Principles of Economics An Asian Edition 1st Edition by N. Gregory – Test bank
$20.00
Principles of Economics An Asian Edition 1st Edition by N. Gregory Mankiw – Test bank
Chapter 5: MC-Elasticity and Its Application
MULTIPLE CHOICE
1.In general, elasticity is a measure of
|
a. |
the extent to which advances in technology are adopted by producers. |
|
b. |
the extent to which a market is competitive. |
|
c. |
how fast the price of a good responds to a shift of the supply curve or demand curve. |
|
d. |
how much buyers and sellers respond to changes in market conditions. |
ANS: D
PTS: 1 DIF: 1 REF: 5-0 TOP: Elasticity
MSC: Definitional
2.When studying how some event or policy affects a market, elasticity provides information on the
|
a. |
direction of the effect on the market. |
|
b. |
magnitude of the effect on the market. |
|
c. |
speed of adjustment of the market in response to the event or policy. |
|
d. |
number of market participants who are directly affected by the event or policy. |
ANS: B
PTS: 1 DIF: 2 REF: 5-0 TOP: Elasticity
MSC: Interpretive
3.How does the concept of elasticity allow us to improve upon our understanding of supply and demand?
|
a. |
Elasticity allows us to analyze supply and demand with greater precision than would be the case in the absence of the elasticity concept. |
|
b. |
Elasticity provides us with a better rationale for statements such as “an increase in x will lead to a decrease in y” than we would have in the absence of the elasticity concept. |
|
c. |
Without elasticity, we would not be able to address the direction in which price is likely to move in response to a surplus or a shortage. |
|
d. |
Without elasticity, it is very difficult to assess the degree of competition within a market. |
ANS: A
PTS: 1 DIF: 2 REF: 5-0 TOP: Elasticity
MSC: Interpretive
4.Elasticity improves our understanding of supply and demand by adding
|
a. |
measures of equity. |
|
b. |
measures of efficiency. |
|
c. |
a quantitative element to our analysis. |
|
d. |
a qualitative element to our analysis. |
ANS: C
PTS: 1 DIF: 2 REF: 5-0 TOP: Elasticity
MSC: Interpretive
5.The price elasticity of demand measures how much
|
a. |
the quantity demanded responds to a change in price. |
|
b. |
the quantity demanded responds to a change in income. |
|
c. |
price responds to a change in demand. |
|
d. |
demand responds to a change in supply. |
ANS: A
PTS: 1 DIF: 1 REF: 5-1 TOP: Price elasticity of demand
MSC: Definitional
6.The price elasticity of demand measures
|
a. |
buyers’ responsiveness to a change in the price of a good. |
|
b. |
the extent to which demand increases as additional buyers enter the market. |
|
c. |
how much more of a good consumers will demand when incomes rise. |
|
d. |
the movement along a supply curve when there is a change in demand. |
ANS: A
PTS: 1 DIF: 1 REF: 5-1 TOP: Price elasticity of demand
MSC: Definitional
7.Demand is said to be elastic if
|
a. |
the price of the good responds substantially to changes in demand. |
|
b. |
demand shifts substantially when income or the expected future price of the good changes. |
|
c. |
buyers do not respond much to changes in the price of the good. |
|
d. |
buyers respond substantially to changes in the price of the good. |
ANS: D
PTS: 1 DIF: 2 REF: 5-1 TOP: Elastic demand
MSC: Definitional
Related Test Bank
Additional information
Frequently Asked Questions:
🚨 Warning: This Isn’t Your Typical Textbook! 🚨.
This Test Bank is a complete collection of study questions, instantly available for download in PDF format. It covers every chapter, giving you immediate access to high-quality, reliable study materials for effective exam preparation. All content is original and features 100% verified answers for your confidence.
What is a Test Bank?
A Test Bank is a study aid featuring a collection of questions with corresponding answers, typically related to academic textbooks. Publishers provide these test banks to instructors to assist in creating effective exams and tests for students.
Are all chapters included, and are there questions for each chapter?
Are answers to the questions verified?
Yes, all answers provided in the Test Bank are thoroughly verified to ensure accuracy.
Is the content original and directly from the publisher?
Yes, rest assured that the content is original and sourced directly from the publisher.
Can I share the Test Bank with others?
No, the Test Bank is for personal use only, and sharing or distributing it is not permitted.
Can I study the material on any device?
Absolutely! The Test Bank is in PDF format, making it compatible with all devices and browsers for your convenience.
How soon can I start studying after making a purchase?
Immediately! The Test Bank is available for instant download, allowing you to begin your study journey right after completing the purchase.
Are there any additional Test Banks or resources available?
Yes, we offer a variety of Test Banks, ATI, Hesi Exams, and more. Feel free to contact us for information on additional study resources.
What if I encounter technical issues with the download?
In case of any technical difficulties, please contact our support team, and they will promptly assist you in resolving the issue.
You May Also Be Interested In
Products related to this item
What Our Customers Say About e-testbank.com
Excellent
Based on 653 reviews
Only logged in customers who have purchased this product may leave a review.
Reviews
There are no reviews yet.