ECON 304 WITH 110+ EXAM QUESTIONS & CORRECT ANSWERS

ECON 304 WITH 110+ EXAM QUESTIONS & CORRECT
ANSWERS



The law of demand suggests that as price rise the quantity of a good purchased will
also rise. - ANSWER-False


When drawing a graph of demand, price is generally placed on the vertical axis. -
ANSWER-True


Changes in the price of a good are considered demand shifters. - ANSWER-False


Demand is defined as the various quantities of a good or service that people are
willing and able to buy at various prices during some time period. - ANSWER-
True


The law of demand is a fairly weak law. In fact this is one of the weakest laws in
economics. - ANSWER-false


An increase in the price of a complement will shift the demand curve to the right. -
ANSWER-false


An increase in the price of a substitute will shift the demand curve to the right -
ANSWER-true


An increase in the price of the good itself will shift the demand to the left. -
ANSWER-false

,An increase in income will always shift the demand to the right. - ANSWER-False


An increase in taste for a good will shift the demand to the right. - ANSWER-True


The supply curve is downward sloping - ANSWER-false


More producers will shift the supply curve to the left - ANSWER-False


An increase in subsidies will shift the supply curve to the right - ANSWER-True


An increase in expected prices in the future will shift the supply curve to the left. -
ANSWER-False


An increase in the price of inputs will shift the supply to the left - ANSWER-True


As the price of a good falls people are willing and able to pruduce more of a good
or service. - ANSWER-False


Shifting the Demand Curve to the Right will result in an Increase in Price and an
Increase in Quantity - ANSWER-True


Shifting the Demand Curve to the Left will result in an Decrease in Price and an
Increase in Quantity - ANSWER-False


Shifting the Supply Curve to the Left will result in an Decrease in Price and an
Decrease in Quantity - ANSWER-False

, Shifting the Supply Curve to the Right will result in an Decrease in Price and an
Increase in Quantity - ANSWER-true


If the Demand is P = 100 - 4Q and the Supply is P=6Q
What is the equilibrium Price and Quantity - ANSWER-Q* = 10, P*=60


If the Demand is P = 100 - 4Q and the Supply is P=6Q
What is the choke price - ANSWER-100


If the Demand is P = 100 - 4Q and the Supply is P=6Q
What is the CS - ANSWER-200


If the Demand is P = 100 - 4Q and the Supply is P=6Q
What is the PS - ANSWER-300


If the Demand is P = 100 - 4Q and the Supply is P=6Q
What is the TS - ANSWER-500


If the Demand is P = 100 - 4Q and the Supply is P=6Q
If the price was set by the government at $80 would this be a Price Floor -
ANSWER-True


If the Demand is P = 100 - 4Q and the Supply is P=6Q
If the price was set by the government at $80 would this be a would this result in a
Surplus or a Shortage - ANSWER-Surplus