Exam (elaborations)
ECS1501 MCQ questions and answers
- Course
- ECS 1501
- Institution
- University Of South Africa (Unisa)
ECS1501 MCQ questions and answers
[Show more]
Content preview
1. Demand is the quantity of goods :A) Desired by consumers.
B) Ordered by consumers in a particular period.
C) Consumers are willing and able to buy at particular prices in a certain period.
D) That consumers require in order to survive.
2. Which of the following will not cause a change in the demand for coffee (illustrated by a shift of
the demand curve) ?
A) An increase in the price of coffee.
B) A decrease in the price of milk, a complement.
C) An increase in the number of people drinking coffee.
D) An increase in the income of households.
3. How can the impact of an increase in the price of petrol on the demand curve for petrol be
illustrated ?
A) The demand curve for petrol will shift to the left.
B) The demand curve for petrol will shift to the right.
C) The demand curve for petrol will remain unchanged.
D) The demand curve will become more elastic.
4. If there is a technological breakthrough in the beer manufacturing process then,
A) The supply of beer will increase.
B) The supply of beer will decrease.
C) The demand for beer will increase.
D) There will be no effect on the supply or demand of beer.
5. Which one of the following statements is incorrect ?
A) An increase in supply is illustrated by a rightward shift of the supply curve.
B) An increase in the quantity supplied is illustrated by an upward movement along the supply curve.
C) There is a positive relationship between the price of a product and the quantity supplied.
D) A decrease in supply is illustrated by a downward movement along the supply curve.
6. If there is an increase in the price of red meat, a substitute in production for milk, then :
A) The supply of milk will increase.
B) The supply of milk will decrease.
C) The demand for milk will decrease.
D) There will be a movement along the supply curve for milk.
7. The diagram below shows the market for hamburgers.
,8. Consumer surplus indicates that :
A) It is impossible to increase consumer well-being by changing the way in which income is spent.
B) Consumers often get more value from a good than is represented by the price.
C) The allocation of resources is decided by the interaction of buyers and sellers.
D) Market equilibrium can always be attained.
9. The producer surplus is :
A) Always greater than the consumer surplus.
B) The difference between producers’ revenue and their cost of production.
C) The difference between the price that producers receive and the lowest prices at which they
are willing to supply the different quantities.
D) What producers have left after all their expenses have been paid.
10. If the equation for a market demand curve is Qd = 100 – 0,5P and the equation for a market
supply curve is Qs = –20 + P, the market equilibrium price and quantity are :
A) P = 0,5; Q = -20
B) P = 0,5; Q = 80
C) P = 80; Q = 60
D) P = 60; Q = 100
11. Use the diagram below to answer the question.
The diagram depicts a decrease in the demand for pies on a campus. If at the same time there was a
rent increase for food outlets on campus, then in comparison with the original equilibrium E0, there
would be :
A) An increase in equilibrium price and quantity.
B) An increase in equilibrium quantity but a decrease in price.
C) A decrease in equilibrium quantity but an increase in price.
D) A decrease in equilibrium quantity but an indeterminate effect on price.
,12. Use the diagram below
The decrease in supply curve from S to S1 can be the result of :
A) An increase in the price of the factors of production.
B) An improvement in productivity.
C) A decrease in the price of all inputs in the production process.
D) An increase in the price of the product itself.
13. Which one of the following statements is incorrect ?
A) An increase in supply tends to result in a lower price.
B) A simultaneous increase in demand and supply has an uncertain impact on price.
C) The impact of a simultaneous decrease in demand and supply on the equilibrium quantity is
impossible to predict.
D) A simultaneous increase in demand and supply tends to result in a higher equilibrium quantity in the
market.
14. Suppose A and B are substitutes. Which one of the following statements is incorrect ?
A) An increase in the price of A will lead to an increase in the demand for B.
B) An increase in the price of B will result in an increase in the demand for A.
C) An increase in the price of A will lead to a rightward shift of the demand for B.
D) An increase in the price of A will lead to a leftward shift of the demand for A.
15. Suppose C and D are complements. Which one of the following statements is incorrect ?
A) An increase in the price of C can be illustrated by a shift of the demand curve for C.
B) An increase in the price of C will result in a decrease in the quantity demanded of C and will
therefore also lead to a reduction in the demand for D.
C) A decrease in the price of C will result in an increase in the quantity demanded of C and will
therefore also lead to an increase in the demand for D.
D) An increase in the price of C can lead to a shift of the demand curve for D to the left.
, 1. When a price ceiling is imposed in a market :
A) A persistent shortage is created.
B) A persistent surplus is created.
C) Sellers of the product are made better off.
D) Quantity supplied is greater than the quantity demanded.
2. The following diagram represents the market for tomatoes. Owing to the pressure of tomato
farmers, the government imposes a price floor of R25 per kg on tomatoes.
At a price floor R25 per kg :
A) Households are willing and able to purchase 20 000 kg of tomatoes.
B) An excess demand of 10 000 kg exists.
C) The quantity of tomatoes offered for sale will be the same as the quantity purchased.
D) The quantity of tomatoes offered for sale will be more than the quantity purchased.
3. In order for a price floor to be effective, it must be set the equilibrium price, while a price
ceiling must be set the equilibrium price in order to be
effective.
A) Above; below
B) Above; above
C) Below; above
D) Below; below
4. Price elasticity of demand gives us a measure of how sensitive or responsive the of a good or
service is to a change in the of a good
service.
A) Price; quantity demanded
B) Demand; price
C) Quantity demanded; price
D) Price; demand
5. If the price elasticity of beef is greater than the price elasticity of coffee, it means that households
are :
A) More responsive or sensitive to a change in the price of beef than to a change in the price of coffee.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NexusNotes. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R100,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
69988 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 15 years now