Question 1

A decrease in quantity demanded because of an increase in price is represented by a

Accepted Answer

A)  movement up and to the left along the demand curve. 
B)  movement down and to the right along the demand curve. 
C)  leftward shift of the demand curve. 
D)  rightward shift of the demand curve. 
A)  movement up and to the left along the demand curve. 
B)  movement down and to the right along the demand curve. 
C)  leftward shift of the demand curve. 
D)  rightward shift of the demand curve.

Question 2

Which of the following is NOT one of the factors that influences the supply of a product?

Accepted Answer

A)  income 
B)  expected future prices 
C)  number of suppliers 
D)  technology 
A)  income 
B)  expected future prices 
C)  number of suppliers 
D)  technology

Question 3

-Using the above figure, suppose that roses are a normal good. If incomes decrease while simultaneously there is an increase in the price of the resources used to produce roses, then

Accepted Answer

A)  the price will definitely increase above $25 per dozen roses. 
B)  the quantity will definitely decrease below 10 dozen roses. 
C)  we cannot tell what will happen to equilibrium quantity. 
D)  the price will definitely decrease below $25 per dozen roses. 
A)  the price will definitely increase above $25 per dozen roses. 
B)  the quantity will definitely decrease below 10 dozen roses. 
C)  we cannot tell what will happen to equilibrium quantity. 
D)  the price will definitely decrease below $25 per dozen roses.

Question 4

A demand curve is also a willingness- and- ability- to- pay curve.

Accepted Answer

A) True 
 B)False

Question 5

During the 2000s, the price of DVD players fell each year and manufacturers of DVD players produced and sold more DVD players each year. This result is because the

Accepted Answer

A)  "law of supply" does not apply to companies in the "high- tech" sector of the economy. 
B)  supply curve of DVD players shifted rightward. 
C)  "law of demand" does not apply to customers in the "high- tech" sector of the economy. 
D)  demand curve for DVD players shifted leftward. 
A)  "law of supply" does not apply to companies in the "high- tech" sector of the economy. 
B)  supply curve of DVD players shifted rightward. 
C)  "law of demand" does not apply to customers in the "high- tech" sector of the economy. 
D)  demand curve for DVD players shifted leftward.

Question 6

-In the above figure, if D2 is the original demand curve and the population falls, which price and quantity might result?

Accepted Answer

A)  point a, with price P2 and quantity Q2  
B)  point b, with price P1 and quantity Q1 
C)  point c, with price P3 and quantity Q3  
D)  point d, with price P1 and quantity Q3 
A)  point a, with price P2 and quantity Q2  
B)  point b, with price P1 and quantity Q1 
C)  point c, with price P3 and quantity Q3  
D)  point d, with price P1 and quantity Q3

Question 7

If income increases or the price of a complement falls, the

Accepted Answer

A)  demand curve for a normal good shifts rightward. 
B)  supply curve of a normal good shifts rightward. 
C)  demand curve for a normal good shifts leftward. 
D)  supply curve of a normal good shifts leftward. 
A)  demand curve for a normal good shifts rightward. 
B)  supply curve of a normal good shifts rightward. 
C)  demand curve for a normal good shifts leftward. 
D)  supply curve of a normal good shifts leftward.

Question 8

In 2007, the price of a used Toyota Prius increased. The most likely cause of this change was

Accepted Answer

A)  a change in population. 
B)  a decrease in the quantity demanded of Prius'. 
C)  the substitution effect. 
D)  a change in preferences in favor of alternative fuel cars. 
A)  a change in population. 
B)  a decrease in the quantity demanded of Prius'. 
C)  the substitution effect. 
D)  a change in preferences in favor of alternative fuel cars.

Question 9

-The table shows the demand and supply schedules for jeans.

Accepted Answer

A)  At $60 a pair, there is a shortage of jeans and the price will fall. 
B)  At $40 a pair, there is a shortage of jeans and the price will rise. 
C)  At $40 a pair, there is a shortage of jeans and the price will fall. 
D)  At $60 a pair, there is a surplus of jeans and the price will rise. 
A)  At $60 a pair, there is a shortage of jeans and the price will fall. 
B)  At $40 a pair, there is a shortage of jeans and the price will rise. 
C)  At $40 a pair, there is a shortage of jeans and the price will fall. 
D)  At $60 a pair, there is a surplus of jeans and the price will rise.

Question 10

The opportunity cost of a good is the same as its

Accepted Answer

A)  relative price. 
B)  money price. 
C)  price index. 
D)  none of the above 
A)  relative price. 
B)  money price. 
C)  price index. 
D)  none of the above

Question 11

If the price of an apple increases,

Accepted Answer

A)  its opportunity cost increases. 
B)  the substitution effect does not occur. 
C)  the income effect does not occur. 
D)  its opportunity cost decreases. 
A)  its opportunity cost increases. 
B)  the substitution effect does not occur. 
C)  the income effect does not occur. 
D)  its opportunity cost decreases.

Question 12

Which of the following lists has variables that all shift a demand curve?

Accepted Answer

A)  expectation of future price, price of the good, number of buyers, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  price of the good, preferences, prices of substitution goods, income 
D)  Both answers A and B are correct. 
A)  expectation of future price, price of the good, number of buyers, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  price of the good, preferences, prices of substitution goods, income 
D)  Both answers A and B are correct.

Question 13

Which of the following will occur in the market for soft drinks if the money price of soft drinks incre
I. The relative price of soft drinks increases.
II. The substitution effect may cause people to switch to drinking bottled water.

Accepted Answer

A)  I only 
B)  II only 
C)  neither I nor II 
D)  both I and II 
A)  I only 
B)  II only 
C)  neither I nor II 
D)  both I and II

Question 14

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts and .

Accepted Answer

A)  rightward; the equilibrium price falls while the equilibrium quantity increases 
B)  rightward; both the equilibrium price and equilibrium quantity fall 
C)  rightward; both the equilibrium price and equilibrium quantity rise 
D)  leftward; both the equilibrium price and equilibrium quantity fall 
A)  rightward; the equilibrium price falls while the equilibrium quantity increases 
B)  rightward; both the equilibrium price and equilibrium quantity fall 
C)  rightward; both the equilibrium price and equilibrium quantity rise 
D)  leftward; both the equilibrium price and equilibrium quantity fall

Question 15

The "law of demand" is illustrated by a

Accepted Answer

A)  movement along the demand curve. 
B)  rightward shift of the demand curve. 
C)  leftward shift of the demand curve. 
D)  Both answers A and B are correct. 
A)  movement along the demand curve. 
B)  rightward shift of the demand curve. 
C)  leftward shift of the demand curve. 
D)  Both answers A and B are correct.

Question 16

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?

Accepted Answer

A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures A and B 
A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures A and B

Question 17

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is than the equilibrium quantity and there is a of jeans.

Accepted Answer

A)  greater; surplus 
B)  less; surplus 
C)  greater; shortage 
D)  less; shortage 
A)  greater; surplus 
B)  less; surplus 
C)  greater; shortage 
D)  less; shortage

Question 18

Supply is the

Accepted Answer

A)  limited resources available. 
B)  entire relationship between the quantity supplied and the price of a good. 
C)  cost of producing a good. 
D)  willingness to produce a good if the technology to produce it becomes available. 
A)  limited resources available. 
B)  entire relationship between the quantity supplied and the price of a good. 
C)  cost of producing a good. 
D)  willingness to produce a good if the technology to produce it becomes available.

Question 19

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point b represents

Accepted Answer

A)  a decrease in quantity demanded. 
B)  a decrease in demand. 
C)  an increase in quantity demanded. 
D)  an increase in demand. 
A)  a decrease in quantity demanded. 
B)  a decrease in demand. 
C)  an increase in quantity demanded. 
D)  an increase in demand.

Question 20

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, technology has advanced in wind turbine production. As a result,

Accepted Answer

A)  there has been a movement down along the demand curve for wind- generated power. 
B)  the price of wind- generated power has decreased. 
C)  the quantity of wind- generated power has increased. 
D)  all of the above are correct. 
A)  there has been a movement down along the demand curve for wind- generated power. 
B)  the price of wind- generated power has decreased. 
C)  the quantity of wind- generated power has increased. 
D)  all of the above are correct.

A decrease in quantity demanded because of an increase in price is represented by a

Which of the following is NOT one of the factors that influences the supply of a product?

-Using the above figure, suppose that roses are a normal good. If incomes decrease while simultaneously there is an increase in the price of the resources used to produce roses, then

A demand curve is also a willingness- and- ability- to- pay curve.

During the 2000s, the price of DVD players fell each year and manufacturers of DVD players produced and sold more DVD players each year. This result is because the

-In the above figure, if D₂is the original demand curve and the population falls, which price and quantity might result?

If income increases or the price of a complement falls, the

In 2007, the price of a used Toyota Prius increased. The most likely cause of this change was

-The table shows the demand and supply schedules for jeans.

The opportunity cost of a good is the same as its

If the price of an apple increases,

Which of the following lists has variables that all shift a demand curve?

Which of the following will occur in the market for soft drinks if the money price of soft drinks incre I. The relative price of soft drinks increases. II. The substitution effect may cause people to switch to drinking bottled water.

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts and .

The "law of demand" is illustrated by a

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is than the equilibrium quantity and there is a of jeans.

Supply is the

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point b represents

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, technology has advanced in wind turbine production. As a result,

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

A decrease in quantity demanded because of an increase in price is represented by a

Which of the following is NOT one of the factors that influences the supply of a product?

-Using the above figure, suppose that roses are a normal good. If incomes decrease while simultaneously there is an increase in the price of the resources used to produce roses, then

A demand curve is also a willingness- and- ability- to- pay curve.

During the 2000s, the price of DVD players fell each year and manufacturers of DVD players produced and sold more DVD players each year. This result is because the

-In the above figure, if D2 is the original demand curve and the population falls, which price and quantity might result?

If income increases or the price of a complement falls, the

In 2007, the price of a used Toyota Prius increased. The most likely cause of this change was

-The table shows the demand and supply schedules for jeans.

The opportunity cost of a good is the same as its

If the price of an apple increases,

Which of the following lists has variables that all shift a demand curve?

Which of the following will occur in the market for soft drinks if the money price of soft drinks incre I. The relative price of soft drinks increases. II. The substitution effect may cause people to switch to drinking bottled water.

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts and .

The "law of demand" is illustrated by a

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is than the equilibrium quantity and there is a of jeans.

Supply is the

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point b represents

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, technology has advanced in wind turbine production. As a result,

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

-In the above figure, if D₂is the original demand curve and the population falls, which price and quantity might result?