Who Wants to be an Economics Millionaire?

1
Who Wants to be an Economics Millionaire?
Olli Rehn
David Mc Williams
Brian Lenihan
LC Honours Student
2
Price Elasticity of Demand measures
The responsiveness of price to a change in income
The responsiveness of demand to a change in price
The responsiveness of demand for one good to
change in the price of another good
The responsiveness of supply to a change in price
3
Which of the following is not a type of response?
Elastic
Unit Elastic
Perfectly Unit Elastic
Inelastic
4
An elastic response is indicated by .
Greater than one less than infinity
One
Less than one but greater than zero
Zero
5
A minus sign for the Price Elasticity of Demand
answer indicates?
Price Demand dont change
Price Demand move in the same direction
A Price change does not affect demand
Price Demand move in opposite directions
6
The Price Elasticity of Demand for a Giffen good
is indicated by
Answer
Unit Elastic Answer
Perfectly Elastic Answer
- Answer
7
The Cross Elasticity of Demand for a Close
Substitute Good is indicated by
0.75
15
- 12
- 0.5
8
Income Elasticity of Demand for a Normal Good is?
Sometimes a negative answer
A positive answer
An inelastic answer
A negative answer
9
Which of the following is an elastic response?
1
- 0.5
10
- 0.75
10
Which of the following is likely to have a
relatively inelastic response?
Box of Matches
Luxury Sports Car
TV
Ariel Washing Powder
11
The level of sales is 10,000 units. If the Income
Elasticity of Demand is 5 what will the new
level of sales if income falls by 4?.
14,000 units
12,000 units
8,000 units
5,000 units
12
If a customer spends 200 when the price is 1.50
and spends 210 when the price is decreased to
1.25 what is the type of Price elasticity of
Demand response?.
Inelastic
Perfectly Inelastic
Elastic
Unit Elastic
13
In the Budget which goods are considered to be
the Old Reliables ?
Health, Education Social Welfare
Cars, TVs Washing Machines
Cigarettes, Alcohol Petrol
Bread, Milk Tea
14
Which of the following goods will result in an
increase in Total Revenue if the price is
increased?
PED 2.5
PED Zero
PED 10
PED - 1
15
If the Income Elasticity of Demand for a good is
2.5. Which of the following classifications
would apply?
Could possibly be a Giffen Good
Is certain to be a Giffen Good
Is not a Giffen Good
Is a Normal Good
16
The Price Elasticity of Demand for a profit
maximising firm in long run equilibrium is
Elastic
Unit Elastic
Inelastic
Perfectly Inelastic