Question 1

Which of the following would result in a movement along, but not a shift of the supply curve for spinach?

Accepted Answer

A)  Great weather that produces a bumper spinach crop this year. 
B)  Disastrous weather that destroys half of this year's spinach crop. 
C)  A rise in the price of of spinach. 
D)  An increase in wages for workers in spinach fields. 
A)  Great weather that produces a bumper spinach crop this year. 
B)  Disastrous weather that destroys half of this year's spinach crop. 
C)  A rise in the price of of spinach. 
D)  An increase in wages for workers in spinach fields.

Question 2

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2007, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

Accepted Answer

A)  126,500. 
B)  6,500. 
C)  70,000. 
D)  76,500. 
A)  126,500. 
B)  6,500. 
C)  70,000. 
D)  76,500.

Question 3

A shortage causes the

Accepted Answer

A)  price to fall. 
B)  demand curve to shift leftward. 
C)  supply curve to shift rightward. 
D)  price to rise. 
A)  price to fall. 
B)  demand curve to shift leftward. 
C)  supply curve to shift rightward. 
D)  price to rise.

Question 4

Pizza is a normal good. When the price of a pizza decreases from $14 to $12,

Accepted Answer

A)  the quantity demanded of pizza will not change. 
B)  the income effect means people buy more pizza. 
C)  the income effect means people buy less pizza. 
D)  None of the above answers is correct. 
A)  the quantity demanded of pizza will not change. 
B)  the income effect means people buy more pizza. 
C)  the income effect means people buy less pizza. 
D)  None of the above answers is correct.

Question 5

List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor.

Accepted Answer

One factor that changes demand is a chan

Question 6

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

Accepted Answer

A)  the supply of soybeans increases. 
B)  the supply of corn increases and the corn supply curve shifts rightward. 
C)  the supply of corn increases. 
D)  the supply of soybeans decreases and the soybean supply curve shifts leftward. 
A)  the supply of soybeans increases. 
B)  the supply of corn increases and the corn supply curve shifts rightward. 
C)  the supply of corn increases. 
D)  the supply of soybeans decreases and the soybean supply curve shifts leftward.

Question 7

Which of the following will increase the quantity supplied of compact discs but NOT increase the supply of compact discs?

Accepted Answer

A)  a decrease in the price of a compact disc 
B)  an increase in the price of the factors of production used to produce compact discs 
C)  an increase in the price of a compact disc 
D)  a decrease in the number of suppliers of compact discs 
A)  a decrease in the price of a compact disc 
B)  an increase in the price of the factors of production used to produce compact discs 
C)  an increase in the price of a compact disc 
D)  a decrease in the number of suppliers of compact discs

Question 8

Which of the following is consistent with the law of demand?

Accepted Answer

A)  An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. 
B)  An increase in the price of a soda causes a decrease in the quantity of soda demanded. 
C)  A decrease in the price of juice causes no change in the quantity of juice demanded. 
D)  A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. 
A)  An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. 
B)  An increase in the price of a soda causes a decrease in the quantity of soda demanded. 
C)  A decrease in the price of juice causes no change in the quantity of juice demanded. 
D)  A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.

Question 9

-The above figures show the market for oranges. Which figure(s) shows the effect of an increase in the price of bananas, a substitute for oranges?

Accepted Answer

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

Question 10

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

Accepted Answer

A)  rise. 
B)  remain the same. 
C)  fall. 
D)  rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves. 
A)  rise. 
B)  remain the same. 
C)  fall. 
D)  rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

Question 11

-The figure illustrates the market for pens. The equilibrium quantity is

Accepted Answer

A)  between 400 and 600 pens, but it is impossible to be precise. 
B)  5 pens a month. 
C)  500 pens a month. 
D)  2 pens a month. 
A)  between 400 and 600 pens, but it is impossible to be precise. 
B)  5 pens a month. 
C)  500 pens a month. 
D)  2 pens a month.

Question 12

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

Accepted Answer

A)  the government ordered the price reduction. 
B)  the demand for saccharin decreased. 
C)  saccharin producers felt sorry for their past customers and were making an honest attempt to compensate them. 
D)  the supply of saccharin decreased. 
A)  the government ordered the price reduction. 
B)  the demand for saccharin decreased. 
C)  saccharin producers felt sorry for their past customers and were making an honest attempt to compensate them. 
D)  the supply of saccharin decreased.

Question 13

The demand curve for a normal good shifts leftward if income or the expected future price _ _.

Accepted Answer

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

Question 14

The ABC Music club charges a price of $8 for a cassette and $16 for a CD. For an ABC Music Club member, the opportunity cost of a CD is

Accepted Answer

A)  1/2 a cassette. 
B)  2 cassettes plus $16. 
C)  2 cassettes. 
D)  None of the above answers is correct. 
A)  1/2 a cassette. 
B)  2 cassettes plus $16. 
C)  2 cassettes. 
D)  None of the above answers is correct.

Question 15

The "law of demand" most directly means that consumers buy

Accepted Answer

A)  less of a good the higher its price. 
B)  more of a good the higher their incomes. 
C)  buy less of a good the greater is its supply. 
D)  buy more of a good the less is its supply. 
A)  less of a good the higher its price. 
B)  more of a good the higher their incomes. 
C)  buy less of a good the greater is its supply. 
D)  buy more of a good the less is its supply.

Question 16

When we say demand increases, we mean that there is a

Accepted Answer

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

Question 17

Which of the following pairs of goods are most likely substitutes?

Accepted Answer

A)  DVDs and DVD players 
B)  lettuce and salad dressing 
C)  peanut butter and gasoline 
D)  cola and lemon lime soda 
A)  DVDs and DVD players 
B)  lettuce and salad dressing 
C)  peanut butter and gasoline 
D)  cola and lemon lime soda

Question 18

Which of the following shifts the demand curve for oranges?

Accepted Answer

A)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
B)  great weather that produces a bumper orange crop this year 
C)  disastrous weather that destroys about half of this year's orange crop 
D)  an increase in the price of the fuel used to transport oranges to supermarkets 
A)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
B)  great weather that produces a bumper orange crop this year 
C)  disastrous weather that destroys about half of this year's orange crop 
D)  an increase in the price of the fuel used to transport oranges to supermarkets

Question 19

-The figure above represents the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

Accepted Answer

A)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
B)  demand curve shifts from D2 to D1 and the supply curve does not shift. 
C)  demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1. 
D)  demand curve does not shift, and the supply curve shifts from S1 to S2. 
A)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
B)  demand curve shifts from D2 to D1 and the supply curve does not shift. 
C)  demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1. 
D)  demand curve does not shift, and the supply curve shifts from S1 to S2.

Question 20

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a shift of the
Curve for bottled water.

Accepted Answer

A)  rightward; supply 
B)  leftward; supply 
C)  rightward; demand 
D)  leftward; demand 
A)  rightward; supply 
B)  leftward; supply 
C)  rightward; demand 
D)  leftward; demand

Which of the following would result in a movement along, but not a shift of the supply curve for spinach?

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2007, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

A shortage causes the

Pizza is a normal good. When the price of a pizza decreases from $14 to $12,

List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor.

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

Which of the following will increase the quantity supplied of compact discs but NOT increase the supply of compact discs?

Which of the following is consistent with the law of demand?

-The above figures show the market for oranges. Which figure(s) shows the effect of an increase in the price of bananas, a substitute for oranges?

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

-The figure illustrates the market for pens. The equilibrium quantity is

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

The demand curve for a normal good shifts leftward if income or the expected future price _ _.

The ABC Music club charges a price of $8 for a cassette and $16 for a CD. For an ABC Music Club member, the opportunity cost of a CD is

The "law of demand" most directly means that consumers buy

When we say demand increases, we mean that there is a

Which of the following pairs of goods are most likely substitutes?

Which of the following shifts the demand curve for oranges?

-The figure above represents the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a shift of the Curve for bottled water.

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

Which of the following would result in a movement along, but not a shift of the supply curve for spinach?

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2007, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

A shortage causes the

Pizza is a normal good. When the price of a pizza decreases from $14 to $12,

List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor.

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

Which of the following will increase the quantity supplied of compact discs but NOT increase the supply of compact discs?

Which of the following is consistent with the law of demand?

-The above figures show the market for oranges. Which figure(s) shows the effect of an increase in the price of bananas, a substitute for oranges?

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

-The figure illustrates the market for pens. The equilibrium quantity is

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

The demand curve for a normal good shifts leftward if income or the expected future price _ _.

The ABC Music club charges a price of $8 for a cassette and $16 for a CD. For an ABC Music Club member, the opportunity cost of a CD is

The "law of demand" most directly means that consumers buy

When we say demand increases, we mean that there is a

Which of the following pairs of goods are most likely substitutes?

Which of the following shifts the demand curve for oranges?

-The figure above represents the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a shift of the Curve for bottled water.

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