DeVry ECON 312 Week 2 Quiz
Question 1
A market
A. reflects upsloping demand and down sloping supply curves.
B. entails the exchange of goods, but not services.
C. is an institution that brings together buyers and sellers.
D. always requires face-to-face contact between buyer and seller.
Question 2
The demand curve shows the relationship between
A. money income and quantity demanded.
B. price and production costs.
C. price and quantity demanded.
D. consumer tastes and quantity demanded.
Question 3
Markets, viewed from the perspective of the supply and demand model,
A. assume many buyers and many sellers of a standardized product.
B. assume market power so that buyers and sellers bargain with one another.
C. do not exist in the real-world economy.
D. are approximated by markets in which a single seller determines price.
Question 4
Economists use the term “demand” to refer to
A. a particular price-quantity combination on a stable demand curve.
B. the total amount spent on a particular commodity over a fixed time period.
C. an upsloping line on a graph that relates consumer purchases and product price.
D. a schedule of various combinations of market prices and amounts/quantities demanded.
Question 5
A demand curve
A. shows the relationship between price and quantity supplied.
B. indicates the quantity demanded at each price in a series of prices.
C. graphs as an upsloping line.
D. shows the relationship between income and spending.
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Question 6
Digital cameras and memory cards are
A. substitute goods.
B. complementary goods.
C. independent goods.
D. inferior goods.
Question 7
When the price of a product falls, the purchasing power of our money income rises and thus permits consumers to purchase more of the product. This statement describes
A. an inferior good.
B. the rationing function of prices.
C. the substitution effect.
D. the income effect.
Question 8
The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is
A. price.
B. expectations.
C. preferences.
D. incomes.
Question 9
In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by
A. an increase in the cost of making donuts.
B. an increase in the price of coffee.
C. consumers expecting donut prices to fall.
D. a change in buyer tastes.
Question 10
The demand for most products varies directly with changes in consumer incomes. Such products are known as
A. complementary goods.
B. competitive goods.
C. inferior goods.
D. normal goods.
