This document contains a 45 question quiz on concepts in economics including:
- The father of economics is Adam Smith.
- Economics can be considered both an art and a science.
- The terms microeconomics and macroeconomics were introduced by economists in the early 20th century.
- Macroeconomics deals with economic aggregates like GDP, while managerial economics focuses on problems facing individual firms.
- Demand is defined as the relationship between the quantity demanded of a good and its price when income and other factors are held fixed.
Economics, Law of Demand, Determinants of Demand, increase and Decrease in Demand, Extension and Contraction in Demand, Exception of Demand, Assumptions of Demand
Economics, Law of Demand, Determinants of Demand, increase and Decrease in Demand, Extension and Contraction in Demand, Exception of Demand, Assumptions of Demand
Price Elasticity of Demand, Degrees of Elasticity, Factors determining Elasticity of Demand, Measurement of Price Elasticity, Importance of Elasticity of Demand
The flexible accelerator theory removes one of the major weaknesses of the simple acceleration principle that the capital stock is optimally adjusted without any time lag. In the flexible accelerator, there are lags in the adjustment process between the level of output and the level of capital stock.
Price Elasticity of Demand, Degrees of Elasticity, Factors determining Elasticity of Demand, Measurement of Price Elasticity, Importance of Elasticity of Demand
The flexible accelerator theory removes one of the major weaknesses of the simple acceleration principle that the capital stock is optimally adjusted without any time lag. In the flexible accelerator, there are lags in the adjustment process between the level of output and the level of capital stock.
This is a small and easy description of demand and its determinants. PLEASE MUST WATCH IT AND UNDERSTAND IT AND ASK YOUR QUARRIES ALSO , i would love to solve it and give your peaceful reviews regarding this presentation weather it is bad or good.
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Price elasticity of demand (PED) shows the relationship between price and quantity demanded and provides a precise calculation of the effect of a change in price on quantity demanded.
The Effect of Social Media on Children and AdolescentsAbstract.docxmehek4
The Effect of Social Media on Children and Adolescents
Abstract
One of the most common activities undertaken by children and adolescents is the use of the social media. This paper examines the social media’s positive and negative effects on children and adolescents. It is an undisputable fact that young people interact with each other through the social media, and it therefore improves children’s interactions with friends and family members, as they are able to maintain communications with them even though they may not see each other face to face (Patrut & Patrut, 150). The social media also enables them to have a wider perspective on issues, as they are able to view other people’s perspectives on certain issues. As a result, the children and adolescents are able to express their opinions, and exchange ideas, something that enhances their self-expression. Nevertheless, the social media also has negative influences on the young minds, some which go on to affect them even in their adult lives. For instance, (Margalit, 188) discusses that the social media exposes young people to harmful content that might be obscene or inappropriate in nature. Additionally, the social media may occupy too much of a child’s time, making them lose interest in other social activities. This could lead to a deterioration of their mental and physical health in case of addiction to the social media. The implications of these findings suggest that the social media contains positive attributes, but caution should be taken when children to prevent negative influences on children.
Works Cited
Margalit, Malka. Lonely children and adolescents: Self-perceptions, social exclusion, and hope. Springer Science & Business Media, 2010.
Patrut, Monica, and Bogdan Patrut, eds. Social media in higher education: Teaching in Web 2.0. IGI Global, 2013.
1. The demand for a product is the amount that
a. buyers purchase in the market
b. buyers are willing to purchase at a given price
c. sellers are willing to sell at a particular price
d. buyers are willing and able to purchase at alternative prices
e. buyers are able to purchase at a specific price
2. The law of demand says that the lower the price of a good, other things constant,
a. the smaller the demand for that good
b. the larger the demand for that good
c. the smaller the quantity demanded of that good
d. the larger the quantity demanded of that good
e. the smaller the real income of consumers and the lower the quantity demanded of that good
3. The law of demand assumes that as the price of a good increases,
a. people recognize that its price may be even higher in the future, so they buy now rather than later
b. consumers tend to shift their purchases to relatively cheaper substitutes
c. people will buy less of it in the hope that the good will be cheaper in the future
d. the consumer’s money income increases, and he or she is less able to buy all goods, including the
good who ...
Exam1. Economics is aa. social science that studies g.docxSANSKAR20
Exam
1. Economics is a:
a. social science that studies goods with no alternative uses.
b. natural science that studies goods with no alternative uses.
c. social science concerned chiefly with how people choose among alternatives.
d. social science concerned chiefly with reasons why society has unlimited resources.
2. Scarcity exists when:
a. a choice must be made among two or more alternatives.
b. we face the notion of "all other things unchanged."
c. countries and people find themselves facing poverty.
d. the notions of normative economics come into play.
3. A free good is:
a. also a scarce good.
b. a relatively abundant good.
c. a good with no opportunity cost.
d. a good with relatively low opportunity cost.
4. Suppose that voters in your community pass a one-cent sales tax increase to fund education, knowing full well they will have to forgo other goods they typically consume. This primarily addresses the economic question of:
a. How will each good be produced?
b. For whom shall the goods be produced?
c. Why will the resources be used to produce goods?
d. What goods and services should a society produce?
5. A factor of production that has been produced for use in the production of other goods and services is:
a. labor.
b. money.
c. capital.
d. natural resources.
6. The textbook classifies technology as _______ and entrepreneurs as _______ .
a. knowledge; persons who seek profit by finding new ways to organize factors of production
b. capital; labor
c. labor skills; capital
d. a factor of production; a factor of production
7. The production possibilities curve represents the fact that:
a. the economy will automatically end up at full employment.
b. an economy's productive capacity increases proportionally with its population.
c. if all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
d. economic production possibilities have no limit.
8. An economy is said to have a comparative advantage in producing a particular good if it:
a. can produce more of all goods than another economy.
b. can produce less of all goods than another economy.
c. has the highest cost for producing that good.
d. has the lowest cost for producing that good.
9. A negative relationship between the quantity demanded and price is called the law of ______.
a. demand
b. diminishing marginal returns
c. market clearing
d. supply
10. If people demand more of product A when the price of B falls, then A and B are:
a. not related.
b. substitutes.
c. complements.
d. inferior.
11. The primary difference between a change in demand and a change in the quantity demanded is:
a. a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve.
b. a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve.
c. both a change i ...
South UniversityVirginia Beach CampusECO2071Name ________.docxwilliame8
South University
Virginia Beach Campus
ECO2071
Name: ____________________________________________
Score: ______________
Select the CORRECT answer to each question. Each question is worth 2 points.
1. Economics is the study of how society manages its
a.
limited wants and unlimited resources.
b.
unlimited wants and unlimited resources.
c.
limited wants and limited resources.
d.
unlimited wants and limited resources.
2. The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that
a.
equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
b.
equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
c.
equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
d.
equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.
3. Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial
a.
only if it allows us to obtain things that we couldn't make for ourselves.
b.
because it allows specialization, which increases total output.
c.
to us if we can gain and the others involved in the trade lose.
d.
in only a limited number of circumstances because others are typically self-interested.
4. A direct or positive relationship exists between a country's
a.
productivity and its standard of living.
b.
amount of government spending and its productivity.
c.
total population and its average citizen’s income.
d.
rate of population growth and the extent of its trade with other countries.
5. Economists, like mathematicians, physicists, and biologists,
a.
make use of the scientific method.
b.
try to address their subject with a scientist’s objectivity.
c.
devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.
d.
All of the above are correct.
6. Which of the following is an example of a positive, as opposed to normative, statement?
a.
Inflation is more harmful to the economy than unemployment is.
b.
If welfare payments increase, the world will be a better place.
c.
Prices rise when the government prints too much money.
d.
When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.
7. Which of the following is an example of a normative, as opposed to positive, statement?
a.
Universal health care would be good for U.S. citizens.
b.
An increase in the cigarette tax would cause a decrease in the number of smokers.
c.
A decrease in the minimum wage would decrease unemployment.
d.
A law requiri.
A graph…….a.can be used to show either a positive or neg.docxssuser774ad41
A graph…….
a.
can be used to show either a positive or negative relationship between two variables.
b.
can illustrate both demand and supply.
c.
is used because it is impossible to describe any economic relationship verbally.
d.
all of the above.
e.
both a) and b) are correct.
2.
If less people buy coffee as income declines, then coffee is
a.
a complementary good.
b.
a substitute good.
c.
a normal good.
d.
an inferior good.
3.
Consider that when the price of a good increases, like hamburgers people buy less of that good and less of a complementary good such as ketchup.
Therefore if the price of hamburgers increases,
the quantity demanded of hamburgers will decrease and the demand curve for
ketchup will shift to the left.
the quantity demanded of hamburgers will increase and the demand curve for
ketchup will shift to the left.
the quantity demanded of hamburgers will decrease and the demand curve for
ketchup will shift to the right.
the quantity demanded of hamburgers will increase and the demand curve for ketchup will shift to the right.
4.
If insurance companies are compelled by law to decrease their rates 5% for high-risk drivers, what would be the most likely outcome for high-risk drivers according to supply and demand analysis?
a.
High-risk drivers will be better off since there will be an increase in the supply for insurance.
b.
High-risk drivers will be better off since there will be an increase in the demand for insurance.
c.
Many high-risk drivers may be unable to purchase insurance since the likely outcome of the law may be to cause a shortage of insurance for high-risk drivers.
d.
both b) and c) are correct.
5.
Which of the following forecasts for revenue are correct when the price of x declines?
a.
increased revenue in the price elastic case and decreased revenue in the price inelastic case
b.
decreased revenue in the price elastic case and increased revenue in the price inelastic case
c.
increase in revenue no matter what the elasticity coefficient is
d.
decrease in revenue no matter what the elasticity coefficient is
6.
The demand for food is likely to be more
than the demand for meat.
The relates to the elasticity determinant of
________.
a.
elastic – price relative to income
b.
inelastic – price relative to income
c.
elastic – number of substitutes
d.
inelastic – number of substitutes
7.
If you enjoyed wine so much that the more you had, the better it tasted, then the marginal utility of additional wine would be
a.
positive and declining
b.
negative
c.
zero
d.
increasing
8.
If the demand for corn shifts to the right, it may have been caused by
a.
the price of corn declining.
b.
more people needing corn for recipes.
c.
the price of corn increasing.
d.
both a) and b) are correct.
9.
The paradox of value suggests that one will pay
a. more for water than diamonds.
b. more for a luxury cruise than water.
c. more for .
3Final ExaminationBAM 223 Principles of EconomicsM.docxtamicawaysmith
3
Final Examination
BAM 223 Principles of Economics
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
An economic ________ is a simplified version of some aspect of economic life used to analyze 1.
an economic issue.
variablea.
marketb.
modelc.
trade-off d.
Scenario 1-2
Suppose a hat manufacturer currently sells 2,000 hats per week and makes a profit of
$5,000 per week. The plant owner observes, “Although the last 300 hats we produced and
sold increased our revenue by $1,000 and our costs by $1,100, we are still making an
overall profit of $5,000 per week so I think we’re on the right track. We are producing the
optimal number of hats.”
Refer to Scenario 1-2. Had the firm not produced and sold the last 300 hats, would its profit 2.
be higher or lower, and if so by how much?
Its profit will be $1,100 higher. a.
Its profit will be $1,000 lower. b.
Its profit will be $100 lower.c.
Its profit will be $100 higher. d.
The term market in economics refers to: 3.
a place where money changes hands.a.
a legal institution where exchange can take place.b.
a group of buyers and sellers of a product and the arrangement by which they come c.
together to trade.
an organization which sells goods and services. d.
Scenario 1-3
Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of
$10,000 per week. A manager at the plant observes, “Although the last 400 t-shirts we
produced and sold increased our revenue by $4,000 and our costs by $4,800, we are still
making an overall profit of $10,000 per week so I think we’re on the right track. We are
producing the optimal number of t-shirts.”
Refer to Scenario 1-3. Using marginal analysis terminology, what is another economic term 4.
for the incremental cost of producing the last 400 t-shirts?
marginal costa.
explicit costb.
operating costc.
Any of the above terms are correct.d.
4
Final Examination
BAM 223 Principles of Economics
Suppose the U.S. government encouraged new teachers to take jobs in underperforming 5.
schools by paying the new teachers a $20,000 bonus. These teachers would be exemplifying
the economic idea that:
people respond to economic incentivesa.
people are rationalb.
optimal decisions are made at the marginc.
equity is more important than efficiency d.
Dr. Goldfinger decides to invest in companies which he believes can “improve the 6.
productivity and efficiency” of health care services. How can Dr. Goldfinger strive to achieve
this productive efficiency?
by investing in companies that produce goods and services at the lowest possible costa.
by investing in companies that produce up to the point where the marginal benefit of the b.
last unit produced is equal to the marginal cost of producing it.
by investing in companies that fairly distribute their products and servicesc.
by investing in companies that produce goods and services based on consumer d.
preferences ...
Instructions use a RED scantron and bubble in your answers. T.docxdirkrplav
Instructions: use a RED scantron and bubble in your answers. Turn in your
scantron along with your typed answers to the written portion of the exam.
1. When private ownership rights are well-defined and enforced, owners
a. can ignore the wishes of others, without bearing the cost.
b. have little incentive to take care of things.
c. can do anything they want with their property.
d. can be held accountable for damage to others through misuse of their
property.
2. Criteria for rationing goods and resources must be established because of
a. the law of comparative advantage.
b. the use of capitalism as a form of economic organization.
c. the inability of politicians to develop efficient forms of economic organization.
d. scarcity imposed by nature.
3. When we say the cost of production is $50, what is meant according to economic
principles?
a. A firm had to spend $50 in order to purchase the resources required to make the
good or service.
b. A value to society of this good or service was $50, so its cost is said to be $50.
c. A firm could have made something else with the resources that was worth $50 in
the market.
d. $50 represents the maximum willingness to pay from market participants.
4. For markets to be efficient in production, what must be true?
e. All profitable opportunities must be exhausted
f. No firm is doing something where MC>MB
g. All of the above
h. None of the above
Use the production possibilities data below for Honduras and Nicaragua to answer the
following question(s).
Table 2-2
Honduras
Oranges Apples
0 16
1 12
2 8
3 4
4 0
Nicaragua
Oranges Apples
0 8
1 6
2 4
3 2
4 0
5. Refer to Table 2-2. Which of the following is correct?
a. Honduras has the comparative advantage in both goods.
b. Nicaragua has the comparative advantage in oranges.
c. Honduras has the comparative advantage in oranges.
d. It would be impossible for Honduras and Nicaragua to gain from trade.
Figure 2-2
6. Which of the following would most likely cause the production possibilities curve for
breadfruit and fish to shift outward from AA to BB in Figure 2-2?
a. a decrease in the labor force of the country
b. a sudden change in consumer preferences for more fish and less breadfruit
c. a major technological advance
d. a decrease in the capital stock
Figure 2-10
7. Refer to Figure 2-10. A movement from point C to point D could be caused by
a. unemployment.
b. a decrease in society's preference for bananas.
c. fewer resources available for production of bananas.
d. All of the above are correct.
8. Which of the following results in more elastic demand?
a. Fewer substitutes
b. Less time in which to respond to a price spike
c. A higher proportion of income spent on the good
d. Good considered a luxury good rather than a necessity
9. Two points on a demand curve are P=60,Q=10 and P=30,Q=30. What is the elasticit.
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Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
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Palestine last event orientationfvgnh .pptxRaedMohamed3
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Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
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Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
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A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2. Q1. Father of Economics ?
a. Alfred Marshall
b. Adam smith
c. Prof. Samuelsson
d. Prof. kines
3. Q2. Nature Of Economics ?
a. Art
b. Science
c. A & B both
d. None of these
4. Q3. Economics is derived from Greek word ?
a. Oikosomikos
b. Oikosnomikos
c. Oikosmonikos
d. None of the above
5. Q4. Micro and macro term were introduced
by ?
a. Prof Samuelson in 1994
b. Prof John Robinson in 1998
c. Prof Rajnerfrish in 1993
d . Prof J B Shaw in 1990
6. Q5. Macroeconomics deals with ?
a. Behavior of the firm
b . The activities of individual units
c . Economic Aggregates
d . The behavior of the electronic industry
7. Q6. Managerial Economics Deals with
problem of ?
a. An individual Firm
b. An Industry
c. An Economy
d . Global Economy
8. Q7. Managerial Economy as a special
branch of economics ?
A. Provide Ready – Make solutions to
business Problems
B. Provide Logic and Methodology to find
Solution to Business Problems
C . Provide theoretical background
D . Provide alternative answer to specific
business problems .
9. Q8. Demand is the ?
a. Unlimited want of consumer
b. Entire Relationships b/w the quantity
demanded and the price of the goods
c. Willingness to pay for a good if income is
large enough
d. Liability to pay for a good
10. Q9. Law of demand is ?
a. P D
b. P 1/D
c. A and B both
d. None of these
11. Q10. Demand for a commodity refers to ?
a. Desired for the commodity
b. Need for a commodity
c. Quantity of a commodity Demanded at a
certain price during any a particular
period of time
d. Quantity demanded of the commodity
12. Q11. All but one of the following are assumed
to remain the same while drawing an
individual demand curve for a commodity
Which one of it ?
a. The Preference of an individual
b. His Monetary income
c. Price
d. Price of related goods
13. Q12. Which of the following pair of goods
is an example of substitutes goods ?
a . Tea and sugar
b . Pen and ink
c . Shirt and trousers
d. None of the above
14. Q13. If a people’s Income increase the quantity
demanded of a good decreases ,the good is
called ?
a . Substitute Goods
b . Normal Goods
c. inferior Goods
d . Complement Goods
15. Q14.The prices of tomatoes increases and
people buy tomato puree. You infer that
tomato puree and tomatoes are?
a. Normal goods
b. Complements
c. Substitutes
d. Inferior goods
16. Q15. Potato chips and popcorn are
substitutes a rise in the price of potato
chips will______ the demand for popcorn
and quantity of popcorn will______.
A. increase ;increase
B. Increase ;decrease
C. Decrease ;decrease
D. decrease ;increase
17. Q16. If the prices of orange juice increases ,the
demand for apple juice will_______.
A. Increase
B. Decrease
C. Remain the same
D. Become negative
18. Q17. When total demand for a commodity
whose price has fallen increase ,it is due to
a. Income effect
b. Substitution effect
c. Complementary effect
d. Price effect
19. Q18. With an increase in the price of diamond
,the quantity demanded also increases. This is
because it is a
a. Substitute good
b. Complementary good
c. Conspicuous good
d. None of the above
20. Q19. In economics, when demand for a
commodity increases with a fall in its price it is
known as
a. Contraction of demand
b. Increase in demand
c. No change in demand
d. None of the above
21. Q20.Identify the factor which generally keep
the price elasticity of demand for a good law
a. Variety of uses for that good
b. Its low price
c. Close substitutes for the good
d. High proportion of the consumer’s
income spent on it.
22. Q21.In the case of an inferior good, the
income elasticity of demand is
a. Positive
b. Zero
c. Negative
d. Infinite
23. Q22. If a demand for a good is inelastic, an
increase in its price will cause the total
expenditure of the consumer of the good to
a. Remain the same
b. Increase
c. Decrease
d. None of these
24. Q23.If regardless of change in its price, the
quantity demand for a good remains
unchanged, then the demand curve for the
good will be
a. Horizontal
b. Vertical
c. Positive slope
d. Negative slope
25. Q24. Compared to the lower-right portion,
the upper-left portion of most demand
curves tend to be
a.more inelastic
b.more elastic
c.unit elastic
d.perfectly inelastic
26. Q 25.You are the sales manager for a pizza
company and have been informed that the
price elasticity of demand for your most
popular pizza is greater than one .To increase
total revenues, you should
a.increase the price of the pizza.
b.decrease the price of the pizza.
c.hold pizza prices constant.
d.decrease demand for your pizza.
27. Q26.Selling Sweets and Namkeens at higher
price in Punjab and at lower price in Bikaner
and other parts of Rajasthan is an example of ?
a. Price sensitisation
b. price discrimination
c. price reduction
d. price harmonisation
28. Q27.Suppose the price of Pepsi increases, we
will expect the demand curve of coca cola to
a. Shift towards left
b. Shift towards right
c. Infinity shift towards left and than to right
d. Remain at the same level
29. Q28.All the following are determinates of
demand except
a. Income
b. Price of related goods
c. Tastes and preferences
d. Quantity supplied
30. Q29.If the price of Pepsi decreases relative to
the price of coke and 7-up the demand for
a. Coke will decrease
b. 7-up will decrease
c. Coke and 7-up will increase
d. Coke and 7-up will decrease
31. Q30.If a good is luxury, its income elasticity of
demand is
a. Positive and less than 1
b. Negative but greater than -1
c. Positive and greater than 1
d. Zero
32. Q31.The price of hot dog increases by 22%
and the quantity of hot dog demanded falls by
25%. This indicates that demand for hot dog is
a. Elastic
b. Inelastic
c. Unitary elastic
d. Perfectly elastic
33. Q32.Given the following four possibilities, which
one results in an increase in total consumer
expenditure
a. Demand is unitary elastic and price falls
b. Demand is elastic and price rises
c. Demand is inelastic and price falls
d. Demand is inelastic and price rises
34. Q33.If elasticity demand is inelastic and
elasticity charges increases, which of the
following is likely to occur
a. Quantity demanded will fall by a relatively
large amount
b. Quantity demanded will fall by a relatively
small amount
c. Quantity demanded will rise in the short
run but rise in the long run
35. Q34. Suppose the demand for meals at a
medium priced restaurant is elastic. If the
management of the restaurant is considering
raising prices, it can expect a relatively
a. Large fall in quantity demanded
b. Large fall in demand
c. Small fall in quantity demanded
d. Small fall in demand
36. Q35.A decrease in price will result in an increase
in total revenue if
a. The percentage change in quantity
demanded < the percentage change in price
b. The percentage change in quantity
demanded > the percentage change in price
c. Demand is elastic
d. Demand is inelastic
37. Q36.Demand for a good will tend to be more
elastic if it exhibits which of the following
characteristics
a. It represents a small part of the consumer’s
income
b. The good has many substitutes available
c. It is a necessity( as opposed to a luxury)
d. There is little time for the consumer to
adjust to the price change
38. Q37.Demand for a good will tend to be more
inelastic if it exhibits which of the following
characteristics
a. The good has many substitutes
b. The good is a luxury
c. The good is a small part of the consumer’s
income
d. There is a great deal of time for the
consumer to adjust to change in the prices
39. Q38. If the quantity demanded of mutton
increases by 5% when the price of chicken
increases by 20%. The cross price elasticity of
demand between mutton and chicken is
a. -0.25
b. 0.25
c. -4
d. 4
40. Q39.The demand for Nike basketball shoes is more price-elastic
than the demand for basketball shoes as a whole. This
is best explained by the fact that
a.Nike basketball shoes are a luxury good, not a necessity.
b.Nike basketball shoes are the best made and are widely
advertised.
c.There are more complements for Nike basketball shoes than
for basketball shoes as a whole.
d.There are more substitutes for Nike basketball shoes than
for basketball shoes as a whole.
41. Q40. Suppose the price of movies seen at a
theater rises from rupees 120 per person to
rupees 200 per person. The theater manager
observes that the rise in price causes
attendance at a given movie to fall from 300 per
person. What is the price elasticity of demand
for movie
a. 0.5
b. 0.8
c. 1.0
d. 1.2
42. Q41.Suppose a department store has a sale on
its silverware. If the price of a plate setting is
reduce from rupee 300 to rupee 200 and the
quantity demanded increases from 3000 plates
setting to 5000 plates setting. What is the
price elasticity of demand for silverware
a. 0.8
b. 1.0
c. 1.50
d. 1.25
43. Q42.A store has a special offer on CDs. It
reduces their price from rupees 150 to rupees
100. suppose the store manager observes that
the quantity demanded increases from 700 CDs
to 1300 CDs. What is the price elasticity of
demand for CDs
a. 0.8
b. 1.0
c. 1.25
d. 1.50
44. Q43.If the local pizzeria raises the price of a
medium pizza from rupees 60 to rupees 100
and quantity demanded falls from 700 pizzas a
night to 100 pizzas a night, the price elasticity
of demanded for pizzas is
a. .67
b. 1.5
c. 2.0
d. 3.0
45. Q44.Which is characteristic of a good whose
demand is inelastic?
a. There are a large number of good substitutes
for the good for consumers.
b. The buyer spends a small percentage of total
income on the good.
c. The good s regarded by consumers as a luxury.
d. The period of time for which demand is given
is relatively long.
46. Q45.Most goods can be classified as normal goods
rather than inferior goods. The definition of a normal
good means that
a. the percentage change in consumer income is greater
that the percentage change in price of a normal good.
b. the percentage change in quantity demanded of the
normal good Is greater than the percentage change in
consumer income.
c.as consumer income increases, consumer purchases of
a normal good increase.
d. the income elasticity of demand is negative.
47. Q 46.In what type of products is elasticity
lowest ?
a. day to day use products
b. luxury goods
c. medicines
d. perishables
48. Q 47.In what type of products is elasticity
highest ?
a. day to day use products
b. luxury goods
c. medicines
d. perishables
49. Q48.When two or more commodity are
demanded for a common purpose then it is
called_______
a. Derived demand
b. Collective demand
c. Joint demand
d. Cross demand
50. Q49.From a time perspective, the demand
for most products is
a. less elastic in the short run and unit-elastic
in the long run.
b. less elastic in the long run and unit-elastic
in the short run.
c. more elastic in the short run than in
the long run.
d. more elastic in the long run than in
the short run.
