Question 1

If hot dogs are an inferior good, an increase in income will result in:

Accepted Answer

A decrease in the demand for hot dogs.

Answer

An increase in the quantity demanded for hot dogs.

Answer

A decrease in the quantity demanded for hot dogs.

Answer

An increase in the demand for hot dogs.

Question 2

Which of the following will decrease the demand for beef?

Accepted Answer

An increase in the price of potatoes, if potatoes and beef are complementary goods.

Answer

A decrease in the cost of transporting beef to consumers.

Answer

An increase in the income levels of most consumers, if beef is a normal good.

Answer

An increase in the price of pork, if pork and beef are substitute goods.

Question 3

If the factors of production for a product become more expensive to acquire then:

Accepted Answer

The product’s supply line will tend to shift to the left.

Answer

The demand curve for the product will tend to shift to the right.

Answer

The demand curve for the product will tend to shift to the left.

Answer

The quantity supplied of the product will move up along the supply curve.

Question 4

If there is an increase in demand for a good, what will most likely happen to the price and quantity of the good exchanged?

Accepted Answer

Price will increase; quantity will increase

Answer

Price will not change; Quantity will not change

Answer

Price will increase; quantity will decrease

Answer

Price will decrease; quantity will increase

Question 5

If hot dogs are an inferior good, an increase in income will result in:

Accepted Answer

A decrease in the demand for hot dogs.

Answer

An increase in the quantity demanded for hot dogs.

Answer

An increase in the demand for hot dogs.

Answer

A decrease in the quantity demanded for hot dogs.

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