Chapter 03 Testbank
j j
Student:j
1. InjCuba,jajbureaucraticjcommitteejmakesjthejproductionjdecisionsjforjthejcountry'sjfirmsjandjfactor
ies.jThereforejCubajisjanjexamplejofja
A. centralizedjeconomy.
B. capitalistjeconomy.
C. mixedjeconomy.
D. purejfree-marketjeconomy.
2. Thejentirejgroupjofjbuyersjandjsellersjofjajparticularjgoodjorjservicejmakesjup
A. onlyjthejdemandjcurve.
B. onlyjthejsupplyjcurve.
C. ajmarket.
D. equilibrium.
,3. Injorderjtojunderstandjhowjthejpricejofjajgoodjisjdeterminedjinjthejfreejmarket,jonejmustjaccoun
tjforjthejdesiresjof:
A. purchasersjexclusively.
B. sellersjexclusively.
C. governmentaljagenciesjexclusively.
D. purchasersjandjsellers.
4. Buyersjandjsellersjofjajparticularjgoodjcomprisejthe
A. marketjforjthejgood.
B. demandjforjthejgood.
C. supplyjforjthejgood.
D. productionjpossibilitiesjcurvejforjthejgood.
5. Injajmarket,jthejdemandersjarejthej andjthejsuppliersjarejthej .
A. bosses;jworkers
B. poor;jwealthy
C. buyers;jsellers
D. sellers;jbuyers
,6. "Holdingjalljotherjrelevantjfactorsjconstant,jconsumersjwilljpurchasejmorejofjajgoodjasjthejpricejfalls."j
Thisjstatementjreflectsjthejbehaviorjunderlying
A. thejdemandjcurve.
B. anjincreasejinjdemand.
C. thejsupplyjcurve.
D. ajdecreasejinjthejdemandjcurve.
7. Thejdemandjcurvejillustratesjthejfactjthatjconsumers
A. tendjtojpurchasejmorejofjajgoodjasjitsjpricejrises.
B. purchasejnamejbrandjproductsjmorejfrequentlyjthanjgenericjproducts.
C. tendjtojpurchasejmorejofjajgoodjasjitsjpricejfalls.
D. purchasejmorejofjajgoodjasjtheirjincomesjrise.
8. WhichjofjthejfollowingjisjNOTjtruejofjajdemandjcurve?
A. Itjhasjnegativejslope.
B. Itjshowsjthejamountjconsumersjarejwillingjandjablejtojpurchasejatjvariousjprices,jholdingjotherjf
actorsjconstant.
C. Itjrelatesjthejpricejofjanjitemjtojthejquantityjdemandedjofjthatjitem.
D. Itjshowsjhowjanjincreasejinjpricejleadsjtojanjincreasejinjquantityjdemandedjofjajgood.
, 9. Ajdemandjcurvejisj slopingjbecausej .
A. downward;jofjincreasingjopportunityjcosts.
B. upward;jpeoplejpreferjtojpurchasejhighjqualityjconsumerjgoods.
C. downward;jreservationjpricesjtendjtojfalljoverjtime.
D. downward;jfewerjpeoplejarejwillingjtojbuyjthejitemjatjhigherjprices.
10. Asjcoffeejbecomesjmorejexpensive,jJamaljstartsjdrinkingjtea,jthereforejquantityjdemandedjforjcoffe
ejdecreases.jThisjisjcalled
A. thejincomejeffect.
B. thejchangejinjequilibrium.
C. thejsubstitutionjeffect.
D. ajshiftjinjthejdemandjcurve.
j j
Student:j
1. InjCuba,jajbureaucraticjcommitteejmakesjthejproductionjdecisionsjforjthejcountry'sjfirmsjandjfactor
ies.jThereforejCubajisjanjexamplejofja
A. centralizedjeconomy.
B. capitalistjeconomy.
C. mixedjeconomy.
D. purejfree-marketjeconomy.
2. Thejentirejgroupjofjbuyersjandjsellersjofjajparticularjgoodjorjservicejmakesjup
A. onlyjthejdemandjcurve.
B. onlyjthejsupplyjcurve.
C. ajmarket.
D. equilibrium.
,3. Injorderjtojunderstandjhowjthejpricejofjajgoodjisjdeterminedjinjthejfreejmarket,jonejmustjaccoun
tjforjthejdesiresjof:
A. purchasersjexclusively.
B. sellersjexclusively.
C. governmentaljagenciesjexclusively.
D. purchasersjandjsellers.
4. Buyersjandjsellersjofjajparticularjgoodjcomprisejthe
A. marketjforjthejgood.
B. demandjforjthejgood.
C. supplyjforjthejgood.
D. productionjpossibilitiesjcurvejforjthejgood.
5. Injajmarket,jthejdemandersjarejthej andjthejsuppliersjarejthej .
A. bosses;jworkers
B. poor;jwealthy
C. buyers;jsellers
D. sellers;jbuyers
,6. "Holdingjalljotherjrelevantjfactorsjconstant,jconsumersjwilljpurchasejmorejofjajgoodjasjthejpricejfalls."j
Thisjstatementjreflectsjthejbehaviorjunderlying
A. thejdemandjcurve.
B. anjincreasejinjdemand.
C. thejsupplyjcurve.
D. ajdecreasejinjthejdemandjcurve.
7. Thejdemandjcurvejillustratesjthejfactjthatjconsumers
A. tendjtojpurchasejmorejofjajgoodjasjitsjpricejrises.
B. purchasejnamejbrandjproductsjmorejfrequentlyjthanjgenericjproducts.
C. tendjtojpurchasejmorejofjajgoodjasjitsjpricejfalls.
D. purchasejmorejofjajgoodjasjtheirjincomesjrise.
8. WhichjofjthejfollowingjisjNOTjtruejofjajdemandjcurve?
A. Itjhasjnegativejslope.
B. Itjshowsjthejamountjconsumersjarejwillingjandjablejtojpurchasejatjvariousjprices,jholdingjotherjf
actorsjconstant.
C. Itjrelatesjthejpricejofjanjitemjtojthejquantityjdemandedjofjthatjitem.
D. Itjshowsjhowjanjincreasejinjpricejleadsjtojanjincreasejinjquantityjdemandedjofjajgood.
, 9. Ajdemandjcurvejisj slopingjbecausej .
A. downward;jofjincreasingjopportunityjcosts.
B. upward;jpeoplejpreferjtojpurchasejhighjqualityjconsumerjgoods.
C. downward;jreservationjpricesjtendjtojfalljoverjtime.
D. downward;jfewerjpeoplejarejwillingjtojbuyjthejitemjatjhigherjprices.
10. Asjcoffeejbecomesjmorejexpensive,jJamaljstartsjdrinkingjtea,jthereforejquantityjdemandedjforjcoffe
ejdecreases.jThisjisjcalled
A. thejincomejeffect.
B. thejchangejinjequilibrium.
C. thejsubstitutionjeffect.
D. ajshiftjinjthejdemandjcurve.
