Ec 205 Test 1

17 Questions | Total Attempts: 144

SettingsSettingsSettings
Economics Quizzes & Trivia

Fundamentals of economics


Questions and Answers
  • 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

Back to Top Back to top