in a good’s price by consuming less of that good and more of other
goods.
16. The law of demand says;
17. A drop in price will do what to demand?
18. Describe the substitution effect?
19. The demand curve illustrates
20. For most goods, a rise in people’s income means that there will be
21. Which of the following is NOT an example of complements.
a.
b.
c.
d.
Skis and ski boots
Row boat and oars
Electric shaver and charging cord
Cubs and White Sox
22. Substitutes are
23. If you keep buying despite a price increase, your demand is
24. Which of the following is an example of a good with inelastic demand?
a.
b.
c.
d.
Life saving medicine
Television sets
Computers
Chewing Gum
25. Total revenue is defined as
Give an example for each of the following!
26. The S in the acronym SPITE stands for
27. The P in the acronym SPITE stands for
28. The I in the acronym SPITE stands for
29. The T in the acronym SPITE stands for
30. The E in the acronym SPITE stands for
Graph the following demand schedules:
P
500
400
300
200
100
Q
100
200
300
400
500
P
1000
900
800
700
600
500
Q
1000
3000
5000
7000
9000
11000
P
5000
4000
3000
2000
1000
500
Q
100
200
300
400
500
600
P
5000
4000
3000
2000
1000
500
Q
500
1000
1500
2000
2500
3000
Chapter 5 Supply
31.
32.
33.
34.
35.
The cost of producing one more unit of a good.
The extra income from selling one more unit of a good.
Quantity supplies decreases as price decreases.
Change in output from adding one additional worker.
A factor that can change.
36.
37.
38.
39.
40.
Fixed cost plus variable cost.
Price multiplied by quantity.
MR=MC.
Government payment that supports a business or market.
A payment to the government on the production or sale of a good.
41.
42.
43.
44.
45.
A measure of the way a quantity supplied reacts to a change in price.
A chart that lists how much of a good a supplier will offer at various prices.
A graph of the quantity supplied of a good by all suppliers at different prices.
Level where marginal product goes up with a new investment.
Level where total product increases at a smaller rate with new investment.
Multiple Choice:
46. A market supply curve shows;
47. Which of the following businesses has elastic supply?
a.
b.
c.
d.
Newspaper publishing
Apple farming
Hair cutting
Electricity generating
48. Which of the following is an example of a variable cost?
a.
b.
c.
d.
Rent
Machinery repair
Equipment
Raw materials
49. The change in output from adding one more worker is the
50. Marginal cost is
51. Which of the following leads to an increase in supply
a.
b.
c.
d.
An increase in cost of raw materials
A decrease in the cost of raw materials
Diminishing marginal returns
A change in the law of supply
52. A subsidy is
53. If sellers expect the price of a good to rise in the future, they will
54. What factor has the greatest influence on elasticity and inelasticity of supply?
55. Which of the following is a fixed cost for a store?
a.
b.
c.
d.
Short-term workers
Rent
Advertising
Inventory
56. What is the effect of import restrictions on prices?
57. Which of the following is an example of a good with an inelastic supply?
a.
b.
c.
d.
Beanbags
Toothbrushes
Apples
Hats
Chapter 6 Supply
58. At what point does quantity demanded and quantity supplied become equal?
59. When the quantity demanded is more than the quantity supplied what economic situation has occurred?
60. What economic situation has occurred when the quantity supplied is more than the quantity demanded?