Chapter 03 Testbank
m m
Student: m
1. In mCuba,mambureaucraticmcommitteemmakesmthemproductionmdecisionsmformthemcountry'smfirmsma
ndmfactories.mThereforemCubamisman mexamplemof ma
A. centralizedmeconomy.
B. capitalistmeconomy.
C. mixedmeconomy.
D. puremfree-marketmeconomy.
2. Thementiremgroupmofmbuyersmandmsellersmof mamparticularmgoodmormservicemmakesm
up
A. onlymthemdemandmcurve.
B. onlymthemsupplymcurve.
C. ammarket.
D. equilibrium.
,3. In mordermtomunderstandmhow mthempricemofmamgoodmismdeterminedminmthemfreemmarket,monemm
ustmaccountmformthemdesiresmof:
A. purchasersmexclusively.
B. sellersmexclusively.
C. governmental magenciesmexclusively.
D. purchasersmandmsellers.
4. Buyersmandmsellersmofmamparticularmgoodmcomprisemth
e
A. marketmformthemgood.
B. demandmformthemgood.
C. supplymformthemgood.
D. production mpossibilitiesmcurvemformthemgood.
5. In mammarket,mthemdemandersmaremthem andmthemsuppliersmaremthem .
A. bosses;mworkers
B. poor;mwealthy
C. buyers;msellers
D. sellers;mbuyers
,6. "Holdingmallmothermrelevantmfactorsmconstant,mconsumersmwillmpurchasemmoremofmamgoodmasmthempri
cemfalls."mThismstatementmreflectsmthembehaviormunderlying
A. themdemandmcurve.
B. an mincreasemin mdemand.
C. themsupplymcurve.
D. amdecreasemin mthemdemandmcurve.
7. Themdemandmcurvemillustratesmthemfactmthatmconsumers
A. tendmtompurchasemmoremof mamgoodmasmitsmpricemrises.
B. purchasemnamembrandmproductsmmoremfrequentlymthanmgenericmproducts
.
C. tendmtompurchasemmoremof mamgoodmasmitsmpricemfalls.
D. purchasemmoremof mamgoodmasmtheirmincomesmrise.
8. Which mof mthemfollowingmismNOTmtruemof mamdemandmcurve?
A. Itmhasmnegativemslope.
B. Itmshowsmthemamountmconsumersmaremwillingmandmablemtompurchasematmvariousmprices,mholdi
ngmothermfactorsmconstant.
C. Itmrelatesmthempricemof man mitemmtomthemquantitymdemandedmof mthatmitem.
D. Itmshowsmhowmanmincreaseminmpricemleadsmtomanmincreaseminmquantitymdemandedmof mamgood.
, 9. Amdemandmcurvemism slopingmbecausem .
A. downward;mof mincreasingmopportunitymcosts.
B. upward;mpeoplemprefermtompurchasemhigh mqualitymconsumermgoods.
C. downward;mreservation mpricesmtendmtomfall movermtime.
D. downward;mfewermpeoplemaremwillingmtombuymthemitemmatmhighermprice
s.
10. Asmcoffeembecomesmmoremexpensive,mJamalmstartsmdrinkingmtea,mthereforemquantitymdemandedmf
ormcoffeemdecreases.mThismismcalled
A. themincomemeffect.
B. themchangemin mequilibrium.
C. themsubstitution meffect.
D. amshiftmin mthemdemandmcurve.
m m
Student: m
1. In mCuba,mambureaucraticmcommitteemmakesmthemproductionmdecisionsmformthemcountry'smfirmsma
ndmfactories.mThereforemCubamisman mexamplemof ma
A. centralizedmeconomy.
B. capitalistmeconomy.
C. mixedmeconomy.
D. puremfree-marketmeconomy.
2. Thementiremgroupmofmbuyersmandmsellersmof mamparticularmgoodmormservicemmakesm
up
A. onlymthemdemandmcurve.
B. onlymthemsupplymcurve.
C. ammarket.
D. equilibrium.
,3. In mordermtomunderstandmhow mthempricemofmamgoodmismdeterminedminmthemfreemmarket,monemm
ustmaccountmformthemdesiresmof:
A. purchasersmexclusively.
B. sellersmexclusively.
C. governmental magenciesmexclusively.
D. purchasersmandmsellers.
4. Buyersmandmsellersmofmamparticularmgoodmcomprisemth
e
A. marketmformthemgood.
B. demandmformthemgood.
C. supplymformthemgood.
D. production mpossibilitiesmcurvemformthemgood.
5. In mammarket,mthemdemandersmaremthem andmthemsuppliersmaremthem .
A. bosses;mworkers
B. poor;mwealthy
C. buyers;msellers
D. sellers;mbuyers
,6. "Holdingmallmothermrelevantmfactorsmconstant,mconsumersmwillmpurchasemmoremofmamgoodmasmthempri
cemfalls."mThismstatementmreflectsmthembehaviormunderlying
A. themdemandmcurve.
B. an mincreasemin mdemand.
C. themsupplymcurve.
D. amdecreasemin mthemdemandmcurve.
7. Themdemandmcurvemillustratesmthemfactmthatmconsumers
A. tendmtompurchasemmoremof mamgoodmasmitsmpricemrises.
B. purchasemnamembrandmproductsmmoremfrequentlymthanmgenericmproducts
.
C. tendmtompurchasemmoremof mamgoodmasmitsmpricemfalls.
D. purchasemmoremof mamgoodmasmtheirmincomesmrise.
8. Which mof mthemfollowingmismNOTmtruemof mamdemandmcurve?
A. Itmhasmnegativemslope.
B. Itmshowsmthemamountmconsumersmaremwillingmandmablemtompurchasematmvariousmprices,mholdi
ngmothermfactorsmconstant.
C. Itmrelatesmthempricemof man mitemmtomthemquantitymdemandedmof mthatmitem.
D. Itmshowsmhowmanmincreaseminmpricemleadsmtomanmincreaseminmquantitymdemandedmof mamgood.
, 9. Amdemandmcurvemism slopingmbecausem .
A. downward;mof mincreasingmopportunitymcosts.
B. upward;mpeoplemprefermtompurchasemhigh mqualitymconsumermgoods.
C. downward;mreservation mpricesmtendmtomfall movermtime.
D. downward;mfewermpeoplemaremwillingmtombuymthemitemmatmhighermprice
s.
10. Asmcoffeembecomesmmoremexpensive,mJamalmstartsmdrinkingmtea,mthereforemquantitymdemandedmf
ormcoffeemdecreases.mThismismcalled
A. themincomemeffect.
B. themchangemin mequilibrium.
C. themsubstitution meffect.
D. amshiftmin mthemdemandmcurve.
