Choose the Correct Option from Business Flashcards

No one needs soda so why drink it A) Soda is a good for the people who consume it, and therefore they will drink it at any price. B) They deny the data and believe they really do need soda. C) The expected additional benefits of another soda outweigh the additional costs. D) There are no substitutes for soda

A universal health insurance program which lowers patients out of pocket expenses would tend to A) reduce the number of patients seeking medical care. B) increase the non-monetary costs of medical care, such as waiting longer in line. C) reduce the number of doctors offering medical care. D) generate all of the above

If price of insulin significantly increases more diabetics will A) avoid refilling their prescriptions. B) adopt holistic healthcare, organic medicines, and other perceived substitutes. C) turn toward substitutes such as a better diet and exercise. D) do all of the above. E) do none of the above.

Which of the following statements are true A) If higher gasoline prices encourage a potential vacationer to stay at home and read a good book by the fire, rather than drive through the country, then for her firewood is a substitute for gasoline. B) If higher water prices encourage a landlord to place bricks in the water tanks of his toilets to maintain water pressure, then for him bricks are substitutes for water. C) Both A and B are true. D) None of the above are true.

Ppl use water for many different reasons . economists acknowledge that A) water is a good with many alternative uses at the margin. B) everybody needs water. C) nothing but water can be used to serve all the purposes water serves. D) the demand for water is completely inelasticNconsumers are totally insensitive to changes in the price of water.

Which of the following goods might under the right circumstances be substitutes for love A) Power B) Notoriety C) Wealth D) All of the above. E) Trick question: there are no substitutes for love.

According to the law of demand A) people will purchase less of a good when its price rises. B) wants are indefinitely expansible and can never be fully satisfied. C) whatever people want will eventually be supplied. D) nothing will be produced unless there is a demand for it. E) demand generates a supply sufficient to satisfy the demand.

Movement from one point of a demand schedule to another is properly called a change in A)demand. B) the availability of substitutes. C) tastes and preferences. D) quantity demanded.

Other things constant a _____ price _______ quantity demanded A) higher; increases B) lower; increases C) higher; decreases D) lower; decreases E) Both B and C above.

Suppose the demand curve for commiting a robbery can be represented by a downward sloping demand curve. In other words, as the price of committing a robbery falls, more robberies will be committed. Now, suppose laws are passed allowing people to carry guns unconcealed in public A) The elasticity of robberies will be perfectly inelastic. B) Supply of robberies will increase. C) Demand for robberies will fall. D) The quantity demanded of robberies will decrease because the price of robberies has risen.

Which of the following will not change the demand for movie tickets A) A change in the cost of babysitting services B) A change in the quality of movies C) A change in the quality of television programs D) A change in the incomes of moviegoers E) A change in the price of movie tickets

Skis and snowboards are close substitutes . a _____in the price of snowwboards would _______ the demand for ______ A) fall; increase; snowboards B) rise; decrease; snowboards C) rise; increase; skis D) rise; increase; snowboards E) rise; decrease; skis

Paint and paintbrushes are complements if the price of paint increases then A) the demand for paint will increase. B) the demand for paintbrushes will increase. C) the demand for paintbrushes will decrease. D) the demand for paint will decrease.

Consider baseball games and ballpark hotdogs. a significant increase in the price of baseball game tickets would A) decrease the demand for ballpark hotdogs. B) decrease the demand for baseball game tickets. C) increase the demand for ballpark hotdogs. D) increase the demand for baseball game tickets.

Something is a normal good if A) the demand for it decreases when its price falls. B) the demand for it increases when income falls. C) the demand for it decreases when its price rises. D) the demand for it increases when income rises.