Psicologia

Submitted by Patel, Ravindra (r.patel27445) on 2/27/2012 11:36:50 PM

Points Awarded | 32.00 |
Points Missed | 0.00 |
Percentage | 100% |

1.
There is no shortage of scarce resources in a market economy at equilibrium because
A) the government makes shortages illegal.
B) resources are abundant in market economies.
C) prices adjust to eliminate shortages.
D) quantity supplied isalways greater than quantity demanded in market economies.
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Correct Answer(s): | C |

2.
Suppose that Juan Carlos is filling out a survey that he received in the mail. The survey asks him what he would do if the price of his favorite toothpaste increased. Juan Carlos reports that he would switch to a different brand. The survey asks what he would do if the price of all toothpastesincreased. Juan Carlos reports that he must use toothpaste, so he would have to adjust his spending elsewhere. These examples illustrate the importance of
A) changes in total revenue in determining the price elasticity of demand.
B) a necessity versus a luxury in determining the price elasticity of demand.
C) the broadness (or narrowness) of a market definition in determining the price elasticity ofdemand.
D) the time horizon in determining the price elasticity of demand.
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Correct Answer(s): | C |

3.
Suppose that gasoline prices increase dramatically this month. Lola commutes 100 miles to work each weekday. Over the next few months, Lola drives less on the weekends to try to save money. Within the year, she sells her home and purchases one only 10 miles from her place ofemployment. These examples illustrate the importance of
A) the availability of substitutes in determining the price elasticity of demand.
B) a necessity versus a luxury in determining the price elasticity of demand.
C) the definition of a market in determining the price elasticity of demand.
D) the time horizon in determining the price elasticity of demand.
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Correct Answer(s): | D |4.
When quantity demanded responds strongly to changes in price, demand is said to be
A) fluid.
B) elastic.
C) dynamic.
D) highly variable.
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Correct Answer(s): | B |

5.
For a good that is a necessity,
A) quantity demanded tends to respond substantially to a change in price.
B) demand tends to be inelastic.
C) the law of demand does not apply.
D) All of the above arecorrect.
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Correct Answer(s): | B |

6.
Figure 1

Refer to Figure 1. Using the midpoint method, the percent change in quantity between point A and point B is equal to
A) 2%
B) 8%
C) 40%
D) 50%
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Correct Answer(s): | D |

7.
Refer to Figure 1. Using the midpoint method, the percent change in price between point A and point B is equal to
A) 2%
B) 29%
C) 33%
D) 40%| | |
Correct Answer(s): | C |

8.
Refer to Figure 1. Using the midpoint method, the price elasticity of demand between point A and point B is equal to
A) 0.33
B) 0.67
C) 1.5
D) 2.67
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Correct Answer(s): | C |

9.
Refer to Figure 1. Between point A and point B on the graph, demand is
A) elastic, but not perfectly elastic 
B) perfectly elastic
C) unit elasticD) inelastic
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Correct Answer(s): | A |

10.
Suppose the price of potato chips decreases from $1.45 to $1.25 and, as a result, the quantity of potato chips demanded increases from 2,000 to 2,200. Using the midpoint method, the price elasticity of demand for potato chips in the given price range is
A) 2.00
B) 1.55
C) 1.00
D) 0.64
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Correct Answer(s): | D |

11.
The demandfor potato chips from the previous question is
A) perfectly inelastic
B) inelastic
C) unit elastic
D) elastic
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Correct Answer(s): | B |

12.
When the price of a bracelet was $25 each, the jewelry shop sold 20 per month. When it raised the price to $35 each, it sold 14 per month. Using the midpoint method, the price elasticity of demand for bracelets is about
A) 1.66
B) 1.06...