Question 1

Market demand is given as Qd = 190 - 2P. Market supply is given as Qs = P + 10. What would result if the market price were $10?

Accepted Answer

A)  a shortage of 150 
B)  a surplus of 150 
C)  a surplus of 75 
D)  a shortage of 75 
A)  a shortage of 150 
B)  a surplus of 150 
C)  a surplus of 75 
D)  a shortage of 75

Question 2

Suppose that scientists find evidence that proves tattoos improve the body's immune system. What would we expect to see?

Accepted Answer

A)  no change in the demand for tattoos 
B)  a decrease in the demand for tattoos 
C)  an increase in the demand for tattoos 
D)  a decrease in the supply of tattoos 
A)  no change in the demand for tattoos 
B)  a decrease in the demand for tattoos 
C)  an increase in the demand for tattoos 
D)  a decrease in the supply of tattoos

Question 3

When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, what do we know?

Accepted Answer

A)  The former is a shift of the curve and the latter is a movement along the curve. 
B)  The former is a movement along the curve and the latter is a shift of the curve. 
C)  Both are shifts of the supply curve. 
D)  Both are movements along the curve. 
A)  The former is a shift of the curve and the latter is a movement along the curve. 
B)  The former is a movement along the curve and the latter is a shift of the curve. 
C)  Both are shifts of the supply curve. 
D)  Both are movements along the curve.

Question 4

What happens when there is a surplus in a market?

Accepted Answer

A)  There is upward pressure on price. 
B)  There is downward pressure on price. 
C)  The market is operating below the equilibrium level. 
D)  There are too many buyers chasing too few goods. 
A)  There is upward pressure on price. 
B)  There is downward pressure on price. 
C)  The market is operating below the equilibrium level. 
D)  There are too many buyers chasing too few goods.

Question 5

How do the variables price and quantity demanded relate to each other?

Accepted Answer

A)  Price and quantity demanded are independent of each other. 
B)  Price is the dependent variable and quantity demanded is the independent variable. 
C)  Price is the independent variable and quantity demanded is the dependent variable. 
D)  Price and quantity demanded are both dependent variables, since both depend on the actions of buyers and sellers. 
A)  Price and quantity demanded are independent of each other. 
B)  Price is the dependent variable and quantity demanded is the independent variable. 
C)  Price is the independent variable and quantity demanded is the dependent variable. 
D)  Price and quantity demanded are both dependent variables, since both depend on the actions of buyers and sellers.

Question 6

Anyone willing to pay the market price for a resource may have it.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following are the words most commonly used by economists?

Accepted Answer

A)  surplus and shortage 
B)  scarcity and human wants 
C)  supply and demand 
D)  price and quantity 
A)  surplus and shortage 
B)  scarcity and human wants 
C)  supply and demand 
D)  price and quantity

Market demand is given as Qd = 190 - 2P. Market supply is given as Qs = P + 10. What would result if the market price were $10?

Suppose that scientists find evidence that proves tattoos improve the body's immune system. What would we expect to see?

When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, what do we know?

What happens when there is a surplus in a market?

How do the variables price and quantity demanded relate to each other?

Anyone willing to pay the market price for a resource may have it.

Which of the following are the words most commonly used by economists?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd = 190 - 2P. Market supply is given as Qs = P + 10. What would result if the market price were $10?

Suppose that scientists find evidence that proves tattoos improve the body's immune system. What would we expect to see?

When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, what do we know?

What happens when there is a surplus in a market?

How do the variables price and quantity demanded relate to each other?

Anyone willing to pay the market price for a resource may have it.

Which of the following are the words most commonly used by economists?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters