Question 1

Ticket "scalping" is an example of

Accepted Answer

A)  experimental economics. 
B)  the limitation of the volume of transactions. 
C)  the development of a black market. 
D)  favoritism. 
A)  experimental economics. 
B)  the limitation of the volume of transactions. 
C)  the development of a black market. 
D)  favoritism.

Question 2

"Demand" is a series of quantities demanded,one for each person in the market.

Accepted Answer

A) True 
 B)False

Question 3

From 2007 to 2008,the Federal Reserve System reduced interest rates,the price that borrowers pay.As a result,economists expected demand for money to

Accepted Answer

A)  increase. 
B)  decrease. 
C)  not change. 
D)  be influenced by the interest rate,but with an uncertain effect. 
A)  increase. 
B)  decrease. 
C)  not change. 
D)  be influenced by the interest rate,but with an uncertain effect.

Question 4

A black market develops only when quantity demanded exceeds quantity supplied.

Accepted Answer

A) True 
 B)False

Question 5

Economists generally recognize that rent controls cause shortages in housing,yet rent controls tend to persist.Why does this occur?

Accepted Answer

A)  Many people do not understand the effects that controls cause. 
B)  Property owners are politically unpopular. 
C)  Many persons tend to benefit from rent controls. 
D)  All of the above are correct. 
A)  Many people do not understand the effects that controls cause. 
B)  Property owners are politically unpopular. 
C)  Many persons tend to benefit from rent controls. 
D)  All of the above are correct.

Question 6

Any ​event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.

Accepted Answer

A) True 
 B)False

Question 7

"Equilibrium" is a situation in which there are no inherent forces to produce change.

Accepted Answer

A) True 
 B)False

Question 8

An increase in demand will have what effect on equilibrium price and quantity?

Accepted Answer

A)  Price will increase; quantity will decrease. 
B)  Price will decrease; quantity will increase. 
C)  Both price and quantity will increase. 
D)  Both price and quantity will decrease. 
A)  Price will increase; quantity will decrease. 
B)  Price will decrease; quantity will increase. 
C)  Both price and quantity will increase. 
D)  Both price and quantity will decrease.

Question 9

When price is above the equilibrium level,suppliers offer more than demanders wish to buy.

Accepted Answer

A) True 
 B)False

Question 10

Why does quantity supplied increase when price increases?

Accepted Answer

A)  Producers find it more profitable to make the item. 
B)  People "drop out" of the market,so buyers find it more abundant. 
C)  As demand decreases with a high price,surpluses appear. 
D)  All of the above. 
A)  Producers find it more profitable to make the item. 
B)  People "drop out" of the market,so buyers find it more abundant. 
C)  As demand decreases with a high price,surpluses appear. 
D)  All of the above.

Question 11

Which of the following is an example of a price floor?

Accepted Answer

A)  rent controls 
B)  maximum prices for gasoline 
C)  usury laws that set maximum interest rates 
D)  the minimum wage 
A)  rent controls 
B)  maximum prices for gasoline 
C)  usury laws that set maximum interest rates 
D)  the minimum wage

Question 12

A shift in the supply curve of bicycles resulting from higher steel prices will lead to

Accepted Answer

A)  higher prices of bicycles. 
B)  lower prices of bicycles. 
C)  a shift in the demand curve for bicycles. 
D)  larger output of bicycles. 
E)  no change in the price of bicycles. 
A)  higher prices of bicycles. 
B)  lower prices of bicycles. 
C)  a shift in the demand curve for bicycles. 
D)  larger output of bicycles. 
E)  no change in the price of bicycles.

Question 13

When a demand schedule is drawn as a graph,

Accepted Answer

A)  price is measured on the vertical axis. 
B)  quantity is measured on the horizontal axis. 
C)  the resulting curve has a negative slope. 
D)  the other variables (besides price and quantity)are held constant. 
E)  All of the above are correct. 
A)  price is measured on the vertical axis. 
B)  quantity is measured on the horizontal axis. 
C)  the resulting curve has a negative slope. 
D)  the other variables (besides price and quantity)are held constant. 
E)  All of the above are correct.

Question 14

Changes in the size of an industry may cause supply to shift.

Accepted Answer

A) True 
 B)False

Question 15

Equilibrium price and quantity are determined by the intersection of the demand and supply curves.

Accepted Answer

A) True 
 B)False

Question 16

An increase in the price of poultry would lead to

Accepted Answer

A)  a decrease in quantity demanded of fish and an increase in the demand for poultry. 
B)  a decrease in quantity demanded of poultry and an increase in the demand for fish. 
C)  an increase in quantity demanded of fish and a decrease in the demand for poultry. 
D)  an increase in quantity demanded of poultry and a decrease in the demand for fish. 
A)  a decrease in quantity demanded of fish and an increase in the demand for poultry. 
B)  a decrease in quantity demanded of poultry and an increase in the demand for fish. 
C)  an increase in quantity demanded of fish and a decrease in the demand for poultry. 
D)  an increase in quantity demanded of poultry and a decrease in the demand for fish.

Question 17

A typical supply curve has

Accepted Answer

A)  slope equal to zero. 
B)  slope equal to infinity. 
C)  negative slope. 
D)  positive slope. 
E)  constant slope. 
A)  slope equal to zero. 
B)  slope equal to infinity. 
C)  negative slope. 
D)  positive slope. 
E)  constant slope.

Question 18

Which of the following would cause a movement up (or leftward)along the demand curve for European autos in the United States?

Accepted Answer

A)  an increase in the price of American autos 
B)  a decrease in the price of American autos 
C)  an increase in income in the United States 
D)  an increase in the price of European cars 
A)  an increase in the price of American autos 
B)  a decrease in the price of American autos 
C)  an increase in income in the United States 
D)  an increase in the price of European cars

Question 19

Figure 4-4  
-Assume that Figure 4-4 shows demand for new houses.A decrease in income of buyers will change demand from

Accepted Answer

A)  D1 to D2. 
B)  D2 to D1. 
C)  D2 to D3. 
D)  D1 to D3. 
A)  D1 to D2. 
B)  D2 to D1. 
C)  D2 to D3. 
D)  D1 to D3.

Question 20

Governments of market-oriented economies never tamper with the price mechanism.

Accepted Answer

A) True 
 B)False

Ticket "scalping" is an example of

"Demand" is a series of quantities demanded,one for each person in the market.

From 2007 to 2008,the Federal Reserve System reduced interest rates,the price that borrowers pay.As a result,economists expected demand for money to

A black market develops only when quantity demanded exceeds quantity supplied.

Economists generally recognize that rent controls cause shortages in housing,yet rent controls tend to persist.Why does this occur?

Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.

"Equilibrium" is a situation in which there are no inherent forces to produce change.

An increase in demand will have what effect on equilibrium price and quantity?

When price is above the equilibrium level,suppliers offer more than demanders wish to buy.

Why does quantity supplied increase when price increases?

Which of the following is an example of a price floor?

A shift in the supply curve of bicycles resulting from higher steel prices will lead to

When a demand schedule is drawn as a graph,

Changes in the size of an industry may cause supply to shift.

Equilibrium price and quantity are determined by the intersection of the demand and supply curves.

An increase in the price of poultry would lead to

A typical supply curve has

Which of the following would cause a movement up (or leftward)along the demand curve for European autos in the United States?

Figure 4-4 -Assume that Figure 4-4 shows demand for new houses.A decrease in income of buyers will change demand from

Governments of market-oriented economies never tamper with the price mechanism.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 4: Supply and Demand An Initial Look

Ticket "scalping" is an example of

"Demand" is a series of quantities demanded,one for each person in the market.

From 2007 to 2008,the Federal Reserve System reduced interest rates,the price that borrowers pay.As a result,economists expected demand for money to

A black market develops only when quantity demanded exceeds quantity supplied.

Economists generally recognize that rent controls cause shortages in housing,yet rent controls tend to persist.Why does this occur?

Any ​event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.

"Equilibrium" is a situation in which there are no inherent forces to produce change.

An increase in demand will have what effect on equilibrium price and quantity?

When price is above the equilibrium level,suppliers offer more than demanders wish to buy.

Why does quantity supplied increase when price increases?

Which of the following is an example of a price floor?

A shift in the supply curve of bicycles resulting from higher steel prices will lead to

When a demand schedule is drawn as a graph,

Changes in the size of an industry may cause supply to shift.

Equilibrium price and quantity are determined by the intersection of the demand and supply curves.

An increase in the price of poultry would lead to

A typical supply curve has

Which of the following would cause a movement up (or leftward)along the demand curve for European autos in the United States?

Figure 4-4 -Assume that Figure 4-4 shows demand for new houses.A decrease in income of buyers will change demand from

Governments of market-oriented economies never tamper with the price mechanism.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.