Question 1

The supply curve for apartments in Oregon reflects how many apartments landlords are willing and able to offer for rent at various prices.

Accepted Answer

A) True 
 B)False

Question 2

It is certain that the equilibrium quantity will rise when:

Accepted Answer

A)  the supply curve and the demand curve both shift to the right. 
B)  the supply curve shifts to the right and the demand curve shifts to the left. 
C)  supply and demand both shift to the left. 
D)  supply shifts to the left and demand stays the same. 
A)  the supply curve and the demand curve both shift to the right. 
B)  the supply curve shifts to the right and the demand curve shifts to the left. 
C)  supply and demand both shift to the left. 
D)  supply shifts to the left and demand stays the same.

Question 3

Suppose the market for gasoline is in equilibrium. You have heard that the price of crude oil is falling because of new oil discoveries. You are also aware that the number of car and truck drivers is steadily rising. Knowing this, you predict that the price of gasoline will _____ and the quantity of gasoline bought and sold will _____.

Accepted Answer

A)  rise; rise 
B)  rise; fall 
C)  rise or fall; rise 
D)  rise or fall; fall 
A)  rise; rise 
B)  rise; fall 
C)  rise or fall; rise 
D)  rise or fall; fall

Question 4

The price of microchips used to produce computers falls. As a result, the equilibrium price of computers _____ and the equilibrium quantity _____.

Accepted Answer

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

Question 5

In the market for canned pinto beans, _____ will increase if income increases and if pinto beans are a(n) _____ good.

Accepted Answer

A)  demand; inferior 
B)  demand; normal 
C)  supply; inferior 
D)  supply; normal 
A)  demand; inferior 
B)  demand; normal 
C)  supply; inferior 
D)  supply; normal

Question 6

The law of demand states that, other things equal, as the price:

Accepted Answer

A)  increases, the quantity demanded will increase. 
B)  decreases, the demand curve will shift to the right. 
C)  increases, demand will decrease. 
D)  increases, the quantity demanded will decrease. 
A)  increases, the quantity demanded will increase. 
B)  decreases, the demand curve will shift to the right. 
C)  increases, demand will decrease. 
D)  increases, the quantity demanded will decrease.

Question 7

According to the law of demand, if the price of steak increases in Rhode Island, the demand for steak will decrease in Rhode Island.

Accepted Answer

A) True 
 B)False

Question 8

If consumer tastes for electric cars increase over the next 10 years and there is no change in supply, we expect to see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

Accepted Answer

A) True 
 B)False

Question 9

Use the following to answer questions:  
-(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A temporary price of $2 in this market would result in a _____ of _____ bushels per period.

Accepted Answer

A)  surplus; 4,000 
B)  shortage; 8,000 
C)  shortage; 10,000 
D)  surplus; 10,000 
A)  surplus; 4,000 
B)  shortage; 8,000 
C)  shortage; 10,000 
D)  surplus; 10,000

Question 10

Use the following to answer questions:  
-(Figure: Demand for Coconuts) Use Figure: Demand for Coconuts. If fish is a substitute good for coconuts and the price of fish increases, it will be represented in the figure as a:

Accepted Answer

A)  shift from D1 to D2 
B)  movement from point A to point B 
C)  shift from D1 to D3 
D)  movement from point B to point E 
A)  shift from D1 to D2 
B)  movement from point A to point B 
C)  shift from D1 to D3 
D)  movement from point B to point E

Question 11

The primary difference between a change in supply and a change in the quantity supplied is that:

Accepted Answer

A)  a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve. 
B)  both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. 
C)  a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that shift the supply curve. 
D)  a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve. 
A)  a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve. 
B)  both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. 
C)  a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that shift the supply curve. 
D)  a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.

Question 12

The market for corn is in equilibrium. Which factor is most likely to INCREASE the equilibrium price of corn?

Accepted Answer

A)  a bountiful harvest 
B)  increasing production of corn-based ethanol 
C)  decreasing household incomes, with corn being a normal good 
D)  a decrease in the price of wheat, a substitute in consumption 
A)  a bountiful harvest 
B)  increasing production of corn-based ethanol 
C)  decreasing household incomes, with corn being a normal good 
D)  a decrease in the price of wheat, a substitute in consumption

Question 13

When the price of desks increases, the:

Accepted Answer

A)  quantity supplied increases. 
B)  supply increases. 
C)  quantity supplied decreases. 
D)  supply decreases. 
A)  quantity supplied increases. 
B)  supply increases. 
C)  quantity supplied decreases. 
D)  supply decreases.

Question 14

Which factor would result solely in a movement along the demand curve for a particular good?

Accepted Answer

A)  a change in the prices of related goods 
B)  a change in the price of that good 
C)  a change in the size of the population 
D)  both a change in the price of that good and a change in the size of the population 
A)  a change in the prices of related goods 
B)  a change in the price of that good 
C)  a change in the size of the population 
D)  both a change in the price of that good and a change in the size of the population

Question 15

Use the following to answer questions:  
-Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. The initial equilibrium price and quantity (at intersection of S1 and D. of gasoline are:

Accepted Answer

A)  $2.00 and 450 gallons. 
B)  $1.50 and 400 gallons. 
C)  $2.00 and 200 gallons. 
D)  $2.50 and 300 gallons. 
A)  $2.00 and 450 gallons. 
B)  $1.50 and 400 gallons. 
C)  $2.00 and 200 gallons. 
D)  $2.50 and 300 gallons.

Question 16

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. This set of observations can be the result of the _____ Blu-ray players shifting to the _____.

Accepted Answer

A)  demand for; right 
B)  demand for; left 
C)  supply of; right 
D)  supply of; left 
A)  demand for; right 
B)  demand for; left 
C)  supply of; right 
D)  supply of; left

Question 17

Use the following to answer questions:
\  
-(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. If the prices of inputs (e.g., labor, fertilizer, and fuel) used to produce and transport coconuts increased, it could be represented in the figure as a movement from:

Accepted Answer

A)  A to B. 
B)  B to A. 
C)  C to A. 
D)  E to B. 
A)  A to B. 
B)  B to A. 
C)  C to A. 
D)  E to B.

Question 18

Use the following to answer questions:  
-(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A price of _____ will result in a _____.

Accepted Answer

A)  $6; shortage 
B)  $9; surplus 
C)  $8; shortage 
D)  $4; surplus 
A)  $6; shortage 
B)  $9; surplus 
C)  $8; shortage 
D)  $4; surplus

Question 19

A decrease in the price of a good will generally result in a(n):

Accepted Answer

A)  increase in demand. 
B)  increase in supply. 
C)  increase in the quantity demanded. 
D)  increase in the quantity supplied. 
A)  increase in demand. 
B)  increase in supply. 
C)  increase in the quantity demanded. 
D)  increase in the quantity supplied.

Question 20

In the market for wheat, if the price of ethanol (which is made from corn, a substitute in the production process) increased dramatically, the _____ wheat would _____.

Accepted Answer

A)  supply of; increase 
B)  supply of; decrease 
C)  demand for; increase 
D)  demand for; decrease 
A)  supply of; increase 
B)  supply of; decrease 
C)  demand for; increase 
D)  demand for; decrease

The supply curve for apartments in Oregon reflects how many apartments landlords are willing and able to offer for rent at various prices.

It is certain that the equilibrium quantity will rise when:

The price of microchips used to produce computers falls. As a result, the equilibrium price of computers _ and the equilibrium quantity _.

In the market for canned pinto beans, _ will increase if income increases and if pinto beans are a(n) _ good.

The law of demand states that, other things equal, as the price:

According to the law of demand, if the price of steak increases in Rhode Island, the demand for steak will decrease in Rhode Island.

If consumer tastes for electric cars increase over the next 10 years and there is no change in supply, we expect to see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A temporary price of $2 in this market would result in a _ of _ bushels per period.

Use the following to answer questions: -(Figure: Demand for Coconuts) Use Figure: Demand for Coconuts. If fish is a substitute good for coconuts and the price of fish increases, it will be represented in the figure as a:

The primary difference between a change in supply and a change in the quantity supplied is that:

The market for corn is in equilibrium. Which factor is most likely to INCREASE the equilibrium price of corn?

When the price of desks increases, the:

Which factor would result solely in a movement along the demand curve for a particular good?

Use the following to answer questions: -Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. The initial equilibrium price and quantity (at intersection of S1 and D. of gasoline are:

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. This set of observations can be the result of the _ Blu-ray players shifting to the _.

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A price of _ will result in a _.

A decrease in the price of a good will generally result in a(n):

In the market for wheat, if the price of ethanol (which is made from corn, a substitute in the production process) increased dramatically, the _ wheat would _.

First Principles

Economic Models: Trade-Offs and Trade

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 3: Supply and Demand

The supply curve for apartments in Oregon reflects how many apartments landlords are willing and able to offer for rent at various prices.

It is certain that the equilibrium quantity will rise when:

The price of microchips used to produce computers falls. As a result, the equilibrium price of computers _____ and the equilibrium quantity _____.

In the market for canned pinto beans, _____ will increase if income increases and if pinto beans are a(n) _____ good.

The law of demand states that, other things equal, as the price:

According to the law of demand, if the price of steak increases in Rhode Island, the demand for steak will decrease in Rhode Island.

If consumer tastes for electric cars increase over the next 10 years and there is no change in supply, we expect to see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A temporary price of $2 in this market would result in a _____ of _____ bushels per period.

Use the following to answer questions: -(Figure: Demand for Coconuts) Use Figure: Demand for Coconuts. If fish is a substitute good for coconuts and the price of fish increases, it will be represented in the figure as a:

The primary difference between a change in supply and a change in the quantity supplied is that:

The market for corn is in equilibrium. Which factor is most likely to INCREASE the equilibrium price of corn?

When the price of desks increases, the:

Which factor would result solely in a movement along the demand curve for a particular good?

Use the following to answer questions: -Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. The initial equilibrium price and quantity (at intersection of S1 and D. of gasoline are:

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. This set of observations can be the result of the _____ Blu-ray players shifting to the _____.

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. If the prices of inputs (e.g., labor, fertilizer, and fuel) used to produce and transport coconuts increased, it could be represented in the figure as a movement from:

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A price of _____ will result in a _____.

A decrease in the price of a good will generally result in a(n):

In the market for wheat, if the price of ethanol (which is made from corn, a substitute in the production process) increased dramatically, the _____ wheat would _____.

First Principles

Economic Models: Trade-Offs and Trade

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

The price of microchips used to produce computers falls. As a result, the equilibrium price of computers _ and the equilibrium quantity _.

In the market for canned pinto beans, _ will increase if income increases and if pinto beans are a(n) _ good.

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A temporary price of $2 in this market would result in a _ of _ bushels per period.

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. This set of observations can be the result of the _ Blu-ray players shifting to the _.

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A price of _ will result in a _.

In the market for wheat, if the price of ethanol (which is made from corn, a substitute in the production process) increased dramatically, the _ wheat would _.