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Supply and Demand in Microeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Identify which of the following is an example of disposable income:

Question 2 2. How does the impact of banning a product differ from raising taxes on it?

Question 3 3. How does the treatment of cartels on the domestic scene differ from that of the international scene?

Question 4 4. James has a car that drives on diesel fuel. For which of the following is there derived demand due to the fact that James is a car owner?

Question 5 5. Which of the following best defines inelastic demand?

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Question 6 6. Which of the following BEST describes the demand curve?

Question 7 7. Which of the following causes the need for an entirely new demand curve to be drawn?

Question 8 8. When will natural market forces place upward pressure on prices and the quantity supplied?

Question 9 9. Which of the following is the BEST example of market forces?

Question 10 10. Which of the following best defines deadweight loss?

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Question 11 11. Identify which of the following is a situation where the government should act with price ceilings:

Question 12 12. What should x be substituted with in order to have the proper formula for cross price elasticity of demand?

Question 13 13. _____ is how responsive or elastic the quantity demanded for a good is in response to a change in the price of another good.

Question 14 14. Why is the following is NOT an accurate representation of a supply curve?

Question 15 15. Jim owns a local hardware store. The amount of goods that he will offer to customers, as well as the price that he sets is strongly based on their preferences and how much they are willing to pay for his goods. What is described in this scenario?

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Question 16 16. _____ based on the ratio of the percentage of increased (or decreased) demand over the percentage of change in income.

Question 17 17. Which of the following is NOT a standard type of goods?

Question 18 18. A company has discovered a way of making their products more efficiently which allows them to cut spending by up to 25%. As a result of that they have significantly decreased the prices of their products. How does the supply curve respond to such events?

Question 19 19. Which of the following would cause a shift in the demand curve to the left?

Question 20 20. Why does market equilibrium cause stable prices?

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Question 21 21. An IT company is very satisfied with their revenue in the past quarter. Due to the decreased taxes, more people are buying their products. They have also managed to significantly lower their production cost by making their microchip from a more resilient, but cheaper material. There have also been advancements in their industry which allow them a 10% decrease in their direct production costs. Which of the following shifts the supply curve?

Question 22 22. _____ is the measure of the percent change in the quantity of a good demanded divided by the percent change in the price of that good.

Question 23 23. Why is the concept of unitary elastic goods rare in the real world?

Question 24 24. Identify which of the following is an example of elastic supplies:

Question 25 25. Identify which of the following is an example of a cartel:

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Question 26 26. Due to the fact that people will buy larger quantities of a good as its price goes down, _____.

Question 27 27. Tom is applying for a job and his potential boss wants to pay him $6 per hour, which is lower than both the federal and state minimum. What protects Tom from having to work for such a low price?

Question 28 28. Which of the following reflects the law of supply?

Question 29 29. Tina has been working in the banking sector for a long time. She switched jobs and now works for Goldman Sachs and has gotten a very large salary. She used to mostly eat at her local cheap Chinese restaurant and wore normal clothing, but now she eats at expensive restaurants and wears luxurious clothing. What is the changed concept of Tina's habits called?

Question 30 30. Why do certain illegal movements such as internet piracy cause a drastic shift in the supply curve?

Supply and Demand in Microeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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