Question 1

What is the term for income measured by the amount of goods and services which it will buy?

Accepted Answer

A) Income effect. 
B) Net income. 
C) Real income. 
D) Nominal income. 
E) Actual income. 
A) Income effect. 
B) Net income. 
C) Real income. 
D) Nominal income. 
E) Actual income.

Question 2

A rightward shift in the supply curve for a product could be caused by all of the following except one.Which is the exception?

Accepted Answer

A) The expectation of suppliers that the future price of the product will increase 
B) A decrease in the price of a productive resource used in its manufacture 
C) A decrease in the price of a product that is a substitute in production 
D) A technological improvement in manufacturing methods for the product 
A) The expectation of suppliers that the future price of the product will increase 
B) A decrease in the price of a productive resource used in its manufacture 
C) A decrease in the price of a product that is a substitute in production 
D) A technological improvement in manufacturing methods for the product

Question 3

Surpluses drive prices up;shortages drive prices down.

Accepted Answer

A) True 
 B)False

Question 4

How will a change in income affect the demand for an inferior product?

Accepted Answer

A) The demand will increase if the income of consumers increases. 
B) The demand will increase if the income of consumers decreases. 
C) The demand for an inferior product is not affected by consumer incomes. 
D) The demand will remain the same but the quantity demanded will increase if income decreases. 
A) The demand will increase if the income of consumers increases. 
B) The demand will increase if the income of consumers decreases. 
C) The demand for an inferior product is not affected by consumer incomes. 
D) The demand will remain the same but the quantity demanded will increase if income decreases.

What is the term for income measured by the amount of goods and services which it will buy?

A rightward shift in the supply curve for a product could be caused by all of the following except one.Which is the exception?

Surpluses drive prices up;shortages drive prices down.

How will a change in income affect the demand for an inferior product?

The Economic Problem

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 2: Demand and Supply: an Introduction

What is the term for income measured by the amount of goods and services which it will buy?

A rightward shift in the supply curve for a product could be caused by all of the following except one.Which is the exception?

Surpluses drive prices up;shortages drive prices down.

How will a change in income affect the demand for an inferior product?

The Economic Problem

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters