Question 1

If the price of chicken falls, then in the market for beef,

Accepted Answer

A)  the demand curve for beef shifts leftward. 
B)  the demand curve for beef shifts rightward. 
C)  there is a movement downward along the demand curve for beef. 
D)  there is a movement upward along the demand curve for beef. 
A)  the demand curve for beef shifts leftward. 
B)  the demand curve for beef shifts rightward. 
C)  there is a movement downward along the demand curve for beef. 
D)  there is a movement upward along the demand curve for beef.

Question 2

A changes in which of the following shifts the demand curve for hamburgers?

Accepted Answer

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

Question 3

The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the

Accepted Answer

A)  demand and the supply of a good both decrease. 
B)  demand for a good increases and the supply of it decreases. 
C)  demand and the supply of a good both increase. 
D)  demand for a good decreases and the supply of it increases. 
A)  demand and the supply of a good both decrease. 
B)  demand for a good increases and the supply of it decreases. 
C)  demand and the supply of a good both increase. 
D)  demand for a good decreases and the supply of it increases.

Question 4

The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same when the

Accepted Answer

A)  demand and the supply of a good both decrease. 
B)  demand and the supply of a good both increase. 
C)  demand for a good increases and the supply of it decreases. 
D)  demand for a good decreases and the supply of it increases. 
A)  demand and the supply of a good both decrease. 
B)  demand and the supply of a good both increase. 
C)  demand for a good increases and the supply of it decreases. 
D)  demand for a good decreases and the supply of it increases.

Question 5

General Electric GE) produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

Accepted Answer

A)  a decrease in the supply of wind-generated power. 
B)  a movement up along the supply curve for wind-generated power. 
C)  GE increasing the quantity supplied of wind turbines. 
D)  a rightward shift in the supply curve for wind-generated power. 
A)  a decrease in the supply of wind-generated power. 
B)  a movement up along the supply curve for wind-generated power. 
C)  GE increasing the quantity supplied of wind turbines. 
D)  a rightward shift in the supply curve for wind-generated power.

Question 6

If the price of a good changes but everything else influencing suppliersʹ planned sales remains constant, there is a

Accepted Answer

A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  rotation of the initial supply curve around the initial price. 
D)  movement along the supply curve. 
A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  rotation of the initial supply curve around the initial price. 
D)  movement along the supply curve.

Question 7

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Accepted Answer

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

Question 8

A change in which of the following shifts the demand curve?

Accepted Answer

A)  the technology with which the product is produced 
B)  the price of the resources used to produce the product 
C)  the tastes and preferences of consumers 
D)  the number of sellers in the market 
A)  the technology with which the product is produced 
B)  the price of the resources used to produce the product 
C)  the tastes and preferences of consumers 
D)  the number of sellers in the market

Question 9

Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?

Accepted Answer

A decrease in the number of sellers decr

Question 10

If the price of lumber rises, then, in the market for sawdust,

Accepted Answer

A)  the supply curve of sawdust shifts rightward. 
B)  there is a movement downward along the supply curve for sawdust. 
C)  there is a movement upward along the supply curve for sawdust. 
D)  the supply curve of sawdust shifts leftward. 
A)  the supply curve of sawdust shifts rightward. 
B)  there is a movement downward along the supply curve for sawdust. 
C)  there is a movement upward along the supply curve for sawdust. 
D)  the supply curve of sawdust shifts leftward.

Question 11

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

Accepted Answer

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

Question 12

-The above figures show the market for hamburger meat. Which figures) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

Accepted Answer

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

Question 13

The price of a good will fall if

Accepted Answer

A)  there is a surplus at the current price. 
B)  the current price is less than the equilibrium price. 
C)  the price of a complement in consumption falls. 
D)  the quantity demanded exceeds the quantity supplied. 
A)  there is a surplus at the current price. 
B)  the current price is less than the equilibrium price. 
C)  the price of a complement in consumption falls. 
D)  the quantity demanded exceeds the quantity supplied.

Question 14

-The above figures show the market for hamburger meat. Which figures) shows the effect of an increase in the number of people who eat hamburger meat?

Accepted Answer

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

Question 15

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a correct statement?

Accepted Answer

A)  The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket. 
B)  the money price of a Knicks ticket is 2 opera tickets per Knicks ticket. 
C)  The relative price of an opera ticket is $800. 
D)  The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket. 
A)  The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket. 
B)  the money price of a Knicks ticket is 2 opera tickets per Knicks ticket. 
C)  The relative price of an opera ticket is $800. 
D)  The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket.

Question 16

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

Accepted Answer

A)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
B)  $0.75, the opportunity cost of a can of soda. 
C)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
D)  $1.50, the opportunity cost of a can of soda. 
A)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
B)  $0.75, the opportunity cost of a can of soda. 
C)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
D)  $1.50, the opportunity cost of a can of soda.

Question 17

When a market is in equilibrium,

Accepted Answer

A)  the number of buyers is exactly equal to the number of sellers. 
B)  the supply curve has the same slope as the demand curve. 
C)  there is no shortage and no surplus at the equilibrium price. 
D)  everyone has all they want of the commodity in question. 
A)  the number of buyers is exactly equal to the number of sellers. 
B)  the supply curve has the same slope as the demand curve. 
C)  there is no shortage and no surplus at the equilibrium price. 
D)  everyone has all they want of the commodity in question.

Question 18

A supply curve is also a maximum-supply-price curve.

Accepted Answer

A) True 
 B)False

Question 19

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________in the market and the price will _____________.

Accepted Answer

A)  shortage; fall 
B)  shortage; rise 
C)  surplus; rise 
D)  surplus; fall 
A)  shortage; fall 
B)  shortage; rise 
C)  surplus; rise 
D)  surplus; fall

Question 20

An economist says: ʺThe demand curve has two interpretations.ʺ What does the economist mean?

Accepted Answer

The first interpretation is that the dem

If the price of chicken falls, then in the market for beef,

A changes in which of the following shifts the demand curve for hamburgers?

The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the

The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same when the

General Electric GE) produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

If the price of a good changes but everything else influencing suppliersʹ planned sales remains constant, there is a

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

A change in which of the following shifts the demand curve?

Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?

If the price of lumber rises, then, in the market for sawdust,

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

-The above figures show the market for hamburger meat. Which figures) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

The price of a good will fall if

-The above figures show the market for hamburger meat. Which figures) shows the effect of an increase in the number of people who eat hamburger meat?

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a correct statement?

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

When a market is in equilibrium,

A supply curve is also a maximum-supply-price curve.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a in the market and the price will _____.

An economist says: ʺThe demand curve has two interpretations.ʺ What does the economist mean?

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 3: Demand and Supply

If the price of chicken falls, then in the market for beef,

A changes in which of the following shifts the demand curve for hamburgers?

The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the

The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same when the

General Electric GE) produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

If the price of a good changes but everything else influencing suppliersʹ planned sales remains constant, there is a

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

A change in which of the following shifts the demand curve?

Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?

If the price of lumber rises, then, in the market for sawdust,

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

-The above figures show the market for hamburger meat. Which figures) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

The price of a good will fall if

-The above figures show the market for hamburger meat. Which figures) shows the effect of an increase in the number of people who eat hamburger meat?

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a correct statement?

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

When a market is in equilibrium,

A supply curve is also a maximum-supply-price curve.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________in the market and the price will _____________.

An economist says: ʺThe demand curve has two interpretations.ʺ What does the economist mean?

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a in the market and the price will _____.