FREE AND STUDY GAMES ABOUT STACK 686172 EXAM

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FREE AND STUDY GAMES ABOUT STACK #686172 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -57 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: 24. Surpluses drive price up while shortages drive price down.

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False Question 2: 6. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price.

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True Question 3: 22. Supply tends to be more elastic in the short run and more inelastic in the long run.

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False Question 4: 15. A reduction in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

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False

Question 5: In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

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True Question 6: 5. Equity refers to how the pie is divided, and efficiency refers to the size of the economic pie.

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True Question 7: 4. If a good or service has only one seller, it is called an oligopoly.

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False Question 8: 3. With careful planning, we can usually get something that we like without having to give up something else that we like.

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False Question 9: 20. A movement along a supply curve is called a change in supply while a shift of the curve is called a change in quantity supplied.

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False Question 10: 5. The demand for gasoline will respond more to a change in price over a period of five weeks than over a period of five years

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False Question 11: The law of demand states that the quantity demanded of a product is positively related to price.

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False

Question 12: 3. In a perfectly competitive market, buyers and sellers are price setters.

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False Question 13: 3. Goods with close substitutes tend to have more elastic demands than do goods without close substitutes.

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True Question 14: 2. A market is a group of buyers and sellers of a particular product.

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True Question 15: 8. A marginal change is a small incremental adjustment to an existing plan of action.

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True Question 16: 7. The cost of an action is measured in terms of foregone opportunities.

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True

Question 17: 6. A local cable TV company might be a monopolist.

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True Question 18: 23. When the price of knee braces increased by 25 percent, the Brace Yourself Company increased their quantity supplied of knee braces per week by 75 percent. BYC's price elasticity of supply of knee braces is 0.33.

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False Question 19: The market demand is the average of all of the individual demands for a particular good or service.

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False

Question 20: 21. Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price, and elastic if the quantity supplied responds only slightly to price.

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False Question 21: 5. The computer software industry is an example of monopolistic competition.

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True Question 22: 16. The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

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True Question 23: 9. If the demand for a good falls when income falls, the good is called an inferior good.

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False Question 24: 7. The price of calculators increases by 15 percent and the quantity demanded per week falls by 45 percent. The price elasticity of demand is 3.

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True Question 25: 21. If there is an improvement in the technology of producing a product, the supply curve for that product will shift to the left.

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False Question 26: 12. If demand is perfectly inelastic, the demand curve is vertical, and elasticity is equal to 0.

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True