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Econ Lowdown Post Test Questions

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Econ Lowdown Post Test Questions A decrease in the price of a good would be illustrated on a supply graph as a: - ANS - Movement along the supply curve downward If the price of one of the resources... used to produce a good decreases: - ANS - The supply curve for that good would shift right An improvement in technology used by producers of a certain good will result in: - ANS - An increase in the supply of the good According to the law of supply, if the price of a good or service increases: - ANS - Quantity supplied will increase If a good is considered "normal" by economists, an increase in consumers' incomes will result in a decrease in the demand for the good. True or false? - ANS - False An increase in the price of a good would be illustrated on a demand graph as a: - ANS - Shift of the demand curve to the left An increase in the average incomes of consumers will result in: - ANS - An increase in the demand for goods and services If the price of peanut butter were to increase, what would likely happen to the demand for jelly? - ANS - The demand for jelly would decrease--the demand curve would shift left When the price of good A rises, people start to drink good B. In this case: - ANS - Good B is a substitute good If two goods are complements, an increase in the price of one good will cause a decrease in the demand for the other. True or false? - ANS - True If consumers expect higher coffee prices in the future: - ANS - The demand for coffee will increase now According to the law of demand, as the price of a good or service increases the: - ANS - Quantity demanded of the good or service will decrease If good A is considered to be an inferior good, when incomes rise: - ANS - The demand for good A will decrease and the demand curve will shift to the left A government-imposed price floor, above the equilibrium price, in the market for a good or serve will result in: - ANS - A surplus of the good or service If producers expect the price of a good to rise, what will happen to the good's equilibrium price and quantity? - ANS - Equilibrium price will increase and equilibrium quantity will decrease If the government imposes a tax on the production of a good or service, what will happen to the equilibrium price and quantity of the good? - ANS - Equilibrium price will increase and equilibrium quantity will decrease If the number of consumers in the market for good A increases, what will happen to the equilibrium price and quantity of good A? - ANS - Equilibrium price and quantity will both decrease If the government decides to subsidize the production of a good, the result would be a decrease in the equilibrium price and a decrease in the equilibrium quantity. True or false? - ANS - False An increase in the price of a good would be illustrated on a demand graph as: - ANS - Movement along the demand curve upward An increase in the average incomes of consumers will result in: - ANS - An increase in the demand for goods and services When the price of good A rises, people start to drunk good B. In this case: - ANS - Good B is a substitute good A decrease in the supply of a good would be illustrated on a supply graph as a: - ANS - Movement along the supply curve downward [Show More]

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