ECO204 Quizzes Week 2 – Quiz

Question 1

1 / 1 pts

What is price elasticity of supply?

  

the sum of supply plus demand

 

Correct!

  

the measure of the responsiveness of the quantity supplied to changes in the price

 

  

the measure of the responsiveness of the quantity supplied to changes in demand

 

  

the opposite of price inelasticity of demand

 

 

Question 2

1 / 1 pts

Research by Luo and Song showed that, in rural China from 2003 to at least 2008, income elasticity of consumer demand for food was slightly less than 1, meaning that the overall growth rate of consumer demand for food was __________.

  

slightly more than the growth rate of income

 

  

much lower than the growth rate of income

 

  

much higher than the growth rate of income

 

Correct!

  

slightly less than the growth rate of income

 

 

Question 3

1 / 1 pts

Which of the following is typically NOT a factor that influences price elasticity of demand?

  

the consumer’s income

 

Correct!

  

the product’s country of origin

 

  

available, acceptable substitutes

 

  

the necessity of purchase

 

 

Question 4

0 / 1 pts

One major problem with utility theory is that __________.

  

not all consumers are affected by utility

 

You Answered

  

it is based on numerous assumptions

 

Correct Answer

  

it is impossible to measure utility

 

  

it is difficult to survey consumers

 

The answer can be found in Chapter 5, Section 5.2, Utility and Consumer Behavior.

 

Question 5

1 / 1 pts

In the early days of economic discourse, a popular topic was “What determines value?” Which of the following economists wrote that value meant either “value in use” or “value in exchange”?

  

Carl Menger

 

Correct!

  

Adam Smith

 

  

Léon Walras

 

  

Alfred Marshall

 

 

Question 6

0 / 1 pts

At the pie-eating contest, Mark thinks he might enjoy the fourth pie as much as the first pie. What is the term for a relationship that expresses a person’s desire to consume different amounts of a good or service?

  

marginal utility

 

You Answered

  

total utility

 

Correct Answer

  

utility function

 

  

util

 

The answer can be found in Chapter 5, Section 5.1, Choice, Value, and Utility Theory.

 

Question 7

1 / 1 pts

What happened when—regardless of the market demand—the United Kingdom made laws to ban smoking in enclosed workplaces?

  

Restaurant and pub owners generally disregarded the law.

 

  

Restaurant and pub owners sued the UK’s Parliament.

 

Correct!

  

Respiratory illness declined sharply among workers.

 

  

Respiratory illness was monitored for the first time.

 

 

Question 8

0 / 1 pts

Free riding is a market concern because free riders __________.

You Answered

  

make it difficult for others to enjoy a public good

 

Correct Answer

  

make it difficult for the market to measure actual demand

 

  

might consume all of a public good

 

  

do not pay federal taxes

 

The answer can be found in Chapter 6, Section 6.3, Public Goods.

 

Question 9

1 / 1 pts

In the term social marginal costs, to whom does social refer?

Correct!

  

society as a whole

 

  

only those who are affected but are not direct transaction participants

 

  

only direct transaction participants

 

  

society as a whole minus the direct transaction participants

 

 

Question 10

1 / 1 pts

Economists use the distinction between private and public goods to determine __________.

  

who gets to decide specific aspects of government-funded projects

 

  

which entities deserve government funding and which do not

 

Correct!

  

what projects and activities should be undertaken by the government

 

  

how much private taxpayers will pay for public goods

 

Quiz Score: 7 out of 10