Question 1

-Refer to the Table 4-2. What is the space that would represent a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A)  space A 
B)  space B 
C)  space C 
D)  space D 
A)  space A 
B)  space B 
C)  space C 
D)  space D

Question 2

Figure 4-6  
-Refer to the Figure 4-6. What happens if the demand curve shifts from D1 to D?

Accepted Answer

A)  Firms would be willing to supply less than before. 
B)  People are less willing to buy the product at any price than before. 
C)  People are now more willing to buy the product at any price than before. 
D)  The price of the product has decreased, causing consumers to buy more of the product. 
A)  Firms would be willing to supply less than before. 
B)  People are less willing to buy the product at any price than before. 
C)  People are now more willing to buy the product at any price than before. 
D)  The price of the product has decreased, causing consumers to buy more of the product.

Question 3

What would happen to the equilibrium price and quantity of apples if the wages of apple pickers fell and the price of peaches fell?

Accepted Answer

A)  price will fall and the effect on quantity is ambiguous 
B)  price will rise and the effect on quantity is ambiguous 
C)  quantity will fall and the effect on price is ambiguous 
D)  quantity will rise and the effect on price is ambiguous 
A)  price will fall and the effect on quantity is ambiguous 
B)  price will rise and the effect on quantity is ambiguous 
C)  quantity will fall and the effect on price is ambiguous 
D)  quantity will rise and the effect on price is ambiguous

Question 4

What is a table called that shows the relationship between the price of a good and the quantity demanded?

Accepted Answer

A)  demand table 
B)  demand schedule 
C)  market table 
D)  quantity-demanded schedule 
A)  demand table 
B)  demand schedule 
C)  market table 
D)  quantity-demanded schedule

Question 5

In a free market, who determines how much of a good will be sold and the price at which it is sold?

Accepted Answer

A)  suppliers 
B)  demanders 
C)  the government 
D)  suppliers and demanders together 
A)  suppliers 
B)  demanders 
C)  the government 
D)  suppliers and demanders together

Question 6

Figure 4-9  
-Refer to the Figure 4-9. Which graph could be used to show the result of 5 percent of the country's smokers deciding to stop smoking?

Accepted Answer

A)  graph a 
B)  graph b 
C)  graph c 
D)  both a and c could be used to show the result 
A)  graph a 
B)  graph b 
C)  graph c 
D)  both a and c could be used to show the result

Question 7

If buyers and/or sellers are price takers, what can they do individually?

Accepted Answer

A)  They have no influence on market price. 
B)  They have ultimate control over market price. 
C)  Buyers will be able to find prices lower than those determined in the market. 
D)  They can somewhat influence the market price. 
A)  They have no influence on market price. 
B)  They have ultimate control over market price. 
C)  Buyers will be able to find prices lower than those determined in the market. 
D)  They can somewhat influence the market price.

Question 8

When it comes to people's tastes, what do economists generally believe?

Accepted Answer

A)  Tastes are based on forces beyond the realm of economics. 
B)  Tastes are based on historical and psychological forces. 
C)  Tastes don't change. 
D)  Tastes do not directly affect demand. 
A)  Tastes are based on forces beyond the realm of economics. 
B)  Tastes are based on historical and psychological forces. 
C)  Tastes don't change. 
D)  Tastes do not directly affect demand.

Question 9

-Refer to the Table 4-2. What is the space that would represent an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A)  space A 
B)  space B 
C)  space C 
D)  space D 
A)  space A 
B)  space B 
C)  space C 
D)  space D

Question 10

Which of the following would be most likely to decrease the price of a new house?

Accepted Answer

A)  higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future 
B)  higher wages for carpenters, lower wood prices, reductions in consumer incomes, lower apartment rents, decreases in population, and expectations of lower house prices in the future 
C)  lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population, and expectations of higher house prices in the future 
D)  lower wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population, and expectations of lower house prices in the future 
A)  higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future 
B)  higher wages for carpenters, lower wood prices, reductions in consumer incomes, lower apartment rents, decreases in population, and expectations of lower house prices in the future 
C)  lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population, and expectations of higher house prices in the future 
D)  lower wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population, and expectations of lower house prices in the future

Question 11

Sugar is a normal good. You observe that both the equilibrium price and quantity of sugar has fallen over time. Which of the following would be most consistent with this observation?

Accepted Answer

A)  Consumers have experienced an increase in income and sugar-production technology has improved. 
B)  The price of artificial sweetener has risen and the price of coffee has fallen. 
C)  Consumer tastes have changed so as to prefer sugar less than before. 
D)  The demand curve for sugar must be positively sloped. 
A)  Consumers have experienced an increase in income and sugar-production technology has improved. 
B)  The price of artificial sweetener has risen and the price of coffee has fallen. 
C)  Consumer tastes have changed so as to prefer sugar less than before. 
D)  The demand curve for sugar must be positively sloped.

Question 12

An increase in the price of pizza will shift the demand curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 13

What is the term for buyers and sellers who have no influence on market price?

Accepted Answer

A)  price makers 
B)  market pawns 
C)  price takers 
D)  powerless 
A)  price makers 
B)  market pawns 
C)  price takers 
D)  powerless

Question 14

If Nick receives a decrease in his pay, what would we expect?

Accepted Answer

A)  Nick's demand for each good he purchases to remain unchanged 
B)  Nick's demand for normal goods to increase 
C)  Nick's demand for luxury goods to increase 
D)  Nick's demand for inferior goods to increase 
A)  Nick's demand for each good he purchases to remain unchanged 
B)  Nick's demand for normal goods to increase 
C)  Nick's demand for luxury goods to increase 
D)  Nick's demand for inferior goods to increase

Question 15

Figure 4-10  
-Refer to the Figure 4-10. What would cause the movement from point A to point B on the graph?

Accepted Answer

A)  a decrease in the price of the good 
B)  an increase in the price of the good 
C)  an increase in technology 
D)  a decrease in input prices 
A)  a decrease in the price of the good 
B)  an increase in the price of the good 
C)  an increase in technology 
D)  a decrease in input prices

Question 16

Figure 4-6  
-Refer to the Figure 4-6. What could cause the shift from D to D1?

Accepted Answer

A)  an increase in price 
B)  a decrease in the price of a complement 
C)  an increase in technology 
D)  a decrease in the price of a substitute 
A)  an increase in price 
B)  a decrease in the price of a complement 
C)  an increase in technology 
D)  a decrease in the price of a substitute

Question 17

Market demand is given as Qd = 80 - P. Market supply is given as Qs = 3P. What would result if the market price were $10?

Accepted Answer

A)  a shortage of 20 
B)  a surplus of 20 
C)  a surplus of 40 
D)  a shortage of 40 
A)  a shortage of 20 
B)  a surplus of 20 
C)  a surplus of 40 
D)  a shortage of 40

Question 18

What will happen to the equilibrium price and quantity of gasoline powered lawnmowers if the prices of battery powered lawnmowers goes down and, at the same time, firms switch from producing gasoline powered lawnmowers to producing battery powered lawnmowers?

Accepted Answer

A)  price will fall and the effect on quantity is ambiguous 
B)  price will rise and the effect on quantity is ambiguous 
C)  quantity will fall and the effect on price is ambiguous 
D)  quantity will rise and the effect on price is ambiguous 
A)  price will fall and the effect on quantity is ambiguous 
B)  price will rise and the effect on quantity is ambiguous 
C)  quantity will fall and the effect on price is ambiguous 
D)  quantity will rise and the effect on price is ambiguous

Question 19

What is on the vertical axis of a demand graph?

Accepted Answer

A)  income 
B)  quantity 
C)  cost of production 
D)  price 
A)  income 
B)  quantity 
C)  cost of production 
D)  price

Question 20

New iPhones are normal goods. What will happen to the equilibrium price and quantity in the market for iPhones if the price of Android phones rises, the wages for iPhone chip makers increase, more buyers enter the market for iPhones, and the price of iPhone batteries increase?

Accepted Answer

A)  price will fall and the effect on quantity is ambiguous 
B)  price will rise and the effect on quantity is ambiguous 
C)  quantity will fall and the effect on price is ambiguous 
D)  quantity will rise and the effect on price is ambiguous 
A)  price will fall and the effect on quantity is ambiguous 
B)  price will rise and the effect on quantity is ambiguous 
C)  quantity will fall and the effect on price is ambiguous 
D)  quantity will rise and the effect on price is ambiguous

-Refer to the Table 4-2. What is the space that would represent a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Figure 4-6 -Refer to the Figure 4-6. What happens if the demand curve shifts from D1 to D?

What would happen to the equilibrium price and quantity of apples if the wages of apple pickers fell and the price of peaches fell?

What is a table called that shows the relationship between the price of a good and the quantity demanded?

In a free market, who determines how much of a good will be sold and the price at which it is sold?

Figure 4-9 -Refer to the Figure 4-9. Which graph could be used to show the result of 5 percent of the country's smokers deciding to stop smoking?

If buyers and/or sellers are price takers, what can they do individually?

When it comes to people's tastes, what do economists generally believe?

-Refer to the Table 4-2. What is the space that would represent an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Which of the following would be most likely to decrease the price of a new house?

Sugar is a normal good. You observe that both the equilibrium price and quantity of sugar has fallen over time. Which of the following would be most consistent with this observation?

An increase in the price of pizza will shift the demand curve for pizza to the left.

What is the term for buyers and sellers who have no influence on market price?

If Nick receives a decrease in his pay, what would we expect?

Figure 4-10 -Refer to the Figure 4-10. What would cause the movement from point A to point B on the graph?

Figure 4-6 -Refer to the Figure 4-6. What could cause the shift from D to D1?

Market demand is given as Qd = 80 - P. Market supply is given as Qs = 3P. What would result if the market price were $10?

What will happen to the equilibrium price and quantity of gasoline powered lawnmowers if the prices of battery powered lawnmowers goes down and, at the same time, firms switch from producing gasoline powered lawnmowers to producing battery powered lawnmowers?

What is on the vertical axis of a demand graph?

New iPhones are normal goods. What will happen to the equilibrium price and quantity in the market for iPhones if the price of Android phones rises, the wages for iPhone chip makers increase, more buyers enter the market for iPhones, and the price of iPhone batteries increase?

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

-Refer to the Table 4-2. What is the space that would represent a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Figure 4-6 -Refer to the Figure 4-6. What happens if the demand curve shifts from D1 to D?

What would happen to the equilibrium price and quantity of apples if the wages of apple pickers fell and the price of peaches fell?

What is a table called that shows the relationship between the price of a good and the quantity demanded?

In a free market, who determines how much of a good will be sold and the price at which it is sold?

Figure 4-9 -Refer to the Figure 4-9. Which graph could be used to show the result of 5 percent of the country's smokers deciding to stop smoking?

If buyers and/or sellers are price takers, what can they do individually?

When it comes to people's tastes, what do economists generally believe?

-Refer to the Table 4-2. What is the space that would represent an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Which of the following would be most likely to decrease the price of a new house?

Sugar is a normal good. You observe that both the equilibrium price and quantity of sugar has fallen over time. Which of the following would be most consistent with this observation?

An increase in the price of pizza will shift the demand curve for pizza to the left.

What is the term for buyers and sellers who have no influence on market price?

If Nick receives a decrease in his pay, what would we expect?

Figure 4-10 -Refer to the Figure 4-10. What would cause the movement from point A to point B on the graph?

Figure 4-6 -Refer to the Figure 4-6. What could cause the shift from D to D1?

Market demand is given as Qd = 80 - P. Market supply is given as Qs = 3P. What would result if the market price were $10?

What will happen to the equilibrium price and quantity of gasoline powered lawnmowers if the prices of battery powered lawnmowers goes down and, at the same time, firms switch from producing gasoline powered lawnmowers to producing battery powered lawnmowers?

What is on the vertical axis of a demand graph?

New iPhones are normal goods. What will happen to the equilibrium price and quantity in the market for iPhones if the price of Android phones rises, the wages for iPhone chip makers increase, more buyers enter the market for iPhones, and the price of iPhone batteries increase?

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