Los Angeles Mission College » Economics » Econ 001 - Principles of Economics » Fall 2021

Question #1

The Law of Demand says: "an increase in the price of a good

A. decreases the quantity demanded for that good."

B. increases the quantity demanded for that good."

Question #2

If 90% of airline pilots refuse the covid shot and retire this month, the Supply curve of Airline Tickets will "shift left" (supply decreases).

A. FALSE

B. TRUE

Question #3

Which of the following is considered a "Demand" shock, an event that can shift the buyer's Value (Willingness to Pay) curve?

A. change in buyers' incomes, improved manufacturing technologies and finding more resources.

B. change in tastes or preferences for a good, change in price of 'complements' to a good and change in buyers' incomes

C. change in the price of inputs used for production, improved manufacturing technologies and change in price of 'complements' to a good

D. change in the price of inputs used for production, improved manufacturing technologies and finding more resources.

Question #4

If Home Prices are expected to fall 'next year,' this will decrease Demand for buying a home today (presently).

A. FALSE

B. TRUE

Question #5

The Law of Supply says: "an increase in the price of a good

A. increases the quantity supplied of that good."

B. increases the supply of that good."