#1
Which of the following is NOT a determinant of demand?
Price of the good
Consumer income
Price of related goods
Cost of production
#2
Which of the following is a determinant of supply?
Tastes and preferences
Price of inputs
Number of consumers
Consumer income
#3
What is the law of demand?
As price increases, quantity demanded increases
As price increases, quantity demanded decreases
As price decreases, quantity demanded increases
As price decreases, quantity demanded decreases
#4
Which of the following is NOT a determinant of supply?
Technology
Government regulations
Price expectations
Consumer preferences
#5
What is the law of supply?
As price increases, quantity supplied increases
As price increases, quantity supplied decreases
As price decreases, quantity supplied increases
As price decreases, quantity supplied decreases
#6
What happens to equilibrium price and quantity when both demand and supply increase?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity both increase
Price and quantity both decrease
#7
What is the concept that describes the situation when quantity demanded equals quantity supplied?
Market surplus
Market shortage
Market equilibrium
Market disequilibrium
#8
What is the income effect in relation to changes in price?
A change in purchasing power due to a change in price
A change in demand due to a change in income
A change in price due to a change in income
A change in quantity demanded due to a change in price
#9
What is the price elasticity of demand if a 10% increase in price leads to a 5% decrease in quantity demanded?
#10
Which of the following is a determinant of demand?
Cost of production
Price expectations
Number of producers
Government regulations
#11
How does a decrease in the price of a substitute affect the demand for a good?
Increase in demand
Decrease in demand
No change in demand
Indeterminate effect
#12
What does a perfectly elastic demand curve look like?
Horizontal line
Vertical line
Upward sloping line
Downward sloping line
#13
In which market structure do firms have the most control over price?
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#14
What is the relationship between marginal cost and marginal revenue at profit maximization?
Marginal cost equals marginal revenue
Marginal cost is greater than marginal revenue
Marginal cost is less than marginal revenue
Marginal cost and marginal revenue are irrelevant at profit maximization
#15
What happens to equilibrium price and quantity when demand decreases and supply increases?
Price increases, quantity increases
Price increases, quantity decreases
Price decreases, quantity increases
Price decreases, quantity decreases