Multiple Choice: Identify the letter of the choice that
best answers the question.
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1.
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Assume that a laptop computer is a normal good. A decrease in consumer income
would a. | cause a movement
along the demand curve for laptop computers to the right. | b. | cause a movement
along the demand curve for laptop computers to the left. | c. | cause a shift in
the demand for laptop computers to the left. | d. | cause a shift in
the demand curve for laptop computers to the right. | | |
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2.
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Which
of the following will cause a decrease in the quantity demanded of tires? a. | an increase in
the price of automobiles. | c. | a rise in the
price of tires. | b. | a decrease in the price of
automobiles. | d. | a fall in the
price of tires. | | | | |
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3.
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Which
of the following will cause a STEEPER slope in the demand curve for a product? a. | the presence of
many substitutes | c. | a larger price
tag on the product | b. | the absence of substitutes | d. | more time to make a decision | | | | |
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4.
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Which
of the following would likely occur to the demand for grapes after a drastic decrease in the price of
plums, assuming they are substitute goods? a. | The demand curve for grapes would shift to the
left. | b. | The demand curve for grapes would shift to the
right. | c. | The demand curve for grapes would stay the same, but the
quantity demanded would rise. | d. | The price of grapes would rise. | | |
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5.
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Which
of the following would be considered a complementary good for chili cheese dip? a. | guacamole
dip | c. | windshield
wipers | b. | corn chips | d. | steak | | | | |
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6.
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Which
of the following would be considered a substitute good for green beans? a. | corn | c. | iced
tea | b. | BBQ
sauce | d. | chicken | | | | |
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7.
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Which
of the following expresses the law of diminishing marginal utility? a. | The more a
person uses a product, the more likely that it will break down. | b. | The less a
person uses a product, the more likely that it will break down. | c. | The more a
person consumes, the less satisfaction is received from each additional
unit. | d. | The fewer units of a product a person uses, the less
satisfaction is received overall. | | |
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8.
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Which
of the following explains why the demand curve for most products slopes downward? a. | As the price of
a product rises, the consumer has less money to buy more of that good. | b. | As the quantity
demanded of a product declines, the marginal utility of that product falls. | c. | As the price of
a product falls, consumers are more likely to seek out substitute goods. | d. | All of the
above | e. | None of the above | | |
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9.
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Which
of the following is NOT likely to cause a shift in the demand curve for oranges? a. | an increase in
the overall income of consumers | b. | an increase in the price of oranges | c. | a very dry
summer that destroys the orange crop | d. | an increase in the price of apples | | |
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10.
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The
demand curve for Angie Aparo concert tickets would show a. | the quality of
service that customers receive when they buy a ticket. | b. | the number of
people who would like to attend the concert. | c. | the number of
tickets the promoters are willing to sell at each price. | d. | the number of
concert tickets that would be purchased at various prices | | |
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