Ec 205 Test 1
Fundamentals of economics
- 1.More supply and less demand _______ market equilibrium price
- A.
Increases
- B.
Decreases
- C.
Remains the same
- D.
Is indeterminate
- 2.An increase in demand will cause a shortage which will cause firms to put ______________ on price
- A.
Increases
- B.
Decreases
- C.
Remains the same
- D.
Is indeterminate
- 3.If demand is elastic, price increases _________ total revenue.
- A.
Increases
- B.
Decreases
- C.
Remains the same
- D.
Is indeterminate
- 4.If demand is inelastic, price increases ____________ total revenue.
- A.
Increases
- B.
Decreases
- C.
Remains the same
- D.
Is indeterminate
- 5.An increase in both supply and demand has an indeterminate effect on price and _______ quality
- A.
Increases
- B.
Decreases
- C.
Remains the same
- D.
Is indeterminate
- 6.An increase in both supply and demand ___________ price and increases quality
- A.
Increases
- B.
Decreases
- C.
Remains the same
- D.
Is indeterminate on
- 7.Which of the following is not a type of input?
- A.
Labor
- B.
Capital
- C.
Natural resources
- D.
Entrepreneurship
- E.
Economic resources
- F.
Goods and services
- G.
Production
- 8.Which of the following is a type of output?
- A.
Labor
- B.
Capital
- C.
Natural resources
- D.
Entrepreneurship
- E.
Economic resources
- F.
Goods and services
- G.
Production
- 9.An increase in the availability of substitutes __________ the price elasticity of demand.
- A.
Increases
- B.
Decreases
- C.
Has no effect on
- D.
Has a indeterminate effect on
- 10.A decrease in supply of a good increases price and ________quantity.
- A.
Increases
- B.
Decreases
- C.
Has no effect on
- D.
Has a indeterminate effect on
- 11.A decrease in supply of a good _________________ price and decreases quantity.
- A.
Increases
- B.
Decreases
- C.
Has no effect on
- D.
Has a indeterminate effect on
- 12.____________ in supply of a good increases price and decreases quantity.
- A.
Increases
- B.
Decreases
- C.
No effect on
- D.
An indeterminate effect
- 13.Price ceilings cause
- A.
Shortage
- B.
Surplus
- 14.Price below the market equilibrium price results in
- A.
Shortage
- B.
Surplus
- 15.Two goods that are complements in consumption have a __________cross-elasticity of demand.
- A.
Negative
- B.
Positive
- 16.Decreased price causes inncreased revenue
- A.
Elastic
- B.
Inelastic
- 17.Decreased price causes decreased revenue
- A.
Elastic
- B.
Inelastic
Questions: 10 | Attempts: 24314 | Last updated: Mar 22, 2022
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