Question 1

Which of the following statements about gold jewelry and round-trip bus tickets to Bismarck, North Dakota, is most likely to be correct?

Accepted Answer

A) They are both inferior goods. 
B) Their demand curves probably are quite similar. 
C) They are complements. 
D) They are substitutes. 
E) They are unrelated. 
A) They are both inferior goods. 
B) Their demand curves probably are quite similar. 
C) They are complements. 
D) They are substitutes. 
E) They are unrelated.

Question 2

Which of the following would cause an increase in the supply of wheat?

Accepted Answer

A) an increase in fertilizer costs 
B) a decrease in the price of bread 
C) a decrease in the price of corn 
D) an increase in land prices 
E) an expectation that the price of wheat will be higher next period 
A) an increase in fertilizer costs 
B) a decrease in the price of bread 
C) a decrease in the price of corn 
D) an increase in land prices 
E) an expectation that the price of wheat will be higher next period

Question 3

A price floor set below the equilibrium price will result in a surplus.

Accepted Answer

A) True 
 B)False

Question 4

Jennifer learns that the price of CDs will be going up 10 percent next week.She usually buys three CDs per week.What happens to Jennifer's demand for CDs this week?

Accepted Answer

A) It does not change because only quantity demanded changes when price changes. 
B) It increases because the price will be lower next week. 
C) It decreases because the price will be higher next week. 
D) It increases because the price will be higher next week. 
E) It decreases because the price will be lower next week. 
A) It does not change because only quantity demanded changes when price changes. 
B) It increases because the price will be lower next week. 
C) It decreases because the price will be higher next week. 
D) It increases because the price will be higher next week. 
E) It decreases because the price will be lower next week.

Question 5

If the price of labor increases, employers will hire more labor because it is more valuable.

Accepted Answer

A) True 
 B)False

Which of the following statements about gold jewelry and round-trip bus tickets to Bismarck, North Dakota, is most likely to be correct?

Which of the following would cause an increase in the supply of wheat?

A price floor set below the equilibrium price will result in a surplus.

Jennifer learns that the price of CDs will be going up 10 percent next week.She usually buys three CDs per week.What happens to Jennifer's demand for CDs this week?

If the price of labor increases, employers will hire more labor because it is more valuable.

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

Exam 4: Demand, Supply, and Markets

Which of the following statements about gold jewelry and round-trip bus tickets to Bismarck, North Dakota, is most likely to be correct?

Which of the following would cause an increase in the supply of wheat?

A price floor set below the equilibrium price will result in a surplus.

Jennifer learns that the price of CDs will be going up 10 percent next week.She usually buys three CDs per week.What happens to Jennifer's demand for CDs this week?

If the price of labor increases, employers will hire more labor because it is more valuable.

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters