Question 1

In a market economy,the people who receive the goods and services produced are those who

Accepted Answer

A) Need the goods and services the most. 
B) Want the goods and services the most. 
C) Have the most political power. 
D) Are willing and able to pay the market price. 
A) Need the goods and services the most. 
B) Want the goods and services the most. 
C) Have the most political power. 
D) Are willing and able to pay the market price.

Question 2

Which of the following would not cause the market supply of cell phones to change?

Accepted Answer

A) Telecommunications are deregulated,and anyone who wants to can produce and sell cell phones. 
B) A cheaper technology for producing plastics used in producing cell phones is developed. 
C) A reduction in the demand for cell phones causes the price to fall. 
D) Taxes levied on cell phone production are reduced. 
A) Telecommunications are deregulated,and anyone who wants to can produce and sell cell phones. 
B) A cheaper technology for producing plastics used in producing cell phones is developed. 
C) A reduction in the demand for cell phones causes the price to fall. 
D) Taxes levied on cell phone production are reduced.

Question 3

Ceteris paribus,which of the following is most likely to cause a decrease in the supply of skateboards?

Accepted Answer

A) An increase in the price of skateboards. 
B) An increase in the cost of materials used to produce skateboards. 
C) An improvement in skateboard-making technology. 
D) All of the choices are correct. 
A) An increase in the price of skateboards. 
B) An increase in the cost of materials used to produce skateboards. 
C) An improvement in skateboard-making technology. 
D) All of the choices are correct.

Question 4

There are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market.

Accepted Answer

A) True 
 B)False

Question 5

If corn and wheat are alternative pursuits for a farmer,a change in the supply of corn will take place when,ceteris paribus,

Accepted Answer

A) The price of corn changes. 
B) The price of wheat changes. 
C) The demand for corn changes. 
D) Consumers want to buy more corn at the same price. 
A) The price of corn changes. 
B) The price of wheat changes. 
C) The demand for corn changes. 
D) Consumers want to buy more corn at the same price.

Question 6

An increase in the price of one good can cause the demand for another good to increase if the goods are substitutes.

Accepted Answer

A) True 
 B)False

Question 7

If a price is above equilibrium,

Accepted Answer

A) A shortage will cause the price to fall and the quantity supplied to decrease. 
B) A shortage will cause the price to rise and the quantity supplied to increase. 
C) A surplus will cause the price to fall and the quantity supplied to decrease. 
D) A surplus will cause the price to fall and the quantity supplied to increase. 
A) A shortage will cause the price to fall and the quantity supplied to decrease. 
B) A shortage will cause the price to rise and the quantity supplied to increase. 
C) A surplus will cause the price to fall and the quantity supplied to decrease. 
D) A surplus will cause the price to fall and the quantity supplied to increase.

Question 8

If the price of "X" increases and you buy more "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 9

Ceteris paribus,which of the following is most likely to cause an increase in the quantity demanded of perfume?

Accepted Answer

A) A decrease in the price of perfume. 
B) A decrease in tastes for perfume. 
C) An increase in income. 
D) An increase in the price of electricity. 
A) A decrease in the price of perfume. 
B) A decrease in tastes for perfume. 
C) An increase in income. 
D) An increase in the price of electricity.

Question 10

To calculate market supply,we

Accepted Answer

A) Add the quantities supplied for each individual supply schedule horizontally. 
B) Add the quantities supplied for each individual supply schedule vertically. 
C) Find the average quantity supplied at each price. 
D) Find the difference between the quantity supplied and the quantity demanded at each price. 
A) Add the quantities supplied for each individual supply schedule horizontally. 
B) Add the quantities supplied for each individual supply schedule vertically. 
C) Find the average quantity supplied at each price. 
D) Find the difference between the quantity supplied and the quantity demanded at each price.

Question 11

The market price equals the equilibrium price if quantity demanded equals quantity supplied at the market price.

Accepted Answer

A) True 
 B)False

Question 12

The goal of the business firms in a market economy is to maximize

Accepted Answer

A) Total profits. 
B) Total sales. 
C) Total utility. 
D) Total welfare. 
A) Total profits. 
B) Total sales. 
C) Total utility. 
D) Total welfare.

Question 13

The desire for carrots changes as one moves down the demand curve for carrots.

Accepted Answer

A) True 
 B)False

Question 14

Which determinant of demand changes in the personal computer market as more individuals become interested in "surfing the Internet"?

Accepted Answer

A) Cost of factors of production. 
B) Income. 
C) Expectations. 
D) Number of buyers. 
A) Cost of factors of production. 
B) Income. 
C) Expectations. 
D) Number of buyers.

Question 15

In a market economy,which of the following is an incentive for producers to produce efficiently?

Accepted Answer

A) Government laws and regulations. 
B) Profits. 
C) The production possibilities curve. 
D) The public's welfare. 
A) Government laws and regulations. 
B) Profits. 
C) The production possibilities curve. 
D) The public's welfare.

Question 16

A buyer is said to have a demand for a good only when

Accepted Answer

A) The buyer is not willing to buy the good and does not have enough income to purchase the good. 
B) The buyer is both willing and able to purchase the good. 
C) The buyer has the income but the good is not preferred. 
D) An adequate supply of the good is available for purchase. 
A) The buyer is not willing to buy the good and does not have enough income to purchase the good. 
B) The buyer is both willing and able to purchase the good. 
C) The buyer has the income but the good is not preferred. 
D) An adequate supply of the good is available for purchase.

Question 17

Business firms supply goods and services to ________ and purchase factors of production in ________.

Accepted Answer

A) factor markets;product markets 
B) national markets;factor markets 
C) product markets;factor markets 
D) factor markets;national markets 
A) factor markets;product markets 
B) national markets;factor markets 
C) product markets;factor markets 
D) factor markets;national markets

Question 18

As a result of a shortage,

Accepted Answer

A) Consumers increase demand for the product. 
B) Producers reduce supply. 
C) Producers increase output and raise price. 
D) Government purchases decrease. 
A) Consumers increase demand for the product. 
B) Producers reduce supply. 
C) Producers increase output and raise price. 
D) Government purchases decrease.

Question 19

The price ceiling that the federal government placed on human organs caused

Accepted Answer

A) An increase in demand. 
B) An increase in supply. 
C) A shortage. 
D) A surplus. 
A) An increase in demand. 
B) An increase in supply. 
C) A shortage. 
D) A surplus.

Question 20

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 $4,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.

Exam 3: Supply and Demand

In a market economy,the people who receive the goods and services produced are those who

Which of the following would not cause the market supply of cell phones to change?

Ceteris paribus,which of the following is most likely to cause a decrease in the supply of skateboards?

There are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market.

If corn and wheat are alternative pursuits for a farmer,a change in the supply of corn will take place when,ceteris paribus,

An increase in the price of one good can cause the demand for another good to increase if the goods are substitutes.

If a price is above equilibrium,

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

Ceteris paribus,which of the following is most likely to cause an increase in the quantity demanded of perfume?

To calculate market supply,we

The market price equals the equilibrium price if quantity demanded equals quantity supplied at the market price.

The goal of the business firms in a market economy is to maximize

The desire for carrots changes as one moves down the demand curve for carrots.

Which determinant of demand changes in the personal computer market as more individuals become interested in "surfing the Internet"?

In a market economy,which of the following is an incentive for producers to produce efficiently?

A buyer is said to have a demand for a good only when

Business firms supply goods and services to ________ and purchase factors of production in ________.

As a result of a shortage,

The price ceiling that the federal government placed on human organs caused

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

Business firms supply goods and services to and purchase factors of production in .