Question

QUESTION 1

1. An amount of money that people would be willing to pay to purchase a good or service, less the amount they actually pay is called_____:

   	A.	economic surplus.
   	B.	social surplus.
   	C.	producer surplus.
   	D.	consumer surplus.

1 points   

QUESTION 2

1. Economic demand is most clearly understood as the relationship_____:

   	a.	between the price of a good or service and the quantity that consumers are willing and able to purchase at each price.
   	b.	between the quantity supplied and the price people are willing to pay for the supply.
   	c.	between the average price of a good or service and the quantity demanded at that price.
   	d.	between the income a person has and the price of a good or service the person will pay to purchase it.

1 points   

QUESTION 3

1. All of the following are non-price factors that influence demand except_____:

   	a.	consumer income.
   	b.	consumer tastes and preferences.
   	c.	quantity supplied.
   	d.	prices of related goods.

1 points   

QUESTION 4

1. Economic supply is most clearly understood as the_____:

   	a.	the quantity supplied.
   	b.	the amount of a good or service a producer is willing to sell at a particular price.
   	c.	the cost of producing a good and the market price.
   	d.	the inventory of a business operation.

1 points   

QUESTION 5

1. Which of the following illustrates a derived demand?

   	a.	The demand for computer technicians falls as the demand for computers falls.
   	b.	The demand for computer technicians rises as the demand for pencils rise.
   	c.	The demand for tax accountants falls as the demand for law clerks falls.
   	d.	The demand for tax accountants rises as the demand for legal secretaries rise.

1 points   

QUESTION 6

1. An interest rate is most clearly understood as_____:

   	a.	an amount paid to buy an interest in a company.
   	b.	a rate of return on an investment.
   	c.	the price of lending in the financial market.
   	d.	all of the above.

1 points   

QUESTION 7

1. If the wage for computer technicians drops, what will likely soon happen to the quantity supplied of these technicians?

   	a.	It stays the same.
   	b.	It falls.
   	c.	It rises.
   	d.	None of the above.

1 points   

QUESTION 8

1. If the government passes a law on the maximum price and apartment owner can charge for each unit of the apartment, which of the following is likely to occur?

   	a.	The number of units demanded will soon fall below the amount supplied.
   	b.	The number of units supplied will increase.
   	c.	The number of units offered for rent will be upgraded.
   	d.	The number of units demanded will soon rise above the amount supplied.

1 points   

QUESTION 9

1. Which of the following statements is correct?

   	a.	A change in demand is caused only by a change in price.
   	b.	An increase in supply combined with a decrease in demand raises the equilibrium price.
   	c.	A decrease in price and the qauntity supplied will take place whenever the price moves above equilibrium.
   	d.	A shortage of the quantity supplied has no impact on the equilibrium price.

1 points   

QUESTION 10

1. Other things being equal, the higher the price of a good, the_____:

   	a.	smaller the quantity demanded.
   	b.	larger the quantity demanded.
   	c.	smaller the relative price.
   	d.	larger the relative price.

Answer 1

The answers are given below.