Question 1

Exhibit 3-2
  
-Refer to Exhibit 3-2.Which of the following would result in a movement from point A on D? to point B on D??

Accepted Answer

A)  There was a decrease in the price of a substitute for good X. 
B)  There was an increase in the price of a complement to good X. 
C)  There was a decline in technology in the production of good X. 
D)  There was an increase in the price of a substitute for good X. 
A)  There was a decrease in the price of a substitute for good X. 
B)  There was an increase in the price of a complement to good X. 
C)  There was a decline in technology in the production of good X. 
D)  There was an increase in the price of a substitute for good X.

Question 2

Exhibit 3-1
  
-Refer to Exhibit 3-1.At a price of $2 there is a

Accepted Answer

A)  shortage of 100 units. 
B)  shortage of 200 units. 
C)  shortage of 150 units. 
D)  surplus of 200 units.. 
E)  surplus of 150 units. 
A)  shortage of 100 units. 
B)  shortage of 200 units. 
C)  shortage of 150 units. 
D)  surplus of 200 units.. 
E)  surplus of 150 units.

Question 3

One can determine producers' surplus if the minimum selling price and the _____________ is known.

Accepted Answer

A)  price received 
B)  price paid 
C)  tax paid 
D)  tax received 
E)  a and c 
A)  price received 
B)  price paid 
C)  tax paid 
D)  tax received 
E)  a and c

Question 4

An increase in the number of buyers in a particular market will result in a

Accepted Answer

A)  movement up the demand curve. 
B)  movement down the demand curve. 
C)  leftward shift in the demand curve. 
D)  rightward shift in the demand curve. 
A)  movement up the demand curve. 
B)  movement down the demand curve. 
C)  leftward shift in the demand curve. 
D)  rightward shift in the demand curve.

Question 5

An increase in the price of good B caused an increase in the demand for good C.This indicates that

Accepted Answer

A)  B and C are complements. 
B)  B and C are substitutes. 
C)  B and C are neither substitutes nor complements. 
D)  B and C are normal goods. 
A)  B and C are complements. 
B)  B and C are substitutes. 
C)  B and C are neither substitutes nor complements. 
D)  B and C are normal goods.

Question 6

Exhibit 3-10
  
-Refer to Exhibit 3-10.100 units of X will be exchanged in this market if the price is

Accepted Answer

A)  $30. 
B)  $20. 
C)  $10. 
D)  a or c 
E)  none of the above 
A)  $30. 
B)  $20. 
C)  $10. 
D)  a or c 
E)  none of the above

Question 7

Which of the following is an example of a service?

Accepted Answer

A)  medical care 
B)  dental care 
C)  a psychology lecture 
D)  a television set 
E)  a, b and c 
A)  medical care 
B)  dental care 
C)  a psychology lecture 
D)  a television set 
E)  a, b and c

Question 8

At a price of $9.99,Danielle buys 3 digital books per month.When the price decreases to $7.99,Danielle buys 4 digital books per month.Jason says that Danielle's demand for digital books has increased.Is Jason correct?

Accepted Answer

A)  Yes, Jason is correct. 
B)  No, Jason is incorrect. Danielle's demand has decreased. 
C)  No, Jason is incorrect. Danielle's quantity demanded has decreased, but her demand has stayed the same. 
D)  No, Jason is incorrect. Danielle's quantity demanded has increased, but her demand has stayed the same. 
E)  No, Jason is incorrect. Danielle's quantity demanded has increased and her demand has decreased. 
A)  Yes, Jason is correct. 
B)  No, Jason is incorrect. Danielle's demand has decreased. 
C)  No, Jason is incorrect. Danielle's quantity demanded has decreased, but her demand has stayed the same. 
D)  No, Jason is incorrect. Danielle's quantity demanded has increased, but her demand has stayed the same. 
E)  No, Jason is incorrect. Danielle's quantity demanded has increased and her demand has decreased.

Question 9

If demand decreases by a greater amount than supply decreases,then equilibrium price __________ and equilibrium quantity __________.

Accepted Answer

A)  rises; rises 
B)  rises; falls 
C)  falls; rises 
D)  falls; falls 
A)  rises; rises 
B)  rises; falls 
C)  falls; rises 
D)  falls; falls

Question 10

Exhibit 3-7
  
-Refer to Exhibit 3-7.If S? is the relevant supply curve,an increase in the price of good X may cause

Accepted Answer

A)  the supply of good X to shift from S1 to S2 
B)  the supply of good X to shift from S1 to S3. 
C)  a movement along S1 perhaps from point A to point B. 
D)  a movement along S1 perhaps from point A to point C. 
E)  no change in the quantity supplied of good X. 
A)  the supply of good X to shift from S1 to S2 
B)  the supply of good X to shift from S1 to S3. 
C)  a movement along S1 perhaps from point A to point B. 
D)  a movement along S1 perhaps from point A to point C. 
E)  no change in the quantity supplied of good X.

Question 11

Another term for excess supply is shortage.

Accepted Answer

A) True 
 B)False

Question 12

If the demand for a good rises by more than the supply of the good falls,then the good's equilibrium price will __________ and its equilibrium quantity will __________.

Accepted Answer

A)  rise; fall 
B)  rise; rise 
C)  fall; fall 
D)  fall; rise 
A)  rise; fall 
B)  rise; rise 
C)  fall; fall 
D)  fall; rise

Question 13

If the maximum price a person is willing and able to pay for a good is $50,and consumers' surplus is $20,then it follows that the price the buyer paid for the good is

Accepted Answer

A)  $20 
B)  $70 
C)  $50 
D)  $30 
E)  There is not enough information to answer the question. 
A)  $20 
B)  $70 
C)  $50 
D)  $30 
E)  There is not enough information to answer the question.

Question 14

Exhibit 3-11
  
-Refer to Exhibit 3-12. Each individual seller's supply curve is ________________ sloping and the market supply curve is _________________ sloping.

Accepted Answer

A)  upward; also upward 
B)  downward; also downward 
C)  upward; downward 
D)  downward; upward 
A)  upward; also upward 
B)  downward; also downward 
C)  upward; downward 
D)  downward; upward

Question 15

Exhibit 3-17
  
-Refer to Exhibit 3-17. At a price of $16,the quantity demanded of good X is ____________ than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon ______________. This would push the price __________ the equilibrium price.

Accepted Answer

A)  greater; fall; toward 
B)  greater; rise; toward 
C)  less; fall; toward 
D)  less; rise; away from 
E)  greater; rise; away from 
A)  greater; fall; toward 
B)  greater; rise; toward 
C)  less; fall; toward 
D)  less; rise; away from 
E)  greater; rise; away from

Question 16

Exhibit 3-8
  
-Refer to Exhibit 3-8.A surplus exists at any price above

Accepted Answer

A)  $2.00. 
B)  $4.50. 
C)  $4.00. 
D)  $3.50. 
E)  $3.00. 
A)  $2.00. 
B)  $4.50. 
C)  $4.00. 
D)  $3.50. 
E)  $3.00.

Question 17

If the government increased licensing requirements for beauty salons,the supply curve for salon services would shift to the left.

Accepted Answer

A) True 
 B)False

Question 18

As long as the maximum buying price of a good is less than the minimum selling price of that good,an exchange will occur.

Accepted Answer

A) True 
 B)False

Question 19

Exhibit 3-10
  
-Refer to Exhibit 3-10.At a price of $10 __________ units of the good will be exchanged.

Accepted Answer

A)  100 
B)  200 
C)  300 
D)  none of the above 
A)  100 
B)  200 
C)  300 
D)  none of the above

Question 20

Exhibit 3-11
  
-Refer to Exhibit 3-11. Fill in blanks (C)and (D)respectively with "Exchange" or "No Exchange"to indicate whether or not exchange would take place at the given prices.

Accepted Answer

A)  Exchange; Exchange 
B)  Exchange; No Exchange 
C)  No Exchange; Exchange 
D)  No Exchange; No Exchange 
A)  Exchange; Exchange 
B)  Exchange; No Exchange 
C)  No Exchange; Exchange 
D)  No Exchange; No Exchange

Exam 3: Supply and Demand: Theory

Exhibit 3-2 -Refer to Exhibit 3-2.Which of the following would result in a movement from point A on D? to point B on D??

Exhibit 3-1 -Refer to Exhibit 3-1.At a price of $2 there is a

One can determine producers' surplus if the minimum selling price and the _____________ is known.

An increase in the number of buyers in a particular market will result in a

An increase in the price of good B caused an increase in the demand for good C.This indicates that

Exhibit 3-10 -Refer to Exhibit 3-10.100 units of X will be exchanged in this market if the price is

Which of the following is an example of a service?

At a price of $9.99,Danielle buys 3 digital books per month.When the price decreases to $7.99,Danielle buys 4 digital books per month.Jason says that Danielle's demand for digital books has increased.Is Jason correct?

If demand decreases by a greater amount than supply decreases,then equilibrium price __________ and equilibrium quantity __________.

Exhibit 3-7 -Refer to Exhibit 3-7.If S? is the relevant supply curve,an increase in the price of good X may cause

Another term for excess supply is shortage.

If the demand for a good rises by more than the supply of the good falls,then the good's equilibrium price will __________ and its equilibrium quantity will __________.

If the maximum price a person is willing and able to pay for a good is $50,and consumers' surplus is $20,then it follows that the price the buyer paid for the good is

Exhibit 3-11 -Refer to Exhibit 3-12. Each individual seller's supply curve is ________________ sloping and the market supply curve is _________________ sloping.

Exhibit 3-8 -Refer to Exhibit 3-8.A surplus exists at any price above

If the government increased licensing requirements for beauty salons,the supply curve for salon services would shift to the left.

As long as the maximum buying price of a good is less than the minimum selling price of that good,an exchange will occur.

Exhibit 3-10 -Refer to Exhibit 3-10.At a price of $10 __________ units of the good will be exchanged.

Exhibit 3-11 -Refer to Exhibit 3-11. Fill in blanks (C)and (D)respectively with "Exchange" or "No Exchange"to indicate whether or not exchange would take place at the given prices.

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 demand decreases by a greater amount than supply decreases,then equilibrium price and equilibrium quantity .

If the demand for a good rises by more than the supply of the good falls,then the good's equilibrium price will and its equilibrium quantity will .

Exhibit 3-11 -Refer to Exhibit 3-12. Each individual seller's supply curve is sloping and the market supply curve is _ sloping.