A seller increased the quantity he offered for sale from 200 units to 250 units when the price of his product increased by 12.5%. What is the price elasticity of the supply of his product?
- A. 2.00
- B. 1.50
- C. 1.00
- D. 0.50
An increase in supply means that
- A. more is sold at different prices
- B. more is sold at the same price
- C. there is a leftward shift of the supply curve
- D. there is a movement along the supply curve
If an increase in the supply of beef increased the supply of hides, then beef and hides are in
- A. competitive supply
- B. joint supply.
- C. composite supply
- D. joint demand
If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in
- A. joint supply
- B. competitive supply
- C. market Supply
- D. composite supply
Goods that are abundant in supply usually have low
- A. total utility
- B. marginal utility
- C. average utility
- D. time utility
A consumer is in equilibrium when
- A. his market Supply is equal to his market demand
- B. he maximizes his satisfaction from spending his income
- C. the market is also in equilibrium
- D. he has consumed all he wants
Goods are described as inferior if their demand
- A. decreases as price falls
- B. increases as income rises
- C. decreases as income increases
- D. increases as price increases
In the figure above, YZ represents
- A. excess demand
- B. excess supply
- C. equilibrium quantity
- D. equilibrium price
Use the figure below to answer the question that follows
The curves D\(_{0}\)D\(_{0}\) and S\(_{0}\)S\(_{0}\) are the initial demand and supply curves respectively. What happens when government provides subsidies to producers?
- A. The supply curve will shift from S\(_{0}\)S\(_{2}\) to S\(_{2}\)S\(_{0}\)
- B. The supply curve will shift from S\(_{0}\)S\(_{0}\) to S\(_{1}\)S\(_{1}\)
- C. The demand curve will shift from D\(_{0}\)D\(_{0}\) to D\(_{1}\)D\(_{1}\)
- D. The supply curve will shift from S\(_{0}\)S\(_{0}\) to S\(_{0}\)S\(_{0}\)
The figure above shows the change in demand for Commodity X which is a normal good. Use it to answer the question that follows.
Which of the following caused the change in demand from D\(_{1}\) D\(_{1}\) to D\(_{2}\)D\(_{2}\)
- A. Fall in the income of consumers
- B. Rise in the price of a substitute
- C. Rise in the price of a complement
- D. Fall in the supply of commodity X
Use the figure below to answer question that follows
What does the diagram above depict
- A. simple bar chart
- B. complex bar chart
- C. component bar chart
In a free market economy, resources are allocated through the
- A. government department
- B. price mechanisms
- C. trade union
- D. state planning committee.
Land as a factor of production is made useful through the
- A. application of human effort
- B. acts of nature
- C. application of fertilizer
- D. use of machines
When the production possibility curve shifts outwards, the economy experiences
- A. growth
- B. over-production
- C. inefficient use of resources
- D. under-production
Which of the following is central to the definition of Economics?
- A. resources
- B. wants
- C. scarcity
- D. capital