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 g
...
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]
.png)
.png)
