[نوره الغامدي]

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شكرا و جزاكي ربي الجنه يا عسل

1) When the price of an inferior good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease

2) Which of the following shifts the demand curve for oranges?
A) disastrous weather that destroys about half of this year's orange crop
B) a decrease in the price of a pound of bananas, a substitute in consumption for oranges
C) an increase in the price of the fuel used to transport oranges to supermarkets
D) great weather that produces a bumper orange crop this year

3) Which of the following explains why supply curves slope upward?

A) prices and income

B) increasing marginal cost
C) resources and technology
D) substitutes in production and complements in production

4) Each point on a supply curve represents
A) the highest price buyers will pay for the good.
B) the lowest price for which a supplier can profitably sell another unit.
C) the lowest price buyers will accept per unit of the good.
D) the highest price sellers can get for each unit over time.


5) Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the
A) demand curve for good B leftward.
B) demand curve for good B rightward.
C) supply curve of good B leftward.
D) supply curve of good B rightward

6) A bakery can produce either cakes or s. If the price of s rises, then
A) the supply curve of cake shifts leftward.
B) the supply curve of cake shifts rightward.
C) there is a movement downward along the supply curve of cakes.
D) there is a movement upward along the supply curve of cakes.


7) Which of the following decreases the supply of popcorn?
A) a decrease in the price of popcorn
B) an increase in the price of popcorn
C) a technological advance in the production of popcorn
D) a decrease in the number of popcorn producers

8) Which of the following shifts the supply curve for good X leftward?
A) a situation in which quantity demanded exceeds quantity supplied
B) an increase in the cost of the machinery used to produce X
C) a technological advance in the production of X
D) a decrease in the wages of workers employed to produce X

9) When the quantity demanded equals quantity supplied
A) the government must be intervening in the market.
B) there is a surplus.
C) there is a shortage.
D) none of the above

10) If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________.
A) shortage; rise
B) shortage; fall
C) surplus; rise
D) surplus; fall

11) Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a ________ shift of the ________ curve for bottled water.
A) rightward; demand
B) rightward; supply
C) leftward; supply
D) leftward; demand

12) If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.
A) fall; increase
B) fall; decrease
C) rise; increase
D) rise; decrease

13) If both the demand and supply increase, the equilibrium quantity
A) increases and the equilibrium price falls.
B) decreases and the effect on the equilibrium price is indeterminate.
C) decreases and the equilibrium price rises.
D) increases and the effect on the equilibrium price is indeterminate.

14) If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?
A) The price falls and the quantity might increase, decrease, or remain the same.
B) The price rises and the quantity might increase, decrease or remain the same.
C) The quantity decreases and the price might rise, fall, or remain the same.
D) The quantity increases and the price might rise, fall, or remain the same.

15) A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will
A) rise.
B) fall.
C) remain the same.
D) rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

16) In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ________ and the equilibrium price will ________.
A) decrease; not change
B) decrease; fall
C) remain the same; either rise or fall
D) remain the same; rise