Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Winter 2023 » Week 1 Reading Quiz Ch3
Below are the questions for the exam with the choices of answers:
Question #1
A excess demand
B a price ceiling
C excess supply
D ceteris paribus
Question #2
A negative slope because some consumers switch to other goods as the price rises.
B inverse slope because as the price goes up, the good has more profitability.
C negative slope because consumer incomes fall as the price of the good rises.
D negative slope because the good has less “snob appeal” as its price falls.
Question #3
A prices rise
B costs of production fall
C there is a population increase
D equilibrium is achieved
Question #4
A a technological improvement that lowers the cost of producing the computers
B higher wage rates for the workers that assemble the computers
C a reduction in the price of computer chips used to produce the computers
D a reduction in the price of computers.
Question #5
A some established manufacturers must exit the industry.
B the supply curve shifts to the left.
C the supply curve shifts to the right.
D the demand curve shifts to the left.
Question #6
A more of it is desired
B suppliers wish to sell less of it.
C more of it is produced.
D buyers desire to purchase less of it.
Question #7
A It will cause buyers and sellers in the market to adjust their behavior.
B It will cause consumers to travel less by plane and more by car.
C It will cause airlines to lower the number of flights they offer.
D All answers are correct
Question #8
A Social or economic surplus is maximized
B Consumer surplus is greater than producer surplus
C Producer surplus is greater than social surplus
D Consumer surplus is equal to producer surplus
Question #9
A A surplus will occur because the price ceiling is below the equilibrium price.
B A surplus will occur because the price ceiling is above the equilibrium price.
C The price ceiling will not affect the market which will remain at equilibrium.
D A shortage will occur because the price ceiling is below the equilibrium price.
Question #10
A The graph represents an increase in demand and a decrease in equilibrium price and quantity.
B The graph represents a decrease in equilibrium quantity demanded because of a price increase.
C The graph represents a decrease in supply and a decrease in equilibrium price and quantity.
D The graph represents a decrease in demand and a decrease in equilibrium price and quantity.
Question #11
A The demand for cheese would rise.
B The supply of cheese would fall.
C The supply of cheese would rise.
D The demand for cheese would fall.
Question #12
A The popularity of cruises rises after a successful marketing campaign.
B The price of air travelling decreased significantly.
C The economy is slowing, unemployment increases and average income falls.
D The price of cruises falls
Question #13
A When the demand and supply of milk intersect, at a price where the quantity demanded and supplied of milk are the same
B The price and quantity at which milk producers will earn the highest profit.
C When the market is balanced at the price that benefits milk buyers the most.
D The difference between the quantity demanded for milk and the quantity supplied at the equilibrium price.
Question #14
A The quantity of new houses that builders are willing and able to build at various prices in a given period of time.
B As the price of new houses in Houston fell in 2020, builders built fewer new houses.
C The number of new houses built in Houston in 2020.
D The number of new houses purchased in Houston in 2020.