Mankiw Chapter 4 Yoda Quiz

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Mankiw Chapter 4 Yoda Quiz - Quiz

An Amateur Econ Quiz by YoDa.


Questions and Answers
  • 1. 

    A market in which there are many buyers and many sellers so that each has a negligible impact on the market.

    • A.

      Oligopoly

    • B.

      Competitive Market

    • C.

      Monopoly

    • D.

      Monopolistic Competition

    Correct Answer
    B. Competitive Market
    Explanation
    A competitive market is a market in which there are many buyers and many sellers, resulting in each participant having a negligible impact on the market. In a competitive market, no single buyer or seller has the power to influence prices or market conditions. This type of market is characterized by low barriers to entry, free competition, and a wide range of product choices for consumers.

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  • 2. 

    Saying that the quantity demanded is negatively related to the price.

    • A.

      Quantity Demanded

    • B.

      Law of Supply

    • C.

      Law of Demand

    • D.

      Quantity Supplied

    • E.

      Demand Curve

    Correct Answer
    C. Law of Demand
    Explanation
    The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded. This means that as the price of a good increases, the quantity demanded decreases, and vice versa. The law of demand is a fundamental concept in economics and helps explain consumer behavior in the market.

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  • 3. 

    If a increase in price of A Product leads to a decrease in quantity demanded for B Product, what is the relationship between these two products?

    • A.

      Normal Good

    • B.

      Inferior Good

    • C.

      Substitutes

    • D.

      Complements

    Correct Answer
    D. Complements
    Explanation
    If an increase in the price of A Product leads to a decrease in the quantity demanded for B Product, it suggests that these two products are complements. Complementary goods are those that are typically consumed together or used in conjunction with each other. In this case, the decrease in quantity demanded for B Product indicates that it is dependent on the demand for A Product.

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  • 4. 

    What is NOT the factor that shifts the demand curve?

    • A.

      Taste

    • B.

      Income

    • C.

      Price

    • D.

      Expectations

    • E.

      Prices of Related Goods

    Correct Answer
    C. Price
    Explanation
    The price of a product is not a factor that shifts the demand curve. The demand curve represents the relationship between the price of a product and the quantity demanded. Factors such as taste, income, expectations, and prices of related goods can influence the demand for a product and cause the demand curve to shift. However, changes in price result in movements along the demand curve, not shifts.

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  • 5. 

    What are the characteristics of an upward-sloping curve?

    • A.

      Price and quantity demanded are inversely related.

    • B.

      When prices fall, quantity demanded will fall as well.

    • C.

      Has a negative relationship.

    Correct Answer
    B. When prices fall, quantity demanded will fall as well.
    Explanation
    The given answer correctly states that when prices fall, quantity demanded will also fall. This is a characteristic of an upward-sloping curve, known as the law of demand. According to this law, as the price of a good or service decreases, consumers are willing and able to purchase more of it. This inverse relationship between price and quantity demanded is a fundamental principle in economics and is represented by an upward-sloping demand curve.

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