Question 1

The equation for the demand curve in the above diagram:

Accepted Answer

A) is P = 70 - Q. 
B) is P = 35 - 2Q. 
C) is P = 35 - .5Q. 
D) cannot be determined from the information given. 
A) is P = 70 - Q. 
B) is P = 35 - 2Q. 
C) is P = 35 - .5Q. 
D) cannot be determined from the information given.

Question 2

You are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product Xupon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.Refer to the above.An increase in the price of a product which is a complement (in consumption) to X will:

Accepted Answer

A) decrease S, decrease P, and decrease Q. 
B) increase D, increase P, and increase Q. 
C) decrease D, decrease P, and decrease Q. 
D) increase D, increase P, and decrease Q. 
A) decrease S, decrease P, and decrease Q. 
B) increase D, increase P, and increase Q. 
C) decrease D, decrease P, and decrease Q. 
D) increase D, increase P, and decrease Q.

Question 3

When an economy achieves both allocative and productive efficiency, it implies that there is:

Accepted Answer

A) income equality. 
B) price stability. 
C) full production. 
D) fixed technology. 
A) income equality. 
B) price stability. 
C) full production. 
D) fixed technology.

Question 4

Refer to the table below.   If a technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price, the new equilibrium price would be:

Accepted Answer

A) $11 
B) $12 
C) $13 
D) $14 
A) $11 
B) $12 
C) $13 
D) $14

Question 5

Assume that the demand schedule for product C is downsloping.If the price of C falls from $2.00 to $1.75:

Accepted Answer

A) a smaller quantity of C will be demanded. 
B) a larger quantity of C will be demanded. 
C) the demand for C will increase. 
D) the demand for C will decrease. 
A) a smaller quantity of C will be demanded. 
B) a larger quantity of C will be demanded. 
C) the demand for C will increase. 
D) the demand for C will decrease.

Question 6

An "increase in the quantity supplied" suggests a:

Accepted Answer

A) rightward shift of the supply curve. 
B) movement up along the supply curve. 
C) movement down along the supply curve. 
D) leftward shift of the supply curve. 
A) rightward shift of the supply curve. 
B) movement up along the supply curve. 
C) movement down along the supply curve. 
D) leftward shift of the supply curve.

Question 7

Price floors and ceiling prices:

Accepted Answer

A) both cause shortages. 
B) both cause surpluses. 
C) cause the supply and demand curves to shift until equilibrium is established. 
D) interfere with the rationing function of prices. 
A) both cause shortages. 
B) both cause surpluses. 
C) cause the supply and demand curves to shift until equilibrium is established. 
D) interfere with the rationing function of prices.

Question 8

Assuming conventional supply and demand curves, changes in the determinants of supply and demand will:

Accepted Answer

A) in all likelihood alter both equilibrium price and quantity. 
B) alter equilibrium quantity, but not equilibrium price. 
C) alter equilibrium price, but not equilibrium quantity. 
D) have no effect upon equilibrium price or quantity. 
A) in all likelihood alter both equilibrium price and quantity. 
B) alter equilibrium quantity, but not equilibrium price. 
C) alter equilibrium price, but not equilibrium quantity. 
D) have no effect upon equilibrium price or quantity.

Question 9

The law of demand is illustrated by a demand curve that is:

Accepted Answer

A) vertical. 
B) horizontal. 
C) upward sloping. 
D) downward sloping. 
A) vertical. 
B) horizontal. 
C) upward sloping. 
D) downward sloping.

Question 10

An effective price floor on wheat will:

Accepted Answer

A) force otherwise profitable farmers out of business. 
B) result in a shortage of wheat. 
C) result in a surplus of wheat. 
D) clear the market for wheat. 
A) force otherwise profitable farmers out of business. 
B) result in a shortage of wheat. 
C) result in a surplus of wheat. 
D) clear the market for wheat.

Question 11

Which of the following is true of a demand curve?

Accepted Answer

A) It shows the relationship between price and quantity demanded. 
B) It indicates the quantity demanded at each of a series of possible prices during a specified time period. 
C) It is downward sloping. 
D) All of the choices are correct. 
A) It shows the relationship between price and quantity demanded. 
B) It indicates the quantity demanded at each of a series of possible prices during a specified time period. 
C) It is downward sloping. 
D) All of the choices are correct.

Exam 3: B: Demand, Supply, and Market Equilibrium

The equation for the demand curve in the above diagram:

When an economy achieves both allocative and productive efficiency, it implies that there is:

Refer to the table below. If a technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price, the new equilibrium price would be:

Assume that the demand schedule for product C is downsloping.If the price of C falls from $2.00 to $1.75:

An "increase in the quantity supplied" suggests a:

Price floors and ceiling prices:

Assuming conventional supply and demand curves, changes in the determinants of supply and demand will:

The law of demand is illustrated by a demand curve that is:

An effective price floor on wheat will:

Which of the following is true of a demand curve?

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

A: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

B: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

Filters