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A. completely inelastic.





Group_______Name and Last name: _________________________________________

Date: ___/___/ 2009 Score:

Duration: 90 mins


Each question is 2.3 points. Copy the answers to the table below.
1. A supply curve reveals

a. the quantity of output consumers are willing to purchase at each possible market price.

b. the difference between quantity demanded and quantity supplied at each price.

c. the maximum level of output an industry can produce, regardless of price.

D. the quantity of output that producers are willing to produce and sell at each possible market price

2. When an industry's raw material costs increase, other things remaining the same,

A. the supply curve shifts to the left.

b. the supply curve shifts to the right.

c. output increases regardless of the market price and the supply curve shifts upward.

d. output decreases and the market price also decreases.

3. Indifference curves are convex to the origin because of:

a. transitivity of consumer preferences.

B. the assumption of a diminishing marginal rate of substitution.

c. the assumption that more is preferred to less.

d. the assumption of completeness.

e. none of the above.

4. Which of these measures the responsiveness of the quantity of one good demanded to an increase in the price of another good?

a. price elasticity.

b. income elasticity.

C. cross‑price elasticity.

d. cross‑substitution elasticity.

5. Microeconomics is the branch of economics that deals with which of the following topics?

a. The behavior of individual consumers

b. Unemployment and interest rates

c. The behavior of individual firms and investors

d. (b) and (c)

e. (a) and (c)

6. The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that:

a. good A is used to produce good B.

b. good B is used to produce good A.

c. goods A and B are substitutes.

D. goods A and B are complements.

e. none of the above.


7. The cross‑price elasticity between a pair of complementary goods will be

a. positive.

b. negative.

c. zero.

d. positive or zero depending upon the strength of the relationship.

8. Along any downward sloping straight-line demand curve:

a. both the price elasticity and slope vary.

B. the price elasticity varies, but the slope is constant.

c. the slope varies, but the price elasticity is constant.

d. both the price elasticity and slope are constant.

9. Consider the demand curve of the form Q = a - bP. If a is a positive real number, and b = 0, then demand is

a. completely inelastic.

b. inelastic, but not completely.

c. unit elastic.

d. elastic, but not infinitely.

10. Which of the following is a positive statement?

a. The President of RK ought to be elected by a direct vote of the Kazakhstani people rather than the Parliament.

Date: 2015-12-24; view: 887

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True or false: A firm should always produce at an output at which long-run average cost is minimized. Explain. | b. A shift to the right in the supply curve for DVD players and a shift to the left in the demand curve for DVD players.
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