Microeconomics Test 2

Of the following factors, which one will not shift the demand curve of goods?

• An increase in population

• A decrease in the price of goods

• An increase in national income

• An increase in the price of substitute goods

Which of the following factors, does not influence the supply of a good ?

• input price

• level of technology

• producer’s goals

• level of income

The supply of Toyota Vios cars will increase if

• the demand for Honda City cars decrease

• the government reduces taxes on Toyota Vios cars

• the price of Toyota Vios cars falls

• local petroleum resources are exchausted

Refer to Table 1,the table shown when the price the price is at RM8, a ________.

• surplus of 30 units would exist and price would tend to fall

• surplus of 60 units would exist and price would tend to rise

• surplus of 60 units would exist and price would tend to fall

• shortage of 30 units would exist and price would tend to rise

All the following will cause the supply curve for a good will shift except __________.

• changes in technology

• changes in taxation

• changes in factors of production

• changes in price of the good

If bread is an inferior good, demand for bread increase as the consumer income increases.

• true

• false

When the price of a substitute to good X increases, then the demand for good X will decrease.

• true

• false

Number of suppliers is a one of determinants of supply.

• true

• false

Price Ceiling is a maximum price that can be legally charged for a good or service and set below equilibrium.

• true

• false

Subsidies given to vegetable farmers will result in a movement along the supply curve vegetables.

• true

• false