Question 1

A ballet performance had many empty seats.This implies that the

Accepted Answer

A) Hall where the performance was being held was very large. 
B) Price of the tickets must have been very low because of the low demand. 
C) Ballet group was not very well known. 
D) Price of the tickets must have been above the equilibrium price. 
A) Hall where the performance was being held was very large. 
B) Price of the tickets must have been very low because of the low demand. 
C) Ballet group was not very well known. 
D) Price of the tickets must have been above the equilibrium price.

Question 2

If there are only two airlines that fly between Dallas and New Orleans,what will happen in the market for one airline if the other one goes out of business?

Accepted Answer

A) The demand curve will shift to the right. 
B) The demand curve will shift to the left. 
C) There will be a movement to the right along the initial demand curve. 
D) There will be a movement to the left along the initial demand curve. 
A) The demand curve will shift to the right. 
B) The demand curve will shift to the left. 
C) There will be a movement to the right along the initial demand curve. 
D) There will be a movement to the left along the initial demand curve.

Question 3

Tickets to a sporting event go on sale and sell out almost instantly.This suggests that

Accepted Answer

A) There are too many tickets to the event. 
B) The price for the tickets is below the equilibrium price. 
C) The tickets must be very expensive. 
D) There is a surplus of tickets. 
A) There are too many tickets to the event. 
B) The price for the tickets is below the equilibrium price. 
C) The tickets must be very expensive. 
D) There is a surplus of tickets.

Question 4

Define a price ceiling and explain how it affects resource allocation in a market.Give a real-world example of a price ceiling.

Accepted Answer

A price ceiling is an upper limit impose

Question 5

In The Economy Tomorrow analysis in the text stated that thousands of people were waiting for a kidney transplant.Which of the following statements is true?

Accepted Answer

A) A price ceiling of zero is effectively a prohibition against donating organs. 
B) Allowing the sale of kidneys at a price greater than zero would likely increase the number of available kidneys. 
C) Allowing the sale of kidneys at a price greater than zero would decrease the number of available kidneys. 
D) There is not an organ shortage. 
A) A price ceiling of zero is effectively a prohibition against donating organs. 
B) Allowing the sale of kidneys at a price greater than zero would likely increase the number of available kidneys. 
C) Allowing the sale of kidneys at a price greater than zero would decrease the number of available kidneys. 
D) There is not an organ shortage.

Question 6

Optimal market outcomes are the same as perfect market outcomes.

Accepted Answer

A) True 
 B)False

Question 7

The term opportunity cost refers to

Accepted Answer

A) The most a consumer is willing to exchange to get an item. 
B) The slope of the demand line for a consumer or slope of the supply line for the producer. 
C) The minimum price that a producer will accept for a product. 
D) All of the choices are correct. 
A) The most a consumer is willing to exchange to get an item. 
B) The slope of the demand line for a consumer or slope of the supply line for the producer. 
C) The minimum price that a producer will accept for a product. 
D) All of the choices are correct.

Question 8

A decrease in the price of electricity can best be explained by

Accepted Answer

A) A decrease in the population. 
B) Abnormally cold winters and hot summers. 
C) The increased use of electronic devices such as computers. 
D) A growing economy. 
A) A decrease in the population. 
B) Abnormally cold winters and hot summers. 
C) The increased use of electronic devices such as computers. 
D) A growing economy.

Question 9

The market mechanism satisfies all consumer desires and maximizes business profits.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a determinant of supply?

Accepted Answer

A) Consumer tastes or preferences. 
B) The prices of the factors of production. 
C) Consumers' income. 
D) Number of buyers. 
A) Consumer tastes or preferences. 
B) The prices of the factors of production. 
C) Consumers' income. 
D) Number of buyers.

Question 11

Which panel of Figure 3.3 represents the changes in the market for textbooks when the cost of paper decreases and the government increases the number of student loans it grants?

Accepted Answer

A) A. 
B) B. 
C) C. 
D) D. 
A) A. 
B) B. 
C) C. 
D) D.

Question 12

Ceteris paribus,for a farmer,corn and wheat are

Accepted Answer

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

Question 13

According to the law of demand,a decrease in price leads to an increase in quantity demanded.

Accepted Answer

A) True 
 B)False

Question 14

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,if the price is $8,the market will

Accepted Answer

A) Be in equilibrium. 
B) Experience a surplus of 30 units. 
C) Experience a shortage of 22 units. 
D) Experience a surplus of 56 units. 
A) Be in equilibrium. 
B) Experience a surplus of 30 units. 
C) Experience a shortage of 22 units. 
D) Experience a surplus of 56 units.

Question 15

The law of supply and the law of demand both rely on the concept of opportunity cost.

Accepted Answer

A) True 
 B)False

Question 16

If the market wage for fast-food restaurants is $11 and the government enforces a minimum wage of $7,the unemployment rate will

Accepted Answer

A) Increase as quantity of labor supply increases and quantity of labor demand decreases. 
B) Increase as quantity of labor supply decreases and quantity of labor demand increases. 
C) Increase as quantity of labor supply increases and quantity of labor demand increases. 
D) Not be affected by the minimum wage. 
A) Increase as quantity of labor supply increases and quantity of labor demand decreases. 
B) Increase as quantity of labor supply decreases and quantity of labor demand increases. 
C) Increase as quantity of labor supply increases and quantity of labor demand increases. 
D) Not be affected by the minimum wage.

Question 17

Ceteris paribus,if the price of a digital camera rises,then we can expect

Accepted Answer

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

Question 18

An increase in the price of gasoline will

Accepted Answer

A) Shift the gasoline supply curve to the right. 
B) Shift the gasoline demand curve to the right. 
C) Shift the automobile supply curve to the left. 
D) Shift the automobile demand curve to the left. 
A) Shift the gasoline supply curve to the right. 
B) Shift the gasoline demand curve to the right. 
C) Shift the automobile supply curve to the left. 
D) Shift the automobile demand curve to the left.

Question 19

Define the law of demand and explain how this relates to typical human behavior.

Accepted Answer

The law of demand says that the quantity

Question 20

Individual consumers supply ________ and purchase ________.

Accepted Answer

A) factors of production;final goods and services 
B) intermediate goods;final goods and services 
C) final goods and services;factors of production 
D) national goods and services;factors of production 
A) factors of production;final goods and services 
B) intermediate goods;final goods and services 
C) final goods and services;factors of production 
D) national goods and services;factors of production

Exam 3: Supply and Demand

A ballet performance had many empty seats.This implies that the

If there are only two airlines that fly between Dallas and New Orleans,what will happen in the market for one airline if the other one goes out of business?

Tickets to a sporting event go on sale and sell out almost instantly.This suggests that

Define a price ceiling and explain how it affects resource allocation in a market.Give a real-world example of a price ceiling.

In The Economy Tomorrow analysis in the text stated that thousands of people were waiting for a kidney transplant.Which of the following statements is true?

Optimal market outcomes are the same as perfect market outcomes.

The term opportunity cost refers to

A decrease in the price of electricity can best be explained by

The market mechanism satisfies all consumer desires and maximizes business profits.

Which of the following is a determinant of supply?

Which panel of Figure 3.3 represents the changes in the market for textbooks when the cost of paper decreases and the government increases the number of student loans it grants?

Ceteris paribus,for a farmer,corn and wheat are

According to the law of demand,a decrease in price leads to an increase in quantity demanded.

The law of supply and the law of demand both rely on the concept of opportunity cost.

If the market wage for fast-food restaurants is $11 and the government enforces a minimum wage of $7,the unemployment rate will

Ceteris paribus,if the price of a digital camera rises,then we can expect

An increase in the price of gasoline will

Define the law of demand and explain how this relates to typical human behavior.

Individual consumers supply ________ and purchase ________.

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

Filters

Individual consumers supply and purchase .