Economics Quiz

Which of the following is true in 'market for goods and services'?

• firms sell labor to households

• households sell capital to firms

• firms sell goods and services to households

• households sell goods and services to firms

What is a shortage?

• There are too many goods but not enough buyers in the market

• There are too many buyers but not enough goods in the market

• There are too many sellers and too many goods in the market

• When goods cannot be sold

For normal goods, when price of a good falls,

• demand increases

• demand decreases

• supply increases

• supply remains the same

If an increase in the price of blue jeans leads to a decrease in the demand for T-shirts, blue jeans and T-shirts are _____.

• complements

• inferior goods

• luxury goods

• substitutes

What does the law of supply say?

• When prices go down, sellers want to sell more

• When prices go up, sellers want to sell more

• When prices go down, buyers want to buy more

• Prices do not affect how much sellers produce

Suppose that at a price of 30,000 VND per ticket, there are 30,000 visitors to the amusement park in Da Nang. If the park raises its price to 40,000 VND per ticket, the number of visitors will fall to 20,000. Using the midpoint method for calculating the elasticity, the price elasticity of demand for the amusement park is ________.

• 1,4

• 0,66

• 0,75

• 1,0

Supposed soya milk is considered substitute for cow milk. An Increase in cow milk price will lead to________.

• an increase in demand of cow milk

• an increase in demand of soya milk

• a decrease in cow milk supply

• no affect to cow milk demand

Which of the following creates movement along the supply curve for electronic vehicles (EVs)?

• an advance in the technology used for manufacturing Evs

• a decrease in price of EVs

• a decrease price of raw material for manufacturing EVs

• an increase in labor wages for manufacturing EVs

Which of the following is an example of a price floor?

• setting the minimum wage to 5 mil VND per month

• setting the rent controls to mo more than 10 mil VND per month

• restricting petrol prices to 20,000 VND per liter when the equilibrium price 23,000 VND per liter

• A and B

Which of the following price elasticity of demand value indicates 'unit elastic demand'?

• price elasticity of demand < 1

• price elasticity of demand > 1

• price elasticity of demand = 1

• price elasticity of demand = 0