Question 1

The two words economists use most often are

Accepted Answer

A)   inflation and trade.
B)   supply and demand.
C)   competition and prices.
D)   markets and equilibrium.E) A) and D)
F) None of the above

Question 2

When we move along a given demand curve,

Accepted Answer

A)   only price is held constant.
B)   income and price are held constant.
C)   all nonprice determinants of demand are held constant.
D)   all determinants of quantity demanded are held constant.E) B) and D)
F) A) and C)

Question 3

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Accepted Answer

A)   the ticket price is above the equilibrium price.
B)   the ticket price is below the equilibrium price.
C)   the ticket price is at the equilibrium price.
D)   nothing about the equilibrium price.E) A) and B)
F) A) and C)

Question 4

According to the law of demand, when price increases the quantity demanded of a good

Accepted Answer

The answer of According to the law of demand, when...

Question 5

Suppose goods A and B are complements. If the price of good A increases, will the demand for good B increase or decrease?

Accepted Answer

The demand...

Question 6

An increase in which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A)   demand for gasoline
B)   price of gasoline
C)   number of producers of gasoline
D)   price of oil, an input into the production of gasolineE) None of the above
F) A) and D)

Question 7

Table 4-16
The following table shows the supply and demand schedules in a market.
 
-Refer to Table 4-16. What is the equilibrium price in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Question 8

Two goods are complements when a decrease in the price of one good

Accepted Answer

A)   decreases the quantity demanded of the other good.
B)   decreases the demand for the other good.
C)   increases the quantity demanded of the other good.
D)   increases the demand for the other good.E) B) and D)
F) C) and D)

Question 9

If there is a shortage of farm laborers, we would expect

Accepted Answer

A)   the wage of farm laborers to increase.
B)   the wage of farm laborers to decrease.
C)   the price of farm commodities to decrease.
D)   a decrease in the demand for substitutes for farm labor.E) B) and C)
F) A) and B)

Question 10

Figure 4-15 
-Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for butter?

Accepted Answer

A)   a decrease in the price of butter
B)   an increase in the price of margarine
C)   an increase in the price of milk
D)   an improvement in technology that allows firms to use less labor in the production of butterE) B) and D)
F) C) and D)

Question 11

Figure 4-9
Panel a)  Panel b) 
  
-Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a) , the arrows are consistent with which of the following events?

Accepted Answer

A)   The price of marijuana, a complement to cigarettes, increased.
B)   Mandatory health warnings were placed on cigarette packages.
C)   Several foreign countries banned U.S. cigarettes in their countries.
D)   A tax was placed on cigarettes.E) All of the above
F) A) and B)

Question 12

Figure 4-6 
-Refer to Figure 4-6. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. We could illustrate the tax as producing a movement from

Accepted Answer

A)   Point A to Point B in Panel 1.
B)   Point B to Point A in Panel 1.
C)   Point A to Point C in Panel 2.
D)   Point C to Point A in Panel 2.E) A) and B)
F) A) and D)

Question 13

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.  If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)   40.
B)   35.
C)   30.
D)   All of the above could be correct.E) A) and C)
F) C) and D)

Question 14

If Max experiences a decrease in his income, then we would expect Max's demand for

Accepted Answer

A)   each good he purchases to remain unchanged.
B)   normal goods to decrease.
C)   luxury goods to increase.
D)   inferior goods to decrease.E) A) and D)
F) C) and D)

Question 15

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Accepted Answer

A)   granite countertops to shift to the left.
B)   granite countertops to shift to the right.
C)   substitute products such as marble countertops to shift to the right.
D)   substitute products such as marble countertops to be unaffected by buyers' preferences for granite.E) B) and C)
F) None of the above

Question 16

A movement along the supply curve might be caused by a change in

Accepted Answer

A)   production technology.
B)   input prices.
C)   expectations about future prices.
D)   the price of the good or service that is being supplied.E) None of the above
F) B) and D)

Question 17

Table 4-9
 
-Refer to Table 4-9. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) A) and D)
F) A) and C)

Question 18

Assume a market is perfectly competitive. When a new producer enters the market, the

Accepted Answer

A)   price in the market increases.
B)   price in the market decreases.
C)   price in the market does not change.
D)   market is no longer a competitive market.E) All of the above
F) None of the above

Question 19

Figure 4-14 
-Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Accepted Answer

A)   a decrease in supply
B)   an increase in supply
C)   a movement along the supply curve
D)   a decrease in demandE) B) and D)
F) B) and C)

Question 20

Which of these statements best represents the law of demand?

Accepted Answer

A)   When buyers' tastes for a good increase, they purchase more of the good.
B)   When income levels increase, buyers purchase more of most goods.
C)   When the price of a good decreases, buyers purchase more of the good.
D)   When buyers' demands for a good increase, the price of the good increases.E) B) and C)
F) All of the above

Exam 4: The Market Forces of Supply and Demand

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Correct Answer
verified

A movement along the supply curve might be caused by a change in

Correct Answer
verified

If Max experiences a decrease in his income, then we would expect Max's demand for

Correct Answer
verified

If there is a shortage of farm laborers, we would expect

Correct Answer
verified

Assume a market is perfectly competitive. When a new producer enters the market, the

Correct Answer
verified

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for butter?

Correct Answer
verified

According to the law of demand, when price increases the quantity demanded of a good

Correct Answer
verified

The two words economists use most often are

Correct Answer
verified

Suppose goods A and B are complements. If the price of good A increases, will the demand for good B increase or decrease?

Correct Answer
verified
The demand...
View Answer

Two goods are complements when a decrease in the price of one good

Correct Answer
verified

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Correct Answer
verified

When we move along a given demand curve,

Correct Answer
verified

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium price in this market?

Correct Answer
verified

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct Answer
verified

Table 4-9 -Refer to Table 4-9. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Correct Answer
verified

Figure 4-14 -Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Correct Answer
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Correct Answer
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Which of these statements best represents the law of demand?

Correct Answer
verified

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct Answer
verified

Figure 4-9 Panel a) Panel b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a) , the arrows are consistent with which of the following events?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Correct AnswerverifiedShow Answer

A movement along the supply curve might be caused by a change in

Correct AnswerverifiedShow Answer

If Max experiences a decrease in his income, then we would expect Max's demand for

Correct AnswerverifiedShow Answer

If there is a shortage of farm laborers, we would expect

Correct AnswerverifiedShow Answer

Assume a market is perfectly competitive. When a new producer enters the market, the

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for butter?

Correct AnswerverifiedShow Answer

According to the law of demand, when price increases the quantity demanded of a good

Correct AnswerverifiedShow Answer

The two words economists use most often are

Correct AnswerverifiedShow Answer

Suppose goods A and B are complements. If the price of good A increases, will the demand for good B increase or decrease?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Two goods are complements when a decrease in the price of one good

Correct AnswerverifiedShow Answer

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Correct AnswerverifiedShow Answer

When we move along a given demand curve,

Correct AnswerverifiedShow Answer

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium price in this market?

Correct AnswerverifiedShow Answer

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct AnswerverifiedShow Answer

Table 4-9 -Refer to Table 4-9. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Correct AnswerverifiedShow Answer

Figure 4-14 -Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of these statements best represents the law of demand?

Correct AnswerverifiedShow Answer

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct AnswerverifiedShow Answer

Figure 4-9 Panel a) Panel b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a) , the arrows are consistent with which of the following events?

Correct AnswerverifiedShow Answer

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The demand...
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