Question 1

A current price below the equilibrium price will result in a surplus.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

Two goods are substitutes if:

Accepted Answer

A)  an increase in the price of one leads to a shift to the left in the demand curve for the other. 
B)  an increase in the price of one leads to an increase in demand for the other. 
C)  an increase in the price of one will increase the supply of the other. 
D)  a fall in the price of one leads to a reduction in supply for the other. 
A)  an increase in the price of one leads to a shift to the left in the demand curve for the other. 
B)  an increase in the price of one leads to an increase in demand for the other. 
C)  an increase in the price of one will increase the supply of the other. 
D)  a fall in the price of one leads to a reduction in supply for the other.

Question 4

Economists know that a particular good can be classified as an inferior good if a(n) ________ in buyers' income causes a(n) ________ .

Accepted Answer

A)  increase; increase in demand 
B)  increase; increase in quantity demanded 
C)  increase; decrease in demand 
D)  decrease; decrease in demand 
A)  increase; increase in demand 
B)  increase; increase in quantity demanded 
C)  increase; decrease in demand 
D)  decrease; decrease in demand

Question 5

Use the following to answer questions.
Exhibit: The Market for Chocolate-Covered Peanuts
  
-(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 50 cents, there is:

Accepted Answer

A)  a surplus of 140 bags per month. 
B)  a shortage of 140 bags per month. 
C)  a surplus of 70 bags per month. 
D)  a shortage of 70 bags per month. 
A)  a surplus of 140 bags per month. 
B)  a shortage of 140 bags per month. 
C)  a surplus of 70 bags per month. 
D)  a shortage of 70 bags per month.

Question 6

Use the following to answer questions .
Exhibit: Simultaneous Shifts in Demand and Supply  
-(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 7

Use the following to answer questions .
Exhibit: Demand and Supply  
-(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 8

How a supply curve is sloped and located is affected by:

Accepted Answer

A)  consumer preferences. 
B)  resource prices. 
C)  the number of consumers. 
D)  all of the above. 
A)  consumer preferences. 
B)  resource prices. 
C)  the number of consumers. 
D)  all of the above.

Question 9

Use the following to answer questions .
Exhibit: Demand Shifters and Supply Shifters  
-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating asparagus slows down the aging process. Which panel best describes how this will affect the market for asparagus?

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

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

Accepted Answer

A)  income 
B)  consumer preferences 
C)  prices of other goods 
D)  demographic characteristics 
A)  income 
B)  consumer preferences 
C)  prices of other goods 
D)  demographic characteristics

Question 11

Use the following to answer questions .
Exhibit: Demand and Supply-Determinants  
-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing automotive gasoline improves. Which panel best describes how this will affect the market for automotive gasoline?

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 12

Use the following to answer questions .
Exhibit: Demand and Supply-Determinants  
-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose a drought destroys one-third of the nation's peanut crop. Which panel best describes how this will affect the market for peanuts?

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 13

Use the following to answer questions .
Exhibit: Simultaneous Shifts in Demand and Supply  
-(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 original equilibrium changed from point ________ to point ________ .

Accepted Answer

A)  J; L 
B)  L; J 
C)  J; M 
D)  J; K 
A)  J; L 
B)  L; J 
C)  J; M 
D)  J; K

Question 14

Use the following to answer questions .
Exhibit: Demand and Supply Curves  
-(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 15

A price above the equilibrium price will:

Accepted Answer

A)  result in quantity supplied being less than quantity demanded. 
B)  result in a shortage. 
C)  create pressure for price to fall. 
D)  tend to rise over time. 
A)  result in quantity supplied being less than quantity demanded. 
B)  result in a shortage. 
C)  create pressure for price to fall. 
D)  tend to rise over time.

Question 16

In the Case in Point on campus parking, the implication was that existing prices for parking spaces on university campuses are generally:

Accepted Answer

A)  too high. 
B)  too low. 
C)  about right. 
D)  unconscionable. 
A)  too high. 
B)  too low. 
C)  about right. 
D)  unconscionable.

Question 17

The price of eggs might go up because:

Accepted Answer

A)  of an increase in the price of bacon. 
B)  the price of chicken feed increased. 
C)  the supply of eggs increased. 
D)  the demand for eggs fell. 
A)  of an increase in the price of bacon. 
B)  the price of chicken feed increased. 
C)  the supply of eggs increased. 
D)  the demand for eggs fell.

Question 18

There is an increase in incomes. What happens in the market for steak?

Accepted Answer

A)  The equilibrium price falls, and the equilibrium quantity rises. 
B)  The equilibrium price rises, and the equilibrium price falls. 
C)  The equilibrium price and quantity rise. 
D)  The equilibrium price and quantity fall. 
A)  The equilibrium price falls, and the equilibrium quantity rises. 
B)  The equilibrium price rises, and the equilibrium price falls. 
C)  The equilibrium price and quantity rise. 
D)  The equilibrium price and quantity fall.

Question 19

Which of the following always results in an increase in equilibrium price and quantity?

Accepted Answer

A)  an increase in supply and a decrease in demand 
B)  an increase in demand with no change in supply 
C)  an increase in supply with no change in demand 
D)  all of the above 
A)  an increase in supply and a decrease in demand 
B)  an increase in demand with no change in supply 
C)  an increase in supply with no change in demand 
D)  all of the above

Question 20

A competitive market with flexible prices and many buyers and sellers will:

Accepted Answer

A)  tend to create surpluses. 
B)  tend to create shortages. 
C)  reach an equilibrium where the market clears. 
D)  reach and equilibrium only if a government agency sets the price. 
A)  tend to create surpluses. 
B)  tend to create shortages. 
C)  reach an equilibrium where the market clears. 
D)  reach and equilibrium only if a government agency sets the price.

A current price below the equilibrium price will result in a surplus.

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

Two goods are substitutes if:

Economists know that a particular good can be classified as an inferior good if a(n) in buyers' income causes a(n) .

Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 50 cents, there is:

Use the following to answer questions . Exhibit: Simultaneous Shifts in Demand and Supply -(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:

Use the following to answer questions . Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium quantity?

How a supply curve is sloped and located is affected by:

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

Use the following to answer questions . Exhibit: Simultaneous Shifts in Demand and Supply -(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 original equilibrium changed from point to point .

Use the following to answer questions . Exhibit: Demand and Supply Curves -(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 .

A price above the equilibrium price will:

In the Case in Point on campus parking, the implication was that existing prices for parking spaces on university campuses are generally:

The price of eggs might go up because:

There is an increase in incomes. What happens in the market for steak?

Which of the following always results in an increase in equilibrium price and quantity?

A competitive market with flexible prices and many buyers and sellers will:

Economics: the Study of Choice

Applications of Supply and Demand

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

Filters

Exam 3: Demand and Supply

A current price below the equilibrium price will result in a surplus.

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

Two goods are substitutes if:

Economists know that a particular good can be classified as an inferior good if a(n) ________ in buyers' income causes a(n) ________ .

Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 50 cents, there is:

Use the following to answer questions . Exhibit: Simultaneous Shifts in Demand and Supply -(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:

Use the following to answer questions . Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium quantity?

How a supply curve is sloped and located is affected by:

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

Use the following to answer questions . Exhibit: Demand and Supply Curves -(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 ________.

A price above the equilibrium price will:

In the Case in Point on campus parking, the implication was that existing prices for parking spaces on university campuses are generally:

The price of eggs might go up because:

There is an increase in incomes. What happens in the market for steak?

Which of the following always results in an increase in equilibrium price and quantity?

A competitive market with flexible prices and many buyers and sellers will:

Economics: the Study of Choice

Applications of Supply and Demand

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

Filters

Economists know that a particular good can be classified as an inferior good if a(n) in buyers' income causes a(n) .

Use the following to answer questions . Exhibit: Simultaneous Shifts in Demand and Supply -(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:

Use the following to answer questions . Exhibit: Demand and Supply Curves -(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 .