Question 1

Demand is determined by how much suppliers are willing and able to produce.

Accepted Answer

A) True 
 B)False

Question 2

Payment in the capital market is called investment.

Accepted Answer

A) True 
 B)False

Question 3

For inferior goods, a decrease in income will cause the

Accepted Answer

A)  quantity demanded to fall. 
B)  demand to increase. 
C)  demand to fall. 
D)  quantity demanded to increase. 
A)  quantity demanded to fall. 
B)  demand to increase. 
C)  demand to fall. 
D)  quantity demanded to increase.

Question 4

Refer to the information provided in Figure 3.11 below to answer the following question(s).   Figure 3.11
-Refer to Figure 3.11. An increase in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S2 to

Accepted Answer

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

Question 5

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.   Figure 3.19
-Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00, there will be

Accepted Answer

A)  an excess supply of 6 cheeseburgers. 
B)  an excess demand of 6 cheeseburgers. 
C)  an excess supply of 3 cheeseburgers. 
D)  an excess demand of 4 cheeseburgers. 
A)  an excess supply of 6 cheeseburgers. 
B)  an excess demand of 6 cheeseburgers. 
C)  an excess supply of 3 cheeseburgers. 
D)  an excess demand of 4 cheeseburgers.

Question 6

Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers ________ while the supply of Baltimore newspapers ________, the equilibrium price will definitely decrease.

Accepted Answer

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

Question 7

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 movement from Point A to Point B on supply curve S2 would be caused by a(n)

Accepted Answer

A)  increase in the price of gardenburgers. 
B)  decrease in the demand for gardenburgers. 
C)  increase in the price of tomatoes. 
D)  increase in the price of hamburgers, assuming hamburgers are a substitute for pizza. 
A)  increase in the price of gardenburgers. 
B)  decrease in the demand for gardenburgers. 
C)  increase in the price of tomatoes. 
D)  increase in the price of hamburgers, assuming hamburgers are a substitute for pizza.

Question 8

Equilibrium is the condition that exists

Accepted Answer

A)  whenever there is no government intervention in the market. 
B)  when the demand curve intersects the price axis. 
C)  when quantity demanded equals quantity supplied. 
D)  when the demand curve intersects the quantity axis. 
A)  whenever there is no government intervention in the market. 
B)  when the demand curve intersects the price axis. 
C)  when quantity demanded equals quantity supplied. 
D)  when the demand curve intersects the quantity axis.

Question 9

If the demand for macaroni and cheese decreases as income increases, macaroni and cheese is a(n)

Accepted Answer

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

Question 10

If the price of chili increases, there will be ________ of chili cheese fries.

Accepted Answer

A)  an increase in the supply 
B)  a decrease in the supply 
C)  an increase in the quantity supplied 
D)  a decrease in the quantity supplied 
A)  an increase in the supply 
B)  a decrease in the supply 
C)  an increase in the quantity supplied 
D)  a decrease in the quantity supplied

Question 11

Refer to the information provided in Figure 3.11 below to answer the following question(s).   Figure 3.11
-Refer to Figure 3.11. An increase in supply is represented by the movement from

Accepted Answer

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

Question 12

Refer to the information provided in Figure 3.17 below to answer the question(s) that follow.   Figure 3.17
-Refer to Figure 3.17. In the Rollerblade market, which is not government controlled and is currently at a price of $1,140, you accurately predict that price will

Accepted Answer

A)  increase, the quantity demanded will fall, and the quantity supplied will rise. 
B)  increase, the quantity demanded will rise, and the quantity supplied will fall. 
C)  decrease, the quantity demanded will fall, and the quantity supplied will fall. 
D)  decrease, the quantity demanded will rise, and the quantity supplied will fall. 
A)  increase, the quantity demanded will fall, and the quantity supplied will rise. 
B)  increase, the quantity demanded will rise, and the quantity supplied will fall. 
C)  decrease, the quantity demanded will fall, and the quantity supplied will fall. 
D)  decrease, the quantity demanded will rise, and the quantity supplied will fall.

Question 13

Related to the Economics in Practice on p. 68: One explanation for the increase in the price of the Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This would cause the ________ Baltimore newspapers to ________.

Accepted Answer

A)  demand for; increase 
B)  quantity demanded of; increase 
C)  demand for; decrease 
D)  quantity demanded of; decrease 
A)  demand for; increase 
B)  quantity demanded of; increase 
C)  demand for; decrease 
D)  quantity demanded of; decrease

Question 14

A change in income leads to a ________ that causes a ________.

Accepted Answer

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

Question 15

During an economic downturn when consumer income falls, the demand for tacos increases and the demand for sushi decreases. This implies that tacos

Accepted Answer

A)  and sushi are complements. 
B)  are a normal good and sushi is an inferior good. 
C)  are an inferior good and sushi is a normal good. 
D)  are an economic bad and sushi is an economic good. 
A)  and sushi are complements. 
B)  are a normal good and sushi is an inferior good. 
C)  are an inferior good and sushi is a normal good. 
D)  are an economic bad and sushi is an economic good.

Question 16

Refer to the information provided in Figure 3.10 below to answer the following question(s).   Figure 3.10
-Refer to Figure 3.10. A decrease in supply is represented by the movement from

Accepted Answer

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

Question 17

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. In this market there will be an excess demand of 600 pizzas at a price of

Accepted Answer

A)  $3. 
B)  $6. 
C)  $12. 
D)  $15. 
A)  $3. 
B)  $6. 
C)  $12. 
D)  $15.

Question 18

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 500 cheeseburgers at a price of

Accepted Answer

A)  $5. 
B)  $6. 
C)  $7. 
D)  $8. 
A)  $5. 
B)  $6. 
C)  $7. 
D)  $8.

Question 19

Refer to the information provided in Figure 3.7 below to answer the following question(s).   Figure 3.7
-Refer to Figure 3.7. A decrease in demand is represented by the movement

Accepted Answer

A)  from D2 to D1. 
B)  from D2 to D3. 
C)  along D2 from Point B to Point A. 
D)  along D2 from Point B to Point C. 
A)  from D2 to D1. 
B)  from D2 to D3. 
C)  along D2 from Point B to Point A. 
D)  along D2 from Point B to Point C.

Question 20

If price is below the equilibrium, there will be excess demand for the product.

Accepted Answer

A) True 
 B)False

Demand is determined by how much suppliers are willing and able to produce.

Payment in the capital market is called investment.

For inferior goods, a decrease in income will cause the

Refer to the information provided in Figure 3.11 below to answer the following question(s). Figure 3.11 -Refer to Figure 3.11. An increase in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S₂ to

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂ and the price of cheeseburgers remains constant at $5.00, there will be

Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers while the supply of Baltimore newspapers , the equilibrium price will definitely decrease.

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 movement from Point A to Point B on supply curve S₂ would be caused by a(n)

Equilibrium is the condition that exists

If the demand for macaroni and cheese decreases as income increases, macaroni and cheese is a(n)

If the price of chili increases, there will be ________ of chili cheese fries.

Refer to the information provided in Figure 3.11 below to answer the following question(s). Figure 3.11 -Refer to Figure 3.11. An increase in supply is represented by the movement from

Refer to the information provided in Figure 3.17 below to answer the question(s) that follow. Figure 3.17 -Refer to Figure 3.17. In the Rollerblade market, which is not government controlled and is currently at a price of $1,140, you accurately predict that price will

Related to the Economics in Practice on p. 68: One explanation for the increase in the price of the Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This would cause the Baltimore newspapers to .

A change in income leads to a that causes a .

During an economic downturn when consumer income falls, the demand for tacos increases and the demand for sushi decreases. This implies that tacos

Refer to the information provided in Figure 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. A decrease in supply is represented by the movement from

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. A decrease in demand is represented by the movement

If price is below the equilibrium, there will be excess demand for the product.

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

Demand is determined by how much suppliers are willing and able to produce.

Payment in the capital market is called investment.

For inferior goods, a decrease in income will cause the

Refer to the information provided in Figure 3.11 below to answer the following question(s). Figure 3.11 -Refer to Figure 3.11. An increase in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S2 to

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00, there will be

Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers ________ while the supply of Baltimore newspapers ________, the equilibrium price will definitely decrease.

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 movement from Point A to Point B on supply curve S2 would be caused by a(n)

Equilibrium is the condition that exists

If the demand for macaroni and cheese decreases as income increases, macaroni and cheese is a(n)

If the price of chili increases, there will be ________ of chili cheese fries.

Refer to the information provided in Figure 3.11 below to answer the following question(s). Figure 3.11 -Refer to Figure 3.11. An increase in supply is represented by the movement from

Refer to the information provided in Figure 3.17 below to answer the question(s) that follow. Figure 3.17 -Refer to Figure 3.17. In the Rollerblade market, which is not government controlled and is currently at a price of $1,140, you accurately predict that price will

Related to the Economics in Practice on p. 68: One explanation for the increase in the price of the Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This would cause the ________ Baltimore newspapers to ________.

A change in income leads to a ________ that causes a ________.

During an economic downturn when consumer income falls, the demand for tacos increases and the demand for sushi decreases. This implies that tacos

Refer to the information provided in Figure 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. A decrease in supply is represented by the movement from

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. A decrease in demand is represented by the movement

If price is below the equilibrium, there will be excess demand for the product.

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 3.11 below to answer the following question(s). Figure 3.11 -Refer to Figure 3.11. An increase in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S₂ to

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂ and the price of cheeseburgers remains constant at $5.00, there will be

Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers while the supply of Baltimore newspapers , the equilibrium price will definitely decrease.

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 movement from Point A to Point B on supply curve S₂ would be caused by a(n)

Related to the Economics in Practice on p. 68: One explanation for the increase in the price of the Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This would cause the Baltimore newspapers to .

A change in income leads to a that causes a .