Question 1

A decrease in the price of digital cameras will

Accepted Answer

A) cause the demand curve for memory cards to become vertical. 
B) shift the demand curve for memory cards to the right. 
C) shift the demand curve for memory cards to the left. 
D) not affect the demand for memory cards. 
A) cause the demand curve for memory cards to become vertical. 
B) shift the demand curve for memory cards to the right. 
C) shift the demand curve for memory cards to the left. 
D) not affect the demand for memory cards.

Question 2

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the

Accepted Answer

A) demand curve for cigarettes rightward. 
B) demand curve for cigarettes leftward. 
C) supply curve for cigarettes rightward. 
D) supply curve for cigarettes leftward. 
A) demand curve for cigarettes rightward. 
B) demand curve for cigarettes leftward. 
C) supply curve for cigarettes rightward. 
D) supply curve for cigarettes leftward.

Question 3

Give three explanations for the law of demand.

Accepted Answer

Three explanations of the law

Question 4

A government tax per unit of output reduces supply.

Accepted Answer

A) True 
 B)False

Question 5

Refer to the table. If demand is represented by columns (3)and (1)and supply is represented by columns (3)and (4), equilibrium price and quantity will be

Accepted Answer

A) $7 and 40 units. 
B) $8 and 60 units. 
C) $7 and 50 units. 
D) $9 and 60 units. 
E) $7 and 30 units. 
A) $7 and 40 units. 
B) $8 and 60 units. 
C) $7 and 50 units. 
D) $9 and 60 units. 
E) $7 and 30 units.

Question 6

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Accepted Answer

A) Less rental housing is available, as prospective landlords find it unprofitable to rent at restricted prices. 
B) The quality of rental housing declines as landlords lack the funds and incentive to maintain properties. 
C) Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled. 
D) All of these choices are correct. 
A) Less rental housing is available, as prospective landlords find it unprofitable to rent at restricted prices. 
B) The quality of rental housing declines as landlords lack the funds and incentive to maintain properties. 
C) Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled. 
D) All of these choices are correct.

Question 7

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n)

Accepted Answer

A) increase in the demand for gasoline. 
B) decrease in the demand for gasoline. 
C) increase in the supply of gasoline. 
D) decrease in the supply of gasoline. 
A) increase in the demand for gasoline. 
B) decrease in the demand for gasoline. 
C) increase in the supply of gasoline. 
D) decrease in the supply of gasoline.

Question 8

Surge prices

Accepted Answer

A) create shortages of rides during peak demand times. 
B) increase both the demand for and supply of rides. 
C) result in surpluses in the ride market by generating too much supply. 
D) reflect greater anticipated demand and elicit greater quantity supplied of drivers. 
A) create shortages of rides during peak demand times. 
B) increase both the demand for and supply of rides. 
C) result in surpluses in the ride market by generating too much supply. 
D) reflect greater anticipated demand and elicit greater quantity supplied of drivers.

Question 9

An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate.

Accepted Answer

A) True 
 B)False

Question 10

Sue's Shoe Shop is having a sale on shoes. The first pair of shoes is full price, the second is 25 percent off, and the third is 50 percent off. Describe how this sale relates to individual demand and marginal utility.

Accepted Answer

The law of diminishing marginal utility

Question 11

A decrease in the price of multi-touch screens for electronic tablets will increase the supply of electronic tablets.

Accepted Answer

A) True 
 B)False

A decrease in the price of digital cameras will

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the

Give three explanations for the law of demand.

A government tax per unit of output reduces supply.

Refer to the table. If demand is represented by columns (3)and (1)and supply is represented by columns (3)and (4), equilibrium price and quantity will be

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n)

Surge prices

An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate.

Sue's Shoe Shop is having a sale on shoes. The first pair of shoes is full price, the second is 25 percent off, and the third is 50 percent off. Describe how this sale relates to individual demand and marginal utility.

A decrease in the price of multi-touch screens for electronic tablets will increase the supply of electronic tablets.

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters

Exam 3: Demand, Supply, and Market Equilibrium

A decrease in the price of digital cameras will

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the

Give three explanations for the law of demand.

A government tax per unit of output reduces supply.

Refer to the table. If demand is represented by columns (3)and (1)and supply is represented by columns (3)and (4), equilibrium price and quantity will be

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n)

Surge prices

An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate.

Sue's Shoe Shop is having a sale on shoes. The first pair of shoes is full price, the second is 25 percent off, and the third is 50 percent off. Describe how this sale relates to individual demand and marginal utility.

A decrease in the price of multi-touch screens for electronic tablets will increase the supply of electronic tablets.

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters