Question 1

Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:

Accepted Answer

A)  market technologies. 
B)  demand prices. 
C)  demand shifters. 
D)  supply determinants. 
A)  market technologies. 
B)  demand prices. 
C)  demand shifters. 
D)  supply determinants.

Question 2

The Case in Point on obesity suggested that:

Accepted Answer

A)  the demand for food has increased more than the supply of food has increased resulting in an increase in price. 
B)  the supply of food has increased more than the demand for food has increased resulting in a decrease in price. 
C)  the supply of food has decreased more than the demand for food has decreased resulting in an increase in price. 
D)  the demand for food has decreased more than the supply of food has decreased resulting in a decrease in price. 
A)  the demand for food has increased more than the supply of food has increased resulting in an increase in price. 
B)  the supply of food has increased more than the demand for food has increased resulting in a decrease in price. 
C)  the supply of food has decreased more than the demand for food has decreased resulting in an increase in price. 
D)  the demand for food has decreased more than the supply of food has decreased resulting in a decrease in price.

Question 3

-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the birth rate (the number of babies per female in the childbearing age bracket) increases. Which panel best describes how this will affect the market for diapers?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 4

Demand and Supply Schedules for a Good
  
-(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

Accepted Answer

A)  $2.00; 100 
B)  $3.00; 140 
C)  $3.50; 175 
D)  $4.00; 160 
A)  $2.00; 100 
B)  $3.00; 140 
C)  $3.50; 175 
D)  $4.00; 160

Question 5

-(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices would result in a change illustrated by:

Accepted Answer

A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d). 
A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d).

Question 6

In the 1990s, the Monks of St. Benedict's the Monks determined that their ________ were ________ in the egg and cookie business, so they ________ .

Accepted Answer

A)  opportunity costs; too low; switched to providing private retreats 
B)  opportunity costs; too high; switched to providing private retreats 
C)  profits; too high; went out of business 
D)  operating costs; too low; opened a new business 
A)  opportunity costs; too low; switched to providing private retreats 
B)  opportunity costs; too high; switched to providing private retreats 
C)  profits; too high; went out of business 
D)  operating costs; too low; opened a new business

Question 7

An example of a supply shifter is:

Accepted Answer

A)  demographic characteristics. 
B)  technology. 
C)  income. 
D)  consumer expectations. 
A)  demographic characteristics. 
B)  technology. 
C)  income. 
D)  consumer expectations.

Question 8

Consumer preferences are a demand shifter.

Accepted Answer

A) True 
 B)False

Question 9

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose half the people in San Diego pack up and move to Colorado Springs. Which panel best describes how this will affect the supply of houses in San Diego?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 10

Given the events listed below that take place in the bread market, decide if demand changes or quantity demanded changes and determine the direction of change.
JA. The economy prospers and incomes increase dramatically.
JB. The price of bread falls.
JC. The price of flour, an ingredient of bread, falls.
JD. The price of bread increases.
JE. A severe weather problem occurs and most grain crops are destroyed.
JF. The price of potatoes, a substitute for bread, rises.

Accepted Answer

In economics, the terms "demand" and "qu

Question 11

-(Exhibit: The Market for Music Downloads) A decrease in buyers' income, assuming music downloads are a normal good, combined with a decrease in the wage rate paid to web site technical support employees would result in a change illustrated by the move from:

Accepted Answer

A)  j to m in Figure (c). 
B)  g to f in Figure (a). 
C)  i to h in Figure (b). 
D)  h to i in Figure (b). 
A)  j to m in Figure (c). 
B)  g to f in Figure (a). 
C)  i to h in Figure (b). 
D)  h to i in Figure (b).

Question 12

The Case in Point on obesity suggests that food prices are lower because of:

Accepted Answer

A)  an increase in the in the demand for food only. 
B)  an increase in the supply of food only. 
C)  an increase in the demand for food was less than the increase in the supply of food. 
D)  an increase in the supply of food that was lessthan the increase in demand forfood. 
A)  an increase in the in the demand for food only. 
B)  an increase in the supply of food only. 
C)  an increase in the demand for food was less than the increase in the supply of food. 
D)  an increase in the supply of food that was lessthan the increase in demand forfood.

Question 13

The Case in Point on obesity argues that agricultural innovation led to:

Accepted Answer

A)  the increase in the demand for food. 
B)  theincrease in the supply of food. 
C)  higher food prices. 
D)  B and C occurred. 
A)  the increase in the demand for food. 
B)  theincrease in the supply of food. 
C)  higher food prices. 
D)  B and C occurred.

Question 14

The key signals that send messages to buyers and sellers to buy or not to buy or to sell or not to sell are, all other things unchanged:

Accepted Answer

A)  prices. 
B)  preferences. 
C)  government mandates. 
D)  expectations. 
A)  prices. 
B)  preferences. 
C)  government mandates. 
D)  expectations.

Question 15

-(Exhibit: Simultaneous Shifts in Demand and Supply) D1 and S1 are original supply and demand curves, and S2 and D2 are new curves. In this market, the change in supply may have resulted from:

Accepted Answer

A)  wage increases for the workers. 
B)  an improvement in technology. 
C)  a decrease in the number of sellers. 
D)  all of the above. 
A)  wage increases for the workers. 
B)  an improvement in technology. 
C)  a decrease in the number of sellers. 
D)  all of the above.

Question 16

A decrease in both supply and demand will lead to a decrease in equilibrium quantity.

Accepted Answer

A) True 
 B)False

Question 17

-(Exhibit: Demand and Supply Curves) A surplus of 200 units will occur at a price of ________ and a shortage of 200 units will occur at a price of ________.

Accepted Answer

A)  $15; $10 
B)  $15; $15 
C)  $15; $25 
D)  $25; $10 
A)  $15; $10 
B)  $15; $15 
C)  $15; $25 
D)  $25; $10

Question 18

-(Exhibit: Demand and Supply) What is the equilibrium quantity?

Accepted Answer

A)  3 
B)  6 
C)  9 
D)  12 
A)  3 
B)  6 
C)  9 
D)  12

Question 19

A supply curve that is upward sloping means that:

Accepted Answer

A)  demand is being ignored. 
B)  consumers will buy less at lower prices. 
C)  suppliers will want to sell more at higher prices. 
D)  suppliers will want to sell less at higher prices. 
A)  demand is being ignored. 
B)  consumers will buy less at lower prices. 
C)  suppliers will want to sell more at higher prices. 
D)  suppliers will want to sell less at higher prices.

Question 20

If the current price is above the equilibrium price, we would expect:

Accepted Answer

A)  quantity demanded to exceed quantity supplied. 
B)  upward pressure on price. 
C)  quantity supplied to exceed quantity demanded. 
D)  no change in the market price. 
A)  quantity demanded to exceed quantity supplied. 
B)  upward pressure on price. 
C)  quantity supplied to exceed quantity demanded. 
D)  no change in the market price.

Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:

The Case in Point on obesity suggested that:

Demand and Supply Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be and units, respectively.

-(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices would result in a change illustrated by:

In the 1990s, the Monks of St. Benedict's the Monks determined that their were in the egg and cookie business, so they .

An example of a supply shifter is:

Consumer preferences are a demand shifter.

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose half the people in San Diego pack up and move to Colorado Springs. Which panel best describes how this will affect the supply of houses in San Diego?

-(Exhibit: The Market for Music Downloads) A decrease in buyers' income, assuming music downloads are a normal good, combined with a decrease in the wage rate paid to web site technical support employees would result in a change illustrated by the move from:

The Case in Point on obesity suggests that food prices are lower because of:

The Case in Point on obesity argues that agricultural innovation led to:

The key signals that send messages to buyers and sellers to buy or not to buy or to sell or not to sell are, all other things unchanged:

-(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves. In this market, the change in supply may have resulted from:

A decrease in both supply and demand will lead to a decrease in equilibrium quantity.

-(Exhibit: Demand and Supply Curves) A surplus of 200 units will occur at a price of and a shortage of 200 units will occur at a price of .

-(Exhibit: Demand and Supply) What is the equilibrium quantity?

A supply curve that is upward sloping means that:

If the current price is above the equilibrium price, we would expect:

Economics: the Study of Choice

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

Exam 3: Demand and Supply

Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:

The Case in Point on obesity suggested that:

Demand and Supply Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

-(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices would result in a change illustrated by:

In the 1990s, the Monks of St. Benedict's the Monks determined that their ________ were ________ in the egg and cookie business, so they ________ .

An example of a supply shifter is:

Consumer preferences are a demand shifter.

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose half the people in San Diego pack up and move to Colorado Springs. Which panel best describes how this will affect the supply of houses in San Diego?

-(Exhibit: The Market for Music Downloads) A decrease in buyers' income, assuming music downloads are a normal good, combined with a decrease in the wage rate paid to web site technical support employees would result in a change illustrated by the move from:

The Case in Point on obesity suggests that food prices are lower because of:

The Case in Point on obesity argues that agricultural innovation led to:

The key signals that send messages to buyers and sellers to buy or not to buy or to sell or not to sell are, all other things unchanged:

-(Exhibit: Simultaneous Shifts in Demand and Supply) D1 and S1 are original supply and demand curves, and S2 and D2 are new curves. In this market, the change in supply may have resulted from:

A decrease in both supply and demand will lead to a decrease in equilibrium quantity.

-(Exhibit: Demand and Supply Curves) A surplus of 200 units will occur at a price of ________ and a shortage of 200 units will occur at a price of ________.

-(Exhibit: Demand and Supply) What is the equilibrium quantity?

A supply curve that is upward sloping means that:

If the current price is above the equilibrium price, we would expect:

Economics: the Study of Choice

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

Demand and Supply Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be and units, respectively.

In the 1990s, the Monks of St. Benedict's the Monks determined that their were in the egg and cookie business, so they .

-(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves. In this market, the change in supply may have resulted from:

-(Exhibit: Demand and Supply Curves) A surplus of 200 units will occur at a price of and a shortage of 200 units will occur at a price of .