Chapter 03 Testbank
n n
Student: n
1. In nCuba,nanbureaucraticncommitteenmakesnthenproductionndecisionsnfornthencountry'snfirmsnandnf
actories.nThereforenCubanisnan nexamplenof na
A. centralizedneconomy.
B. capitalistneconomy.
C. mixedneconomy.
D. purenfree-marketneconomy.
2. Thenentirengroupnof nbuyersnandnsellersnof nanparticularngoodnornservicenmakesnup
A. onlynthendemandncurve.
B. onlynthensupplyncurve.
C. anmarket.
D. equilibrium.
,3. In norderntonunderstandnhownthenpricenof nangoodnisndeterminedninnthenfreenmarket,nonenmustna
ccountnfornthendesiresnof:
A. purchasersnexclusively.
B. sellersnexclusively.
C. governmental nagenciesnexclusively.
D. purchasersnandnsellers.
4. Buyersnandnsellersnof nanparticularngoodncomprisenthe
A. marketnfornthengood.
B. demandnfornthengood.
C. supplynfornthengood.
D. production npossibilitiesncurvenfornthengood.
5. In nanmarket,nthendemandersnarenthen andnthensuppliersnarenthen .
A. bosses;nworkers
B. poor;nwealthy
C. buyers;nsellers
D. sellers;nbuyers
,6. "Holdingnall nothernrelevantnfactorsnconstant,nconsumersnwillnpurchasenmorenof nangoodnasnthenpricenf
alls."nThisnstatementnreflectsnthenbehaviornunderlying
A. thendemandncurve.
B. an nincreasenin ndemand.
C. thensupplyncurve.
D. andecreasenin nthendemandncurve.
7. Thendemandncurvenillustratesnthenfactnthatnconsumers
A. tendntonpurchasenmorenof nangoodnasnitsnpricenrises.
B. purchasennamenbrandnproductsnmorenfrequentlynthan ngenericnproducts.
C. tendntonpurchasenmorenof nangoodnasnitsnpricenfalls.
D. purchasenmorenof nangoodnasntheirnincomesnrise.
8. Which nof nthenfollowingnisnNOTntruenof nandemandncurve?
A. Itnhasnnegativenslope.
B. Itnshowsnthenamountnconsumersnarenwillingnandnablentonpurchasenatnvariousnprices,nholdingno
thernfactorsnconstant.
C. Itnrelatesnthenpricenof nan nitemntonthenquantityndemandednof nthatnitem.
D. Itnshowsnhow nan nincreasenin npricenleadsntonan nincreasenin nquantityndemandednof nangood.
, 9. Andemandncurvenisn slopingnbecausen .
A. downward;nof nincreasingnopportunityncosts.
B. upward;npeoplenpreferntonpurchasenhigh nqualitynconsumerngoods.
C. downward;nreservation npricesntendntonfall noverntime.
D. downward;nfewernpeoplenarenwillingntonbuynthenitemnatnhighernprices.
10. Asncoffeenbecomesnmorenexpensive,nJamal nstartsndrinkingntea,nthereforenquantityndemandednfornc
offeendecreases.nThisnisncalled
A. thenincomeneffect.
B. thenchangenin nequilibrium.
C. thensubstitution neffect.
D. anshiftnin nthendemandncurve.
n n
Student: n
1. In nCuba,nanbureaucraticncommitteenmakesnthenproductionndecisionsnfornthencountry'snfirmsnandnf
actories.nThereforenCubanisnan nexamplenof na
A. centralizedneconomy.
B. capitalistneconomy.
C. mixedneconomy.
D. purenfree-marketneconomy.
2. Thenentirengroupnof nbuyersnandnsellersnof nanparticularngoodnornservicenmakesnup
A. onlynthendemandncurve.
B. onlynthensupplyncurve.
C. anmarket.
D. equilibrium.
,3. In norderntonunderstandnhownthenpricenof nangoodnisndeterminedninnthenfreenmarket,nonenmustna
ccountnfornthendesiresnof:
A. purchasersnexclusively.
B. sellersnexclusively.
C. governmental nagenciesnexclusively.
D. purchasersnandnsellers.
4. Buyersnandnsellersnof nanparticularngoodncomprisenthe
A. marketnfornthengood.
B. demandnfornthengood.
C. supplynfornthengood.
D. production npossibilitiesncurvenfornthengood.
5. In nanmarket,nthendemandersnarenthen andnthensuppliersnarenthen .
A. bosses;nworkers
B. poor;nwealthy
C. buyers;nsellers
D. sellers;nbuyers
,6. "Holdingnall nothernrelevantnfactorsnconstant,nconsumersnwillnpurchasenmorenof nangoodnasnthenpricenf
alls."nThisnstatementnreflectsnthenbehaviornunderlying
A. thendemandncurve.
B. an nincreasenin ndemand.
C. thensupplyncurve.
D. andecreasenin nthendemandncurve.
7. Thendemandncurvenillustratesnthenfactnthatnconsumers
A. tendntonpurchasenmorenof nangoodnasnitsnpricenrises.
B. purchasennamenbrandnproductsnmorenfrequentlynthan ngenericnproducts.
C. tendntonpurchasenmorenof nangoodnasnitsnpricenfalls.
D. purchasenmorenof nangoodnasntheirnincomesnrise.
8. Which nof nthenfollowingnisnNOTntruenof nandemandncurve?
A. Itnhasnnegativenslope.
B. Itnshowsnthenamountnconsumersnarenwillingnandnablentonpurchasenatnvariousnprices,nholdingno
thernfactorsnconstant.
C. Itnrelatesnthenpricenof nan nitemntonthenquantityndemandednof nthatnitem.
D. Itnshowsnhow nan nincreasenin npricenleadsntonan nincreasenin nquantityndemandednof nangood.
, 9. Andemandncurvenisn slopingnbecausen .
A. downward;nof nincreasingnopportunityncosts.
B. upward;npeoplenpreferntonpurchasenhigh nqualitynconsumerngoods.
C. downward;nreservation npricesntendntonfall noverntime.
D. downward;nfewernpeoplenarenwillingntonbuynthenitemnatnhighernprices.
10. Asncoffeenbecomesnmorenexpensive,nJamal nstartsndrinkingntea,nthereforenquantityndemandednfornc
offeendecreases.nThisnisncalled
A. thenincomeneffect.
B. thenchangenin nequilibrium.
C. thensubstitution neffect.
D. anshiftnin nthendemandncurve.
