Question 1

A change in the price of a good

Accepted Answer

A) Causes a shift in the supply curve. 
B) Results in a change in quantity supplied. 
C) Results in a change in supply. 
D) Is a determinant of supply. 
A) Causes a shift in the supply curve. 
B) Results in a change in quantity supplied. 
C) Results in a change in supply. 
D) Is a determinant of supply.

Question 2

In the United States,market shortages of human organs are the result of price ceilings.

Accepted Answer

A) True 
 B)False

Question 3

Restaurants like to give away free salty peanuts while you wait for your food in order to encourage you to

Accepted Answer

A) buy more peanuts at the souvenir shop. 
B) Buy expensive salty food on the menu. 
C) Buy more beverages. 
D) None of the choices are correct. 
A) buy more peanuts at the souvenir shop. 
B) Buy expensive salty food on the menu. 
C) Buy more beverages. 
D) None of the choices are correct.

Question 4

Money is critical in facilitating market exchanges and the specialization that these exchanges permit.

Accepted Answer

A) True 
 B)False

Question 5

People benefit by participating in the market because

Accepted Answer

A) Resources are no longer limited. 
B) There are always participants in the market that are more efficient than you are in production. 
C) Market participation allows individuals to specialize and,with trade,ultimately consume more. 
D) Participants in the market do not have to make choices. 
A) Resources are no longer limited. 
B) There are always participants in the market that are more efficient than you are in production. 
C) Market participation allows individuals to specialize and,with trade,ultimately consume more. 
D) Participants in the market do not have to make choices.

Question 6

The goal of the consumer in a market economy is to use his or her limited income to buy

Accepted Answer

A) The greatest number of goods and services possible. 
B) The goods and services that maximize profits for businesses. 
C) Those goods and services with the lowest prices. 
D) The set of goods and services that maximizes the consumer's total utility. 
A) The greatest number of goods and services possible. 
B) The goods and services that maximize profits for businesses. 
C) Those goods and services with the lowest prices. 
D) The set of goods and services that maximizes the consumer's total utility.

Question 7

If the actual market price were fixed at $15 per unit in Figure 3.2,   Figure 3.2 Supply and Demand

Accepted Answer

A) There would be a surplus of 40 units. 
B) There would be a surplus of 20 units. 
C) There would be a shortage of 40 units. 
D) There would be a shortage of 20 units. 
A) There would be a surplus of 40 units. 
B) There would be a surplus of 20 units. 
C) There would be a shortage of 40 units. 
D) There would be a shortage of 20 units.

Question 8

Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left,ceteris paribus.Figure 3.1 Shifts of Supply and Demand Steel: the government introduces environmental restrictions on the dumping of wastes from producing steel.

Accepted Answer

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

Question 9

Ceteris paribus,which of the following is most likely to shift both the demand and the supply curves?

Accepted Answer

A) Technology. 
B) Expectations. 
C) The price of the good itself. 
D) Income. 
A) Technology. 
B) Expectations. 
C) The price of the good itself. 
D) Income.

Question 10

Which of the following is purchased in a factor market?

Accepted Answer

A) A bag of jellybeans. 
B) National defense. 
C) The labor of a state university professor. 
D) A motorized scooter used for commuting by a student. 
A) A bag of jellybeans. 
B) National defense. 
C) The labor of a state university professor. 
D) A motorized scooter used for commuting by a student.

Question 11

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 price is

Accepted Answer

A) $4. 
B) $6. 
C) $2. 
D) $8. 
A) $4. 
B) $6. 
C) $2. 
D) $8.

Question 12

Price ceilings are intended to address the problem of

Accepted Answer

A) Inefficiency in production. 
B) Inequity in the distribution of goods and services. 
C) Business bankruptcies. 
D) Shortages. 
A) Inefficiency in production. 
B) Inequity in the distribution of goods and services. 
C) Business bankruptcies. 
D) Shortages.

Question 13

Assume that steel is used to produce monkey wrenches.Ceteris paribus,if the price of steel rises,then

Accepted Answer

A) The supply curve for monkey wrenches will shift to the left. 
B) The supply curve for monkey wrenches will shift to the right. 
C) There will be a leftward movement along the initial supply curve for monkey wrenches. 
D) There will be a rightward movement along the initial supply curve for monkey wrenches. 
A) The supply curve for monkey wrenches will shift to the left. 
B) The supply curve for monkey wrenches will shift to the right. 
C) There will be a leftward movement along the initial supply curve for monkey wrenches. 
D) There will be a rightward movement along the initial supply curve for monkey wrenches.

Question 14

To calculate market demand,we

Accepted Answer

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

Question 15

A rightward shift of the market demand curve for drones,ceteris paribus,causes equilibrium

Accepted Answer

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

Question 16

Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount).What can we conclude about changes in the price and quantity of salsa?

Accepted Answer

A) Both the price and quantity increase. 
B) The price increases but the change in the quantity cannot be determined. 
C) The quantity increases but the change in the price cannot be determined. 
D) Both the price and quantity decrease. 
A) Both the price and quantity increase. 
B) The price increases but the change in the quantity cannot be determined. 
C) The quantity increases but the change in the price cannot be determined. 
D) Both the price and quantity decrease.

Question 17

In the United States,price ceilings on human organs have caused an increase in demand.

Accepted Answer

A) True 
 B)False

Question 18

If corn products are found to cause cancer,then the most immediate effect will be that the

Accepted Answer

A) Supply curve for corn will shift right. 
B) Supply curve for corn will shift left. 
C) Demand curve for corn will shift left. 
D) None of the choices are correct. 
A) Supply curve for corn will shift right. 
B) Supply curve for corn will shift left. 
C) Demand curve for corn will shift left. 
D) None of the choices are correct.

Question 19

Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left,ceteris paribus.Figure 3.1 Shifts of Supply and Demand Candy bars: People become more health-conscious and prefer vegetables instead of candy bars.

Accepted Answer

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

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 government held the price at $3,

Accepted Answer

A) The government would be setting an effective price floor. 
B) The shortage would be the same as the quantity demanded. 
C) There would be a shortage. 
D) The market would be in equilibrium. 
A) The government would be setting an effective price floor. 
B) The shortage would be the same as the quantity demanded. 
C) There would be a shortage. 
D) The market would be in equilibrium.

Exam 3: Supply and Demand

A change in the price of a good

In the United States,market shortages of human organs are the result of price ceilings.

Restaurants like to give away free salty peanuts while you wait for your food in order to encourage you to

Money is critical in facilitating market exchanges and the specialization that these exchanges permit.

People benefit by participating in the market because

The goal of the consumer in a market economy is to use his or her limited income to buy

If the actual market price were fixed at $15 per unit in Figure 3.2, Figure 3.2 Supply and Demand

Ceteris paribus,which of the following is most likely to shift both the demand and the supply curves?

Which of the following is purchased in a factor market?

Price ceilings are intended to address the problem of

Assume that steel is used to produce monkey wrenches.Ceteris paribus,if the price of steel rises,then

To calculate market demand,we

A rightward shift of the market demand curve for drones,ceteris paribus,causes equilibrium

Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount).What can we conclude about changes in the price and quantity of salsa?

In the United States,price ceilings on human organs have caused an increase in demand.

If corn products are found to cause cancer,then the most immediate effect will be that the

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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