Macroeconomics Chapter 3 Exam Questions and Answers 100% Pass
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Macroeconomics
Institution
Macroeconomics
Macroeconomics Chapter 3 Exam Questions and Answers 100% Pass
Other things remaining equal, the law of demand says that higher prices will lead to a - Answers smaller quantity demanded and lower prices to a larger quantity demanded.
Which of the following is consistent with the law of demand? - A...
Macroeconomics Chapter 3 Exam Questions and Answers 100% Pass
Other things remaining equal, the law of demand says that higher prices will lead to a - Answers smaller
quantity demanded and lower prices to a larger quantity demanded.
Which of the following is consistent with the law of demand? - Answers A doubling of the price of salt
led to a 5 percent drop in the quantity of salt purchased.
Suppose that the price of a jar of peanut butter is $5 and the price of a jar of jelly is $3. What is the
relative price of a jar of peanut butter? - Answers 1.667
What is the relative price of a jar of jelly? - Answers 0.600
Suppose that at first the price of a bag of coffee is $15 and the price of a box of tea is $9. Then, the price
of a bag of coffee changes to $30 and the price of a box of tea changes to $21. What has happened the
money prices and relative prices of these two goods? - Answers The money price of a bag of coffee and
a box of tea have risen and the relative price of a bag of coffee has fallen while relative price of a box of
tea has risen.
A demand schedule shows - Answers various quantities of a good or service demanded at various prices.
According to the law of demand, the quantity demanded of any commodity is ________ related to its
price, other things being equal. - Answers inversely
The relative price of any commodity is its price in terms of - Answers another commodity.
A market demand curve is derived by summing (at each price) the individual quantities demanded by all
buyers in the market. - Answers True
A demand schedule gives a schedule of ________ quantities demanded per time dimension at
________. - Answers alternative; different possible prices
The law of demand posits ____________ relationship between the quantity demanded of a good and its
price, other things being equal. - Answers an inverse
The law of _____________ applies when other things, such as income and the prices of all other goods
and services, are held constant. - Answers demand
We measure the demand schedule in terms of a time dimension and in _____________-quality units. -
Answers constant
The ________________ curve is derived by summing the quantity demanded by individuals at each
price. - Answers market demand
Based on the table above, which of the following is true? - Answers The money prices of both goods
increased, the relative price of hospital rooms increased, and the relative price of hotel suites
decreased.
, An increase in the number of buyers. - Answers Yes
A decrease in the cost of production. - Answers No
Consumer incomes decrease (DVDs are a normal good). - Answers No
The price of movie downloads rise. - Answers Yes
The number of sellers increases. - Answers No
Indicate whether the following events would cause an "increase or a decrease in demand LOADING..." or
an "increase or a decrease in the quantity demanded" for cable-based Internet access service, which is a
normal good.
a. Firms providing wireless (an alternative to cable) Internet access services reduce their prices. This will
cause a(n) - Answers decrease in demand.
b. Firms providing cable-based Internet access services reduce their prices. This will cause a(n) - Answers
increase in quantity demanded.
c. There is a decrease in the incomes earned by consumers of cable-based Internet access services. This
will cause a(n) - Answers decrease in demand.
d. Consumers' tastes shift away from using wireless Internet access in favor of cable-based Internet
access services. - Answers increase in demand.
In the market for portable power banks, indicate whether the following events would cause an "increase
or a decrease in demand" or an "increase or a decrease in the quantity demanded."
a. There is an increase in the price of carry cases for portable power banks.
Equilibrium quantity would _______________. Equilibrium price would ______________. - Answers
decrease in demand.
decrease; decrease
b. There is a decrease in the price of devices used to charge portable power banks.
Equilibrium quantity would ______________. Equilibrium price would ____________. - Answers
increase in demand.
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