ECONOMICS MULTIPLE CHOICE

MULTIPLE CHOICE QUESTIONS

Question 11 Payment for internet services delivered to consumers will flow from ...

• A.households to business enterprises via the market for factors of production.
• B.households to business enterprises via the market for goods and services.
• C.business enterprises to households via the market for factors of production.
• D.business enterprises to households via the market for goods and services.

Question 13

A market that is in equilibrium implies that ...

[1] no scarcity exists.

[2] demand for that good is limited.

[3] the quantity demanded does not exceed the quantity supplied.

QUESTION 14

Which ONE of the following will affect the quantity demanded of cars, but not the demand for cars?

• A. an increased preference for using public transport
• B. an increase in the price of petrol
• C. an increase in the general income level in the economy
• D. an increase in the price of a car

Question 15

When we derive the supply curve for eggs, we make the ceteris paribus assumption. Taking this into account, which of the following can change along the same supply curve?

[1] wages of labour in the poultry industry

[2] the expected price of eggs in the future

[3] the expected price of chicken meat, which is a complement in the production of eggs

[4] the price of eggs

• A. Only 2 and 4 are correct.
• B. Options 1, 2, 3 and 4 are all correct.
• C. Only 4 is correct.
• D. Only 1, 2 and 3 are correct.

Question 16 o

When we derive the demand curve for diamonds, we make the ceteris paribus assumption. Taking this into account, which of the following can change along the same demand curve?

[1]price of diamonds

[2]income level of consumers

[3]availability of substitutes for diamonds

[4]quantity of diamonds

• A. 1, 2, 3 and 4 are all correct
• B. only 1 an 2 are correct
• C. only 2 and 3 are correct
• D. only 1 and 4 are correct

Question 17

The law of supply states that ...

• A.when the price of factors of production increases, the supply of that good will decrease.
• B.when the state of technology to produce a certain good improves, the supply of that good will increase.
• C.when the price of alternative products increases, the supply of a good will decrease.
• D.when the price of a product increases, more will be produced of that good.