Economics Quiz

Wants, as opposed to demands,

• depend on the price.

• are the goods the consumer plans to acquire.

• are the unlimited desires of the consumer

• are the goods the consumer has acquired.

Demands differ from wants in that

• wants require a plan to acquire a good but demands require no such plan.

• demands are unlimited, whereas wants are limited by income.

• wants imply a decision about which demands to satisfy, while demands involve no specific plan to acquire the good.

• demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good.

Scarcity guarantees that

• wants will exceed demands.

• demands will be equal to wants.

• demands will exceed wants.

• most demands will be satisfied.

The quantity demanded is

• the amount of a good that consumers plan to purchase at a particular price.

• independent of the price of the good.

• independent of consumers' buying plans.

• always equal to the equilibrium quantity.

The law of demand states that, other things remaining the same, the higher the price of a good, the

• smaller is the demand for the good.

• smaller is the quantity of the good demanded.

• larger is the quantity of the good demanded.

• larger is the demand for the good.

A supply curve differs from a supply schedule because a supply curve

• is a graph and the supply schedule is a table.

• holds the number of suppliers' constant, whereas the supply schedule allows the number to vary.

• holds resource prices constant, whereas the supply schedule allows them to vary.

• represents one firm, whereas the supply schedule represents all firms in the market.

An increase in the number of fast-food restaurants

• increases the demand for substitutes for fast-food meals.

• raises the price of fast-food meals.

• increases the supply of fast-food meals.

• increases the demand for fast-food meals.

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

• the demand but not the supply of automobiles.

• both the supply and the demand for automobiles.

• the supply but not the demand for automobiles.

• neither the supply nor the demand for automobiles.

Which of the following will shift the supply curve for good X leftward?

• a situation in which quantity demanded exceeds quantity supplied

• an increase in the cost of the machinery used to produce X

• a decrease in the wages of workers employed to produce X

• a technological improvement in the production of X

Which of the following does NOT shift the supply curve?

• an increase in the price of the good

• a fall in the price of a substitute in production

• a decrease in the wages of labor used in production of the good

• a technological advance