Demand,supply,and Price

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Question 1
Free
Multiple Choice

Which of the following best defines quantity demanded?

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A

The amount an individual purchases at its current price.

B

The amount an individual purchases at his or her current income.

C

The amount,per time period,that is desired at the most recent price.

D

The amount,per time period,an individual desires to purchase at any given price.

E

The various amounts that all individuals desire at all relevant prices.

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Question 2
Free
Multiple Choice

The time period to which quantity demanded refers when constructing demand curves is

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A

a moment in time.

B

a long period of time.

C

one year.

D

any specified time period.

E

a period shorter than one year.

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Question 3
Free
Multiple Choice

The term "quantity demanded" refers to the

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A

total amount of a good that is actually purchased during a given period of time.

B

entire relationship between desired purchases and possible prices.

C

total amount of a good that purchasers wish to purchase at a given price during a given period of time.

D

product of advertising,and is unrelated to price.

E

total amount of a good that people wish to buy,regardless of price.

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Question 4
Free
Multiple Choice

Four of the five statements below contain a stock and a flow.Which statement describes ONLY stock variables OR flow variables?

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A

Chris earns $1500 per month and has $4000 in his savings account at the bank.

B

Nancy spends $400 per month on her credit card and has a balance owing of $2567.

C

The Transit Authority of Mytown collects $22 000 in fares per day and has an operating budget of $2 million per year.

D

Country X spends an average of $1 million per year for flood relief and has an emergency services fund of $20 million.

E

The Canadian Federal government has a debt of approximately $450 billion and an annual deficit of over $25 billion dollars.

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Question 5
Free
Multiple Choice

A variable that is a "stock"

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A

is measured per unit of time.

B

has meaning only at a point in time.

C

has only to do with products where inventory is kept.

D

has the same units as a flow variable.

E

is used only in accounting.

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Question 6
Multiple Choice

Ceteris paribus means

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A
other things being equal.
B
and so forth.
C
knowledge gained before the study of evidence is made.
D
among other things.
E
in a historical context.
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Question 7
Multiple Choice

The "law of demand" hypothesizes that,other things being equal,

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A
the lower the price,the greater the demand.
B
price and demand vary inversely.
C
the higher the price,the lower the quantity demanded.
D
the higher the income,the higher the quantity demanded.
E
price and quantity demanded are positively related.
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Question 8
Multiple Choice

In a market for a good or service,the quantities demanded and supplied are

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A
both stock variables.
B
both flow variables.
C
a flow variable and a stock variable,respectively.
D
a stock variable and a flow variable,respectively.
E
neither stock nor flow variables.
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Question 9
Multiple Choice

For a given commodity,quantity demanded can be represented by

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A
a demand curve.
B
a demand schedule.
C
a point on a demand curve.
D
the money value of the stock of the commodity held by households.
E
the price on the vertical axis.
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Question 10
Multiple Choice

A demand curve is a representation of the relationship,ceteris paribus,between quantity demanded and

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A
supply.
B
wealth.
C
price.
D
income.
E
preferences.
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Question 11
Multiple Choice

Which statement best describes the "law of demand"? Other things being equal,the quantity of tennis rackets demanded will be greater if the

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A
incomes of tennis players are higher.
B
price of tennis rackets is lower.
C
price of badminton rackets is higher.
D
number of tennis players is higher.
E
demand for tennis rackets rises.
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Question 12
Multiple Choice

The "law of demand" describes

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A
an inverse relationship between the price of a good and the quantity of the good demanded per unit of time,other things being equal.
B
a positive relationship between the price of a good and the quantity of the good demanded per unit of time,ceteris paribus.
C
an inverse relationship between the price of a good and the demand for the good,per unit of time.
D
a direct relationship between the price of a good and the demand for the good.
E
any relationship between quantity demanded and demand for a good.
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Question 13
Multiple Choice

Which statement best describes a "demand schedule"?

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A
a functional statement of the demand relationship
B
a graph showing the inverse relationship between quantity demanded and price
C
a numerical tabulation showing the quantities demanded at various prices
D
a timetable showing the quantity demanded at different time periods
E
an abstract concept underlying the graph of a demand curve
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Question 14
Multiple Choice

An important assumption underlying a demand schedule is that

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A
quantity demanded and demand mean the same thing.
B
everything else except the product's price is being held constant.
C
the numbers are not important; the general relationship between the variables is.
D
household tastes rarely change.
E
income has little significance to household demand.
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Question 15
Multiple Choice

Which statement best describes a demand curve?

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A
a functional statement of the demand relationship
B
a numerical table showing the inverse relationship between quantity demanded and price,other things being equal
C
a graph showing the relationship between quantity demanded and the price of a commodity,other things being equal
D
a timetable showing the quantity demanded at different time periods
E
an abstract concept underlying the graph of a demand curve
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Question 16
Multiple Choice

A demand curve represents graphically

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A
a functional statement of the income-quantity relationship.
B
the timeless relationship between quantity demanded and price.
C
the quantity demanded per unit of time at various prices.
D
the available quantities at all possible prices for the product.
E
quantity demanded.
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Question 17
Multiple Choice

To say that the demand curve for movies is negatively sloped means that

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A
less quantity will be demanded at lower prices.
B
less quantity will be demanded as preferences change.
C
less quantity will be demanded at higher prices.
D
more quantity will be demanded as consumers' income increases.
E
less quantity will be demanded at the same price.
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Question 18
Multiple Choice

A change in demand is said to take place when there is a

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A
movement along the demand curve.
B
shift of the demand curve.
C
shift of the supply curve.
D
price change.
E
quantity change.
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Question 19
Multiple Choice

A normal good is one

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A
that everyone normally consumes.
B
that normal people consume.
C
for which demand varies directly with household income.
D
for which demand varies inversely with household income.
E
for which demand does not vary with household income.
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Question 20
Multiple Choice

What is an inferior good?

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A
a good that everyone normally consumes
B
a good that inferior people consume
C
a good for which demand varies directly with household income
D
a good for which demand varies inversely with household income
E
a good for which demand does not vary with household income
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