Economics

Question 1

1A change in income shifts the demand curve for a normal good

Easy

A. in the opposite direction B. in the same direction as income C. not at all D. only along the curve

Question 2

2Effective demand is

Easy

A. desire only B. desire backed by the ability and willingness to pay C. government spending D. supply

Question 3

3An increase in consumers' income usually shifts the demand curve for a normal good

Easy

A. to the right B. downwards along itself C. to the left D. nowhere

Question 4

4A demand curve normally slopes

Easy

A. vertically B. upward from left to right C. downward from left to right D. horizontally

Question 5

5Joint demand exists when goods are

Easy

A. free goods B. used together C. produced together D. substitutes

Question 6

6A fall in the price of petrol is likely to

Hard

A. reduce demand for cars B. increase demand for cars C. reduce car supply D. have no effect on cars

Question 7

7Cars and petrol are

Easy

A. inferior goods B. Giffen goods C. substitutes D. complementary goods

Question 8

8A fall in the price of a good itself causes

Easy

A. a movement along its demand curve B. a shift of its demand curve to the right C. a shift of its supply curve D. no change

Question 9

9A movement along the demand curve is caused by a change in

Easy

A. population B. tastes C. income D. the price of the good

Question 10

10Demand for a good is Qd = 80 − 4P. At P = 5, quantity demanded is

Medium

A. 20 B. 100 C. 75 D. 60