Cima C04 Exam Question No 40

Question No 40:

If the demand curves for Good A shifts to the left when the price of Good B rises, we may conclude that?

A. The goods are substitutes.
B. Good A is an inferior good.
C. The goods are complements.
D. The demand for Good A is price elastic.

Answer: A

Cima C04 Exam Question No 39

Question No 39:

Which ONE of the following will produce the largest fluctuations in a market price?

A. Large shifts in supply with price elastic demand.
B. Large shifts in supply with price inelastic demand.
C. Large shifts in supply with perfectly price elastic demand.
D. Small shifts in supply with price elastic demand.

Answer: B

Cima C04 Exam Question No 38

Question No 38:

In a market economy, prices perform all of the following functions EXCEPT which ONE?

A. A means of allocating resources between competing uses.
B. A means of ensuring a fair distribution of incomes.
C. A signal to consumers.
D. A signal to producers.

Answer: B

Cima C04 Exam Question No 37

Question No 37:

Which ONE of the following will tend to make the demand for a company’s product LESS price elastic?

A. A fall in consumer incomes.
B. A rise in the price of complementary goods.
C. A fall in the number of substitute goods.
D. A lower price for the good.

Answer: C