Test Bank for Economics of Managerial Decisions 1st Edition Blair

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,Economics of Managerial Decisions 1st Edition Blair Test Bank

Exam

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) If the price of ground beef decreases, which of the following will occur? 1)
A) The demand curve for ground beef will shift to the left.
B) Consumers will experience a decrease in their purchasing power.
C) There will be a movement down the demand curve for ground beef.
D) The substitution effect will cause some consumers to switch to other types of meat.
Answer: C

2) If the price of peanut butter increases, which of the following will occur? 2)
A) The demand curve for peanut butter will shift to the left.
B) Consumers will experience an increase in their purchasing power.
C) There will be a movement up the demand curve for peanut butter.
D) The demand curve for peanut butter will shift to the right.
Answer: C

3) Which of the following will cause a movement along the demand curve for apple juice? 3)
A) an expected change in the future price of apple juice
B) an increase in the price of apple juice
C) a change in the price of orange juice, a substitute for apple juice
D) a decrease in consumer incomes
Answer: B

4) Which of the following will cause a movement down the demand curve for frozen chicken 4)
nuggets?
A) an increase in the price of frozen chicken nuggets
B) a decrease in consumer incomes
C) an increase in consumer incomes
D) a decrease in the price of frozen chicken nuggets
Answer: D

5) Which of the following will cause a movement up the demand curve for digital printing services? 5)
A) a decrease in consumer incomes
B) an increase in consumer incomes
C) an increase in the price of digital printing services
D) a decrease in the price of digital printing services
Answer: C

6) The demand function for Super Big Bright LED light bulbs is Qd = (45 million) - (3.5 million × P). If 6)
the company charged a price of $8 per bulb, how many will be demanded?
A) 17 million B) 41.5 million C) 37 million D) 10 million
Answer: A




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, 7) The demand function for Super Big Bright LED light bulbs is Qd = (45 million) - (3.5 million × P). 7)
The company is currently charging a price of $8 per bulb, but is considering increasing the price to
$10. How will the increase in price affect the quantity demanded?
A) Consumers will increase the quantity demanded by 10 million.
B) Consumers will increase the quantity demanded by 7 million.
C) Consumers will decrease the quantity demanded by 7 million.
D) Consumers will decrease the quantity demanded by 10 million.
Answer: C

8) The demand function for a pack of four Never Die Batteries is Qd = (62 million) - (8 million × P). If 8)
the company charged a price of $5 per package, how many packages will be demanded?
A) 102 million B) 54 million C) 8 million D) 22 million
Answer: D

9) The demand function for a pack of four Never Die Batteries is Qd = (62 million) - (8 million × P). 9)
The company is currently charging a price of $5 per package, but is considering decreasing the
price to $4. How will the decrease in price affect how many packages of batteries consumers will
buy?
A) Consumers will decrease the quantity demanded by 30 million.
B) Consumers will increase the quantity demanded by 30 million.
C) Consumers will decrease the quantity demanded by 8 million.
D) Consumers will increase the quantity demanded by 8 million.
Answer: D

10) For any demand function, which of the following represents the dependent variable? 10)
A) the price of a substitute good B) consumer incomes
C) the price of the good D) the quantity demanded of a good
Answer: D

11) For demand functions, which of the following cannot be an independent variable? 11)
A) consumer incomes B) the price of the good in question
C) the quantity demanded of a good D) the price of a substitute good
Answer: C

12) If an increase in consumers' incomes results in a leftward shift of the demand curve for a good, 12)
which of the following is true?
A) The good has an upward sloping demand curve.
B) The good is a normal good.
C) The demand for the good does not follow the Law of Demand.
D) The good is an inferior good.
Answer: D

13) If Goods X and Y are complements, if the price of Good X decreases, this will cause a movement 13)
________ the demand curve for Good X and a ________ shift in the demand for Good Y.
A) down; leftward B) up; rightward
C) up; leftward D) down; rightward
Answer: D




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, 14) If Goods X and Y are substitutes, if the price of Good X decreases, this will cause a movement 14)
________ the demand curve for Good X and a ________ shift in the demand for Good Y.
A) up; leftward B) up; rightward
C) down; leftward D) down; rightward
Answer: C

15) If Goods X and Y are substitutes, if the price of Good X increases, this will cause a movement 15)
________ the demand curve for Good X and a ________ shift in the demand for Good Y.
A) up; leftward B) down; rightward
C) down; leftward D) up; rightward
Answer: D




16) Refer to the figure above. Which of the following could have caused the shift in the demand curve? 16)
A) an increase in the price of a substitute for Good Z
B) a decrease in the expected future price of Good Z
C) a decrease in the price of Good Z
D) an increase in income if Good Z is an inferior good
Answer: A

17) Refer to the figure above. Which of the following could have caused the shift in the demand curve? 17)
A) a decrease in the price of a substitute for Good Z
B) an increase in the price of a complement for Good Z
C) a decrease in income if Good Z is an inferior good
D) a decrease in the price of Good Z
Answer: C




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