Chapter 03 Testbank
g g
Student:g
1. IngCuba,gagbureaucraticgcommitteegmakesgthegproductiongdecisionsgforgthegcountry'sgfirmsgan
dgfactories.gThereforegCubagisgangexamplegofga
A. centralizedgeconomy.
B. capitalistgeconomy.
C. mixedgeconomy.
D. puregfree-marketgeconomy.
2. Thegentireggroupgofgbuyersgandgsellersgofgagparticularggoodgorgservicegmakesgu
p
A. onlygthegdemandgcurve.
B. onlygthegsupplygcurve.
C. agmarket.
D. equilibrium.
,3. Ingordergtogunderstandghowgthegpricegofgaggoodgisgdeterminedgingthegfreegmarket,gonegmu
stgaccountgforgthegdesiresgof:
A. purchasersgexclusively.
B. sellersgexclusively.
C. governmentalgagenciesgexclusively.
D. purchasersgandgsellers.
4. Buyersgandgsellersgofgagparticularggoodgcomprisegth
e
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,gconsumersgwillgpurchasegmoregofgaggoodgasgthegpric
egfalls."gThisgstatementgreflectsgthegbehaviorgunderlying
A. thegdemandgcurve.
B. angincreasegingdemand.
C. thegsupplygcurve.
D. agdecreasegingthegdemandgcurve.
7. Thegdemandgcurvegillustratesgthegfactgthatgconsumers
A. tendgtogpurchasegmoregofgaggoodgasgitsgpricegrises.
B. purchasegnamegbrandgproductsgmoregfrequentlygthanggenericgproducts.
C. tendgtogpurchasegmoregofgaggoodgasgitsgpricegfalls.
D. purchasegmoregofgaggoodgasgtheirgincomesgrise.
8. WhichgofgthegfollowinggisgNOTgtruegofgagdemandgcurve?
A. Itghasgnegativegslope.
B. Itgshowsgthegamountgconsumersgaregwillinggandgablegtogpurchasegatgvariousgprices,gholdin
ggothergfactorsgconstant.
C. Itgrelatesgthegpricegofgangitemgtogthegquantitygdemandedgofgthatgitem.
D. Itgshowsghowgangincreasegingpricegleadsgtogangincreasegingquantitygdemandedgofgaggood.
, 9. Agdemandgcurvegisg slopinggbecauseg .
A. downward;gofgincreasinggopportunitygcosts.
B. upward;gpeoplegprefergtogpurchaseghighgqualitygconsumerggoods.
C. downward;greservationgpricesgtendgtogfallgovergtime.
D. downward;gfewergpeoplegaregwillinggtogbuygthegitemgatghighergprices
.
10. Asgcoffeegbecomesgmoregexpensive,gJamalgstartsgdrinkinggtea,gthereforegquantitygdemandedgf
orgcoffeegdecreases.gThisgisgcalled
A. thegincomegeffect.
B. thegchangegingequilibrium.
C. thegsubstitutiongeffect.
D. agshiftgingthegdemandgcurve.
g g
Student:g
1. IngCuba,gagbureaucraticgcommitteegmakesgthegproductiongdecisionsgforgthegcountry'sgfirmsgan
dgfactories.gThereforegCubagisgangexamplegofga
A. centralizedgeconomy.
B. capitalistgeconomy.
C. mixedgeconomy.
D. puregfree-marketgeconomy.
2. Thegentireggroupgofgbuyersgandgsellersgofgagparticularggoodgorgservicegmakesgu
p
A. onlygthegdemandgcurve.
B. onlygthegsupplygcurve.
C. agmarket.
D. equilibrium.
,3. Ingordergtogunderstandghowgthegpricegofgaggoodgisgdeterminedgingthegfreegmarket,gonegmu
stgaccountgforgthegdesiresgof:
A. purchasersgexclusively.
B. sellersgexclusively.
C. governmentalgagenciesgexclusively.
D. purchasersgandgsellers.
4. Buyersgandgsellersgofgagparticularggoodgcomprisegth
e
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,gconsumersgwillgpurchasegmoregofgaggoodgasgthegpric
egfalls."gThisgstatementgreflectsgthegbehaviorgunderlying
A. thegdemandgcurve.
B. angincreasegingdemand.
C. thegsupplygcurve.
D. agdecreasegingthegdemandgcurve.
7. Thegdemandgcurvegillustratesgthegfactgthatgconsumers
A. tendgtogpurchasegmoregofgaggoodgasgitsgpricegrises.
B. purchasegnamegbrandgproductsgmoregfrequentlygthanggenericgproducts.
C. tendgtogpurchasegmoregofgaggoodgasgitsgpricegfalls.
D. purchasegmoregofgaggoodgasgtheirgincomesgrise.
8. WhichgofgthegfollowinggisgNOTgtruegofgagdemandgcurve?
A. Itghasgnegativegslope.
B. Itgshowsgthegamountgconsumersgaregwillinggandgablegtogpurchasegatgvariousgprices,gholdin
ggothergfactorsgconstant.
C. Itgrelatesgthegpricegofgangitemgtogthegquantitygdemandedgofgthatgitem.
D. Itgshowsghowgangincreasegingpricegleadsgtogangincreasegingquantitygdemandedgofgaggood.
, 9. Agdemandgcurvegisg slopinggbecauseg .
A. downward;gofgincreasinggopportunitygcosts.
B. upward;gpeoplegprefergtogpurchaseghighgqualitygconsumerggoods.
C. downward;greservationgpricesgtendgtogfallgovergtime.
D. downward;gfewergpeoplegaregwillinggtogbuygthegitemgatghighergprices
.
10. Asgcoffeegbecomesgmoregexpensive,gJamalgstartsgdrinkinggtea,gthereforegquantitygdemandedgf
orgcoffeegdecreases.gThisgisgcalled
A. thegincomegeffect.
B. thegchangegingequilibrium.
C. thegsubstitutiongeffect.
D. agshiftgingthegdemandgcurve.
