Macroeconomics 14th Canadian Edition By MCCONNELL ET AL – Test bank

Macroeconomics 14th Canadian Edition By MCCONNELL ET AL – Test bank

Economics – Canadian Edition, 15e (Ragan)

Chapter 3   Demand, Supply, and Price

3.1  Demand

1) Which of the following best defines quantity demanded?

A) The amount an individual purchases at its current price.

B) The amount an individual purchases at his or her current income.

C) The amount, per time period, that is desired at the most recent price.

D) The amount, per time period, an individual desires to purchase at any given price.

E) The various amounts that all individuals desire at all relevant prices.

Answer:  D

Diff: 1

Topic:  3.1. demand

Skill:  Recall

Learning Obj.:  3-2 Distinguish between a shift of the demand curve and a movement along the demand curve.

User2:  Qualitative

2) The time period to which quantity demanded refers when constructing demand curves is

A) a moment in time.

B) a long period of time.

C) one year.

D) any specified time period.

E) a period shorter than one year.

Answer:  D

Diff: 2

Topic:  3.1. demand

Skill:  Applied

Learning Obj.:  3-2 Distinguish between a shift of the demand curve and a movement along the demand curve.

User2:  Qualitative

3) The term “quantity demanded” refers to the

A) total amount of a good that is actually purchased during a given period of time. 

B) entire relationship between desired purchases and possible prices.

C) total amount of a good that purchasers wish to purchase at a given price during a given period of time.

D) product of advertising, and is unrelated to price.

E) total amount of a good that people wish to buy, regardless of price.

Answer:  C

Diff: 1

Topic:  3.1. demand

Skill:  Recall

Learning Obj.:  3-2 Distinguish between a shift of the demand curve and a movement along the demand curve.

User2:  Qualitative

4) Four of the five statements below contain a stock and a flow. Which statement describes ONLY stock variables OR flow variables?

A) Chris earns $1500 per month and has $4000 in his savings account at the bank.

B) Nancy spends $400 per month on her credit card and has a balance owing of $2567.

C) The Transit Authority of Mytown collects $22 000 in fares per day and has an operating budget of $2 million per year.

D) Country X spends an average of $1 million per year for flood relief and has an emergency services fund of $20 million.

E) The Canadian Federal government has a debt of approximately $450 billion and an annual deficit of over $25 billion dollars. 

Answer:  C

Diff: 2

Topic:  3.1. demand

Skill:  Applied

Learning Obj.:  3-2 Distinguish between a shift of the demand curve and a movement along the demand curve.

User2:  Qualitative

5) A variable that is a “stock”

A) is measured per unit of time.

B) has meaning only at a point in time.

C) has only to do with products where inventory is kept.

D) has the same units as a flow variable.

E) is used only in accounting.

Answer:  B

Diff: 1

Topic:  3.1. demand

Skill:  Recall

Learning Obj.:  3-2 Distinguish between a shift of the demand curve and a movement along the demand curve.

User2:  Qualitative