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. increases the quantity demanded for that good."

B. decreases 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. TRUE

B. FALSE

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

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

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

Question #4

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

A. TRUE

B. FALSE

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."