Question 1

Which of the following events must result in a higher price in the market for cigars?

Accepted Answer

A) Demand for cigars increases, and supply of cigars decreases. 
B) Demand for cigars and supply of cigars both decrease. 
C) Demand for cigars decreases, and supply of cigars increases. 
D) Demand for cigars and supply of cigars both increase 
A) Demand for cigars increases, and supply of cigars decreases. 
B) Demand for cigars and supply of cigars both decrease. 
C) Demand for cigars decreases, and supply of cigars increases. 
D) Demand for cigars and supply of cigars both increase

Question 2

The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

Accepted Answer

A) True 
 B)False

Question 3

In a market, to find the total amount supplied at a particular price, we must

Accepted Answer

A) sum the quantities that individual firms are willing and able to supply at that price. 
B) calculate the average of the quantities that individual firms are willing and able to supply at that price. 
C) sum the costs that individual firms incur to supply the product at that price. 
D) account for all determinants of demand. 
A) sum the quantities that individual firms are willing and able to supply at that price. 
B) calculate the average of the quantities that individual firms are willing and able to supply at that price. 
C) sum the costs that individual firms incur to supply the product at that price. 
D) account for all determinants of demand.

Question 4

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Accepted Answer

A) a smaller quantity of labor to be used. 
B) the supply of cars to increase. 
C) the firms' costs to fall. 
D) individual car manufacturers to move up and to the right along their individual supply curves. 
A) a smaller quantity of labor to be used. 
B) the supply of cars to increase. 
C) the firms' costs to fall. 
D) individual car manufacturers to move up and to the right along their individual supply curves.

Question 5

A surplus exists in a market if

Accepted Answer

A) there is an excess demand for the good. 
B) quantity demanded exceeds quantity supplied. 
C) the current price is above its equilibrium price. 
D) All of the above are correct. 
A) there is an excess demand for the good. 
B) quantity demanded exceeds quantity supplied. 
C) the current price is above its equilibrium price. 
D) All of the above are correct.

Question 6

An example of a perfectly competitive market would be the market for

Accepted Answer

A) electricity. 
B) soybeans. 
C) coffee shops. 
D) restaurants. 
A) electricity. 
B) soybeans. 
C) coffee shops. 
D) restaurants.

Question 7

Table 4-2  
-Refer to Table 4-2. Whose demand does not obey the law of demand?

Accepted Answer

A) Abby's 
B) Brandi's 
C) Carrie's 
D) DeeDee's 
A) Abby's 
B) Brandi's 
C) Carrie's 
D) DeeDee's

Question 8

If the supply of a product decreases, then we would expect equilibrium price

Accepted Answer

A) to increase and equilibrium quantity to decrease. 
B) to decrease and equilibrium quantity to increase. 
C) and equilibrium quantity to both increase. 
D) and equilibrium quantity to both decrease. 
A) to increase and equilibrium quantity to decrease. 
B) to decrease and equilibrium quantity to increase. 
C) and equilibrium quantity to both increase. 
D) and equilibrium quantity to both decrease.

Question 9

An increase in quantity supplied

Accepted Answer

A) results in a movement downward and to the left along a fixed supply curve. 
B) results in a movement upward and to the right along a fixed supply curve. 
C) shifts the supply curve to the left. 
D) shifts the supply curve to the right. 
A) results in a movement downward and to the left along a fixed supply curve. 
B) results in a movement upward and to the right along a fixed supply curve. 
C) shifts the supply curve to the left. 
D) shifts the supply curve to the right.

Question 10

Table 4-2  
-Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

Accepted Answer

A) 4 units. 
B) 6 units. 
C) 24 units. 
D) 32 units. 
A) 4 units. 
B) 6 units. 
C) 24 units. 
D) 32 units.

Question 11

Figure 4-31
Consider the market for 2-packs of light bulbs below.
​  
-Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a

Question 12

Figure 4-2    
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

Accepted Answer

A) 0 units. 
B) 2 units. 
C) 4 units. 
D) 6 units. 
A) 0 units. 
B) 2 units. 
C) 4 units. 
D) 6 units.

Question 13

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous.

Accepted Answer

A) True 
 B)False

Question 14

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Accepted Answer

A) True 
 B)False

Question 15

Figure 4-27
Panel (a)
Panel (b)     Panel (c)
Panel (d)    
-Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?

Accepted Answer

A) Panel (a) 
B) Panel (b) 
C) Panel (c) 
D) Panel (d) 
A) Panel (a) 
B) Panel (b) 
C) Panel (c) 
D) Panel (d)

Question 16

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Accepted Answer

A) True 
 B)False

Question 17

An increase in the price of ink will shift the supply curve for pens to the left.

Accepted Answer

A) True 
 B)False

Question 18

If a decrease in income increases the demand for a good, then the good is a(n)

Accepted Answer

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

Question 19

Each of the following is a determinant of demand except

Accepted Answer

A) tastes. 
B) production technology. 
C) expectations. 
D) the prices of related goods. 
A) tastes. 
B) production technology. 
C) expectations. 
D) the prices of related goods.

Question 20

Which of the following is not an example of a market?

Accepted Answer

A) A small town has only one seller of electricity. 
B) In the United States, a sick person cannot legally purchase a kidney. 
C) In Florida, there are many buyers and sellers of key lime pie. 
D) The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities. 
A) A small town has only one seller of electricity. 
B) In the United States, a sick person cannot legally purchase a kidney. 
C) In Florida, there are many buyers and sellers of key lime pie. 
D) The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.

Exam 4: The Market Forces of Supply and Demand

Which of the following events must result in a higher price in the market for cigars?

The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

In a market, to find the total amount supplied at a particular price, we must

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

A surplus exists in a market if

An example of a perfectly competitive market would be the market for

Table 4-2 -Refer to Table 4-2. Whose demand does not obey the law of demand?

If the supply of a product decreases, then we would expect equilibrium price

An increase in quantity supplied

Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

Figure 4-31 Consider the market for 2-packs of light bulbs below. ​ -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous.

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

An increase in the price of ink will shift the supply curve for pens to the left.

If a decrease in income increases the demand for a good, then the good is a(n)

Each of the following is a determinant of demand except

Which of the following is not an example of a market?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?