ECN111 practice Questions, Chapter 4 (Phoenix College)

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4-31 If demand for zort were to increase,

A. supply of zort would decrease.
B. supply of zort would increase.
C. the price of zort would increases.
D. the price of zort would decrease.
E. the quantity of zort purchased would fall.

4-32 The price of wheat flour goes up. Home bakers and bakeries must both pay the higher price. What will happen?

A. The demand for flour will fall.
B. The supply of flour will fall.
C. The supply of cakes will fall.
D. The supply of flour will rise.
E. The demand for cakes will rise.

4-33 Which of the following is most likely to result in a lower price of blirks?

A. The price of blirk cleaners is falling, so it is easier and cheaper to clean a blirk if you own one.
B. The price of nirps, a blirk substitute, has fallen.
C. An advertising campaign is launched, telling people that "blirks really work!"
D. The population is getting larger.
E. A researcher finds that blirks prevent cancer, and holds a press conference to announce her discovery.

4-34 Which of the following is most likely to result in a lower quantity of riftons being purchased?

A. The price of riftons is rising.
B. The price of twimbs, which are rifton substitutes, is rising.
C. Bleeks, a costly ingredient in riftons, become cheaper.
D. The population is getting larger.
E. A law requires that all persons must keep at least one rifton in each automobile.

4-35 Which of the following is most likely to result in a lower quantity of riftons being purchased?

A. New technology enables riftons to be produced with less electricity than was previously possible.
B. The price of zeemerts, which are rifton substitutes, is falling.
C. Rifton twiddlers, which help you use your rifton safely and properly, become cheaper.
D. The population is getting larger.
E. Incomes of rifton purchasers are rising.

4-36 Flirflits are built using robots. An improvement in robot technology is most likely to

A. increase the price of flirflits.
B. increase the supply of flirflits.
C. increase the demand for flirflits.
D. reduce the demand for flirflits.
E. reduce the number of flirflits sold.

4-37 Crimnots are built using steel. An increase in the price of steel is most likely to

A. increase the price of crimnots.
B. increase the supply of crimnots.
C. increase the demand for crimnots.
D. reduce the demand for crimnots.
E. increase the number of crimnots sold.

4-38 Suddenly, green fleeps become very popular. Which of the following would you not expect to occur?

A. The price of green fleeps would increase.
B. The price of fleep dusters (used to clean green fleeps) would drop.
C. The quantity of green fleeps purchased would increase.
D. The supply of green fleeps will remain unchanged.
E. The quantity of fleep accessories purchased will rise.

4-39 The price of ingredients in snirkles falls at the same time as the income of snirkle buyers rises. What is most likely to happen?

A. Consumption of snirkles will increase, but we can't be sure what happens to the price.
B. Price of snirkles will rise, but we can't tell what happens to the quantity purchased..
C. Price of snirkles will fall, but we can't tell what happens to the quantity purchased.
D. Consumption of snirkles will fall, and the price will rise.
E. Consumption of snirkles will fall, but we can't tell what happens to the price.

4-40 .Fear of crime raises the demand for handguns. Which of the following will be most likely to happen?

A. The price of guns will fall, and the quantity sold will fall.
B. The price of guns will rise, and the quantity sold will rise.
C. The price of guns will rise, but the quantity sold will fall.
D. The price of guns will fall, but the quantity sold will rise.
E. None of the above.

4-41 A new law makes it illegal to make a new car with a gas tank that carries more than five gallons of gasoline. Which of the following will occur?

A. Demand for older cars with bigger gas tanks may increase.
B. Demand for new cars will increase.
C. Demand for electric cars (which need frequent recharging) will decrease.
D. Demand for emergency gasoline cans will decrease.
E. The supply of gasoline will decrease.

4-42 A new kind of packaged cookie is introduced and becomes very popular in grocery stores. As a result,

A. prices of other store-bought cookies will rise.
B. the price of milk will tend to rise, if the cookies go well with milk.
C.the prices of cookie mixes and prepared cookie dough will rise in stores.
D. the prices of candies and snack cakes will tend to rise.
E. none of the above.

4-43 A few years ago, the world's biggest plant making computer RAM (memory) chips burned down. Which of the following would you not have expected to happen?

A. The price of computer memory modules (SIMMs) rose almost immediately.
B. The price of computers built with large amounts of memory rose soon after the fire.
C. Computer software which substituted for memory in computers soon sold in greater quantity than before the fire.
D. Computer software that required computers with large amounts of memory went down in price during the following months.
E. In a few months, computer software which depended on large amounts of memory in computers sold in greater quantity than before the fire.

4-44 A few years ago, the world's biggest computer RAM (memory) chip factory burned down. Which of the following would you not have expected to happen?

A. As news of the fire was spread, demand for computer memory rose since people were fearful of higher future prices.
B. Supply of computer memory modules (made using the chips) fell soon after the fire.
C. The price of computer memory modules (made with the chips) rose immediately.
D. The demand for substitutes for computer memory (such as low memory versions of software) rose.
E.Supply of substitutes for computer memory (such as low-memory versions of software) increased.

4-45 Which of the following would increase the price of greaselocks while reducing the quantity purchased?

A. News of an impending cutback in greaselock production causes buyers to fear higher greaselock prices in the future.
B. The resources used to make greaselocks become more expensive.
C. The number of consumers of greaselocks increase.
D. Greasekeys, which are complements to greaselocks, become more expensive.
E. Slimelocks, which are substitutes for greaselocks become more expensive.

4-46 Over time, the price of zallooms rises. What else will accompany this change?

A. Demand for zallooms will fall.
B. Demand for zallooms will rise.
C. The supply of zallooms will rise.
D. The demand for zalloom substitutes will rise.
E. The demand for zalloom complements will rise.

4-47 Which of the following would decrease the price of greaselocks while reducing the quantity purchased?

4-48 Which of the following would decrease the price of greaselocks while increasing the quantity sold?

A. News of an impending cutback in greaselock production causes buyers to fear higher greaselock prices in the future.
B. The resources used to make greaselocks become more expensive.
C. New technology enables greaselocks .to be made with less resources.
D. Greasekeys, which are complements to greaselocks, become more expensive.
E. Slimelocks, which are substitutes for greaselocks become more expensive

4-49 Which of the following would increase the price of greaselocks while increasing the quantity purchased?

A. News of an impending cutback in greaselock production causes buyers to fear higher greaselock prices in the future.
B. The resources used to make greaselocks become more expensive.
C. The number of consumers of greaselocks falls.
D. Greasekeys, which are complements to greaselocks, become more expensive.
E. Slimelocks, which are substitutes for greaselocks become less expensive.

4-50 You notice that the price of wunkerdons has fallen while the quantity sold has gone up. Which of the following fits this observation?

A. The surgeon general must have announced that wunkerdons help prevent heart attacks.
B. People must be expecting that price will drop soon as wunkerdons are harvested.
C. Wunkerdons have become a fad.
D. Wunkerdons are now more costly to make.
E. One of the key resources used to make wunkerdons has become less expensive.

4-51 The price of scandricks has fallen while the quantity sold has also fallen.Such an event is

A. caused by an increase in the demand for scandricks.
B. caused by a decrease in the demand for scandricks.
C. caused by an increase in the supply of scandricks.
D. caused by a decrease in the supply of scandricks.
E. a violation of the law of demand.

4-52 The price of azurite has risen while the quantity sold has also risen.Such an event is

A. caused by an increase in the demand for azurite.
B. caused by a decrease in the demand for azurite.
C. caused by an increase in the supply of azurite.
D. caused by a decrease in the supply of azurite.
E. caused by a decrease in supply accompanied by an increase in demand.

4-53 A new, inexpensive substitute for copper wire is discovered at the same time as new copper deposits are discovered and mined. What is the likely result of these events?

A. The price of copper will fall and more of it will be bought and sold.
B. The price of copper will fall and less of it will be bought and sold.
C. The price of copper will fall, but we cannot know what will happen to the quantity sold.
D. The quantity of copper sold will fall, but we cannot know what will happen to its price.
E. The quantity of copper sold will rise, but we cannot know what will happen to its price.

4-54 Drought reduces the supply of wheat, at the same time as the demand for wheat falls. From this information, we can expect

A. The price of wheat will fall and more of it will be bought and sold.
B. The price of wheat will rise, but we cannot know what will happen to the quantity sold
C. The price of wheat will fall, but we cannot know what will happen to the quantity sold.
D. The quantity of wheat sold will fall, but we cannot know what will happen to its price.
E. The quantity of wheat sold will rise, but we cannot know what will happen to its price.

4-55 Suppose a new law went into effect that required that all college students (part-time or full time) be paid a wage of at least $25 per hour by their employers. What would you expect to happen?

A. More college students would be employed because of the law.
B. There would be a shortage of college students willing to work at the new wage..
C. All college students would be better off after the law went into effect.
D. Wages of college students would tend to rise even higher than the $25 amount.
E. Fewer college students would be employed because of the law.

4-56 A price ceiling of fifty cents per pound is placed on steaks sold at grocery stores (to make it more affordable). What results would you expect?

A. It would be just as easy to find good steak at the supermarket as it is now.
B. The quantity of steak purchased at the supermarket would rise.
C. People with low incomes would eat more steak than they can now.
D. All buyers of steak would be better off than they are now.
E. The amount of steak purchased at the grocery stores would be lower than it is now.

4-57 All of the apartments in Santa Monica, California are subject to rent control. The rent control price is set below the market equilibrium price. Economic theory suggests that this rent control price would probably

A. reduce the quantity of apartments desired (demanded) by renters.
B. increase landlord's profits.
C. cause many rental units to be poorly maintained by the landlord.
D. result in a surplus of rental units in the near future.
E. reduce housing discrimination against minorities

4-58 Which of the following is true?

A. When a price is kept above the equilibrium level by law, more of the good will actually be purchased than would be the case in equilibrium.
B. When a price is kept below the equilibrium level by law, less of the good will actually be purchased than would be the case in equilibrium.
C. A surplus of a good generally means that the good is no longer scarce.
D. Consumer surplus is the excess of quantity demanded over quantity supplied.
E. Producer surplus is the excess of quantity supplied over quantity demanded.

4-59 A price ceiling of $1 per pound is placed on steaks sold at grocery stores (to make it more affordable). What results would you expect?

4-60 Suppose a new law went into effect that required that all college students (part-time or full time) be paid by their employers at least $25 per hour. What would you expect to happen?

A. More college students would be employed because of the law.
B. More people who are not college students would be employed because of the law.
C. College enrollments would increase because of the law.
D. The wages of people who are not college students would fall.
E. The price of college textbooks and materials would rise somewhat.