ECON 101 – EXAM 1 (IOWA STATE UNIVERSITY)
COMPLETE 100+ QUESTIONS WITH 100% VERIFIED
ANSWERS
1. The term that means "other aspects being identical" is:
A) Post hoc ergo propter hoc
B) Ceteris Paribus
C) Ad valorem
D) Per capita
Correct Answer: B
2. A change in demand is:
A) A movement along a fixed demand curve caused by a change in price
B) A shift in the demand curve caused by a non-price determinant of
demand
C) A movement along a fixed supply curve
D) A change in the quantity supplied
Correct Answer: B
3. A change in supply occurs when:
A) The price of the good changes
B) A non-price determinant of supply changes
C) The quantity demanded changes
D) There is a movement along the demand curve
Correct Answer: B
, 4. A change in the quantity demanded is:
A) A movement along a fixed demand curve that happens when price
changes
B) A shift in the demand curve
C) A change in consumer tastes
D) A change in the number of consumers
Correct Answer: A
5. A change in the quantity supplied is:
A) A movement along a fixed supply curve that happens when price
changes
B) A shift in the supply curve
C) A change in technology
D) A change in input prices
Correct Answer: A
6. The Circular Flow Diagram is:
A) A visual model of the economy showing how dollars flow through
markets among households and firms
B) A chart showing only government spending
C) A diagram of supply and demand curves
D) A model of international trade
Correct Answer: A
7. A competitive market is:
A) A market with only one seller
B) A market with many buyers and sellers so that each has a negligible
, effect on the market price
C) A market with government price controls
D) A market with only one buyer
Correct Answer: B
8. Two goods are complements if:
A) A fall in the price of one good increases the demand for the other good
B) A rise in the price of one good increases the demand for the other good
C) The goods are identical
D) The goods are produced by the same firm
Correct Answer: A
9. Cross-price elasticity of demand measures:
A) The response of demand for one good to changes in the price of
another good
B) The response of supply to a change in price
C) The response of quantity demanded to a change in income
D) The response of quantity supplied to a change in technology
Correct Answer: A
10.A demand curve is:
A) A table showing the relationship between price and quantity demanded
B) A graph of the relationship between the price of a good and the
quantity demanded
C) A line showing only supply
D) A diagram of market equilibrium
Correct Answer: B
COMPLETE 100+ QUESTIONS WITH 100% VERIFIED
ANSWERS
1. The term that means "other aspects being identical" is:
A) Post hoc ergo propter hoc
B) Ceteris Paribus
C) Ad valorem
D) Per capita
Correct Answer: B
2. A change in demand is:
A) A movement along a fixed demand curve caused by a change in price
B) A shift in the demand curve caused by a non-price determinant of
demand
C) A movement along a fixed supply curve
D) A change in the quantity supplied
Correct Answer: B
3. A change in supply occurs when:
A) The price of the good changes
B) A non-price determinant of supply changes
C) The quantity demanded changes
D) There is a movement along the demand curve
Correct Answer: B
, 4. A change in the quantity demanded is:
A) A movement along a fixed demand curve that happens when price
changes
B) A shift in the demand curve
C) A change in consumer tastes
D) A change in the number of consumers
Correct Answer: A
5. A change in the quantity supplied is:
A) A movement along a fixed supply curve that happens when price
changes
B) A shift in the supply curve
C) A change in technology
D) A change in input prices
Correct Answer: A
6. The Circular Flow Diagram is:
A) A visual model of the economy showing how dollars flow through
markets among households and firms
B) A chart showing only government spending
C) A diagram of supply and demand curves
D) A model of international trade
Correct Answer: A
7. A competitive market is:
A) A market with only one seller
B) A market with many buyers and sellers so that each has a negligible
, effect on the market price
C) A market with government price controls
D) A market with only one buyer
Correct Answer: B
8. Two goods are complements if:
A) A fall in the price of one good increases the demand for the other good
B) A rise in the price of one good increases the demand for the other good
C) The goods are identical
D) The goods are produced by the same firm
Correct Answer: A
9. Cross-price elasticity of demand measures:
A) The response of demand for one good to changes in the price of
another good
B) The response of supply to a change in price
C) The response of quantity demanded to a change in income
D) The response of quantity supplied to a change in technology
Correct Answer: A
10.A demand curve is:
A) A table showing the relationship between price and quantity demanded
B) A graph of the relationship between the price of a good and the
quantity demanded
C) A line showing only supply
D) A diagram of market equilibrium
Correct Answer: B
