(A) a normal good.
(B) a complementary good.
(C) an inferior good.
(D) a substitute good.
Category: Economics Mcqs
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Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are?
(A) perfect substitutes.
(B) unrelated goods.
(C) complements.
(D) substitutes.
Demand curves in P-Q space are derived while holding constant?
(A) consumer tastes and the prices of other goods.
(B) incomes, tastes, and the price of the good.
(C) incomes and tastes.
(D) incomes, tastes, and the prices of other goods.
The quantity demanded (Qd) of a soft drink brand A has decreased. This could be because?
(A) A’s consumers have had an increase in income.
(B) the price of A has increased.
(C) A’s advertising is not as effective as in the past.
(D) the price of rival brand B has increased.
What effect is working when the price of a good falls and consumers tend to buy it instead of other goods?
(A) the substitution effect.
(B) the ceteris paribus effect.
(C) the total price effect.
(D) the income effect.
The ‘law of demand’ implies that?
(A) as prices fall, quantity demanded increases.
(B) as prices fall, demand increases.
(C) as prices rise, quantity demanded increases.
(D) as prices rise, demand decreases.
The concept of “interdependence of markets” can refer to the interdependence between?
(A) two or more factor markets
(B) goods and factor markets
(C) goods markets
(D) all of the above
The PPF can be used to illustrate?
(A) the principle of opportunity costs and increasing opportunity costs
(B) the distinction between micro and macroeconomics
(C) efficient, infeasible and inefficient production combinations
(D) all of the above