KIIT University 2008 micro-economics - exam paper

b. As the price of pencils rises, volume of pencils purchased falls.
c. As the price of pencils falls, volume of pencils purchased rises.
d. b and c
e. All the above.

13. Pencils and erasers are considered what type of goods?
a. Cheap goods
b. Complimentary goods
c. Substitute goods
d. a and b
e. None of the above

14. Apples and oranges are considered what types of goods
a. Expensive goods
b. Complimentary goods
c. Substitute goods
d. a and b
e. None of the above

15. A subway compared to a car is considered a(n) _____________ product.

16. If you are currently taking the subway as your means of transportation and your income suddenly increases, would you purchase more or less subway tickets? (Hint: Your ans should reflect your ans in ques. 15).
a. less
b. more
17. If the demand for pencils increased, the demand for erasers would most likely:
a. reduce
b. remain unchanged
c. increase
d. pencils and erasers do not affect every other’s demand.
e. None of the above.

18. Having more supply than demand at a provided price is called a ______________.

19. Having more demand than supply at a provided price is called a ______________.

20. If there is a shortage in the gold market, the price of gold will:
a. remain unchanged
b. fall
c. rise
d. rise then fall
e. fall then rise

21. Inelastic demand is described as:
a. Demand for which a percentage change in a product's price causes a larger percentage change in volume demanded.
b. Demand for which a percentage change in a product's price causes a smaller percentage change in volume demanded.
c. Demand for which a percentage change in a product's price causes an equal percentage change in volume demanded.
d. None of the above.

22. Elastic supply is described as:
a. supply for which a percentage change in a product's price causes a larger percentage change in volume supplied.
b. supply for which a percentage change in a product's price causes a smaller percentage change in volume supplied.
c. supply for which a percentage change in a product's price causes a equal percentage change in volume supplied.

Earning:   Approval pending.