If the cross-price elasticity of demand between Good A and Good B is 3, the price of Good B increases, and the price elasticity of demand for Good B is inelastic, we can expect to see a(n) __ change in the quantity demanded for Good A.
a）one-for-one
b）infinite
c）large
d）small
e) zero
Question 2
If all else is held constant, what would happen to the equilibrium price and quantity of iPhones if the price of an Android phone decreased?
They would both increase.
The price would decrease and the quantity would increase.
They would both decrease.
One would increase and one would decrease, but we don’t know which would do what.
The price would increase and the quantity would decrease.
Question 3 0.4 pts
If the cross-price elasticity of demand is -5, Good A and Good B are
luxury goods.
normal goods.
inferior goods.
complements.
substitutes.
Question 4 0.4 pts
Cross-price elasticity measures the relationship between
Group of answer choices
complements and inferior goods.
normal goods and inferior goods.
two goods and services.
income and substitute goods.
necessities and luxuries.
Question 5 0.4 pts
Which is NOT a benefit of trade?
Group of answer choices
equivalent gains for all parties involved
reaping the rewards of specialization
creation of value for all parties involved
More wants are satisfied.
improved allocation of resources
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Question 6 0.4 pts
Refer to the following scenario to answer the following questions.
Five fishermen live in a village and have no other employment or income-earning possibilities besides fishing. They each own a boat that is suitable for fishing but does not have any resale value. Fish are worth $5 per pound, and the marginal cost of operating the boat is $500 per month. They all fish a river next to the village. According to the following schedule, they have determined that when there are more of them out on the river fishing, they each catch fewer fish per month.
Boats Fish Caught per
Boat (pounds)
1 200
2 190
3 175
4 155
5 130
If four boats operate, then each boat will make a profit of
Group of answer choices
$275.00.
$68.75.
$775.00.
$675.00.
$500.00.
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Question 7 0.4 pts
Which of the factors listed contributes to making street performances a public good?
Group of answer choices
No qualifications are required to perform.
Performances do not follow a set schedule.
Not everyone enjoys street theater.
Music and live theater are art, not science.
Any passerby can enjoy the show.
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Question 8 0.4 pts
Which of the following scenarios best describes the change in the equilibrium shown in the accompanying graph?
mc123-1.jpg
Group of answer choices
firms entering the market
firms leaving the market
an input cost decreasing
buyers entering the market
buyers leaving the market
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Question 9 0.4 pts
Marginal utility
Group of answer choices
occurs when there is a change in purchasing power as a result of a change in the price of a good.
is the additional satisfaction derived from consuming one more unit of a good or service.
occurs when a consumer buys more of a good as a result of a relative price change.
occurs when total utility declines as consumption increases.
is the combination of goods and services that maximizes utility for a given income.
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Question 10 0.4 pts
The change in equilibrium shown in the accompanying figure would be explained by a(n) in the price of an input and a(n) in the price of a __.
mc141-1.jpg
Group of answer choices
increase; decrease; complement
increase; increase; complement
increase; increase; substitute
decrease; increase; complement
decrease; increase; substitute
Question 11 0.4 pts
What good is most likely to have a negative income elasticity of demand?
Group of answer choices
designer clothing
caviar
instant noodles
pizza
steak
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Question 12 0.4 pts
Which rule would NOT protect fish populations?
Group of answer choices
limiting the number of fish that can be caught
not allowing female fish to be caught
not allowing young fish to be caught
catching any fish except males
limiting the length of the fishing season
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Question 13 0.4 pts
Freda and Stefano are presented with two dessert options: ice cream or cookies. Freda values ice cream at 5 utils and cookies at 10 utils. For Stefano, it’s 10 and 5, respectively. What can we assume with certainty?
Group of answer choices
Freda prefers ice cream of over cookies.
Freda prefers cookies, and Stefano prefers ice cream.
Freda’s preference for cookies is equal in magnitude to Stefano’s preference for ice cream.
Stefano prefers cookies over ice cream.
Freda’s preference for ice cream is equal in magnitude to Stefano’s preference for cookies.
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Question 14 0.4 pts
The power of indifference curve analysis is its ability to display how changes affect choices.
Group of answer choices
supply; consumption
price; input
consumption; pricing
input; pricing
price; consumption
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Question 15 0.4 pts
The concept of diminishing marginal utility means that a graph representing marginal utility will be
Group of answer choices
downward-sloping.
upward-facing concave.