Economics CC 2 Sec ON 1 Week 5 Homework 4

Economics CC 2 Sec ON 1 Week 5 Homework 4 | chatbot las positas  community college

Question 1

If people begin to favor science fiction novels to a greater degree than previously, the demand curve for science fiction novels  

·         shifts rightward.  

·         shifts leftward.  

·         stays constant.  

·         can shift either rightward or leftward.

Question 2

On a supply-and-demand diagram, quantity demanded equals quantity supplied  

·         only at the single equilibrium price.  

·         at every price at or above the equilibrium price.  

·         at every price at or below the equilibrium price.  

·         at every price.

Question 3

Which of the following statements best represents the law of supply?  

·         Other things being equal, price and quantity supplied are inversely related.  

·         Other things being equal, price and quantity supplied are directly related.  

·         Other things being equal, price and supply are directly related.

Question 4

If potential buyers of good X expect the price of good X will soon fall, then the current  

·         demand for good X will rise.  

·         demand for good X will remain unchanged.  

·         demand for good X will fall.  

·         quantity demanded of good X will fall.  

·         quantity demanded of good X will rise.

Question 5

There is a technological improvement in the production of good X.  As a result, the _____________ curve for good X will shift ____________ resulting in a(n) _____________ in the equilibrium price of X and a(n) ____________ in the equilibrium quantity of X. 

·         supply; rightward; decrease; increase.  

·         demand; leftward; decrease; decrease  

·         demand; rightward; increase; increase  

·         supply; leftward; increase; decrease  

·         supply; leftward; increase; increase

Question 6

Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?  

·         If the price of labor falls, the supply of goods rises, and the prices of those goods fall.  

·         If the price of labor falls, the quantity supplied of goods rises, and the prices of those goods fall.  

·         If the price of labor falls, the demand for goods falls, and the prices of those goods fall.  

·         If the price of labor falls, the demand for goods rises, and the prices of those goods fall.  

·         If the price of labor falls, the supply of goods falls, and the prices of those goods fall.

Question 7

On a supply-and-demand diagram, equilibrium is found  

·         where the supply curve intercepts the vertical axis.  

·         where the demand curve intercepts the horizontal axis.  

·         where the demand and supply curves intersect.  

·         at every point on either curve

Question 8

Tobacco production is one of the more heavily subsidized industries in the United States. Suppose that as a result of intense lobbying from health-related concerns, Congress repeals the tobacco firms' subsidies. Which of the following scenarios would likely occur?  

·         The tobacco firms' supply curve would shift rightward, as it would now be cheaper to produce each level of output.  

·         The tobacco firms' supply curve would shift leftward, since it would now cost more to produce each level of output.  

·         The tobacco firms would not experience any shift in their supply curves; subsidies don't affect output.  

·         There would be a movement along the supply curve for tobacco, but the supply curve would not shift.

Question 9

Other things being equal, the law of demand states that price and ______________ are _____________ related.  

·         demand; inversely  

·         quantity demanded; inversely  

·         demand; directly  

·         quantity demanded; directly  

·         quantity supplied; directly

Question 10

Which of the following statements is false?  

·         The shift factors for the supply curve are: income, preferences, prices of related goods, the number of buyers, and expectations of future price.  

·         A change in (own) price changes the quantity supplied of a good.  

·         A change in demand is graphically represented by a shift in the demand curve.  

·         A change in quantity demanded is represented by a movement along a given demand curve.