Question 1

Figure 4.2 shows the demand curves for a good.A shift from demand curve D' to demand curve D in the figure below would be caused by a(n):

Accepted Answer

A) increase in the price of the good under consideration. 
B) significant decrease in population because of emigration. 
C) increase in the price of a substitute good. 
D) decrease in the number of producers of the product. 
E) decrease in the price of an important resource. 
A) increase in the price of the good under consideration. 
B) significant decrease in population because of emigration. 
C) increase in the price of a substitute good. 
D) decrease in the number of producers of the product. 
E) decrease in the price of an important resource.

Question 2

As the baby boom ended,fewer families had young children and,as a consequence,the:

Accepted Answer

A) quantity demanded of preschool services decreased. 
B) demand curve for preschool services shifted inward. 
C) supply curve for preschool services shifted outward. 
D) supply curve for preschool services shifted inward. 
E) quantity demanded of preschool services increased. 
A) quantity demanded of preschool services decreased. 
B) demand curve for preschool services shifted inward. 
C) supply curve for preschool services shifted outward. 
D) supply curve for preschool services shifted inward. 
E) quantity demanded of preschool services increased.

Question 3

Jennifer expects the price of CDs to go up by 10 percent next week.Which of these is most likely to result from such an expectation?

Accepted Answer

A) Jennifer's demand for CD players will decrease during this week. 
B) Jennifer's demand for CDs will decrease during this week. 
C) Jennifer's demand for CDs will increase during the following week. 
D) Jennifer's demand for CDs will increase during this week. 
E) Jennifer's demand for CD players will increase during the following week. 
A) Jennifer's demand for CD players will decrease during this week. 
B) Jennifer's demand for CDs will decrease during this week. 
C) Jennifer's demand for CDs will increase during the following week. 
D) Jennifer's demand for CDs will increase during this week. 
E) Jennifer's demand for CD players will increase during the following week.

Question 4

In the figure given below,the number of units of rented apartments being supplied in the market when the maximum rent is fixed by the government at $750 is _____.

Accepted Answer

A) 40,000 units 
B) 80,000 units 
C) 130,000 units 
D) 90,000 units 
E) 50,000 units 
A) 40,000 units 
B) 80,000 units 
C) 130,000 units 
D) 90,000 units 
E) 50,000 units

Question 5

The following figure shows the demand curves for baby formula.Which of the following changes is likely to happen if the price of baby formula increases?

Accepted Answer

A) A shift in the demand curve from D1 to D2 
B) A movement along demand curve D1 from point a to point b 
C) A shift in the demand curve from D2 to D1 
D) A movement along the demand curve D2 from point d to point c 
E) A movement from point b on the demand curve D1 to point c on the demand curve D2 
A) A shift in the demand curve from D1 to D2 
B) A movement along demand curve D1 from point a to point b 
C) A shift in the demand curve from D2 to D1 
D) A movement along the demand curve D2 from point d to point c 
E) A movement from point b on the demand curve D1 to point c on the demand curve D2

Question 6

Disequilibrium occurs due to the absence of government intervention in certain markets.

Accepted Answer

A) True 
 B)False

Question 7

The income effect of a decrease in the price of potatoes,an inferior good,is a(n):

Accepted Answer

A) increase in the demand for onions. 
B) decrease in the quantity demanded of potatoes. 
C) increase in the demand for potatoes. 
D) increase in the quantity demanded of potatoes. 
E) decrease in the demand for onions. 
A) increase in the demand for onions. 
B) decrease in the quantity demanded of potatoes. 
C) increase in the demand for potatoes. 
D) increase in the quantity demanded of potatoes. 
E) decrease in the demand for onions.

Question 8

If corn and soybean are alternative crops grown by most farmers,an increase in the price of corn is likely to:

Accepted Answer

A) increase the supply of corn. 
B) increase the supply of soybeans. 
C) decrease the supply of soybeans. 
D) decrease the supply of corn. 
E) decrease the demand for soybeans. 
A) increase the supply of corn. 
B) increase the supply of soybeans. 
C) decrease the supply of soybeans. 
D) decrease the supply of corn. 
E) decrease the demand for soybeans.

Question 9

Which of these is likely to increase the supply of tomatoes in the market?

Accepted Answer

A) The introduction of expensive mechanized tomato pickers 
B) An increase in the wage rate of tomato pickers 
C) A decrease in the cost of fertilizer for tomato plants 
D) Unseasonably hot,dry weather in the tomato-growing regions of the nation that affects crop yield 
E) A decrease in the price of tomato ketchup 
A) The introduction of expensive mechanized tomato pickers 
B) An increase in the wage rate of tomato pickers 
C) A decrease in the cost of fertilizer for tomato plants 
D) Unseasonably hot,dry weather in the tomato-growing regions of the nation that affects crop yield 
E) A decrease in the price of tomato ketchup

Question 10

The supply of index cards is likely to shift to the right if:

Accepted Answer

A) the price of wood pulp used in the production of index cards increases. 
B) the technology used in index card production becomes more expensive. 
C) the price of index cards increases. 
D) the price of its substitute good decreases. 
E) the expected future price of index cards is higher than the current price. 
A) the price of wood pulp used in the production of index cards increases. 
B) the technology used in index card production becomes more expensive. 
C) the price of index cards increases. 
D) the price of its substitute good decreases. 
E) the expected future price of index cards is higher than the current price.

Question 11

The figure given below shows the market for a good.Which of the following is least likely to shift demand from D to D'?

Accepted Answer

A) A decrease in the price of a complement 
B) An increase in the price of a substitute 
C) A decrease in the price of the good in question 
D) An increase in the number of consumers 
E) A decrease in income,if the good in question is an inferior good 
A) A decrease in the price of a complement 
B) An increase in the price of a substitute 
C) A decrease in the price of the good in question 
D) An increase in the number of consumers 
E) A decrease in income,if the good in question is an inferior good

Question 12

Rent controls usually result in:

Accepted Answer

A) an economic profit for the owners of the rented apartments. 
B) an efficient allocation of rented apartments among tenants. 
C) an excess supply of rented apartments. 
D) deterioration and poor maintenance of the rented apartments. 
E) an equilibrium in the market for rented apartments. 
A) an economic profit for the owners of the rented apartments. 
B) an efficient allocation of rented apartments among tenants. 
C) an excess supply of rented apartments. 
D) deterioration and poor maintenance of the rented apartments. 
E) an equilibrium in the market for rented apartments.

Question 13

Consider the market for a good that is initially in equilibrium.Which of these is most likely to occur if both demand and supply for this good increases during a particular point in time?

Accepted Answer

A) Equilibrium price will increase 
B) Equilibrium price will decrease 
C) Equilibrium quantity will increase 
D) Equilibrium quantity will decrease 
E) Both equilibrium price and equilibrium quantity will decrease 
A) Equilibrium price will increase 
B) Equilibrium price will decrease 
C) Equilibrium quantity will increase 
D) Equilibrium quantity will decrease 
E) Both equilibrium price and equilibrium quantity will decrease

Question 14

Which of the following will cause the demand curve for a normal good to shift to the right?

Accepted Answer

A) A decrease in income 
B) An increase in the price of a complementary good 
C) A decrease in the price of the good 
D) An increase in the price of a substitute good 
E) An expectation of a future price decline 
A) A decrease in income 
B) An increase in the price of a complementary good 
C) A decrease in the price of the good 
D) An increase in the price of a substitute good 
E) An expectation of a future price decline

Question 15

If demand decreases,then quantity supplied will increase.

Accepted Answer

A) True 
 B)False

Question 16

For a given downward-sloping demand curve,a decrease in supply will cause a(n):

Accepted Answer

A) increase in demand. 
B) increase in equilibrium quantity. 
C) increase in quantity demanded. 
D) decrease in quantity demanded. 
E) decrease in equilibrium price. 
A) increase in demand. 
B) increase in equilibrium quantity. 
C) increase in quantity demanded. 
D) decrease in quantity demanded. 
E) decrease in equilibrium price.

Question 17

The following figure shows the demand curves for baby formula.Which of the following changes is likely to happen if the price of baby formula decreases?

Accepted Answer

A) A shift in the demand curve from D1 to D2 
B) A movement along the demand curve D1 from point a to point b 
C) A shift in the demand curve from D2 to D1 
D) A movement along the demand curve D2 from point d to point c 
E) A movement from point b on the demand curve D1 to point c on the demand curve D2 
A) A shift in the demand curve from D1 to D2 
B) A movement along the demand curve D1 from point a to point b 
C) A shift in the demand curve from D2 to D1 
D) A movement along the demand curve D2 from point d to point c 
E) A movement from point b on the demand curve D1 to point c on the demand curve D2

Question 18

As the price of milk increases,producers are generally willing to sell a larger quantity of milk in the market,other things constant.This represents the law of:

Accepted Answer

A) demand. 
B) decreasing opportunity costs. 
C) variable proportions. 
D) diminishing marginal utility. 
E) supply. 
A) demand. 
B) decreasing opportunity costs. 
C) variable proportions. 
D) diminishing marginal utility. 
E) supply.

Question 19

Which of the following best defines supply?

Accepted Answer

A) The amount of a good that producers want to sell at a fixed price 
B) The amount of a good that consumers want to buy at different income levels 
C) The amount of a good that producers are willing and able to sell at each possible price,other things constant 
D) The amount of a good that is produced at the least possible cost,other things constant 
E) The amount of a good that consumers are willing and able to buy at each possible price,other things constant 
A) The amount of a good that producers want to sell at a fixed price 
B) The amount of a good that consumers want to buy at different income levels 
C) The amount of a good that producers are willing and able to sell at each possible price,other things constant 
D) The amount of a good that is produced at the least possible cost,other things constant 
E) The amount of a good that consumers are willing and able to buy at each possible price,other things constant

Question 20

Which of the following is likely to increase the supply of wheat?

Accepted Answer

A) An increase in the cost of fertilizer 
B) A decrease in the price of bread 
C) A decrease in the price of corn 
D) An increase in land prices 
E) An expectation that the price of wheat will be higher in near future 
A) An increase in the cost of fertilizer 
B) A decrease in the price of bread 
C) A decrease in the price of corn 
D) An increase in land prices 
E) An expectation that the price of wheat will be higher in near future

Figure 4.2 shows the demand curves for a good.A shift from demand curve D' to demand curve D in the figure below would be caused by a(n):

As the baby boom ended,fewer families had young children and,as a consequence,the:

Jennifer expects the price of CDs to go up by 10 percent next week.Which of these is most likely to result from such an expectation?

In the figure given below,the number of units of rented apartments being supplied in the market when the maximum rent is fixed by the government at $750 is _____.

The following figure shows the demand curves for baby formula.Which of the following changes is likely to happen if the price of baby formula increases?

Disequilibrium occurs due to the absence of government intervention in certain markets.

The income effect of a decrease in the price of potatoes,an inferior good,is a(n):

If corn and soybean are alternative crops grown by most farmers,an increase in the price of corn is likely to:

Which of these is likely to increase the supply of tomatoes in the market?

The supply of index cards is likely to shift to the right if:

The figure given below shows the market for a good.Which of the following is least likely to shift demand from D to D'?

Rent controls usually result in:

Consider the market for a good that is initially in equilibrium.Which of these is most likely to occur if both demand and supply for this good increases during a particular point in time?

Which of the following will cause the demand curve for a normal good to shift to the right?

If demand decreases,then quantity supplied will increase.

For a given downward-sloping demand curve,a decrease in supply will cause a(n):

The following figure shows the demand curves for baby formula.Which of the following changes is likely to happen if the price of baby formula decreases?

As the price of milk increases,producers are generally willing to sell a larger quantity of milk in the market,other things constant.This represents the law of:

Which of the following best defines supply?

Which of the following is likely to increase the supply of wheat?

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

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Exam 4: Demand, Supply, and Markets

Figure 4.2 shows the demand curves for a good.A shift from demand curve D' to demand curve D in the figure below would be caused by a(n):

As the baby boom ended,fewer families had young children and,as a consequence,the:

Jennifer expects the price of CDs to go up by 10 percent next week.Which of these is most likely to result from such an expectation?

In the figure given below,the number of units of rented apartments being supplied in the market when the maximum rent is fixed by the government at $750 is _____.

The following figure shows the demand curves for baby formula.Which of the following changes is likely to happen if the price of baby formula increases?

Disequilibrium occurs due to the absence of government intervention in certain markets.

The income effect of a decrease in the price of potatoes,an inferior good,is a(n):

If corn and soybean are alternative crops grown by most farmers,an increase in the price of corn is likely to:

Which of these is likely to increase the supply of tomatoes in the market?

The supply of index cards is likely to shift to the right if:

The figure given below shows the market for a good.Which of the following is least likely to shift demand from D to D'?

Rent controls usually result in:

Consider the market for a good that is initially in equilibrium.Which of these is most likely to occur if both demand and supply for this good increases during a particular point in time?

Which of the following will cause the demand curve for a normal good to shift to the right?

If demand decreases,then quantity supplied will increase.

For a given downward-sloping demand curve,a decrease in supply will cause a(n):

The following figure shows the demand curves for baby formula.Which of the following changes is likely to happen if the price of baby formula decreases?

As the price of milk increases,producers are generally willing to sell a larger quantity of milk in the market,other things constant.This represents the law of:

Which of the following best defines supply?

Which of the following is likely to increase the supply of wheat?

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters