Question 1

When there is an excess demand of a product in an unregulated market, the tendency is for

Accepted Answer

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

Question 2

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 the wage rate of pizza 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 3

Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.   Figure 3.16
-Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been

Accepted Answer

A)  an increase in supply and a decrease in quantity demanded. 
B)  a decrease in both supply and demand. 
C)  a decrease in demand and a decrease in quantity supplied. 
D)  a decrease in supply and a decrease in quantity demanded. 
A)  an increase in supply and a decrease in quantity demanded. 
B)  a decrease in both supply and demand. 
C)  a decrease in demand and a decrease in quantity supplied. 
D)  a decrease in supply and a decrease in quantity demanded.

Question 4

A decrease in demand for cameras would likely be caused by

Accepted Answer

A)  an increase in the price of a substitute good. 
B)  an increase in the price of cameras. 
C)  an increase in the price of a complementary good. 
D)  a decrease in the price of cameras. 
A)  an increase in the price of a substitute good. 
B)  an increase in the price of cameras. 
C)  an increase in the price of a complementary good. 
D)  a decrease in the price of cameras.

Question 5

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 $15, there is a(n)

Accepted Answer

A)  market equilibrium. 
B)  excess demand of 400 units. 
C)  excess demand of 900 units. 
D)  excess supply of 600 units. 
A)  market equilibrium. 
B)  excess demand of 400 units. 
C)  excess demand of 900 units. 
D)  excess supply of 600 units.

Question 6

In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)

Accepted Answer

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

Question 7

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow.   Figure 3.13
-Refer to Figure 3.13. Assume hamburgers and hot dogs are substitutes. A decrease in the price of hot dogs will cause a movement from

Accepted Answer

A)  Point A to Point B. 
B)  Point F to Point G. 
C)  D2 to D1. 
D)  D1 to D2. 
A)  Point A to Point B. 
B)  Point F to Point G. 
C)  D2 to D1. 
D)  D1 to D2.

Question 8

Refer to the information provided in Figure 3.15 below to answer the question(s) that follow.   Figure 3.15
-Refer to Figure 3.15. The current quantity of bags of pretzels supplied is 100. You accurately predict that in this market

Accepted Answer

A)  price tends to remain constant and quantity supplied increases. 
B)  price, quantity demanded, and quantity supplied decrease. 
C)  price and quantity supplied decrease and quantity demanded increases. 
D)  price and quantity demanded increase and quantity supplied decreases. 
A)  price tends to remain constant and quantity supplied increases. 
B)  price, quantity demanded, and quantity supplied decrease. 
C)  price and quantity supplied decrease and quantity demanded increases. 
D)  price and quantity demanded increase and quantity supplied decreases.

Question 9

For inferior goods, demand will fall when

Accepted Answer

A)  income increases. 
B)  income decreases. 
C)  price increases. 
D)  price decreases. 
A)  income increases. 
B)  income decreases. 
C)  price increases. 
D)  price decreases.

Question 10

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow.   Figure 3.13
-Refer to Figure 3.13. Assume hamburgers are a normal good. A decrease in income will cause a movement from

Accepted Answer

A)  Point A to Point B. 
B)  Point G to Point F. 
C)  D2 to D1. 
D)  S2 to S1. 
A)  Point A to Point B. 
B)  Point G to Point F. 
C)  D2 to D1. 
D)  S2 to S1.

Question 11

Consumers purchase products in ________ markets.

Accepted Answer

A)  output 
B)  factor 
C)  resource 
D)  input 
A)  output 
B)  factor 
C)  resource 
D)  input

Question 12

According to the law of demand, quantity demanded increases as ________, ceteris paribus.

Accepted Answer

A)  prices rise 
B)  prices fall 
C)  demand increases 
D)  demand decreases 
A)  prices rise 
B)  prices fall 
C)  demand increases 
D)  demand decreases

Question 13

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, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Accepted Answer

A)  $5.00; 4 
B)  $5.00; 10 
C)  $7.00; 6 
D)  $7.00; 7 
A)  $5.00; 4 
B)  $5.00; 10 
C)  $7.00; 6 
D)  $7.00; 7

Question 14

Refer to Scenario 3.2 below to answer the question(s) that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused

Accepted Answer

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

Question 15

Refer to Scenario 3.2 below to answer the question(s) that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2. If at the same time that part of the lettuce crop was destroyed, consumer income also decreased, then, ceteris paribus, in the market for lettuce this would have caused

Accepted Answer

A)  both the equilibrium price and quantity to decrease. 
B)  the equilibrium price to increase and the equilibrium quantity to decrease. 
C)  the equilibrium price to decrease. The equilibrium quantity could have increased, decreased, or remained the same. 
D)  the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease. 
A)  both the equilibrium price and quantity to decrease. 
B)  the equilibrium price to increase and the equilibrium quantity to decrease. 
C)  the equilibrium price to decrease. The equilibrium quantity could have increased, decreased, or remained the same. 
D)  the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease.

Question 16

Among the factors of production are

Accepted Answer

A)  capital. 
B)  wages. 
C)  income. 
D)  all of the above 
A)  capital. 
B)  wages. 
C)  income. 
D)  all of the above

Question 17

If demand is represented as Qd = 18 - 6P and supply is represented as Qs = 3 + 9P, the equilibrium price is

Accepted Answer

A)  $1. 
B)  $4. 
C)  $7. 
D)  $12. 
A)  $1. 
B)  $4. 
C)  $7. 
D)  $12.

Question 18

Which of the following is held constant along the demand curve?

Accepted Answer

A)  price of the good 
B)  quantity 
C)  income 
D)  both A and B 
A)  price of the good 
B)  quantity 
C)  income 
D)  both A and B

Question 19

Cell phones and bluetooth headsets are complements. A decrease in the price of bluetooth headsets would cause which of the following in the market for cell phones?

Accepted Answer

A)  The equilibrium price and quantity of cell phones would increase. 
B)  The equilibrium price and quantity of cell phones would decrease. 
C)  The equilibrium price of cell phones would increase and the equilibrium quantity would decrease. 
D)  The equilibrium price of cell phones would decrease and the equilibrium quantity would increase. 
A)  The equilibrium price and quantity of cell phones would increase. 
B)  The equilibrium price and quantity of cell phones would decrease. 
C)  The equilibrium price of cell phones would increase and the equilibrium quantity would decrease. 
D)  The equilibrium price of cell phones would decrease and the equilibrium quantity would increase.

Question 20

Labor is demanded by firms in an output market.

Accepted Answer

A) True 
 B)False

When there is an excess demand of a product in an unregulated market, the tendency is for

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 the wage rate of pizza makers will cause a movement from Point B on supply curve S₂ to

Refer to the information provided in Figure 3.16 below to answer the question(s) that follow. Figure 3.16 -Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been

A decrease in demand for cameras would likely be caused by

In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers and hot dogs are substitutes. A decrease in the price of hot dogs will cause a movement from

Refer to the information provided in Figure 3.15 below to answer the question(s) that follow. Figure 3.15 -Refer to Figure 3.15. The current quantity of bags of pretzels supplied is 100. You accurately predict that in this market

For inferior goods, demand will fall when

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers are a normal good. A decrease in income will cause a movement from

Consumers purchase products in ________ markets.

According to the law of demand, quantity demanded increases as ________, ceteris paribus.

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, the new equilibrium price will be and the new equilibrium quantity will be .

Among the factors of production are

If demand is represented as Q_d = 18 - 6P and supply is represented as Q_s = 3 + 9P, the equilibrium price is

Which of the following is held constant along the demand curve?

Cell phones and bluetooth headsets are complements. A decrease in the price of bluetooth headsets would cause which of the following in the market for cell phones?

Labor is demanded by firms in an output market.

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 an excess demand of a product in an unregulated market, the tendency is for

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 the wage rate of pizza makers will cause a movement from Point B on supply curve S2 to

Refer to the information provided in Figure 3.16 below to answer the question(s) that follow. Figure 3.16 -Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been

A decrease in demand for cameras would likely be caused by

In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers and hot dogs are substitutes. A decrease in the price of hot dogs will cause a movement from

Refer to the information provided in Figure 3.15 below to answer the question(s) that follow. Figure 3.15 -Refer to Figure 3.15. The current quantity of bags of pretzels supplied is 100. You accurately predict that in this market

For inferior goods, demand will fall when

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers are a normal good. A decrease in income will cause a movement from

Consumers purchase products in ________ markets.

According to the law of demand, quantity demanded increases as ________, ceteris paribus.

Among the factors of production are

If demand is represented as Qd = 18 - 6P and supply is represented as Qs = 3 + 9P, the equilibrium price is

Which of the following is held constant along the demand curve?

Cell phones and bluetooth headsets are complements. A decrease in the price of bluetooth headsets would cause which of the following in the market for cell phones?

Labor is demanded by firms in an output market.

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 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. A decrease in the wage rate of pizza makers will cause a movement from Point B on supply curve S₂ to

If demand is represented as Q_d = 18 - 6P and supply is represented as Q_s = 3 + 9P, the equilibrium price is