Question 1

In economics, the term "shortage" means that the quantity demanded is greater than the quantity supplied at the existing price.

Accepted Answer

A) True 
 B)False

Question 2

Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar rises, we would expect the:

Accepted Answer

A) demand for honey to increase. 
B) demand for honey to decrease. 
C) quantity demanded of honey to decrease. 
D) price of honey to decrease. 
E) quantity demanded of honey to increase. 
A) demand for honey to increase. 
B) demand for honey to decrease. 
C) quantity demanded of honey to decrease. 
D) price of honey to decrease. 
E) quantity demanded of honey to increase.

Question 3

When there is a shortage of a product in a market the:

Accepted Answer

A) price will fall. 
B) price must be below the equilibrium price. 
C) price must be above the equilibrium price. 
D) producers will reduce output and sales will fall. 
A) price will fall. 
B) price must be below the equilibrium price. 
C) price must be above the equilibrium price. 
D) producers will reduce output and sales will fall.

Question 4

If X is a normal good, a rise in consumer income will shift the:

Accepted Answer

A) demand curve for X to the right. 
B) demand curve for X to the left. 
C) supply curve for X to the right. 
D) supply curve for X to the left. 
A) demand curve for X to the right. 
B) demand curve for X to the left. 
C) supply curve for X to the right. 
D) supply curve for X to the left.

Question 5

An increase in the expected future price of a good will cause the current demand for the good to:

Accepted Answer

A) decrease, which is a shift to the left of the demand curve. 
B) decrease, which is a shift to the right of the demand curve. 
C) increase, which is a shift to the left of the demand curve. 
D) increase, which is a shift to the right of the demand curve. 
A) decrease, which is a shift to the left of the demand curve. 
B) decrease, which is a shift to the right of the demand curve. 
C) increase, which is a shift to the left of the demand curve. 
D) increase, which is a shift to the right of the demand curve.

Question 6

Assume that brand X is an inferior good and name brand Y is a normal good. An increase in consumer income, other things being equal, will cause a(n):

Accepted Answer

A) upward movement along the demand curve for name brand Y. 
B) downward movement along the demand curve for brand X. 
C) rightward shift in the demand curve for brand X. 
D) leftward shift in the demand curve for brand X. 
A) upward movement along the demand curve for name brand Y. 
B) downward movement along the demand curve for brand X. 
C) rightward shift in the demand curve for brand X. 
D) leftward shift in the demand curve for brand X.

Question 7

A supply schedule shows the relationship between:

Accepted Answer

A) demand and supply. 
B) supply and income. 
C) price and income. 
D) quantity supplied and price. 
E) income and quantity supplied. 
A) demand and supply. 
B) supply and income. 
C) price and income. 
D) quantity supplied and price. 
E) income and quantity supplied.

Question 8

If quantity demanded is greater than quantity supplied, then according to the market process:

Accepted Answer

A) an excess supply exists. 
B) the market is in equilibrium. 
C) the price will rise. 
D) the supply curve must be vertical. 
E) there will be no tendency for the situation to change. 
A) an excess supply exists. 
B) the market is in equilibrium. 
C) the price will rise. 
D) the supply curve must be vertical. 
E) there will be no tendency for the situation to change.

In economics, the term "shortage" means that the quantity demanded is greater than the quantity supplied at the existing price.

Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar rises, we would expect the:

When there is a shortage of a product in a market the:

If X is a normal good, a rise in consumer income will shift the:

An increase in the expected future price of a good will cause the current demand for the good to:

Assume that brand X is an inferior good and name brand Y is a normal good. An increase in consumer income, other things being equal, will cause a(n):

A supply schedule shows the relationship between:

If quantity demanded is greater than quantity supplied, then according to the market process:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Exam 3: Market Demand and Supply

In economics, the term "shortage" means that the quantity demanded is greater than the quantity supplied at the existing price.

Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar rises, we would expect the:

When there is a shortage of a product in a market the:

If X is a normal good, a rise in consumer income will shift the:

An increase in the expected future price of a good will cause the current demand for the good to:

Assume that brand X is an inferior good and name brand Y is a normal good. An increase in consumer income, other things being equal, will cause a(n):

A supply schedule shows the relationship between:

If quantity demanded is greater than quantity supplied, then according to the market process:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters