Question 1

-Using the above figure, suppose that roses are a normal good. If there is an increase in income

Accepted Answer

A)  the equilibrium price will rise above $25 per dozen roses. 
B)  the equilibrium quantity will decrease below 10 dozen roses. 
C)  we cannot predict what will happen to the equilibrium price. 
D)  we cannot predict what will happen to the equilibrium quantity. 
A)  the equilibrium price will rise above $25 per dozen roses. 
B)  the equilibrium quantity will decrease below 10 dozen roses. 
C)  we cannot predict what will happen to the equilibrium price. 
D)  we cannot predict what will happen to the equilibrium quantity.

Question 2

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 3

-The above table gives the demand and supply schedules for cat food. If the price is $3.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?

Accepted Answer

At a price of $3.00 per pound

Question 4

An increase in the price of the cheese used to produce pizza shifts the supply curve of pizza ________ and shifts the demand curve for pizza ________.

Accepted Answer

A)  rightward; leftward 
B)  leftward; leftward 
C)  leftward; not at all 
D)  not at all; leftward 
A)  rightward; leftward 
B)  leftward; leftward 
C)  leftward; not at all 
D)  not at all; leftward

Question 5

If the money price of wheat increases and no other prices change, the

Accepted Answer

A)  relative price of wheat falls. 
B)  opportunity cost of wheat rises. 
C)  demand for wheat increases. 
D)  relative price of wheat is unaffected. 
A)  relative price of wheat falls. 
B)  opportunity cost of wheat rises. 
C)  demand for wheat increases. 
D)  relative price of wheat is unaffected.

Question 6

If a producer can use resources to produce either good A or good B, then A and B are

Accepted Answer

A)  complements in production. 
B)  substitutes in production. 
C)  substitutes in consumption. 
D)  complements in consumption. 
A)  complements in production. 
B)  substitutes in production. 
C)  substitutes in consumption. 
D)  complements in consumption.

Question 7

Which of the following shifts the supply curve for gasoline rightward?

Accepted Answer

A)  a situation in which the quantity demanded exceeds the quantity supplied 
B)  an increase in the price of gasoline 
C)  a decrease in the price of a resource used to produce gasoline, such as crude oil 
D)  an increase in the demand for gas-guzzling, sport utility vehicles 
A)  a situation in which the quantity demanded exceeds the quantity supplied 
B)  an increase in the price of gasoline 
C)  a decrease in the price of a resource used to produce gasoline, such as crude oil 
D)  an increase in the demand for gas-guzzling, sport utility vehicles

Question 8

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

Accepted Answer

A)  X and Y are complements. 
B)  X and Y both normal goods. 
C)  X is an inferior good and Y is a normal good. 
D)  X is a normal good and Y is an inferior good. 
A)  X and Y are complements. 
B)  X and Y both normal goods. 
C)  X is an inferior good and Y is a normal good. 
D)  X is a normal good and Y is an inferior good.

Question 9

The quantity of CDs that firms plan to sell this month depends on all of the following except the

Accepted Answer

A)  number of producers of CDs. 
B)  quantity of CDs that people plan to buy. 
C)  wage rate of workers who produce CDs. 
D)  price of a CD. 
A)  number of producers of CDs. 
B)  quantity of CDs that people plan to buy. 
C)  wage rate of workers who produce CDs. 
D)  price of a CD.

Question 10

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 11

Beef and leather belts are complements in production. If people's concern about health shifts the demand curve for beef leftward, the result in the market for leather belts will be a

Accepted Answer

A)  lower equilibrium price for a leather belt because there is an increase in the supply of leather belts. 
B)  lower equilibrium price for a leather belt because there is a decrease in the supply of leather belts. 
C)  higher equilibrium price for a leather belt because there is a decrease in the supply of leather belts. 
D)  higher equilibrium price for a leather belt because there is an increase in the supply of leather belts. 
A)  lower equilibrium price for a leather belt because there is an increase in the supply of leather belts. 
B)  lower equilibrium price for a leather belt because there is a decrease in the supply of leather belts. 
C)  higher equilibrium price for a leather belt because there is a decrease in the supply of leather belts. 
D)  higher equilibrium price for a leather belt because there is an increase in the supply of leather belts.

Question 12

Which of the following increases the demand for a normal good?

Accepted Answer

A)  a decrease in income 
B)  a decrease in the price of a substitute 
C)  an increase in the price of a complement 
D)  the price of the good is expected to increase in the future 
A)  a decrease in income 
B)  a decrease in the price of a substitute 
C)  an increase in the price of a complement 
D)  the price of the good is expected to increase in the future

Question 13

A surplus occurs when the price is

Accepted Answer

A)  less than the equilibrium price. 
B)  equal to the equilibrium price. 
C)  greater than the equilibrium price. 
D)  None of the above because the existence of a surplus is independent of the price of the good. 
A)  less than the equilibrium price. 
B)  equal to the equilibrium price. 
C)  greater than the equilibrium price. 
D)  None of the above because the existence of a surplus is independent of the price of the good.

Question 14

-The above figure shows the market for hamburger. Which panel shows the effect of a new excise tax on all beef products?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 15

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 16

Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank DVD will lead to

Accepted Answer

A)  an increase in the supply of prerecorded DVDs. 
B)  a decrease in the supply of prerecorded DVDs. 
C)  an increase in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs. 
D)  a decrease in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs. 
A)  an increase in the supply of prerecorded DVDs. 
B)  a decrease in the supply of prerecorded DVDs. 
C)  an increase in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs. 
D)  a decrease in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.

Question 17

Homer changes jobs and his new job pays him a higher income. Before he changed jobs, Homer purchased 3 pounds of tuna and 2 pounds of chicken. After he changed jobs, Homer now purchases 2 pounds of tuna and 3 pounds of chicken. For Homer

Accepted Answer

A)  tuna is a normal good and chicken is an inferior good. 
B)  tuna is an inferior good and chicken is a normal good. 
C)  both tuna and chicken are normal goods. 
D)  both tuna and chicken are inferior goods. 
A)  tuna is a normal good and chicken is an inferior good. 
B)  tuna is an inferior good and chicken is a normal good. 
C)  both tuna and chicken are normal goods. 
D)  both tuna and chicken are inferior goods.

Question 18

Which of the following decreases the supply of popcorn?

Accepted Answer

A)  a decrease in the price of popcorn 
B)  an increase in the price of popcorn 
C)  a technological advance in the production of popcorn 
D)  a decrease in the number of popcorn producers 
A)  a decrease in the price of popcorn 
B)  an increase in the price of popcorn 
C)  a technological advance in the production of popcorn 
D)  a decrease in the number of popcorn producers

Question 19

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

Accepted Answer

A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C 
A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C

Question 20

What is the difference between a money price and a relative price? When the demand and supply model predicts that the price of coffee will rise, is the model predicting that the money price rises or the relative price rises?

Accepted Answer

The money price of a good is the number

-Using the above figure, suppose that roses are a normal good. If there is an increase in income

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?

An increase in the price of the cheese used to produce pizza shifts the supply curve of pizza and shifts the demand curve for pizza .

If the money price of wheat increases and no other prices change, the

If a producer can use resources to produce either good A or good B, then A and B are

Which of the following shifts the supply curve for gasoline rightward?

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

The quantity of CDs that firms plan to sell this month depends on all of the following except the

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?

Beef and leather belts are complements in production. If people's concern about health shifts the demand curve for beef leftward, the result in the market for leather belts will be a

Which of the following increases the demand for a normal good?

A surplus occurs when the price is

-The above figure shows the market for hamburger. Which panel shows the effect of a new excise tax on all beef products?

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank DVD will lead to

Homer changes jobs and his new job pays him a higher income. Before he changed jobs, Homer purchased 3 pounds of tuna and 2 pounds of chicken. After he changed jobs, Homer now purchases 2 pounds of tuna and 3 pounds of chicken. For Homer

Which of the following decreases the supply of popcorn?

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

What is the difference between a money price and a relative price? When the demand and supply model predicts that the price of coffee will rise, is the model predicting that the money price rises or the relative price rises?

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

-Using the above figure, suppose that roses are a normal good. If there is an increase in income

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?

An increase in the price of the cheese used to produce pizza shifts the supply curve of pizza ________ and shifts the demand curve for pizza ________.

If the money price of wheat increases and no other prices change, the

If a producer can use resources to produce either good A or good B, then A and B are

Which of the following shifts the supply curve for gasoline rightward?

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

The quantity of CDs that firms plan to sell this month depends on all of the following except the

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?

Beef and leather belts are complements in production. If people's concern about health shifts the demand curve for beef leftward, the result in the market for leather belts will be a

Which of the following increases the demand for a normal good?

A surplus occurs when the price is

-The above figure shows the market for hamburger. Which panel shows the effect of a new excise tax on all beef products?

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank DVD will lead to

Homer changes jobs and his new job pays him a higher income. Before he changed jobs, Homer purchased 3 pounds of tuna and 2 pounds of chicken. After he changed jobs, Homer now purchases 2 pounds of tuna and 3 pounds of chicken. For Homer

Which of the following decreases the supply of popcorn?

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

What is the difference between a money price and a relative price? When the demand and supply model predicts that the price of coffee will rise, is the model predicting that the money price rises or the relative price rises?

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

An increase in the price of the cheese used to produce pizza shifts the supply curve of pizza and shifts the demand curve for pizza .