Question 1

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss  
-As shown in Exhibit 3A-1, if the market is in equilibrium, then ____ represents producer surplus.

Accepted Answer

A)  ADFB 
B)  CEFD 
C)  EGH 
D)  BEF 
A)  ADFB 
B)  CEFD 
C)  EGH 
D)  BEF

Question 2

Which of the following events would increase the supply of tomatoes?

Accepted Answer

A)  The introduction of mechanized tomato pickers, which raises the cost of production. 
B)  An increase in wages for the tomato pickers. 
C)  A decrease in the cost of fertilizers for the tomato plants. 
D)  Unseasonably hot, dry weather in the tomato-growing regions of the nation. 
E)  A decrease in the price of pasta products. 
A)  The introduction of mechanized tomato pickers, which raises the cost of production. 
B)  An increase in wages for the tomato pickers. 
C)  A decrease in the cost of fertilizers for the tomato plants. 
D)  Unseasonably hot, dry weather in the tomato-growing regions of the nation. 
E)  A decrease in the price of pasta products.

Question 3

An increase in the quantity demanded of a good is most often due to:

Accepted Answer

A)  current prices. 
B)  higher prices. 
C)  higher income. 
D)  lower prices. 
E)  technological change. 
A)  current prices. 
B)  higher prices. 
C)  higher income. 
D)  lower prices. 
E)  technological change.

Question 4

An increase in demand is reflected as a rightward (outward) shift of the demand curve and is caused by an increase in price.

Accepted Answer

A) True 
 B)False

Question 5

"Because of unseasonable cold weather, much of the peach crop has been destroyed." This statement indicates that the:

Accepted Answer

A)  price of peaches will fall. 
B)  quantity of peaches that will be available at any given price has decreased. 
C)  demand for peaches will shift to the left. 
D)  quantity of peaches that will be available at any given price have increased. 
A)  price of peaches will fall. 
B)  quantity of peaches that will be available at any given price has decreased. 
C)  demand for peaches will shift to the left. 
D)  quantity of peaches that will be available at any given price have increased.

Question 6

When economists say the quantity supplied of a product has increased, they mean the:

Accepted Answer

A)  supply curve has shifted to the left. 
B)  supply curve has shifted to the right. 
C)  price of the product has risen, and consequently, suppliers are producing more of it. 
D)  price of the product has fallen, and consequently, suppliers are producing less of it. 
A)  supply curve has shifted to the left. 
B)  supply curve has shifted to the right. 
C)  price of the product has risen, and consequently, suppliers are producing more of it. 
D)  price of the product has fallen, and consequently, suppliers are producing less of it.

Question 7

According to the law of demand, if the price of a good increases, other things being equal, the quantity demanded will decrease.

Accepted Answer

A) True 
 B)False

Question 8

A market demand curve:

Accepted Answer

A)  is the sum of the demand curves of all the individuals in a particular market. 
B)  is determined by the demand of those who purchase in quantity. 
C)  is always horizontal. 
D)  cannot be estimated. 
E)  never includes demand by the government. 
A)  is the sum of the demand curves of all the individuals in a particular market. 
B)  is determined by the demand of those who purchase in quantity. 
C)  is always horizontal. 
D)  cannot be estimated. 
E)  never includes demand by the government.

Question 9

The negative slope of the demand curve reflects the:

Accepted Answer

A)  positive relationship between price and quantity. 
B)  proportional relationship between price and quantity. 
C)  inverse relationship between price and quantity. 
D)  positive relationship between income and quantity. 
E)  inverse relationship between income and price. 
A)  positive relationship between price and quantity. 
B)  proportional relationship between price and quantity. 
C)  inverse relationship between price and quantity. 
D)  positive relationship between income and quantity. 
E)  inverse relationship between income and price.

Question 10

Which of the following would cause a shift in the demand curve for a good?

Accepted Answer

A)  An increase in consumers' income. 
B)  A decrease in the number of consumers. 
C)  The expectation that the price of a good will increase in the future. 
D)  All of these. 
A)  An increase in consumers' income. 
B)  A decrease in the number of consumers. 
C)  The expectation that the price of a good will increase in the future. 
D)  All of these.

Question 11

If an individual's income increases, then the demand for a normal good will:

Accepted Answer

A)  decrease. 
B)  increase. 
C)  remain constant. 
D)  rotate. 
E)  fall to zero. 
A)  decrease. 
B)  increase. 
C)  remain constant. 
D)  rotate. 
E)  fall to zero.

Question 12

​ At any price below the equilibrium price, the:

Accepted Answer

A)  ​demand is greater than supply. 
B)  ​supply is greater than demand. 
C)  quantity demanded is greater than quantity supplied. 
D)  ​quantity supplied is greater than quantity demanded. 
A)  ​demand is greater than supply. 
B)  ​supply is greater than demand. 
C)  quantity demanded is greater than quantity supplied. 
D)  ​quantity supplied is greater than quantity demanded.

Question 13

Deadweight loss is the result of:

Accepted Answer

A)  disequilibrium. 
B)  underproduction. 
C)  overproduction. 
D)  all of these are correct. 
A)  disequilibrium. 
B)  underproduction. 
C)  overproduction. 
D)  all of these are correct.

Question 14

Consumer surplus is the:

Accepted Answer

A)  number of consumers who are excluded from a market because of scarcity. 
B)  amount of a good that consumers will buy at a price below the equilibrium price. 
C)  amount consumers are willing to pay for a good minus the amount the consumers actually pay for it. 
D)  amount consumers are willing to pay for a good minus the cost of producing the good. 
A)  number of consumers who are excluded from a market because of scarcity. 
B)  amount of a good that consumers will buy at a price below the equilibrium price. 
C)  amount consumers are willing to pay for a good minus the amount the consumers actually pay for it. 
D)  amount consumers are willing to pay for a good minus the cost of producing the good.

Question 15

If a vacation in Paris is a normal good, other things being equal, an increase in consumer income will increase the demand for travel to Paris. ​

Accepted Answer

A) True 
 B)False

Question 16

​Surpluses cause prices to rise while shortages cause prices to fall.

Accepted Answer

A) True 
 B)False

Question 17

Suppose Sue's buys a good for $60 on eBay. If the consumer surplus from the sale is $25, Sue would have been willing to pay:

Accepted Answer

A)  $35. 
B)  $25. 
C)  $60. 
D)  $85. 
A)  $35. 
B)  $25. 
C)  $60. 
D)  $85.

Question 18

The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the

Accepted Answer

A)  supply curve. 
B)  demand curve. 
C)  production possibilities curve. 
D)  consumption curve. 
A)  supply curve. 
B)  demand curve. 
C)  production possibilities curve. 
D)  consumption curve.

Question 19

At $30 each, Jack will buy 1 Blu-ray and at $25, he will purchase 2. If the price is $20, Jack's consumer surplus is:

Accepted Answer

A)  $10. 
B)  $15. 
C)  $20. 
D)  $25. 
A)  $10. 
B)  $15. 
C)  $20. 
D)  $25.

Question 20

Using supply and demand curve analysis, the triangular area above the equilibrium price and under the demand curve is:

Accepted Answer

A)  consumer surplus. 
B)  producer surplus. 
C)  marginal cost. 
D)  deadweight loss. 
A)  consumer surplus. 
B)  producer surplus. 
C)  marginal cost. 
D)  deadweight loss.

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-1, if the market is in equilibrium, then ____ represents producer surplus.

Which of the following events would increase the supply of tomatoes?

An increase in the quantity demanded of a good is most often due to:

An increase in demand is reflected as a rightward (outward) shift of the demand curve and is caused by an increase in price.

"Because of unseasonable cold weather, much of the peach crop has been destroyed." This statement indicates that the:

When economists say the quantity supplied of a product has increased, they mean the:

According to the law of demand, if the price of a good increases, other things being equal, the quantity demanded will decrease.

A market demand curve:

The negative slope of the demand curve reflects the:

Which of the following would cause a shift in the demand curve for a good?

If an individual's income increases, then the demand for a normal good will:

At any price below the equilibrium price, the:

Deadweight loss is the result of:

Consumer surplus is the:

If a vacation in Paris is a normal good, other things being equal, an increase in consumer income will increase the demand for travel to Paris.

Surpluses cause prices to rise while shortages cause prices to fall.

Suppose Sue's buys a good for $60 on eBay. If the consumer surplus from the sale is $25, Sue would have been willing to pay:

The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the

At $30 each, Jack will buy 1 Blu-ray and at $25, he will purchase 2. If the price is $20, Jack's consumer surplus is:

Using supply and demand curve analysis, the triangular area above the equilibrium price and under the demand curve is:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exam 3: Market Demand and Supply

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-1, if the market is in equilibrium, then ____ represents producer surplus.

Which of the following events would increase the supply of tomatoes?

An increase in the quantity demanded of a good is most often due to:

An increase in demand is reflected as a rightward (outward) shift of the demand curve and is caused by an increase in price.

"Because of unseasonable cold weather, much of the peach crop has been destroyed." This statement indicates that the:

When economists say the quantity supplied of a product has increased, they mean the:

According to the law of demand, if the price of a good increases, other things being equal, the quantity demanded will decrease.

A market demand curve:

The negative slope of the demand curve reflects the:

Which of the following would cause a shift in the demand curve for a good?

If an individual's income increases, then the demand for a normal good will:

​ At any price below the equilibrium price, the:

Deadweight loss is the result of:

Consumer surplus is the:

If a vacation in Paris is a normal good, other things being equal, an increase in consumer income will increase the demand for travel to Paris. ​

​Surpluses cause prices to rise while shortages cause prices to fall.

Suppose Sue's buys a good for $60 on eBay. If the consumer surplus from the sale is $25, Sue would have been willing to pay:

The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the

At $30 each, Jack will buy 1 Blu-ray and at $25, he will purchase 2. If the price is $20, Jack's consumer surplus is:

Using supply and demand curve analysis, the triangular area above the equilibrium price and under the demand curve is:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

At any price below the equilibrium price, the:

If a vacation in Paris is a normal good, other things being equal, an increase in consumer income will increase the demand for travel to Paris.

Surpluses cause prices to rise while shortages cause prices to fall.