Chapter 2 Economics Test!
It is true that no one finds it super exciting for a test unless they feel a hundred percent sure of their understanding capabilities. Are you an NCA student? With the economics test just around the corner it is important to get adequate revision before you take it. Take up the quiz below on chapter two and see if you understood it.
- 1.If people expect the price of antique furniture to fall in the near future, what will probably happen to the demand curve for antique furniture?
- A.
It will shift to the right
- B.
It will remain unchanged
- C.
It will shift to the left
- D.
It will shift to the right and then to the left
- 2.What is not a fad item?
- A.
Flattop haircut
- B.
Gourmet ice cube
- C.
Peanut bitter and jelly sandwich
- D.
Pet rock
- 3.What is the typical description of a fad item's demand curve?
- A.
Shift left, then shift right
- B.
Shift right, then shift left
- C.
Shift back and forth
- D.
Remain stable
- 4.What would be the most likely explanation for a drop in the demand for stainless steel skillets?
- A.
A rise in people's income
- B.
A rise in the cost of serving spoons
- C.
A rise in preference for microwave cookware
- D.
The expectation of a rise in the future price of stainless steel
- 5.Which of the following circumstances will cause a decrease in the demand for a normal good?
- A.
The incomes of consumers rise
- B.
The price of complementary goods rises
- C.
The good becomes more popular
- D.
The customers expect the good's price to decrease in the future
- 6.What is a "substitute good" for an expensive brand of butter?
- A.
Jelly
- B.
An inexpensive brand of butter
- C.
Margarine
- D.
Milk
- 7.Goods that expierence an increase in demand as a result of increase in buyers incomes are known as
- A.
Complementary goods
- B.
Inferior goods
- C.
Normal goods
- D.
Substitute goods
- 8.If a group of retired rich people move to a poor town, what will probaly happen to the demand curve for jewelry store?
- A.
It will shift to the right
- B.
It will remain unchanged
- C.
It will shift to the left
- D.
It will shift to the right and then to the left
- 9.If the price of fresh beans increases, what will probably happen to the demand curve for fresh corn (a substitue good)
- A.
It will shift to the right
- B.
It will remain unchanged
- C.
It will shift to the left
- D.
It will shitf to the right and then to the left
- 10.When many people lose their jobs during a depression, what usually happens to the demand curver for normal goods?
- A.
They weill shift to the right
- B.
They will remain unchanged
- C.
They will shift to the left
- D.
They will shift to the right and then to the left
- 11.If the major business in a small town gives all of its workers a raise, what will probably happen to the demand curves for normal goods in that town?
- A.
They weill shift to the right
- B.
They will remain unchanged
- C.
They will shift to the left
- D.
They will shift to the right and then to the left
- 12.How does a decreaes in dmeand affect the demand curve?
- A.
It shifts right
- B.
It shifts left
- C.
It shifts up.
- D.
It sifts down.
- 13.Why is a demand curve preferable to a demand schedule?
- A.
It is easier to read.
- B.
It is more accurate
- C.
It displays more information
- D.
It is more scientific
- 14.How does an increase in demand affect the demand curve?
- A.
It shifts right
- B.
It shifts left
- C.
It shifts up.
- D.
It shifts down.
- 15.The law of demand describes teh effects of____on demand.
- A.
Supply
- B.
Quality
- C.
Advertisement
- D.
Price
- 16.What is a dairy farmer's primary source of information about purchasing more cows?
- A.
Price of milk
- B.
Price of grain
- C.
Price of land
- D.
Interest rate on bank loans
- 17.Which of the following usually comes first?
- A.
Increased production of cocoa
- B.
Increased manifacture of chocolate
- C.
Increased orders for chocolate
- D.
Increased purchases of chocolate
- 18.What is an oil producer's bst sourcer of information about changes in demand for oil?
- A.
Common sense
- B.
The government
- C.
Prices
- D.
Supply level
- 19.Prices serve all of teh following purposes except
- A.
Transmitting information
- B.
Providing incentives
- C.
Increasing utility
- D.
Redistibuting income
- 20.If a customer's forst new car gives him a marginal utility of 25 utils, what is the most likely marginal utility that a second identical car would give him?
- A.
15 utils
- B.
25utils
- C.
40utils
- D.
50utils
- 21.What was William Stanley Javons's major contribution to economics?
- A.
Father of the Austrin school of economics
- B.
Champion of the market price system
- C.
Principle of diminishing marginal utility
- D.
Law of demand
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