F&B Quiz 5


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Note: There are 10 multiple choice questions below. Answer each question by clicking the appropriate button. When you have answered all of the questions, click the "Check Answers" button at the bottom of the page. Your score will be calculated, and you will see a list of the questions that you answered correctly, and those that you answered incorrectly. You may retake the quiz as often as you wish. Click the "Reset" button to clear all your answers before you retake the quiz.

  1. In most markets ___________ perform the task of rationing scarce goods or services.

      non-monetary prices
      monetary prices
      government organizations
      private organizations
      food banks

  2. In some countries, medical care is provided free to citizens and paid for by the government. In those countries, medical care is

      not a scarce resource.
      available at zero opportunity cost.
      rationed by non-monetary costs.
      rationed by monetary prices.
      available at no cost to everyone who wants it.

  3. The law of demand indicates that as the cost of an activity

      falls, less of the activity will occur.
      falls, the level of the activity will increase at all possible costs.
      falls, more of the activity will occur.
      rises, more of the activity will occur.
      rises, the level of the activity will decrease at all possible costs.

  4. Based on the discussion in the textbook, electricity would be classified as a

      necessity.
      luxury.
      want.
      need.

  5. The additional utility gained from consuming an additional unit of a good is defined as

      total utility.
      marginal utility.
      utility.
      utils.
      demand.

  6. Suppose you are a government analyst and you think beans are particularly nourishing. You decide to subsidize beans in order to encourage people to eat more of them. (By subsidizing an item, consumers pay a lower price.) After you successfully lower bean prices, you notice that consumption of beans has fallen. What went wrong?

      The substitution effect caused people to substitute ramen noodles and rice for beans.
      The income effect caused people's real income to fall so they could no longer afford as much food.
      The income effect caused people's real income to rise so they purchased less of what they considered to be inferior goods.
      Demand for beans is price inelastic.
      The only possible explanation is that people chose irrationally.

  7. The dollar price of a good relative to the average dollar price of all other goods is the ________.

      market
      equilibrium
      nominal
      real

  8. According to the textbook, the homes of the wealthy in Seattle average in excess of 10,000 square feet while the homes of the wealthy in New York City average less than 5,000 square feet. The difference is primarily due to

      greater "tastes" for space in Seattle.
      a ban on construction of new homes in excess of 5,000 square feet in NYC.
      a significantly higher price for land and construction in NYC.
      greater "tastes" for crowding in NYC.
      property tax abatements granted to new homes with at least 10,000 square feet in Seattle.

  9. The fact that the average price of a gallon of gasoline in England is much higher than the price in the United States would lead to which of the following predictions?

      Average miles per gallon for new cars will be lower in England.
      English drivers will tend to drive a greater average number of miles.
      American drivers will tend to make fewer trips with more stops.
      Large cars with poorer gas mileage will be less popular with consumers in England.
      Air pollution from automobiles will be worse in England.

  10. When all buyers have identical demand curves, we can get the market demand curve by

      adding their quantity demanded vertically.
      multiplying each quantity by the number of consumers.
      adding each consumer's utility.
      multiplying each consumer's utility by the number of consumers.

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