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Ag Econ > Exam #3 (WS 8) > Flashcards

Exam #3 (WS 8) Flashcards

1
Q

The Law of Demand states:

a. there is a direct relationship between price and quality demanded
b. there is an inverse relationship between price and quality demand
c. there is no relationship between price and quality demand
d. the Law of Diminishing Marginal Utility holds

A

b.

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2
Q

All of the following are determinates of supply except:

a. input prices
b. income
c. technology
d. output prices

A

b.

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3
Q

If your university raises tuition, ceteris paribus, we would expect:

a. more students
b. no change in student enrollment
c. fewer students
d. an increase in learning

A

c.

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4
Q

If wheat farmers have a good year, with higher than expected yields, ceteris paribus, then:

a. the price of wheat will increase
b. the price of wheat will decrease
c. it just depends on the price of corn
d. producers will plant more the next year

A

b.

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5
Q

Which has the least elastic demand curve?

a. oranges
b. fruit
c. food
d. apples

A

c.

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6
Q

An increase in the price of soybeans results in:

a. a decrease in the quantity supplied of wheat and increase in the supply of soybeans
b. an increase in the quantity supplied of wheat and decrease in the supply of soybeans
c. a decrease in the supply of wheat and increase in the quantity supplied of soybeans
d. an increase in the supply of wheat and decrease in the quantity supplied of soybeans

A

c.

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7
Q

A decrease in the price of oil results in:

a. a decrease in the quantity supplied of natural gas
b. an increase in the supply of wheat
c. an increase in the quantity supplied of oil
d. all of the above

A

b.

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8
Q

An increase in the number of greenhouses in New York City results in:

a. an increase in the quantity supplied of flowers
b. an increase in the supply of flowers
c. diminishing returns to flower production
d. economies to scale in flower production

A

b.

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9
Q

The income elasticity of demand for food is:

a. less than 0
b. between 0 and 1
c. equal to 0
d. greater than 0

A

b.

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10
Q

An increase in the price of corn could be caused by:

a. an increase in the demand for soybeans
b. an increase in the supply of corn
c. an increase in the demand for corn
d. none of the other answers

A

c.

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11
Q

Ethanol has resulted in:

a. higher corn prices
b. higher corn and soybean prices
c. higher corn prices, but lower soybean prices
d. lower corn and soybean prices

A

b.

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12
Q

If the price of fuel increases, this will result in the following changes for food:

a. an increase in the price and increase in the quantity
b. a decrease in the price and an increase in the quantity
c. an increase in price and decrease in quantity
d. a decrease in the price and an decrease in quantitiy

A

c.

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13
Q

An increase in income will result in the following changes for food:

a. an increase in price and increase in quantity
b. a decrease in price and an increase in quantity
c. an increase in price and a decrease in quantity
d. a decrease in price and a decrease in quantity

A

a.

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14
Q

An increase in the supply of cut flowers will:

a. shift the demand curve for flowers
b. cause a movement along the demand curve for flowers
c. leave consumption of flowers the same
d. not enough information to answer

A

b.

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15
Q

As income increases, we will expect:

a. an increase in the demand for golf courses
b. an increase in quantity demanded of golf courses
c. no changes in the quantity of golf courses
d. a decrease in the supply of golf courses

A

a.

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16
Q

If the price of movie tickets decreases, this could be caused by:

a. a decrease in the demand for movies
b. a decrease in the quantity demanded for movies
c. higher fuel prices
d. decreased supply of movie theaters

A

a.

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17
Q

Agricultural research results in:

a. an upward movement along the supply curve of wheat
b. a downward movement along the supply curve of wheat
c. an outward shift in the supply curve of wheat
d. an inward shift in the supply curve of wheat

A

c.

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18
Q

An increase in the price of fertilizer will cause:

a. the supply of fertilizer to increase
b. the quantity supplied of fertilizer to increase
c. a shift in the supply of fertilizer
d. a movement along the supply curve of wheat

A

b.

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19
Q

Elasticities are:

a. in units of quantity
b. in units of price
c. unitless
d. in units of quantity/price

A

c.

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20
Q

The point elasticity of the supply of hamburger is equal to:

a. the slope of the supply curve of hamburger
b. the percentage change in hamburger supplied divided by the percentage change in the price of hamburger
c. the percentage change in the price of hamburger divided by the percentage change in the quantity supplied of hamburger
d. the arc elasticity of the supply of hamburger

A

b.

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21
Q

If the price of chicken increases, then:

a. the demand for beef is unaffected
b. consumers will substitute out of chicken and into beef and pork
c. the Law of Demand states that consumers will eat more chicken
d. not enough information provided to answer this

A

b.

22
Q

If the price of corn and milo increases, then:

a. the demand for beef will shift to the right
b. the supply of beef will shift to the left
c. the supply of beef will shift to the right
d. the supply of beef will not shift

A

b.

23
Q

Elasticity is defined as:

a. the global supply and demand for product
b. a formula that measures the average price elasticity
c. the percentage change in one economic variable resulting from a percent change in another economic variable
d. all of the above

A

c.

24
Q

Elasticity measures:

a. how prices affect inflation
b. the Law of Supply
c. how economic variables influence the stock market
d. how responsive one variable is to another variable

A

d.

25
Q

If Asian economies continue to increase their standard of living:

a. the supply of US agricultural products will increase
b. the demand for US agricultural products will increase
c. the quantity demanded of agriculture products will increase
d. the demand for US agriculture products will shift to the left

A

b.

26
Q

Walmart makes money because:

a. it has no inventory
b. it checks shelf space every night to determine pricing strategy
c. it increases the price of a good if there is a shortage of the good
d. all of the other answers

A

d.

27
Q

If the price of a good is below the equilibrium price:

a. there is a shortage
b. there is a surplus
c. price will remain at the same level
d. price will decrease

A

a.

28
Q

Agriculture biotechnology results in the following changes in the food market:

a. an increase in equilibrium price and an increase in equilibrium quantity
b. a decrease in equilibrium price and an increase in equilibrium quantity
c. a decrease in equilibrium price and a decrease in equilibrium quantity
d. an increase in equilibrium price and a decrease in equilibrium quantity

A

b.

29
Q

If income increases, then:

a. there is a change in the demand for beef and a change in the demand for chicken
b. there is a change in the demand for beef and a change in quantity demanded of chicken
c. there is a change in quantity demanded of beef and a change in the demand for chicken
d. there is a change in the quantity demanded for beef and a change in the quantity demand of chicken

A

a.

30
Q

An increases in the price of pork results in:

a. a decrease in the demand for pork and an increase in demand for beef
b. a decrease in quantity demanded of pork and an increase in demand for chicken
c. a decrease in the quantity demanded of pork and a decrease in the demand of chicken
d. a decrease in demand for pork and an increase in the quantity demanded of chicken

A

b.

31
Q

Blue jeans are ____ elastic than all pants:

a. more
b. less
c. equally
d. supply

A

a.

32
Q

Which good is an example of a luxury good?

a. Ferrari
b. coffee
c. food
d. books

A

a.

33
Q

The income elasticity of golf course membership is:

a. less than 0
b. between 0 and 1
c. equal to 1
d. greater than 1

A

d.

34
Q

An increase in the price of textbooks could be caused by:

a. an increase in the demand for college degrees
b. a decrease in the demand for college degrees
c. a decrease in paper costs
d. none of the other answers

A

a.

35
Q

If the demand for beef increases:

a. the price of beef increases
b. the price of beef decreases
c. the price of beef stays the same
d. the quantity of beef decreases

A

a.

36
Q

The price elasticity of demand measures:

a. how responsive consumers are to a change in price
b. how responsive producers are to a change in price
c. how responsive consumers are to a change in income
d. how responsive consumers are to a change in the price of other goods

A

a.

37
Q

A drought will:

a. decrease the supply of grains
b. decrease the quantity of grains supplied
c. shift the supply curve down
d. result in a movement along the supply of grains

A

a.

38
Q

Which of the two elasticities have the same sign?

a. point elasticity of demand and point elasticity of supply
b. point elasticity of demand and income elasticity of demand
c. point elasticity of demand and arc elasticity of demand
d. point elasticity of supply and income elasticity of demand

A

c.

39
Q

If the price of apples increases:

a. there is a movement along the supply of apples
b. there is a shift in the demand of apples
c. there is a movement along the supply of oranges
d. there is an increase in the demand for apples

A

a.

40
Q

If gasoline prices increase:

a. there is an increase in the demand for ethanol
b. there is a decrease in the quantity demanded of gasoline
c. there is an increase in the supply of alternative fuels
d. all of the other answers

A

d.

41
Q

If the price of cut flowers increases 5 percent, and the quantity demanded of cut flowers increases falls 4 percent, then:

a. cut flowers are a complementary good
b. cut flowers are a luxury good
c. cut flowers are price inelastic
d. none of the other answers

A

c.

42
Q

If income increases 10 percent, and the demand of hamburger decreases 5 percent:

a. hamburger is a necessity good
b. hamburger is an inferior good
c. hamburger is a normal good
d. not enough information to know

A

b.

43
Q

If the price of cars increases 2 percent, and the demand for bicycles decreases 2 percent:

a. cars and bicycles are complements in consumption
b. cars and bicycles are complements in production
c. cars and bicycles are substitutes in consumption
d. cars and bicycles are substitutes in production

A

c.

44
Q

A good example of complements in consumption includes:

a. ice cream and chocolate syrup
b. ice cream and frozen yogurt
c. ice cream and cream
d. ice cream and bicycles

A

a.

45
Q

A good example of complements in production includes:

a. ethanol and corn syrup (HFCS)
b. ethanol and gasoline
c. feed corn and popcorn
d. none of the other answers

A

a.

46
Q

If the price of shirts increases:

a. there is a decrease in the demand for shirts and a decrease in the demand for neckties
b. there is a decrease in the quantity demanded for shirts and a decrease in the demand for neckties
c. there is a decrease in the demand for shirts and a decrease in the quantity demanded for neckties
d. there is a decrease in the demand for shirts and an increase in the demand for neckties

A

b.

47
Q

If the price of houses increases, and the quantity of swimming pools decreases:

a. houses and pools are luxury goods
b. houses and pools are complements in consumption
c. houses and pools are substitutes in production
d. house and pools are substitutes in consumption

A

b.

48
Q

If the price of a good increases 1 percent and the quantity demanded of that good decreases 1 percent, then:

a. the Law of Demand does not hold
b. the price of elasticity of demand is elastic
c. the price of elasticity of demand is inelastic
d. none of the above answers

A

d.

49
Q

An inferior good:

a. has a negative arc elasticity
b. is unitary elastic
c. has a negative income elasticity
d. has an income elasticity between zero and one

A

c.

50
Q

Luxury goods are also:

a. inferior goods
b. expensive goo
c. complementary goods
d. normal goods

A

d.

Ag Econ (10 decks)

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