Eco 203 week 1 quiz

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1. Question :

If an individual's income increases, then the demand for a normal good will

Student Answer:

decrease. increase. remain constant. rotate.

Instructor Explanation:

fall to zero. The answer can be found in Section 3.1 DEMAND in Macroeconomics

Points Received:

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Comments: 2. Question : Student Answer:

An example of investment, as defined in economics, is buying 100 shares of Apple stock. buying U.S. government bonds. building a new factory. buying both stocks and bonds.

the use of natural resources in the production of a good. Instructor The answer can be found in Section 2.1 LIMITED RESOURCES in Explanation: Macroeconomics Points Received:

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Comments: 3. Question : Student Answer:

All but which one of the following could shift the demand curve? a shift of the supply curve. a rise in income. a change in the price of substitutes. an increase in the size of the age group buying that good.

Instructor Explanation: Points Received:

a successful advertising campaign which convinces people that they want more of this good. The answer can be found in Section 3.1 DEMAND in Macroeconomics

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Comments:

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