Economics assignment

Topics: Supply and demand, Economics, Microeconomics Pages: 9 (2048 words) Published: October 31, 2013
MBA 515
Practice Multiple Choice Questions
1. If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely
A) shift leftward.
B) shift rightward.
C) remain unchanged.
D) become steeper.
2. Recently, many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop. If one of these laws passes, we would expect
A) the supply curve for soda pop to shift to the right.
B) the supply curve for soda pop to become more vertical.
C) the demand curve for soda pop to shift to the right.
D) the demand curve for soda pop to shift to the left.
3. As the price of a good increases, the change in the quantity demanded can be shown by A) shifting the demand curve leftward.
B) shifting the demand curve rightward.
C) moving down along the same demand curve.
D) moving up along the same demand curve.
4. The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil? A) The supply of plastic will increase.

B) The supply of plastic will decrease.
C) The supply of plastic will stay the same because the government requires plastic producers to meet statutory minimum production levels.
D) The supply of plastic will stay the same because of the profit motives of plastic producers.

5. The above figure shows a graph of the market for pizzas in a large town. No pizzas will be demanded unless price is less than
A) $0.
B) $5.
C) $12.
D) $14.
6. The above figure shows a graph of the market for pizzas in a large town. What are the equilibrium price and quantity?
A) p = 8, Q = 60
B) p = 7, Q = 40
C) p = 7, Q = 70
D) p = 10, Q = 40
7. At equilibrium, quantity sold equals the quantity bought. This implies that A) to sell more, producers require more in payment than consumers are willing to pay. B) government regulation is necessary.

C) to sell less would require a lower price but would yield greater profit. D) those who don't buy have been treated unfairly.
8. The above figure shows a graph of the market for pizzas in a large town. At a price of $5, there will be
A) excess demand.
B) excess supply.
C) equilibrium.
D) zero demand.

9. The above figure shows a graph of the market for pizzas in a large town. What are the equilibrium price and quantity?
A) p = 8, Q = 60
B) p = 7, Q = 40
C) p = 7, Q = 70
D) p = 10, Q = 40
10. After tickets for a major sporting event are purchased at the official box office price, a market often develops whereby these tickets sell at prices well above the official box office price. Which of the following scenarios would NOT be able to explain this result? A) The official price was below equilibrium from the moment the tickets were available. B) Increased publicity causes the demand curve for the event to shift rightward. C) The event was not a sellout.

D) Not everyone who wanted a ticket was able to buy one at the box office. 11. From the 1970s through the 1990s, the relative price of a college education has increased greatly. During the same time period, college enrollment has also increased. This evidence suggests that during this time period

A) the demand curve for a college education has shifted leftward. B) the demand curve for a college education has shifted rightward. C) the supply curve for a college education has shifted leftward. D) the supply curve for a college education has shifted rightward. 12. If oranges were found to cure cancer

A) the equilibrium price of apples would likely fall.
B) the equilibrium price of oranges would likely increase in the near term. C) the equilibrium quantity of oranges would likely increase. D) All of the above.
13. Agricultural price supports are an example of
A) price ceilings.
B) price floors.
C) quantity quotas.
D) taxes.

14. If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, calculate the arc...
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