Completes the statement

____ 1. Which statement is an example of an economic law?

a) The speed limit is 55 miles per hour.

b) A triangle has 180 degrees.

c) People buy less at higher prices than at lower prices.

____ 2. Which statement is true?

a) Demand is more important then supply in determining prices.

b) The demand curve slopes upward to the right.

c) More items will be sold at a lower price than at a higher price.

d) Congress passed the law of demand.

____ 3. When demand for lumber (пиломатериалы) increases, so does demand for nails

(гвозди). When demand for lumber decreases, there is a decrease in demand for nails.

Economists would say lumber and nails are

a) unrelated goods.

b) substitute goods.

c) complementary goods (complements).

d) elastic goods.

____ 4. The fifth ice cream is less enjoyable than the first. This is an example of

a) opportunity cost.

b) the law of demand.

c) diminishing marginal utility.

d) scarcity.

____ 5. The law of supply states

a) buyers will purchase more at lower prices than at higher prices.

b) sellers will produce more at higher prices and less at lower prices.

c) quantities offered for sale do not depend on price.

d) consumers buy more at high prices and less at lower prices.

____ 6. What will happen in a competitive market if the quantity supplied is greater

than the quantity demanded?

a) consumers will demand more goods.

b) suppliers will increase their output of goods.

c) the market price will go down.

d) the market price will go up.

____ 7. The price of each of the following was reduced by 20 per cent. Which would be

likely to show the greatest increase in demand?

a) bread с) restaurant meals

b) milk d) eyeglasses

____ 8. All else remaining equal, an increase in demand will result in

a) a higher market price.

b) a lower market price

c) no change in price.

d) an increase in supply.