Question 1

A market is said to be in disequilibrium if

Accepted Answer

A)  it exhibits either a surplus or a shortage. 
B)  the number of units that individuals are willing to buy exceeds the number of units they can afford. 
C)  it is a market for an inferior good. 
D)  none of the above 
A)  it exhibits either a surplus or a shortage. 
B)  the number of units that individuals are willing to buy exceeds the number of units they can afford. 
C)  it is a market for an inferior good. 
D)  none of the above

Question 2

If hot dogs are an inferior good,a decrease in income will cause the equilibrium price of hot dogs to rise.

Accepted Answer

A) True 
 B)False

Question 3

When a market is in disequilibrium,such as when the quantity supplied of a good is greater than the quantity demanded of that good,the price of the good will rise,ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 4

To an economist,an increase in demand means the same thing as an increase in quantity demanded.

Accepted Answer

A) True 
 B)False

Question 5

If a market is in disequilibrium,economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.

Accepted Answer

A)  rise; greater 
B)  fall; less 
C)  fall; greater 
D)  rise; less 
E)  a and b 
A)  rise; greater 
B)  fall; less 
C)  fall; greater 
D)  rise; less 
E)  a and b

Question 6

Jerry has $50,000 in his savings account and the average new car price is $23,000.Does Jerry have a demand for a new car?

Accepted Answer

A)  Yes, since Jerry can afford a new car. 
B)  Not necessarily. Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car. 
C)  Yes, since Jerry's savings is more than double the average new car price. 
D)  none of the above 
A)  Yes, since Jerry can afford a new car. 
B)  Not necessarily. Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car. 
C)  Yes, since Jerry's savings is more than double the average new car price. 
D)  none of the above

Question 7

Exhibit 3-15
  
-Refer to Exhibit 3-15.In Exhibit 3-15,

Accepted Answer

A)  Q2 doctors are employed at fee F1. 
B)  Q3 doctors are employed at fee F1. 
C)  Q1 doctors are employed at fee F1. 
D)  the number of doctors employed cannot be determined at any fee. 
A)  Q2 doctors are employed at fee F1. 
B)  Q3 doctors are employed at fee F1. 
C)  Q1 doctors are employed at fee F1. 
D)  the number of doctors employed cannot be determined at any fee.

Exam 3: Supply and Demand: Theory

A market is said to be in disequilibrium if

If hot dogs are an inferior good,a decrease in income will cause the equilibrium price of hot dogs to rise.

When a market is in disequilibrium,such as when the quantity supplied of a good is greater than the quantity demanded of that good,the price of the good will rise,ceteris paribus.

To an economist,an increase in demand means the same thing as an increase in quantity demanded.

If a market is in disequilibrium,economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.

Jerry has $50,000 in his savings account and the average new car price is $23,000.Does Jerry have a demand for a new car?

Exhibit 3-15 -Refer to Exhibit 3-15.In Exhibit 3-15,

What Economics Is About

Production Possibilities Frontier Framework

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

If a market is in disequilibrium,economists would predict that the product's price would to reach equilibrium when the quantity demanded is than the quantity supplied.