Question 1

Ceteris paribus,an increase in the number of sellers of running shoes causes equilibrium price to

Accepted Answer

A) Decrease and equilibrium quantity to increase. 
B) Decrease and equilibrium quantity to decrease. 
C) Increase and equilibrium quantity to increase. 
D) Increase and equilibrium quantity to decrease. 
A) Decrease and equilibrium quantity to increase. 
B) Decrease and equilibrium quantity to decrease. 
C) Increase and equilibrium quantity to increase. 
D) Increase and equilibrium quantity to decrease.

Question 2

A rightward shift in a demand curve and a leftward shift in a supply curve both result in a

Accepted Answer

A) Lower equilibrium price. 
B) Lower equilibrium quantity. 
C) Higher equilibrium price. 
D) Higher equilibrium quantity. 
A) Lower equilibrium price. 
B) Lower equilibrium quantity. 
C) Higher equilibrium price. 
D) Higher equilibrium quantity.

Question 3

Ceteris paribus,if buyers expect the price of airline tickets to fall in the future,then right now there should be

Accepted Answer

A) An increase in the demand for airline tickets. 
B) A decrease in the supply of airline tickets. 
C) A decrease in the demand for airline tickets. 
D) No change in the supply of or demand for airline tickets because the price is not changing right now. 
A) An increase in the demand for airline tickets. 
B) A decrease in the supply of airline tickets. 
C) A decrease in the demand for airline tickets. 
D) No change in the supply of or demand for airline tickets because the price is not changing right now.

Question 4

International participants

Accepted Answer

A) Take no part in American markets. 
B) Participate only in American product markets. 
C) Participate only in American factor markets. 
D) Participate in both American factor markets and American product markets. 
A) Take no part in American markets. 
B) Participate only in American product markets. 
C) Participate only in American factor markets. 
D) Participate in both American factor markets and American product markets.

Question 5

Which of the following is a market transaction?

Accepted Answer

A) A stock increases in value over the 30 years that it is owned. 
B) A college student purchases a laptop computer. 
C) Weather destroys a farmer's crops,leaving the farmer unable to buy groceries. 
D) A radio station changes its programming from classical to rock. 
A) A stock increases in value over the 30 years that it is owned. 
B) A college student purchases a laptop computer. 
C) Weather destroys a farmer's crops,leaving the farmer unable to buy groceries. 
D) A radio station changes its programming from classical to rock.

Question 6

In the United States,consumers,businesses,governments,and foreigners participate in both the product and factor markets.

Accepted Answer

A) True 
 B)False

Question 7

Ceteris paribus,a consumer that purchases a sports car must consider the price of gasoline because these goods are

Accepted Answer

A) Substitutes in production. 
B) Complements in production;by-products. 
C) Substitutes in consumption. 
D) Complements in consumption. 
A) Substitutes in production. 
B) Complements in production;by-products. 
C) Substitutes in consumption. 
D) Complements in consumption.

Question 8

A change in price changes the quantity demanded and is represented by a movement along the demand curve.

Accepted Answer

A) True 
 B)False

Question 9

What are substitute goods,and how does a change in the price of one substitute good influence the demand for the other?

Accepted Answer

Substitute goods are goods that can be u

Question 10

Scalping is likely to appear when a price is set below equilibrium price by the seller.

Accepted Answer

A) True 
 B)False

Question 11

A rightward shift in a demand curve and a rightward shift in a supply curve both result in a

Accepted Answer

A) Lower equilibrium price. 
B) Lower equilibrium quantity. 
C) Higher equilibrium price. 
D) Higher equilibrium quantity. 
A) Lower equilibrium price. 
B) Lower equilibrium quantity. 
C) Higher equilibrium price. 
D) Higher equilibrium quantity.

Question 12

Peanut butter and jelly are complements.A decrease in the price of one will result in

Accepted Answer

A) A decrease in the demand for the other. 
B) A decrease in the quantity demanded of the other. 
C) An increase in the demand for the other. 
D) An increase in the quantity demanded of the other. 
A) A decrease in the demand for the other. 
B) A decrease in the quantity demanded of the other. 
C) An increase in the demand for the other. 
D) An increase in the quantity demanded of the other.

Question 13

When individual supply curves shift,ceteris paribus,the market supply curve shifts.

Accepted Answer

A) True 
 B)False

Question 14

Suppose a hurricane hits Alabama,causing widespread damage to houses and businesses.The governor of Alabama places price ceilings on all building materials to keep the prices reasonable.Which of the following is the most likely result?

Accepted Answer

A) A faster recovery from the storm. 
B) More people will be able to purchase building materials. 
C) Shortages of building materials and a slower recovery from the storm. 
D) The supply of building materials to Alabama will increase. 
A) A faster recovery from the storm. 
B) More people will be able to purchase building materials. 
C) Shortages of building materials and a slower recovery from the storm. 
D) The supply of building materials to Alabama will increase.

Question 15

If the price of "X" increases and you buy less "Y," then

Accepted Answer

A) "X" and "Y" are complements,and the price of "Y" will increase. 
B) "X" and "Y" are complements,and the price of "Y" will decrease. 
C) "X" and "Y" are substitutes,and the price of "Y" will increase. 
D) "X" and "Y" are substitutes,and the price of "Y" will decrease. 
A) "X" and "Y" are complements,and the price of "Y" will increase. 
B) "X" and "Y" are complements,and the price of "Y" will decrease. 
C) "X" and "Y" are substitutes,and the price of "Y" will increase. 
D) "X" and "Y" are substitutes,and the price of "Y" will decrease.

Question 16

Which of the following events would cause a rightward shift in the market supply curve for automobiles?

Accepted Answer

A) A technological improvement that reduces the cost of production. 
B) An increase in the wages of autoworkers. 
C) A higher sales tax on automobiles. 
D) A decrease in the number of sellers. 
A) A technological improvement that reduces the cost of production. 
B) An increase in the wages of autoworkers. 
C) A higher sales tax on automobiles. 
D) A decrease in the number of sellers.

Question 17

Assume milk is used to produce ice cream.Ceteris paribus,a decrease in the price of milk will cause the equilibrium price of ice cream to

Accepted Answer

A) Increase and the equilibrium quantity of ice cream to increase. 
B) Increase and the equilibrium quantity of ice cream to decrease. 
C) Decrease and the equilibrium quantity of ice cream to increase. 
D) Decrease and the equilibrium quantity of ice cream to decrease. 
A) Increase and the equilibrium quantity of ice cream to increase. 
B) Increase and the equilibrium quantity of ice cream to decrease. 
C) Decrease and the equilibrium quantity of ice cream to increase. 
D) Decrease and the equilibrium quantity of ice cream to decrease.

Question 18

Refer to Table 3.1 to answer the following question Table 3.1 Individual Demand and Supply Schedules
$\begin{array}{l}
\quad\quad\quad\quad\quad\quad\text { Quartity Dernarded by }\
\begin{array} { | r | r | r | r | c | } 
\hline { \text { Price } } &  { \text { Alejandro } } & { \text { Ben } } & \text { Carl } & \text { Market } \
\hline \$ 8.00 & 8 & 4 & 2 & \
\hline 6.00 & 12 & 4 & 4 & \
\hline 4.00 & 20 & 4 & 6 & \
\hline 2.00 & 22 & 4 & 6 & \
\hline
\end{array}
\end{array}$

$\begin{array}{l}
\quad\quad\quad\quad\quad\quad\text { Quartity Supplied by }\
\begin{array} { | r | r | r | r | c | } 
\hline { \text { Price } } &  { \text { Avery } } & { \text { Brandon } } & \text { Cassandra} &\quad\quad\quad\quad \
\hline \$ 8.00 & 60 & 4 &6 & \
\hline \$6.00 & 42 & 4 & 4 & \
\hline \$4.00 & 24 & 4 & 2 & \
\hline\$ 2.00 &6 & 4 & 0 & \
\hline
\end{array}
\end{array}$

In Table 3.1,the equilibrium market quantity is

Accepted Answer

A) 14. 
B) 22. 
C) 30. 
D) 70. 
A) 14. 
B) 22. 
C) 30. 
D) 70.

Question 19

Ceteris paribus,for the owner of a sawmill,lumber and the sawdust that go into particle board are

Accepted Answer

A) Substitutes in production. 
B) Complements in production;by-products. 
C) Unrelated in the sawmill operator's decision. 
D) None of the choices are correct. 
A) Substitutes in production. 
B) Complements in production;by-products. 
C) Unrelated in the sawmill operator's decision. 
D) None of the choices are correct.

Question 20

At the equilibrium price,there are

Accepted Answer

A) Shortages. 
B) Surpluses. 
C) Excess inventories. 
D) No shortages or surpluses. 
A) Shortages. 
B) Surpluses. 
C) Excess inventories. 
D) No shortages or surpluses.

Exam 3: Supply and Demand

Ceteris paribus,an increase in the number of sellers of running shoes causes equilibrium price to

A rightward shift in a demand curve and a leftward shift in a supply curve both result in a

Ceteris paribus,if buyers expect the price of airline tickets to fall in the future,then right now there should be

International participants

Which of the following is a market transaction?

In the United States,consumers,businesses,governments,and foreigners participate in both the product and factor markets.

Ceteris paribus,a consumer that purchases a sports car must consider the price of gasoline because these goods are

A change in price changes the quantity demanded and is represented by a movement along the demand curve.

What are substitute goods,and how does a change in the price of one substitute good influence the demand for the other?

Scalping is likely to appear when a price is set below equilibrium price by the seller.

A rightward shift in a demand curve and a rightward shift in a supply curve both result in a

Peanut butter and jelly are complements.A decrease in the price of one will result in

When individual supply curves shift,ceteris paribus,the market supply curve shifts.

Suppose a hurricane hits Alabama,causing widespread damage to houses and businesses.The governor of Alabama places price ceilings on all building materials to keep the prices reasonable.Which of the following is the most likely result?

If the price of "X" increases and you buy less "Y," then

Which of the following events would cause a rightward shift in the market supply curve for automobiles?

Assume milk is used to produce ice cream.Ceteris paribus,a decrease in the price of milk will cause the equilibrium price of ice cream to

Ceteris paribus,for the owner of a sawmill,lumber and the sawdust that go into particle board are

At the equilibrium price,there are

Economics: the Core Issues

The Useconomy: a Global View

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

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