Question 1

When there is a surplus of a product in an unregulated market, there is a tendency for

Accepted Answer

A)  price to rise. 
B)  price to fall. 
C)  quantity demanded to increase. 
D)  quantity supplied to decrease. 
A)  price to rise. 
B)  price to fall. 
C)  quantity demanded to increase. 
D)  quantity supplied to decrease.

Question 2

Refer to the information provided in Figure 3.7 below to answer the following question(s).   Figure 3.7
-Refer to Figure 3.7. If pizza and beer are complementary goods, a decrease in the price of beer will cause a movement from Point B on demand curve D2 to

Accepted Answer

A)  demand curve D1. 
B)  demand curve D3. 
C)  Point A on demand curve D2. 
D)  Point C on demand curve D2. 
A)  demand curve D1. 
B)  demand curve D3. 
C)  Point A on demand curve D2. 
D)  Point C on demand curve D2.

Question 3

If the demand for green tea increases as income increases, green tea is a(n)

Accepted Answer

A)  complementary good. 
B)  substitute good. 
C)  normal good. 
D)  inferior good. 
A)  complementary good. 
B)  substitute good. 
C)  normal good. 
D)  inferior good.

Question 4

Refer to the information provided in Table 3.2 below to answer the question(s) that follow.
Table 3.2
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price per } \
\text { Cheeseburger }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} \
\hline \$ 5 & 1,500 & 500 \
\hline 6 & 1,200 & 700 \
\hline 7 & 900 & 900 \
\hline 8 & 600 & 1,100 \
\hline 9 & 300 & 1,300 \
\hline
\end{array}$$
-Refer to Table 3.2. In this market there will be an excess demand of 1,000 cheeseburgers at a price of

Accepted Answer

A)  $5. 
B)  $6. 
C)  $8. 
D)  $9. 
A)  $5. 
B)  $6. 
C)  $8. 
D)  $9.

Question 5

The change in the ________ of a good leads to a change in ________, which leads to a ________.

Accepted Answer

A)  price; quantity supplied; movement along a supply curve 
B)  quantity; supply; change in demand 
C)  supply; demand; change in price 
D)  demand; quantity demanded; supply 
A)  price; quantity supplied; movement along a supply curve 
B)  quantity; supply; change in demand 
C)  supply; demand; change in price 
D)  demand; quantity demanded; supply

Question 6

Refer to the information provided in Figure 3.4 below to answer the question(s) that follow.   Figure 3.4
-Refer to Figure 3.4. If consumer income falls, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)

Accepted Answer

A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good. 
A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good.

Question 7

Refer to the information provided in Table 3.1 below to answer the question(s) that follow.
Table 3.1
 $$\begin{array} { | c | c | c | } 
\hline \text { Price per Pizza } & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Pizzas per Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Pizzas per Month) }
\end{array} \
\hline \$ 3 & 1,200 & 600 \
\hline 6 & 1,000 & 700 \
\hline 9 & 800 & 800 \
\hline 12 & 600 & 900 \
\hline 15 & 400 & 1,000 \
\hline
\end{array}$$
-Refer to Table 3.1. This market will be in equilibrium if the quantity of pizzas supplied per month is

Accepted Answer

A)  700. 
B)  750. 
C)  800. 
D)  900. 
A)  700. 
B)  750. 
C)  800. 
D)  900.

Question 8

The price of mozzarella cheese, which is used in making pizza, increases. In the market for pizza you would expect that

Accepted Answer

A)  the demand for pizza would increase and the price of pizza would increase. 
B)  the demand for pizza would decrease and the price of pizza would fall. 
C)  the supply of pizza would decrease and the price of pizza would increase. 
D)  the supply of pizza would increase and the price of pizza would decrease. 
A)  the demand for pizza would increase and the price of pizza would increase. 
B)  the demand for pizza would decrease and the price of pizza would fall. 
C)  the supply of pizza would decrease and the price of pizza would increase. 
D)  the supply of pizza would increase and the price of pizza would decrease.

Question 9

Refer to the information provided in Figure 3.11 below to answer the following question(s).   Figure 3.11
-Refer to Figure 3.11. A decrease in quantity supplied is represented by a movement from

Accepted Answer

A)  S2 to S1. 
B)  S2 to S3. 
C)  Point B to Point A along supply curve S2. 
D)  Point B to Point C along supply curve S2. 
A)  S2 to S1. 
B)  S2 to S3. 
C)  Point B to Point A along supply curve S2. 
D)  Point B to Point C along supply curve S2.

Question 10

Refer to the information provided in Table 3.1 below to answer the question(s) that follow.
Table 3.1
 $$\begin{array} { | c | c | c | } 
\hline \text { Price per Pizza } & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Pizzas per Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Pizzas per Month) }
\end{array} \
\hline \$ 3 & 1,200 & 600 \
\hline 6 & 1,000 & 700 \
\hline 9 & 800 & 800 \
\hline 12 & 600 & 900 \
\hline 15 & 400 & 1,000 \
\hline
\end{array}$$
-Refer to Table 3.1. If the price per pizza is $6, there is an excess

Accepted Answer

A)  demand of 300 pizzas. 
B)  demand of 600 pizzas. 
C)  supply of 700 pizzas. 
D)  supply of 1,000 pizzas. 
A)  demand of 300 pizzas. 
B)  demand of 600 pizzas. 
C)  supply of 700 pizzas. 
D)  supply of 1,000 pizzas.

Question 11

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.   Figure 3.18
-Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D2 to D1, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Accepted Answer

A)  $4.00 to $3.00; 250 to 350 
B)  $4.00 to $3.00; 350 to 250 
C)  $3.00 to $4.00; 250 to 350 
D)  $3.00 to $4.00; 350 to 250 
A)  $4.00 to $3.00; 250 to 350 
B)  $4.00 to $3.00; 350 to 250 
C)  $3.00 to $4.00; 250 to 350 
D)  $3.00 to $4.00; 350 to 250

Question 12

A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this

Accepted Answer

A)  will shift the supply curve of corn to the right, the equilibrium price of corn will increase, and the demand for corn will fall. 
B)  will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase. 
C)  will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the quantity demanded of corn will decrease. 
D)  will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the demand for corn will fall. 
A)  will shift the supply curve of corn to the right, the equilibrium price of corn will increase, and the demand for corn will fall. 
B)  will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase. 
C)  will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the quantity demanded of corn will decrease. 
D)  will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the demand for corn will fall.

Question 13

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus,

Accepted Answer

A)  the demand for peaches decreased and the price of peaches decreased. 
B)  the supply of peaches increased and the price of peaches decreased. 
C)  the supply of peaches decreased and the price of peaches increased. 
D)  the demand for peaches increased and the price of peaches increased. 
A)  the demand for peaches decreased and the price of peaches decreased. 
B)  the supply of peaches increased and the price of peaches decreased. 
C)  the supply of peaches decreased and the price of peaches increased. 
D)  the demand for peaches increased and the price of peaches increased.

Question 14

Firms are organizations that

Accepted Answer

A)  take advantage of the public. 
B)  transform resources into products. 
C)  transform outputs into inputs. 
D)  demand consumer outputs. 
A)  take advantage of the public. 
B)  transform resources into products. 
C)  transform outputs into inputs. 
D)  demand consumer outputs.

Question 15

Refer to the information provided in Table 3.2 below to answer the question(s) that follow.
Table 3.2
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price per } \
\text { Cheeseburger }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} \
\hline \$ 5 & 1,500 & 500 \
\hline 6 & 1,200 & 700 \
\hline 7 & 900 & 900 \
\hline 8 & 600 & 1,100 \
\hline 9 & 300 & 1,300 \
\hline
\end{array}$$
-Refer to Table 3.2. If the price per cheeseburger is $6, there is a(n)

Accepted Answer

A)  market equilibrium. 
B)  excess demand of 1,000 units. 
C)  excess demand of 500 units. 
D)  excess supply of 700 units. 
A)  market equilibrium. 
B)  excess demand of 1,000 units. 
C)  excess demand of 500 units. 
D)  excess supply of 700 units.

Question 16

A decrease in the price of a good or service leads to a(n) ________ that leads to a(n) ________.

Accepted Answer

A)  decrease in demand; movement along the demand curve 
B)  increase in quantity demanded; movement along the demand curve 
C)  increase in demand; shift of the demand curve 
D)  decrease in quantity demanded; shift of the demand curve 
A)  decrease in demand; movement along the demand curve 
B)  increase in quantity demanded; movement along the demand curve 
C)  increase in demand; shift of the demand curve 
D)  decrease in quantity demanded; shift of the demand curve

Question 17

Entrepreneurs are unnecessary in a market economy, and their profit is unearned.

Accepted Answer

A) True 
 B)False

Question 18

An entrepreneur is a person who does all of the following except

Accepted Answer

A)  assumes the risk of a firm. 
B)  organizes and manages a firm. 
C)  turns a new idea or product into a business. 
D)  always makes a profit. 
A)  assumes the risk of a firm. 
B)  organizes and manages a firm. 
C)  turns a new idea or product into a business. 
D)  always makes a profit.

Question 19

A technological advance in the production of MP3 players will cause the equilibrium selling price to increase.

Accepted Answer

A) True 
 B)False

Question 20

Demand curves are derived while holding constant

Accepted Answer

A)  income, tastes, and the price of the good. 
B)  only income and tastes. 
C)  income, tastes, and the prices of other goods. 
D)  only tastes and the prices of other goods. 
A)  income, tastes, and the price of the good. 
B)  only income and tastes. 
C)  income, tastes, and the prices of other goods. 
D)  only tastes and the prices of other goods.

When there is a surplus of a product in an unregulated market, there is a tendency for

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. If pizza and beer are complementary goods, a decrease in the price of beer will cause a movement from Point B on demand curve D₂ to

If the demand for green tea increases as income increases, green tea is a(n)

The change in the of a good leads to a change in , which leads to a .

Refer to the information provided in Figure 3.4 below to answer the question(s) that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income falls, the demand for tuna fish sandwiches shifts from D₀ to D₁. This implies that tuna fish sandwiches are a(n)

The price of mozzarella cheese, which is used in making pizza, increases. In the market for pizza you would expect that

Refer to the information provided in Figure 3.11 below to answer the following question(s). Figure 3.11 -Refer to Figure 3.11. A decrease in quantity supplied is represented by a movement from

A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus,

Firms are organizations that

A decrease in the price of a good or service leads to a(n) that leads to a(n) .

Entrepreneurs are unnecessary in a market economy, and their profit is unearned.

An entrepreneur is a person who does all of the following except

A technological advance in the production of MP3 players will cause the equilibrium selling price to increase.

Demand curves are derived while holding constant

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 3: Demand, Supply, and Market Equilibrium

When there is a surplus of a product in an unregulated market, there is a tendency for

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. If pizza and beer are complementary goods, a decrease in the price of beer will cause a movement from Point B on demand curve D2 to

If the demand for green tea increases as income increases, green tea is a(n)

The change in the ________ of a good leads to a change in ________, which leads to a ________.

Refer to the information provided in Figure 3.4 below to answer the question(s) that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income falls, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)

The price of mozzarella cheese, which is used in making pizza, increases. In the market for pizza you would expect that

Refer to the information provided in Figure 3.11 below to answer the following question(s). Figure 3.11 -Refer to Figure 3.11. A decrease in quantity supplied is represented by a movement from

A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus,

Firms are organizations that

A decrease in the price of a good or service leads to a(n) ________ that leads to a(n) ________.

Entrepreneurs are unnecessary in a market economy, and their profit is unearned.

An entrepreneur is a person who does all of the following except

A technological advance in the production of MP3 players will cause the equilibrium selling price to increase.

Demand curves are derived while holding constant

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. If pizza and beer are complementary goods, a decrease in the price of beer will cause a movement from Point B on demand curve D₂ to

The change in the of a good leads to a change in , which leads to a .

Refer to the information provided in Figure 3.4 below to answer the question(s) that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income falls, the demand for tuna fish sandwiches shifts from D₀ to D₁. This implies that tuna fish sandwiches are a(n)

A decrease in the price of a good or service leads to a(n) that leads to a(n) .