ECON 102 Quiz: ECON102 Quizzes 2017

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Published on 1 Oct 2018
School
University of Illinois
Department
Economics
Course
ECON 102
Professor
1 of 44
MIDTERM I
[Q#k2003] Abe starts exercising regularly, and after a few months he can do twice as much of everythingin a
single day Abe can now make 10 hamburgers or 8 milkshakes rather than the 5 hamburgers and 4 milkshakes he
made in the past. We now know that Abe's production possibility frontier:
a. has not changed, but his opportunity costs of making milkshakes have increased.
b. has not changed, but his opportunity costs of making milkshakes have decreased.
c. has shifted right, but his opportunity costs of making milkshakes are unchanged.
d. has shifted right, but his opportunity costs of making milkshakes have decreased.
4. If a consumer buys a set of headphones at the same time as she buys an .mp3 player, these two products are
most likely:
a. normal goods
b. complementary goods c. substitute goods
d. inferior goods
5. Which pair are most likely substitute goods?
a. Soft drinks and lemonade
b. Pizza and chicken wings c. Ramen noodles and water
d. Hot dogs and mustard
6. Bus tickets are often considered _____ because _____:
a. inferior goods; as income rises, demand for bus tickets falls
b. inferior goods; as the price of a related good falls, demand for bus tickets increases
c. substitute goods; as the price of a related good falls, demand for bus tickets decreases
d. substitute goods; as income rises, demand for bus tickets falls
8. Which of the following would be considered a complementary good for a kayak?
a. Jet Ski b. canoe c. bad weather d. life jacket
73. Which of the following would cause a decrease in the demand for coffee?
a. an increase in the price of tea (a substitute for
coffee)
b. an increase in the price of coffee
c. a decrease in the price of tea (a substitute for
coffee)
d. a decrease in the price of coffee
86. Assume the demand schedule for smart phones is downward sloping. If the price of smart phones increases
from $200 to $600:
a. the demand for smart phones will increase.
b. an increase in quantity demanded of smart phones will occur.
c. a decrease in quantity demanded of smart phones will occur.
d. the demand for smart phones will decrease.
95. Other factors held constant, as the price of an iPad rises:
a. the quantity demanded for iPads falls.
b. the demand for iPads falls. c. the demand for iPads rises.
d. the quantity demanded for iPads rises.
102. Which of the following illustrates the law of demand?
a. Lindsay offers to buy more sticks of chewing gum at $1 than $2.
b. Marcus offers to sell more sticks of chewing gum at $2 than $1.
c. Lindsay offers to buy more sticks of chewing gum at $2 than $1.
d. Marcus offers to sell more sticks of chewing gum at $1 than $2.
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115. If the price of gasoline rises, then:
a. there is an upward movement along the demand curve for gasoline.
b. the demand for hybrid cars falls.
c. the quantity of gasoline demanded rises.
d. the demand for gas-powered cars rises.
122. Which of the following will cause a decrease in demand?
a. an increase in the price of a substitute good
b. a decrease in income for an inferior good
c. an increase in the price of a complementary good
d. an increase in the price of the product
129. The demand for gasoline is rising. Which of the following statements describes a possible cause?
a. Drivers are purchasing more fuel-efficient cars.
b. Incomes are falling.
c. Consumers expect prices to rise in the near future.
d. Commuters are switching from driving to public transportation.
133. If an increase in income leads to an increase in the demand for opera tickets, then opera concerts are a(n):
a. substitute good. b. superior good. c. normal good. d. inferior good.
138. A decrease in the price of on-demand video-streaming services such as Netflix leads to:
a. an increase in the quantity demanded for DVDs.
b. a decrease in the demand for DVDs. c. an increase in the demand for DVD players.
d. an increase in the demand for DVDs.
145. If the price of gasoline increases from $4 to $4.50,:
a. people will buy more gasoline.
b. the demand curve for gasoline will shift to the
right.
c. people will buy less gasoline.
d. the demand curve for gasoline will shift to the left.
[Q#2003] When the price of wine increases, the quantity of wine demanded:
a. Stays the same b. Decreases c. Increases d. We cant say
[Q#2004] When the price of wine decreases, the quantity of wine demanded:
a. Increases b. We cant say c. Stays the same d. Decreases
[Q#2006] Along a given demand curve, an increase in price of the product will:
a. decrease the demand.
b. increase the quantity demanded. c. decrease the quantity demanded.
d. increase the demand.
[Q#2007] When we say that the demand curve slopes downward, we mean that:
a. a higher demand
b. lower prices are associated with lower quantities demanded.
c. higher prices are associated with higher quantities demanded.
d. higher prices are associated with lower quantities demanded.
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[Q#2008] A rightward shift of the demand curve shows that:
a. the price of the product has decreased.
b. something has happened to cause a higher quantity demanded at every given price.
c. something has happened to cause a lower quantity demanded at every given price.
d. the price of the product has increased.
[Q#2013] A decrease in buyers income will _________ the demand for cars, a normal good.
a. Increase b. Decrease c. Not change d. We cant say
[Q#2018] A decrease in the price of gasoline will _________ the demand for cars, a complement of gasoline.
a. Decrease b. Increase c. Not change d. We cant say
[Q#2020] If buyers value for bicycles increase, the demand for bicycles will ______.
a. Stay the same b. Increase c. Decrease d. We cant say
[Q#2023] Suppose that, as incomes in your community increase, the demand for taxi service increases and the
demand for bus service decreases. From this, we can conclude that:
a. Both taxi service and bus service are normal goods.
b. Taxi service is a normal good; bus service is an inferior good.
c. Taxi service is an inferior good; bus service is a normal good.
d. Both taxi service and bus service are inferior goods.
[Q#2027] Assuming that paperback books are an inferior good, which of the following could cause a decrease
in demand for paperback books?
a. A decrease in incomes
b. A higher price for e-books c. An increase in incomes
d. A higher price for hardcover books
[Q#2028] Assuming that pretzels are a substitute for popcorn, which of the following would cause a decrease in
the demand for pretzels?
a. A lower price of popcorn
b. A higher price of popcorn
c. A lower price of pretzels
d. An increase in the number of people shopping for snack foods
[Q#2032] A decrease in buyers income will cause the demand for public transportation, an inferior good, to:
a. Shift to the left b. Shift to the right c. Not change d. We cant say
[Q#2033] An increase in buyers income will cause the demand for public transportation, an inferior good, to:
a. Shift to the right b. Not change c. We cant say d. Shift to the left
[Q#2035] A decrease in the price of butter will cause the demand for margarine, a substitute for butter, to:
a. Shift to the right b. We cant say c. Shift to the left d. Not change
[Q#2039] If buyers value for bicycles decrease, the demand curve for bicycles will ______.
a. Not change b. We cant say c. Shift to the left d. Shift to the right
[Q#2050] An improvement in technology used to produce computers will _________ the supply of computers.
a. Decrease b. Increase c. Not change d. We cant say
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Document Summary

1 of 44: substitute goods, inferior goods, canoe, bad weather, life jacket, ramen noodles and water, hot dogs and mustard. [q#2003] when the price of wine increases, the quantity of wine demanded: stays the same. [q#2004] when the price of wine decreases, the quantity of wine demanded: increases, stays the same. [q#2006] along a given demand curve, an increase in price of the product will: decrease the demand, increase the quantity demanded. 3 of 44: decrease, increase, increase, decrease, we can"t say, not change, we can"t say, not change, we can"t say. [q#2013] a decrease in buyers" income will _________ the demand for cars, a normal good: increase. [q#2018] a decrease in the price of gasoline will _________ the demand for cars, a complement of gasoline: decrease. [q#2020] if buyers" value for bicycles increase, the demand for bicycles will ______: stay the same.

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