Econ 101 - Microeconomics » Fall 2019 » Quiz 3

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Question #1
An upward sloping supply curve implies that:
A.   the law of supply is invalid
B.   there is no relationship between price and quantity supplied
C.   quantity supplied increases when price increases
D.   quantity supplied increases when price decreases
Question #2
Which of the following would cause quantity demanded to change without changing the demand curve?
A.   A change in the price of the good
B.   A change in tastes and preferences
C.   A change in the price of a substitute good
D.   A change in income
Question #3
Demand for healthy kidneys is high in both India and Nepal. But it is also illegal to buy or sell organs. Despite the legal and social disapproval, there is an illegal market for organs. Assuming the legal and social disapproval does not influence buyers but discourages sellers from offering organs, the disapproval will:
A.   lower price but raise quantity
B.   lower price and lower quantity
C.   raise price and raise quantity
D.   raise price but lower quantity
Question #4
When the number of Alaskan fishermen increased, salmon prices fell to record lows. This could be shown geographically by a shift in:
A.   the supply curve right
B.   the demand curve right.
C.   the supply curve left
D.   the demand curve left
Question #5
A decrease in the number of consumers in a market causes market demand to:
A.   decrease, resulting in a surplus which will be eliminated as price rises.
B.   increase, resulting in a shortage which will be eliminated as price rises
C.   increase, resulting in a shortage which will be eliminated as price falls
D.   decrease, resulting in a surplus which will be eliminated as price falls
Question #6
How could a decline in demand for imported commodities by the Chinese affect the market for cargo transportation to China?
A.   Supply of cargo transportation shifts to the right causing an increase in quantity demanded and decline in equilibrium price
B.   Demand for cargo transportation shifts to the left causing a decline in quantity supplied and price
C.   Supply of cargo transportation shifts to the right causing an increase in demand and equilibrium quantity and a decrease in equilibrium price
D.   Demand for cargo transportation shifts to the left causing a decline in supply and equilibrium quantity and price.
Question #7
Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to
A.   increase the demand for gasoline
B.   increase the demand for diesel cars
C.   decrease the demand for diesel cars.
D.   decrease the demand for gasoline
Question #8
If the price of chicken rises and the price of beef does not rise, consumers will respond by:
A.   increasing purchases of beef and chicken
B.   substituting beef for chicken
C.   substituting chicken for beef
D.   reducing purchases of beef and chicken.
Question #9
If the price of steel rises, the law of supply predicts that, other thigns constant, the:
A.   quantity supplied of steel will increase
B.   quantity supplied of steel will decrease
C.   supply of steel will increase
D.   supply of steel will decrease
Question #10
If Argentina imposes a 20 per cent tax on natural gas exports to be paid by suppliers. Other things equal, this causes the:
A.   quantity of natural gas exports produced to increase
B.   demand for natural gas eports to shift to the right.
C.   supply of natural gas exports to shift to the left
D.   supply of natural gas exports to shift to the right.
Question #11
The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes:
A.   down, the quantity demanded goes down.
B.   up, the quantity demanded goes down.
C.   up, the quantity demanded also goes up.
D.   down, the quantity demanded stays the same
Question #12
The law of supply states that, other things constant, there is:
A.   a direct relation between price and the quantity supplied
B.   a direct relation between price and supply
C.   an inverse relation between price and supply
D.   an inverse relation between price and the quantity supplied

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