Elasticity and Incentives Answers
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Which statement best explains how elasticity and incentives work together?
A
An elastic good, such as a game, is more likely to respond to incentives.B
An inelastic good, such as a game, is more likely to respond to incentives.C
An elastic good, such as a game, is less likely to respond to incentives.D
An inelastic good, such as a game, is less likely to respond to incentives.2
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Goods that are considered to be needs tend to be
A
elastic when the price changes.B
inelastic when the price changes.C
elastic when the supply changes.D
inelastic when the supply changes.3
In economics, if a good is inelastic,
A
consumers have lost an interest in purchasing it.B
producers have lost an interest in manufacturing it.C
its supply or demand is too sensitive to price changes.D
its supply or demand is not sensitive to price changes.4
Which is an example of a product that is considered a need?
A
breakfast foodB
music playerC
sports equipmentD
video game5
Which is an example of a negative incentive for producers?
A
a chance to make more moneyB
a special sale at a department storeC
a coupon clipped from a newspaperD
a sharp increase in production costs6
On this graph, what does the green arrow represent?
A
an ineffective price floor set above equilibrium causing a surplus.B
an effective price floor set below equilibrium causing a shortage.C
an ineffective price ceiling set above equilibrium causing a surplus.D
an effective price ceiling set below equilibrium causing a shortage.7
Which statement best describes incentives?
A
Incentives are mostly positive.B
Incentives are mostly negative.C
Incentives can be positive or negative.D
Incentives are neither positive nor negative.8
Price controls on goods can be set by
A
consumers.B
economists.C
governments.D
producers.9
The lowest amount a manufacturer can pay factory workers is an example of
A
an incentive.B
a price floor.C
a price ceiling.D
an elastic service.10
A consumer might respond to a negative incentive by
A
purchasing more of the products.B
buying the good at a cheap price.C
receiving a discount.D
decreasing use of the product to save money.Did you find these answers helpful?
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