Chapter 03 Testbank
g g
Student:g
1. IngCuba,gagbureaucraticgcommitteegmakesgthegproductiongdecisionsgforgthegcount
ry'sgfirmsgandgfactories.gThereforegCubagisgangexamplegofga
A. centralizedgeconomy.
B. capitalistgeconomy.
C. mixedgeconomy.
D. puregfree-marketgeconomy.
2. Thegentireggroupgofgbuyersgandgsellersgofgagparticularggoodgorgservic
egmakesgup
A. onlygthegdemandgcurve.
B. onlygthegsupplygcurve.
C. agmarket.
D. equilibrium.
,3. Ingordergtogunderstandghowgthegpricegofgaggoodgisgdeterminedgingthegfreegmar
ket,gonegmustgaccountgforgthegdesiresgof:
A. purchasersgexclusively.
B. sellersgexclusively.
C. governmentalgagenciesgexclusively.
D. purchasersgandgsellers.
4. Buyersgandgsellersgofgagparticularggoodgcompr
isegthe
A. marketgforgtheggood.
B. demandgforgtheggood.
C. supplygforgtheggood.
D. productiongpossibilitiesgcurvegforgtheggood.
5. Ingagmarket,gthegdemandersgaregtheg andgthegsuppliersgaregtheg .
A. bosses;gworkers
B. poor;gwealthy
C. buyers;gsellers
D. sellers;gbuyers
,6. "Holdinggallgothergrelevantgfactorsgconstant,gconsumersgwillgpurchasegmoregofgaggoo
dgasgthegpricegfalls."gThisgstatementgreflectsgthegbehaviorgunderlying
A. thegdemandgcurve.
B. angincreasegingdemand.
C. thegsupplygcurve.
D. agdecreasegingthegdemandgcurve.
7. Thegdemandgcurvegillustratesgthegfactgthatgconsumers
A. tendgtogpurchasegmoregofgaggoodgasgitsgpricegrises.
B. purchasegnamegbrandgproductsgmoregfrequentlygthanggeneric
gproducts.
C. tendgtogpurchasegmoregofgaggoodgasgitsgpricegfalls.
D. purchasegmoregofgaggoodgasgtheirgincomesgrise.
8. WhichgofgthegfollowinggisgNOTgtruegofgagdemandgcurve?
A. Itghasgnegativegslope.
B. Itgshowsgthegamountgconsumersgaregwillinggandgablegtogpurchasegatgvariousgpr
ices,gholdinggothergfactorsgconstant.
C. Itgrelatesgthegpricegofgangitemgtogthegquantitygdemandedgofgthatgitem.
D. Itgshowsghowgangincreasegingpricegleadsgtogangincreasegingquantitygdemandedg
ofgaggood.
, 9. Agdemandgcurvegisg slopinggbecauseg .
A. downward;gofgincreasinggopportunitygcosts.
B. upward;gpeoplegprefergtogpurchaseghighgqualitygconsumerg
goods.
C. downward;greservationgpricesgtendgtogfallgovergtime.
D. downward;gfewergpeoplegaregwillinggtogbuygthegitemgatghig
hergprices.
10. Asgcoffeegbecomesgmoregexpensive,gJamalgstartsgdrinkinggtea,gthereforegquantitygd
emandedgforgcoffeegdecreases.gThisgisgcalled
A. thegincomegeffect.
B. thegchangegingequilibrium.
C. thegsubstitutiongeffect.
D. agshiftgingthegdemandgcurve.
g g
Student:g
1. IngCuba,gagbureaucraticgcommitteegmakesgthegproductiongdecisionsgforgthegcount
ry'sgfirmsgandgfactories.gThereforegCubagisgangexamplegofga
A. centralizedgeconomy.
B. capitalistgeconomy.
C. mixedgeconomy.
D. puregfree-marketgeconomy.
2. Thegentireggroupgofgbuyersgandgsellersgofgagparticularggoodgorgservic
egmakesgup
A. onlygthegdemandgcurve.
B. onlygthegsupplygcurve.
C. agmarket.
D. equilibrium.
,3. Ingordergtogunderstandghowgthegpricegofgaggoodgisgdeterminedgingthegfreegmar
ket,gonegmustgaccountgforgthegdesiresgof:
A. purchasersgexclusively.
B. sellersgexclusively.
C. governmentalgagenciesgexclusively.
D. purchasersgandgsellers.
4. Buyersgandgsellersgofgagparticularggoodgcompr
isegthe
A. marketgforgtheggood.
B. demandgforgtheggood.
C. supplygforgtheggood.
D. productiongpossibilitiesgcurvegforgtheggood.
5. Ingagmarket,gthegdemandersgaregtheg andgthegsuppliersgaregtheg .
A. bosses;gworkers
B. poor;gwealthy
C. buyers;gsellers
D. sellers;gbuyers
,6. "Holdinggallgothergrelevantgfactorsgconstant,gconsumersgwillgpurchasegmoregofgaggoo
dgasgthegpricegfalls."gThisgstatementgreflectsgthegbehaviorgunderlying
A. thegdemandgcurve.
B. angincreasegingdemand.
C. thegsupplygcurve.
D. agdecreasegingthegdemandgcurve.
7. Thegdemandgcurvegillustratesgthegfactgthatgconsumers
A. tendgtogpurchasegmoregofgaggoodgasgitsgpricegrises.
B. purchasegnamegbrandgproductsgmoregfrequentlygthanggeneric
gproducts.
C. tendgtogpurchasegmoregofgaggoodgasgitsgpricegfalls.
D. purchasegmoregofgaggoodgasgtheirgincomesgrise.
8. WhichgofgthegfollowinggisgNOTgtruegofgagdemandgcurve?
A. Itghasgnegativegslope.
B. Itgshowsgthegamountgconsumersgaregwillinggandgablegtogpurchasegatgvariousgpr
ices,gholdinggothergfactorsgconstant.
C. Itgrelatesgthegpricegofgangitemgtogthegquantitygdemandedgofgthatgitem.
D. Itgshowsghowgangincreasegingpricegleadsgtogangincreasegingquantitygdemandedg
ofgaggood.
, 9. Agdemandgcurvegisg slopinggbecauseg .
A. downward;gofgincreasinggopportunitygcosts.
B. upward;gpeoplegprefergtogpurchaseghighgqualitygconsumerg
goods.
C. downward;greservationgpricesgtendgtogfallgovergtime.
D. downward;gfewergpeoplegaregwillinggtogbuygthegitemgatghig
hergprices.
10. Asgcoffeegbecomesgmoregexpensive,gJamalgstartsgdrinkinggtea,gthereforegquantitygd
emandedgforgcoffeegdecreases.gThisgisgcalled
A. thegincomegeffect.
B. thegchangegingequilibrium.
C. thegsubstitutiongeffect.
D. agshiftgingthegdemandgcurve.
