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10 Multiple Choice Questions

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10 Multiple Choice Questions for Exam #1
ECO 120

1. Which of the following is an example of Law of Demand? a. If price goes down then quantity of demand goes down b. If price goes up then quantity of demand goes down c. If price stays the same then quantity of demand goes down d. If price goes up then quantity of demand stays the same 2. Which of the following is an example of Law of Supply? a. If price goes down then quantity of demand goes down b. If price goes up then quantity of demand goes down c. If price stays the same then quantity of demand goes down d. If price goes up then quantity of demand stays the same 3. Which of the following should be in the “inelastic” category? a. Jewelry b. A vacation c. Gas d. Ice cream 4. Which of the following falls under the “elastic” category? a. Movie tickets b. Milk c. Medicine d. Water 5. Micro-Economics is.. a. The smallest amount of work a business can do to succeed. b. Economic relationship between a firm and its consumers c. The change in taxes or the course of a year d. Making things happen on a global stage 6. Macro-Economics is.. a. Overall economic happenings at a National and Global scale b. The study of unemployment in the world c. Finding ways to prove the president wrong d. Watching the Karate Kid with sensei

7. Opportunity Cost is.. a. Paying the most money possible b. Paying the least money possible c. What you could have done(the value of time) d. Using a credit card to pay for milk 8. Direct cost.. a. Direct investments b. Paying your taxes c. Direct payments d. Becoming wealthy 9. The Demand curve for normal goods increases when a. Income increases b. Quantity supplied increases c. There is no money left d. The demand

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