Question 1

An increase in the demand for computers and a decrease in the number of sellers of computers will definitely ________.

Accepted Answer

A)  increase the number of computers bought 
B)  increase the price of a computer 
C)  increase the price of a computer and the number of computers bought 
D)  not change the price of a computer and increase the number of computers bought 
A)  increase the number of computers bought 
B)  increase the price of a computer 
C)  increase the price of a computer and the number of computers bought 
D)  not change the price of a computer and increase the number of computers bought

Question 2

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

Accepted Answer

A)  a substitute. 
B)  a complement. 
C)  an inferior good. 
D)  a normal good. 
A)  a substitute. 
B)  a complement. 
C)  an inferior good. 
D)  a normal good.

Question 3

During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the

Accepted Answer

A)  supply curve of shoes shifted leftward. 
B)  demand curve for shoes shifted leftward. 
C)  supply curve of shoes shifted rightward. 
D)  demand curve for shoes shifted rightward. 
A)  supply curve of shoes shifted leftward. 
B)  demand curve for shoes shifted leftward. 
C)  supply curve of shoes shifted rightward. 
D)  demand curve for shoes shifted rightward.

Question 4

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure D 
D)  Figure A and B 
A)  Figure A 
B)  Figure B 
C)  Figure D 
D)  Figure A and B

Question 5

In the market for magazines, the "income effect" means that

Accepted Answer

A)  magazines are usually purchased by people with higher than average incomes. 
B)  a decrease in the price of a substitute product like books will make magazine readers feel a little poorer than they were before. 
C)  an increase in the price of magazines will reduce the total purchasing power of magazine readers, making them able to afford fewer magazines. 
D)  an increase in the price of magazines will raise the relative price of magazines to books, causing magazine readers to read more books and fewer magazines. 
A)  magazines are usually purchased by people with higher than average incomes. 
B)  a decrease in the price of a substitute product like books will make magazine readers feel a little poorer than they were before. 
C)  an increase in the price of magazines will reduce the total purchasing power of magazine readers, making them able to afford fewer magazines. 
D)  an increase in the price of magazines will raise the relative price of magazines to books, causing magazine readers to read more books and fewer magazines.

Question 6

If the price of an Xbox player falls, then in the market for Xbox games,

Accepted Answer

A)  the demand curve for Xbox games shifts rightward. 
B)  the demand curve for Xbox games shifts leftward. 
C)  there is a movement downward along the demand curve for Xbox games. 
D)  there is a movement upward along the demand curve for Xbox games. 
A)  the demand curve for Xbox games shifts rightward. 
B)  the demand curve for Xbox games shifts leftward. 
C)  there is a movement downward along the demand curve for Xbox games. 
D)  there is a movement upward along the demand curve for Xbox games.

Question 7

The law of demand implies that if nothing else changes, there is

Accepted Answer

A)  a positive relationship between the price of a good and the quantity demanded. 
B)  a negative relationship between the price of a good and the quantity demanded. 
C)  a linear relationship between price of a good and the quantity demanded. 
D)  an exponential relationship between price of a good and the quantity demanded. 
A)  a positive relationship between the price of a good and the quantity demanded. 
B)  a negative relationship between the price of a good and the quantity demanded. 
C)  a linear relationship between price of a good and the quantity demanded. 
D)  an exponential relationship between price of a good and the quantity demanded.

Question 8

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

Accepted Answer

A)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
B)  $1.50, the opportunity cost of a can of soda. 
C)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
D)  $0.75, the opportunity cost of a can of soda. 
A)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
B)  $1.50, the opportunity cost of a can of soda. 
C)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
D)  $0.75, the opportunity cost of a can of soda.

Question 9

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Accepted Answer

The equilibrium quantity unambiguously i

Question 10

-Suppose the market for CD-Rs has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market?
Suppose the current price is $2.00. What is the quantity of CD-Rs sold? Explain. Is there a shortage or a surplus? How big is it? Explain.

Accepted Answer

The equilibrium price is $1.50. The equi

Question 11

If a market is NOT in equilibrium, then which of the following is likely to occur?

Accepted Answer

A)  The demand curve will shift to bring the market to equilibrium. 
B)  The supply curve will shift to bring the market to equilibrium. 
C)  The price will adjust to bring the market to equilibrium. 
D)  Both A and B are correct. 
A)  The demand curve will shift to bring the market to equilibrium. 
B)  The supply curve will shift to bring the market to equilibrium. 
C)  The price will adjust to bring the market to equilibrium. 
D)  Both A and B are correct.

Question 12

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

Accepted Answer

A)  rightward shift of the demand curve for bicycles. 
B)  rightward shift of the supply curve of bicycles. 
C)  leftward shift of the demand curve for bicycles. 
D)  leftward shift of the supply curve of bicycles. 
A)  rightward shift of the demand curve for bicycles. 
B)  rightward shift of the supply curve of bicycles. 
C)  leftward shift of the demand curve for bicycles. 
D)  leftward shift of the supply curve of bicycles.

Question 13

A complement is a good

Accepted Answer

A)  of lower quality than another good. 
B)  used in conjunction with another good. 
C)  used instead of another good. 
D)  of higher quality than another good. 
A)  of lower quality than another good. 
B)  used in conjunction with another good. 
C)  used instead of another good. 
D)  of higher quality than another good.

Question 14

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

Accepted Answer

A)  price is the lowest possible. 
B)  price is usually affordable to most people. 
C)  supply and demand curves can never shift again. 
D)  quantity supplied equals the quantity demanded. 
A)  price is the lowest possible. 
B)  price is usually affordable to most people. 
C)  supply and demand curves can never shift again. 
D)  quantity supplied equals the quantity demanded.

Question 15

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Accepted Answer

A)  The price will fall and the effect on the quantity is uncertain. 
B)  The quantity will increase and the effect on the price is uncertain. 
C)  The quantity will decrease and the price will rise. 
D)  The quantity will increase and the price will remain unchanged. 
A)  The price will fall and the effect on the quantity is uncertain. 
B)  The quantity will increase and the effect on the price is uncertain. 
C)  The quantity will decrease and the price will rise. 
D)  The quantity will increase and the price will remain unchanged.

An increase in the demand for computers and a decrease in the number of sellers of computers will definitely ________.

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

In the market for magazines, the "income effect" means that

If the price of an Xbox player falls, then in the market for Xbox games,

The law of demand implies that if nothing else changes, there is

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

If a market is NOT in equilibrium, then which of the following is likely to occur?

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

A complement is a good

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters

Exam 3: Demand and Supply

An increase in the demand for computers and a decrease in the number of sellers of computers will definitely ________.

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

In the market for magazines, the "income effect" means that

If the price of an Xbox player falls, then in the market for Xbox games,

The law of demand implies that if nothing else changes, there is

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

If a market is NOT in equilibrium, then which of the following is likely to occur?

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

A complement is a good

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters