Untitled Quiz

Which of the following characteristics does NOT belong to a perfectly competitive market?

• The good or service is standardized.

• All participants are well informed.

• There are a large number of sellers.

• There are a large number of buyers.

• Sellers are price makers.

How does an economist derive market demand from individual demand?

• by looking at the aggregate demand curve

• by horizontally adding individual demand curves

• by vertically adding individual demand curves

• by taking the median of individual demand curves

• by averaging individual demand curves

Which of the following goods or services is inferior?

• paper

• bus rides

• cars

• manicures

• prunes

A perfectly competitive market most closely exists for

• bananas

• airplanes

• computers

• electricity

• television

If the price of peanut butter increases, which of the following changes will most likely occur?

• increase in price of jelly

• decrease in supply of jelly

• decrease in demand of jelly

• decrease in quantity demanded of jelly

• increase in demand of bread

The Law of Demand states that the

• price and quality of a good are positively related

• price and number of purchasers of a good are inversely related

• quality and number of purchasers of a good are positively related

• quality and quantity demanded of a good are positively related

• price and quantity demanded of a good are inversely related

• 3 books

• 7 books

• 12 books

• 27 books

• 15 books

Which of the following pairs are substitutes?

• dressers and desks

• peanut butter and jelly

• hot dogs and hot dog buns

• gasoline and water

• Coca cola and Pepsi

Which of the following goods is most likely normal?

• frozen dinners

• steak

• generic cereal

• spam

• instant noodles

If the demand for a good increases when consumer income increases, the good is said to be

• Veblen

• superior

• private

• inferior

• normal