Economics and Finance Exam

Front

What is the primary relationship between price and quantity demanded according to economic theory?

Back

They move in opposite directions

Front

Which of the following best describes a complementary good relationship? Apples and oranges, Hot dogs and hot dog buns, Tea and coffee, Butter and margarine

Back

Hot dogs and hot dog buns

Front

When supply increases (shifts right), what happens to equilibrium price?

Back

Decreases

Front

What occurs in a market when QD > QS?

Back

Shortage exists

Front

Which cost is considered variable in business operations? Options: Building lease, Raw materials, Insurance payments, Property taxes

Back

Raw materials

Front

During an economic recession, what typically happens to inferior goods?

Back

Price always rises

Front

What causes a movement along the supply curve?

Back

Change in price

Front

Which factor would shift the demand curve to the left? Options: Increase in population, Rise in consumer income, Decrease in price of substitutes, Decrease in consumer income

Back

Decrease in consumer income

Front

What happens to peanut butter demand when jelly prices increase?

Back

Decreases

Front

Which cost is considered fixed? Labor wages, Monthly rent, Raw materials, Shipping costs

Back

Monthly rent