Question 1

Exhibit 3-1
  
-Refer to Exhibit 3-1. At a price of $2 there is a

Accepted Answer

A) shortage of 100 units. 
B) shortage of 200 units. 
C) shortage of 150 units. 
D) surplus of 200 units.. 
E) surplus of 150 units. 
A) shortage of 100 units. 
B) shortage of 200 units. 
C) shortage of 150 units. 
D) surplus of 200 units.. 
E) surplus of 150 units. B

Question 2

Exhibit 3-17
  
-Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is ____________ than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon ______________. This would push the price __________ the equilibrium price.

Accepted Answer

A) greater; fall; toward 
B) greater; rise; toward 
C) less; fall; toward 
D) less; rise; away from 
E) greater; rise; away from 
A) greater; fall; toward 
B) greater; rise; toward 
C) less; fall; toward 
D) less; rise; away from 
E) greater; rise; away from B

Question 3

Exhibit 3-8
  
-Refer to Exhibit 3-8. A price of $5 will result in a ___________________ in this market which will cause the price of the product to gravitate _______________.

Accepted Answer

A) shortage; downward 
B) shortage; upward 
C) surplus; downward 
D) surplus; upward 
A) shortage; downward 
B) shortage; upward 
C) surplus; downward 
D) surplus; upward C

Question 4

As long as the maximum buying price of a good is less than the minimum selling price of that good, an exchange will occur.

Accepted Answer

A) True 
 B)False

Question 5

An increase in the number of buyers in a particular market for a good will result in a ___________________ for that good.

Accepted Answer

A) movement up along the demand curve 
B) movement down along the demand curve 
C) leftward shift in the demand curve 
D) rightward shift in the demand curve 
A) movement up along the demand curve 
B) movement down along the demand curve 
C) leftward shift in the demand curve 
D) rightward shift in the demand curve

Question 6

An increase in the number of sellers of a good will __________________ for that good, ceteris paribus.

Accepted Answer

A) increase equilibrium price and quantity 
B) increase equilibrium price and decrease equilibrium quantity 
C) decrease equilibrium price and increase equilibrium quantity 
D) decrease equilibrium price and quantity 
E) increase demand 
A) increase equilibrium price and quantity 
B) increase equilibrium price and decrease equilibrium quantity 
C) decrease equilibrium price and increase equilibrium quantity 
D) decrease equilibrium price and quantity 
E) increase demand

Question 7

Exhibit 3-16
  
-Refer to Exhibit 3-16. If there are empty seats for a basketball game at the price P*, the situation is best depicted on graph

Accepted Answer

A) (1), with P* = P1. 
B) (2), with P* = P3. 
C) (3), with P* = P2. 
D) (3), with P* = P3. 
E) (4), with P* = P1. 
A) (1), with P* = P1. 
B) (2), with P* = P3. 
C) (3), with P* = P2. 
D) (3), with P* = P3. 
E) (4), with P* = P1.

Question 8

Exhibit 3-11
  
-Refer to Exhibit 3-11. Fill in blanks (C) and (D) respectively with "Exchange" or "No Exchange"to indicate whether or not exchange would take place at the given prices.

Accepted Answer

A) Exchange; Exchange 
B) Exchange; No Exchange 
C) No Exchange; Exchange 
D) No Exchange; No Exchange 
A) Exchange; Exchange 
B) Exchange; No Exchange 
C) No Exchange; Exchange 
D) No Exchange; No Exchange

Question 9

Assume that computers and software are complements. If the ____________ computers decreases, the price of computers will _______ and the demand for software will _____________, ceteris paribus.

Accepted Answer

A) supply of; rise; decrease 
B) demand for; rise; decrease 
C) demand for; fall; increase 
D) demand for; rise; increase 
E) supply of; fall, increase 
A) supply of; rise; decrease 
B) demand for; rise; decrease 
C) demand for; fall; increase 
D) demand for; rise; increase 
E) supply of; fall, increase

Question 10

On a supply-and-demand diagram, quantity demanded equals quantity supplied

Accepted Answer

A) only at the single equilibrium price. 
B) at every price at or above the equilibrium price. 
C) at every price at or below the equilibrium price. 
D) at every price. 
A) only at the single equilibrium price. 
B) at every price at or above the equilibrium price. 
C) at every price at or below the equilibrium price. 
D) at every price.

Question 11

What is the definition of producers' surplus?

Accepted Answer

A) price received minus maximum selling price 
B) maximum selling price minus price received 
C) price received minus minimum selling price 
D) highest price minus lowest price 
E) none of the above 
A) price received minus maximum selling price 
B) maximum selling price minus price received 
C) price received minus minimum selling price 
D) highest price minus lowest price 
E) none of the above

Question 12

In moving along a demand curve, everything is held constant except buyers' income.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that for a given good, demand decreases and supply decreases at the same time. If demand decreases by a greater amount than supply decreases, then equilibrium price __________ and equilibrium quantity __________ for that good.

Accepted Answer

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

Question 14

A change in price will lead to a change in __________ and to a change in __________, while a change in preferences will lead to a change in __________ and a change in the prices of relevant resources will lead to a change in __________.

Accepted Answer

A) quantity supplied; demand; income; supply 
B) demand; quantity supplied; supply; quantity demanded 
C) quantity supplied; supply; quantity supplied; demand 
D) quantity supplied; quantity demanded; demand; supply 
E) quantity supplied; quantity demanded; supply; demand 
A) quantity supplied; demand; income; supply 
B) demand; quantity supplied; supply; quantity demanded 
C) quantity supplied; supply; quantity supplied; demand 
D) quantity supplied; quantity demanded; demand; supply 
E) quantity supplied; quantity demanded; supply; demand

Question 15

Resource X is necessary to the production of good Y. If the price of resource X rises,

Accepted Answer

A) the supply curve of Y shifts leftward. 
B) the supply curve of Y shifts rightward. 
C) the supply curve of Y is unaffected. 
D) there is a movement down the supply curve of Y. 
E) there is a movement up the supply curve of Y. 
A) the supply curve of Y shifts leftward. 
B) the supply curve of Y shifts rightward. 
C) the supply curve of Y is unaffected. 
D) there is a movement down the supply curve of Y. 
E) there is a movement up the supply curve of Y.

Question 16

Demand refers to

Accepted Answer

A) how much of a good people are willing and able to buy at a particular price. 
B) the different quantities of a good people are willing and able to buy at different prices. 
C) the different quantities of a good people are willing and able to buy at a particular price. 
D) how much of a good people are willing to buy at different prices. 
E) none of the above 
A) how much of a good people are willing and able to buy at a particular price. 
B) the different quantities of a good people are willing and able to buy at different prices. 
C) the different quantities of a good people are willing and able to buy at a particular price. 
D) how much of a good people are willing to buy at different prices. 
E) none of the above

Question 17

Which of the following pairs of goods would be most likely to be complements?

Accepted Answer

A) olive oil and vegetable oil 
B) peanuts and peanut butter 
C) airline tickets and rental cars 
D) hiking boots and tennis shoes 
E) all of the above 
A) olive oil and vegetable oil 
B) peanuts and peanut butter 
C) airline tickets and rental cars 
D) hiking boots and tennis shoes 
E) all of the above

Question 18

Exhibit 3-3
   Good Y
​
​
-Refer to Exhibit 3-3. A movement from point Z to point W would have been the result of

Accepted Answer

A) a reduction in the price of good Y. 
B) an increase in taxes paid by the producers of good Y. 
C) a decline in technology in the production of good Y. 
D) an increase in the number of buyers of good Y. 
A) a reduction in the price of good Y. 
B) an increase in taxes paid by the producers of good Y. 
C) a decline in technology in the production of good Y. 
D) an increase in the number of buyers of good Y.

Question 19

If a supply curve shifts rightward, this means

Accepted Answer

A) suppliers are willing and able to offer less of the good for sale at every price. 
B) suppliers are willing and able to offer more of the good for sale at every price. 
C) quantity supplied is greater at every price. 
D) suppliers are willing and able to offer more of the good for sale only at a particular price. 
E) b and c 
A) suppliers are willing and able to offer less of the good for sale at every price. 
B) suppliers are willing and able to offer more of the good for sale at every price. 
C) quantity supplied is greater at every price. 
D) suppliers are willing and able to offer more of the good for sale only at a particular price. 
E) b and c

Question 20

One reason that helps to explain the law of supply is the law of

Accepted Answer

A) diminishing marginal utility. 
B) diminishing marginal returns. 
C) decreasing opportunity costs. 
D) demand. 
A) diminishing marginal utility. 
B) diminishing marginal returns. 
C) decreasing opportunity costs. 
D) demand.

Exam 3: Supply and Demand Theory

Exhibit 3-1 -Refer to Exhibit 3-1. At a price of $2 there is a

Exhibit 3-8 -Refer to Exhibit 3-8. A price of $5 will result in a ___________________ in this market which will cause the price of the product to gravitate _______________.

As long as the maximum buying price of a good is less than the minimum selling price of that good, an exchange will occur.

An increase in the number of buyers in a particular market for a good will result in a ___________________ for that good.

An increase in the number of sellers of a good will __________________ for that good, ceteris paribus.

Exhibit 3-16 -Refer to Exhibit 3-16. If there are empty seats for a basketball game at the price P*, the situation is best depicted on graph

Exhibit 3-11 -Refer to Exhibit 3-11. Fill in blanks (C) and (D) respectively with "Exchange" or "No Exchange"to indicate whether or not exchange would take place at the given prices.

Assume that computers and software are complements. If the ____________ computers decreases, the price of computers will _______ and the demand for software will _____________, ceteris paribus.

On a supply-and-demand diagram, quantity demanded equals quantity supplied

What is the definition of producers' surplus?

In moving along a demand curve, everything is held constant except buyers' income.

Suppose that for a given good, demand decreases and supply decreases at the same time. If demand decreases by a greater amount than supply decreases, then equilibrium price __________ and equilibrium quantity __________ for that good.

A change in price will lead to a change in __________ and to a change in __________, while a change in preferences will lead to a change in __________ and a change in the prices of relevant resources will lead to a change in __________.

Resource X is necessary to the production of good Y. If the price of resource X rises,

Demand refers to

Which of the following pairs of goods would be most likely to be complements?

Exhibit 3-3 Good Y ​ ​ -Refer to Exhibit 3-3. A movement from point Z to point W would have been the result of

If a supply curve shifts rightward, this means

One reason that helps to explain the law of supply is the law of

What Economics Is About

Production Possibilities Frontier Framework

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part I Prices and Unemployment

Macroeconomic Measurements Part II Gdp and Real Gdp

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth Resources Technology Ideas and Institutions

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

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The Economic Case for and Against Government Five Topics Considered

Stocks Bonds Futures and Options

Filters

Exhibit 3-8 -Refer to Exhibit 3-8. A price of $5 will result in a _____ in this market which will cause the price of the product to gravitate _.

Assume that computers and software are complements. If the ________ computers decreases, the price of computers will _ and the demand for software will ___________, ceteris paribus.

Suppose that for a given good, demand decreases and supply decreases at the same time. If demand decreases by a greater amount than supply decreases, then equilibrium price and equilibrium quantity for that good.

A change in price will lead to a change in and to a change in , while a change in preferences will lead to a change in and a change in the prices of relevant resources will lead to a change in .

Exhibit 3-3 Good Y -Refer to Exhibit 3-3. A movement from point Z to point W would have been the result of