.3...objective.

Question 1 Which best describes a demand curve? a) The quantity consumers would like to buy in an ideal world b) The quantity consumers are willing to sell c) The quantity consumers are willing and able to buy at each and every income all other things unchanged d) The quantity consumers are willing and able to buy at each and every priceall other things unchanged Question 2 A fall in price: a) Will cause an inward shift of demand b) Will cause an outward shift of supply c) Leads to a movement along a demand curve d) Leads to a higher level of production Question 3 Demand for a normal product may shift outwards if: a) Price decreases b) The price of a substitute rises c) The price of a complement rises d) Income falls Question 4 According to the law of diminishing marginal utility: a) Utility is at a maximum with the first unit b) Increasing units of consumption increase the marginal utility c) Marginal product will fall as more units are consumed d) Total utility will rise at a falling rate asmore units are consumed Question 5 If marginal utility is zero: a) Total utility is zero b) An additional unit of consumption will decrease total utility c) An additional unit of consumption will increase total utility d) Total utility is maximized Question 6 A decrease in income should: a) Shift demand for an inferior product inwards b) Shift demand for an inferior product outwards c) Shift supply for an inferior product outwards d) Shift supply for an inferior product inwards Question 7 An increase in the price of a complement for product A would: a) Shift demand for product A outwards b) Shift demand for product A inwards c) Shift supply for product A outwards d) Shift supply for product A inwards Question 8 An increase in price, all other things unchanged, leads to: a) Shift demand outwards b) Shift demand inwards c) A contraction of demand d) An extension of demand Question 9 If a product is a Veblen good: a) Demand is inversely related to income b) Demand is inversely related to price c) Demand is directly related to price d) Demand is inversely related to the price of substitutes Question 10 If a product is an inferior good: a) Demand is inversely related to income b) Demand is inversely related to price c) Demand is directly related to price d) Demand is directly related to the price of substitutes