QUIZ # 3 ECON 213 28 out of 30 points
•
Question 1
2 out of 2 points
On January 30, 2012, Starbucks India announced plans to open 50 cafés. What
would you expect to happen to the market for coffee in India, assuming all other
factors are held constant?
Selected
Answer:
The supply for coffee will increase
in India.
Correct
Answer:
The supply for coffee will increase
in India.
•
Question 2
2 out of 2 points
The market for footballs is perfectly competitive. If all else is held constant and
the price of leather decreases, we would expect that the equilibrium quantity of
footballs would:
Selected
Answer:
rise and the equilibrium price
would fall.
Correct
Answer:
rise and the equilibrium price
would fall.
•
Question 3
For a market to be competitive:
2 out of 2 points
Selected
Answer:
each buyer and seller is small, relative to the whole market; no
single decision-maker has any influence over the market price.
Correct
Answer:
each buyer and seller is small, relative to the whole market; no
single decision-maker has any influence over the market price.
•
Question 4
0 out of 2 points
Higher input costs:
Selected
Answer:
shift the demand
curve.
Correct
Answer:
reduce profits.
•
Question 5
Something is a normal good if the demand for the good:
Selected
Answer:
increases as the consumer’s income
increases.
2 out of 2 points
Correct
Answer:
increases as the consumer’s income
increases.
•
Question 6
2 out of 2 points
Which of the following would cause a normal good’s demand curve to shift to the
left?
Selected
Answer:
Income
decreases.
Correct
Answer:
Income
decreases.
•
Question 7
2 out of 2 points
The price of good X increases by 25%, causing the quantity consumed of good Y
to decrease by 10%. If everything else is held constant in the economy, we can
say with certainty that good X and good Y are:
Selected
Answer:
complemen
ts.
Correct
Answer:
complemen
ts.
•
Question 8
A shortage occurs whenever:
Selected
Answer:
the quantity supplied is less than the quantity
demanded.
2 out of 2 points
Correct
Answer:
the quantity supplied is less than the quantity
demanded.
•
Question 9
2 out of 2 points
Refer to the accompanying diagram. Which of the following scenarios would
explain this change in equilibrium?
Selected
Answer:
The price of a substitute of this good
increased.
Correct
Answer:
The price of a substitute of this good
increased.
•
Question 10
A decrease in demand is represented by a:
Selected
Answer:
shift of the demand curve to
the left.
2 out of 2 points
Correct
Answer:
shift of the demand curve to
the left.
•
Question 11
2 out of 2 points
What would happen to the equilibrium price and quantity of shirts if the price of
cotton decreases and all else is held constant?
Selected
Answer:
The price falls and the quantity
Correct
rises.
Answer:
The price falls and the quantity
rises.
•
Question 12
2 out of 2 points
Chuck drives past the same gas station every day. He realizes that the gas
station always changes its prices on Tuesdays but keeps the price steady the rest
of the week. On Saturday, Chuck turns on the news and hears a report projecting
that the price of gasoline is going to increase. Holding all else constant, what do
you think would happen to Chuck’s demand for gasoline on Monday?
Selected
Answer:
His demand would shift to the
right.
Correct
Answer:
His demand would shift to the
right.
•
Question 13
2 out of 2 points
The equilibrium price of peanut butter is $5. A study comes out that says the fat
in peanut butter is good for your heart. Holding all other factors constant, which
of the following scenarios could happen?
Selected
Answer:
The price of peanut butter increases to $7 because of a
demand shift.
Correct
Answer:
The price of peanut butter increases to $7 because of a
demand shift.
•
Question 14
2 out of 2 points
Refer to the table below. If the price of this good is $2.00, there would be a of
units.
Selected
Answer:
shortage;
30
Correct
Answer:
shortage;
30
•
Question 15
A subsidy:
2 out of 2 points
Selected
Answer:
is a payment made by the government to encourage consumption
or production of a good or service.
Correct
Answer:
is a payment made by the government to encourage consumption
or production of a good or service.
