Economics MCQs

A. Lead to a movement along the demand curve
B. Shift the supply curve
C. Shift the demand curve
D. Lead to an extension of demand

A. Income elastic
B. Income inelastic
C. Price elastic
D. Price inelastic

A. Many buyers and sellers
B. None of these answers
C. Firms that are price takers
D. Only one seller

A. An advance in the technology used to manufacture watches
B. An increase in the price of watches
C. All of these answers cause an increase in the supply of watches
D. A decrease in the wage of workers employed to manufacture watches

A. There is a shortage and the price will rise
B. The quantity demanded is equal to the quantity supplied and the price remains unchanged
C. There is a shortage and the price will fall
D. There is a surplus and the price will rise

A. an increase in the equilibrium price and quantity
B. none of these answers
C. an increase in the equilibrium price and a decrease in the equilibrium quantity
D. a decrease in the equilibrium quantity.

A. the equilibrium quantity to rise and the equilibrium price to rise
B. the equilibrium quantity to rise and the equilibrium price to fall
C. the equilibrium quantity to rise and the equilibrium price to remain constant
D. the change in the equilibrium quantity to be ambiguous and the equilibrium price to rise

A. Both the demand for lettuce will decrease and the equilibrium price and quantity of salad dressing will fall
B. The supply of lettuce will decrease
C. The demand for lettuce will decrease
D. The equilibrium price and quantity of salad dressing will fall

A. Marginal cost is set equal to marginal revenue
B. Price is less than marginal cost
C. Marginal consumer benefit is less than marginal revenue
D. There is too little output at too high a cost

A. Vertical merger
B. Horizontal merger
C. Conglomerate merger
D. Hostile takeover