Question 1

Each point on the demand curve reflects

Accepted Answer

A)  the lowest- cost technology available to produce a good. 
B)  all the wants of a given household. 
C)  the highest price consumers are willing and able to pay for that particular unit of a good. 
D)  the highest price sellers will accept for all units they are producing. 
A)  the lowest- cost technology available to produce a good. 
B)  all the wants of a given household. 
C)  the highest price consumers are willing and able to pay for that particular unit of a good. 
D)  the highest price sellers will accept for all units they are producing.

Question 2

If the demand for digital cameras increases when consumers' income rise, then digital cameras are

Accepted Answer

A)  a substitute good for video cameras. 
B)  an inferior good. 
C)  a complement to video cameras. 
D)  a normal good. 
A)  a substitute good for video cameras. 
B)  an inferior good. 
C)  a complement to video cameras. 
D)  a normal good.

Question 3

Changes in which of the following shift the demand curve for hamburgers?

Accepted Answer

A)  an increase in the number of hamburger restaurants 
B)  an increase in the price of the meat used to produce hamburgers 
C)  a fall in the price of french fries, a complement for hamburgers 
D)  an improvement in the productivity of hamburger- making machines 
A)  an increase in the number of hamburger restaurants 
B)  an increase in the price of the meat used to produce hamburgers 
C)  a fall in the price of french fries, a complement for hamburgers 
D)  an improvement in the productivity of hamburger- making machines

Question 4

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

Accepted Answer

A)  an increase in the relative price of a soft drink 
B)  a decrease in the relative price of a soft drink 
C)  a decrease in the price of bottled water 
D)  a decrease in income 
A)  an increase in the relative price of a soft drink 
B)  a decrease in the relative price of a soft drink 
C)  a decrease in the price of bottled water 
D)  a decrease in income

Question 5

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. An increase in the price of a soda results in a movement to a point such as

Accepted Answer

A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d. 
A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d.

Question 6

If the money price of wheat increases and no other prices change, the

Accepted Answer

A)  opportunity cost of wheat rises. 
B)  relative price of wheat falls. 
C)  relative price of wheat is unaffected. 
D)  demand for wheat increases. 
A)  opportunity cost of wheat rises. 
B)  relative price of wheat falls. 
C)  relative price of wheat is unaffected. 
D)  demand for wheat increases.

Question 7

When the price of an inferior good falls, the substitution effect leads to in the quantity purchased and the income effect leads to in the quantity purchased.

Accepted Answer

A)  an increase; an increase 
B)  a decrease; an increase 
C)  a decrease; a decrease 
D)  an increase; a decrease 
A)  an increase; an increase 
B)  a decrease; an increase 
C)  a decrease; a decrease 
D)  an increase; a decrease

Question 8

If macaroni and cheese is an inferior good, an increase in income will

Accepted Answer

A)  increase the demand for macaroni and cheese. 
B)  create no income effect. 
C)  decrease the demand for macaroni and cheese. 
D)  not affect the demand for macaroni and cheese. 
A)  increase the demand for macaroni and cheese. 
B)  create no income effect. 
C)  decrease the demand for macaroni and cheese. 
D)  not affect the demand for macaroni and cheese.

Question 9

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from

Accepted Answer

A)  S1 to S0.  
B)  S0 to S1.  
C)  D1 to D0.  
D)  D0 to D1. 
A)  S1 to S0.  
B)  S0 to S1.  
C)  D1 to D0.  
D)  D0 to D1.

Question 10

Suppose we observe that both the equilibrium price of film cameras and the equilibrium quantity of film cameras have fallen. Which of the following could be responsible for this?

Accepted Answer

A)  Technological advances in film camera production. 
B)  Consumers' preferences changed in favor of digital cameras. 
C)  Workers who make cameras received a pay raise. 
D)  The price of digital cameras increased. 
A)  Technological advances in film camera production. 
B)  Consumers' preferences changed in favor of digital cameras. 
C)  Workers who make cameras received a pay raise. 
D)  The price of digital cameras increased.

Question 11

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

Accepted Answer

A)  2 pounds, $6.00 per pound 
B)  7 pounds, $3.00 per pound 
C)  4 pounds, $5.00 per pound 
D)  2 pounds, $3.00 per pound 
A)  2 pounds, $6.00 per pound 
B)  7 pounds, $3.00 per pound 
C)  4 pounds, $5.00 per pound 
D)  2 pounds, $3.00 per pound

Question 12

If the price of an MP3 player falls, the price of a CD player and the equilibrium quantity of CD players .

Accepted Answer

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

Question 13

An increase in the number of producers of gruel curve of gruel _ .
The supply of gruel and shifts the supply

Accepted Answer

A)  decreases; rightward 
B)  increases; leftward 
C)  increases; rightward 
D)  decreases; leftward 
A)  decreases; rightward 
B)  increases; leftward 
C)  increases; rightward 
D)  decreases; leftward

Question 14

In the market for fertilizer,

Accepted Answer

A)  an increase in the wage rate paid to the workers who produce fertilizer increases the supply of fertilizer. 
B)  a decrease in the cost of equipment increases the supply of fertilizer. 
C)  an increase in the wage rate paid to the workers who produce fertilizer has no effect on the supply of fertilizer if the production of fertilizer is labor intensive. 
D)  an increase in income increases the supply of fertilizer if fertilizer is a normal good. 
A)  an increase in the wage rate paid to the workers who produce fertilizer increases the supply of fertilizer. 
B)  a decrease in the cost of equipment increases the supply of fertilizer. 
C)  an increase in the wage rate paid to the workers who produce fertilizer has no effect on the supply of fertilizer if the production of fertilizer is labor intensive. 
D)  an increase in income increases the supply of fertilizer if fertilizer is a normal good.

Question 15

-The above figures show the market for gasoline. Which figure(s) shows the effect of a freezing cold winter which drives up the price of home heating oil (a substitute in production for gasoline because each is made from crude oil)?

Accepted Answer

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

Question 16

The law of demand states that, other things remaining the same, the higher the price of a good, the

Accepted Answer

A)  larger is the quantity of the good demanded.. 
B)  smaller is the quantity of the good demanded. 
C)  smaller is the demand for the good. 
D)  larger is the demand for the good. 
A)  larger is the quantity of the good demanded.. 
B)  smaller is the quantity of the good demanded. 
C)  smaller is the demand for the good. 
D)  larger is the demand for the good.

Question 17

An economist says: "The demand curve has two interpretations." What does the economist mean?

Accepted Answer

The first interpretation is that the dem

Question 18

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Accepted Answer

A)  The quantity will increase and the effect on the price is uncertain. 
B)  The quantity will increase and the price will remain unchanged. 
C)  The price will fall and the effect on the quantity is uncertain. 
D)  The quantity will decrease and the price will rise. 
A)  The quantity will increase and the effect on the price is uncertain. 
B)  The quantity will increase and the price will remain unchanged. 
C)  The price will fall and the effect on the quantity is uncertain. 
D)  The quantity will decrease and the price will rise.

Question 19

If the price of an apple increases from 50¢ to 60¢, the quantity demanded will decrease because of

Accepted Answer

A)  the substitution and income effects. 
B)  a change in income. 
C)  the substitution effect only. 
D)  the income effect only. 
A)  the substitution and income effects. 
B)  a change in income. 
C)  the substitution effect only. 
D)  the income effect only.

Question 20

-In the figure above, which movement reflects an increase in the price of a substitute for fruit snacks?

Accepted Answer

A)  from point a to point b 
B)  from point a to point d 
C)  from point a to point e 
D)  from point a to point c 
A)  from point a to point b 
B)  from point a to point d 
C)  from point a to point e 
D)  from point a to point c

Each point on the demand curve reflects

If the demand for digital cameras increases when consumers' income rise, then digital cameras are

Changes in which of the following shift the demand curve for hamburgers?

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. An increase in the price of a soda results in a movement to a point such as

If the money price of wheat increases and no other prices change, the

When the price of an inferior good falls, the substitution effect leads to in the quantity purchased and the income effect leads to in the quantity purchased.

If macaroni and cheese is an inferior good, an increase in income will

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from

Suppose we observe that both the equilibrium price of film cameras and the equilibrium quantity of film cameras have fallen. Which of the following could be responsible for this?

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

If the price of an MP3 player falls, the price of a CD player and the equilibrium quantity of CD players .

An increase in the number of producers of gruel curve of gruel _ . The supply of gruel and shifts the supply

In the market for fertilizer,

-The above figures show the market for gasoline. Which figure(s) shows the effect of a freezing cold winter which drives up the price of home heating oil (a substitute in production for gasoline because each is made from crude oil)?

The law of demand states that, other things remaining the same, the higher the price of a good, the

An economist says: "The demand curve has two interpretations." What does the economist mean?

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

If the price of an apple increases from 50¢ to 60¢, the quantity demanded will decrease because of

-In the figure above, which movement reflects an increase in the price of a substitute for fruit snacks?

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

Each point on the demand curve reflects

If the demand for digital cameras increases when consumers' income rise, then digital cameras are

Changes in which of the following shift the demand curve for hamburgers?

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. An increase in the price of a soda results in a movement to a point such as

If the money price of wheat increases and no other prices change, the

When the price of an inferior good falls, the substitution effect leads to in the quantity purchased and the income effect leads to in the quantity purchased.

If macaroni and cheese is an inferior good, an increase in income will

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from

Suppose we observe that both the equilibrium price of film cameras and the equilibrium quantity of film cameras have fallen. Which of the following could be responsible for this?

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

If the price of an MP3 player falls, the price of a CD player and the equilibrium quantity of CD players .

An increase in the number of producers of gruel curve of gruel _ . The supply of gruel and shifts the supply

In the market for fertilizer,

-The above figures show the market for gasoline. Which figure(s) shows the effect of a freezing cold winter which drives up the price of home heating oil (a substitute in production for gasoline because each is made from crude oil)?

The law of demand states that, other things remaining the same, the higher the price of a good, the

An economist says: "The demand curve has two interpretations." What does the economist mean?

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

If the price of an apple increases from 50¢ to 60¢, the quantity demanded will decrease because of

-In the figure above, which movement reflects an increase in the price of a substitute for fruit snacks?

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