Economics Quiz: Test On Microeconomics! Trivia

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1. Which of the following will cause a movement along the demand curve for X?

A change in the price of a close substitute.

A change in the price of good X.

A change in consumer tastes and preferences for good X.

A change in consumer income.

Movement along a given demand curve always occurs when the price changes, if anything other than price changes, then the whole curve will shift.

Explanation

Movement along a given demand curve always occurs when the price changes, if anything other than price changes, then the whole curve will shift.

About This Quiz

Economics Quiz: Test On Microeconomics! Trivia - Quiz

Microeconomics is a division of economics that studies individuals' and firms' behavior in making decisions regarding the distribution of scarce resources and the interactions among these entities and corporations. The purpose of microeconomics is to examine the market processes that determine relative values among goods and services and distribute limited... see moreresources among alternative uses. Learn more about microeconomics by taking this quiz. Good luck with it. see less

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2. The law of demand states that the quantity demanded of good changes, other things being equal, when

The price of the good changes.

Consumer income changes.

The prices of other goods change.

A change occurs in the quantities of other goods purchased

A “change in demand” means that the whole curve shifts, but a “change in the quantity demanded” means that there is movement along a stationary curve.

Explanation

A “change in demand” means that the whole curve shifts, but a “change in the quantity demanded” means that there is movement along a stationary curve.

3. Assuming that steak is a normal good, a decrease in consumer income, other things being equal, will

Cause a downward movement along the demand curve for steak.

Shift the demand curve for steak to the left.

Cause an upward movement along the demand curve for steak.

Shift the demand curve for steak to the right.

Normal goods are goods that people will buy more of as their incomes increase and less of as their income decreases.

Explanation

Normal goods are goods that people will buy more of as their incomes increase and less of as their income decreases.

4. Assuming that beef and pork are substitutes, a decrease in the price of pork will cause the demand curve for beef to

Shift to the left as consumers switch from beef to pork.

Shift to the right as consumers switch from beef to pork.

Remain unchanged, since beef and pork are sold in separate markets.

None of the above.

With a decrease in the price of pork, people will want to buy more pork; because beef and pork are substitutes, they will buy less at possible prices for beef.

Explanation

With a decrease in the price of pork, people will want to buy more pork; because beef and pork are substitutes, they will buy less at possible prices for beef.

5. Assuming steak and potatoes are complements, a decrease in the price of steak will

Decrease the demand for steak.

Increase the demand for steak

Increase the demand for potatoes.

Decrease the demand for potatoes.

With a decrease in the price of steak, people will want to buy more steak; because steak and potatoes are complements, they will buy more potatoes as well.

Explanation

With a decrease in the price of steak, people will want to buy more steak; because steak and potatoes are complements, they will buy more potatoes as well.

6. Which of the following is the result of a decrease in the price tea, other things being equal?

A leftward shift in the demand curve for tea.

A downward movement along the demand curve for tea.

A rightward shift in the demand curve for tea.

An upward movement along the demand curve for tea.

Because demand curves have a negative slope, as the price declines, the quantity demanded will increase.

Explanation

Because demand curves have a negative slope, as the price declines, the quantity demanded will increase.

7. An increase in consumer income, other things being equal, will

Shift the supply curve for a normal good to the right.

Cause an upward movement along the demand curve for an inferior good.

Shift the demand curve for an inferior good to the left.

Cause a downward movement along the supply curve for a normal good.

Inferior goods are goods that people will buy less of at possible prices as their income increases.

Explanation

Inferior goods are goods that people will buy less of at possible prices as their income increases.

8. If the demand curve for good X is downward-sloping, an increase in the price will result in

An increase in the demand for good X.

A decrease in the demand for good X.

No change in the quantity demanded for good X.

A larger quantity demanded for good X.

A smaller quantity demanded for good X.

When price changes there is a opposite change in the quantity demanded as measured on the horizontal axis.

Explanation

When price changes there is a opposite change in the quantity demanded as measured on the horizontal axis.

9. Assuming that coffee and tea are substitutes, a decrease in the price of coffee, other things being equal, results in a (an)

Downward movement along the demand curve for tea.

Upward movement along the demand curve for tea.

Rightward shift in the demand curve for tea.

With a decrease in the price of coffee people will want to buy more coffee; because coffee and tea are substitutes, they will buy less at possible prices for tea.

Explanation

With a decrease in the price of coffee people will want to buy more coffee; because coffee and tea are substitutes, they will buy less at possible prices for tea.

10. Yesterday, seller A supplied 400 units of a good X at $10 per unit. Today, seller A supplies the same quantity of units at $5 per unit. Based on this evidence, seller A has experienced a (an)

Decrease in supply.

Increase in supply.

Increase in the quantity supplied.

Decrease in the quantity supplied.

Increase in demand.

The only way sell A could supply 400 units of good X at $10 yesterday and $5 today is for the supply curve to shift rightward.

Explanation

The only way sell A could supply 400 units of good X at $10 yesterday and $5 today is for the supply curve to shift rightward.