Question 1

Suppose the United States had a short-term shortage of farmers.Which mechanisms would adjust to remove the shortage?

Accepted Answer

A)  The government would provide tax incentives to encourage people to become farmers. 
B)  The government would subsidize the production of food. 
C)  The prices of food and the wages of farmers would adjust. 
D)  There are no mechanisms to remove the shortage. 
A)  The government would provide tax incentives to encourage people to become farmers. 
B)  The government would subsidize the production of food. 
C)  The prices of food and the wages of farmers would adjust. 
D)  There are no mechanisms to remove the shortage.

Question 2

Figure 4-9
  
-Refer to Figure 4-9.The movement from point A to point B on the graph is caused by

Accepted Answer

A)  a decrease in the price of the good. 
B)  an increase in the price of the good. 
C)  an advance in production technology. 
D)  a decrease in input prices. 
A)  a decrease in the price of the good. 
B)  an increase in the price of the good. 
C)  an advance in production technology. 
D)  a decrease in input prices.

Question 3

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

Accepted Answer

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

Question 4

Table 4-3
  
-Refer to Table 4-3.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Accepted Answer

A)  decreases by 1.75 units. 
B)  increases by 2 units. 
C)  decreases by 7 units. 
D)  decreases by 24 units. 
A)  decreases by 1.75 units. 
B)  increases by 2 units. 
C)  decreases by 7 units. 
D)  decreases by 24 units.

Question 5

Figure 4-8
  
-Refer to Figure 4-8.The movement from Point A to Point B represents a(n)

Accepted Answer

A)  increase in the price. 
B)  decrease in the quantity supplied. 
C)  shift in the supply curve. 
D)  Both a) and b) are correct. 
A)  increase in the price. 
B)  decrease in the quantity supplied. 
C)  shift in the supply curve. 
D)  Both a) and b) are correct.

Question 6

Figure 4-21
  
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

Accepted Answer

A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D 
A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D

Question 7

Fill in the table below,showing whether equilibrium price and equilibrium quantity go up,go down,stay the same,or change ambiguously.

Accepted Answer

The answer of Fill in the table below,showing whether equilibrium...

Question 8

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Accepted Answer

A) True 
 B)False

Question 9

Figure 4-22

-Refer to Figure 4-22.Which of the four panels illustrates a decrease in quantity supplied?

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 10

Consider the market for new DVDs.If DVD players became cheaper,buyers expected DVD prices to fall next year,used DVDs became more expensive,and DVD production technology improved,then the equilibrium price of a new DVD would

Accepted Answer

A)  rise. 
B)  fall. 
C)  stay the same. 
D)  could rise, fall, or remain unchanged. 
A)  rise. 
B)  fall. 
C)  stay the same. 
D)  could rise, fall, or remain unchanged.

Question 11

Figure 4-17
  
-Refer to Figure 4-17.If the price is $10,then there would be a

Accepted Answer

A)  shortage of 400 units, and price would rise. 
B)  surplus of 400 units, and price would rise. 
C)  shortage of 600 units, and price would rise. 
D)  surplus of 600 units, and price would rise. 
A)  shortage of 400 units, and price would rise. 
B)  surplus of 400 units, and price would rise. 
C)  shortage of 600 units, and price would rise. 
D)  surplus of 600 units, and price would rise.

Question 12

If the demand for a good falls when income falls,then the good is called an inferior good.

Accepted Answer

A) True 
 B)False

Question 13

The equilibrium price is the same as the market-clearing price.

Accepted Answer

A) True 
 B)False

Question 14

Saddle shoes are not popular right now,so very few are being produced.If saddle shoes become popular,then how will this affect the market for saddle shoes?

Accepted Answer

A)  The supply curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity. 
B)  The supply curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity. 
C)  The demand curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity. 
D)  The demand curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity. 
A)  The supply curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity. 
B)  The supply curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity. 
C)  The demand curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity. 
D)  The demand curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity.

Question 15

The market demand curve

Accepted Answer

A)  is the sum of all individual demand curves. 
B)  is the demand curve for every product in an industry. 
C)  shows the average quantity demanded by individual demanders at each price. 
D)  is always flatter than an individual demand curve. 
A)  is the sum of all individual demand curves. 
B)  is the demand curve for every product in an industry. 
C)  shows the average quantity demanded by individual demanders at each price. 
D)  is always flatter than an individual demand curve.

Question 16

Years ago,thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall.This behavior indicates

Accepted Answer

A)  the ticket price was above the equilibrium price. 
B)  the ticket price was below the equilibrium price. 
C)  the ticket price was at the equilibrium price. 
D)  nothing about the equilibrium price. 
A)  the ticket price was above the equilibrium price. 
B)  the ticket price was below the equilibrium price. 
C)  the ticket price was at the equilibrium price. 
D)  nothing about the equilibrium price.

Question 17

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Accepted Answer

A)  price-quantity schedule. 
B)  buyer schedule. 
C)  demand schedule. 
D)  demand curve. 
A)  price-quantity schedule. 
B)  buyer schedule. 
C)  demand schedule. 
D)  demand curve.

Question 18

Table 4-8
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows:
  
-Refer to Table 4-8.If only members are allowed to purchase tickets to this year's celebrity golf tournament,then what will be the equilibrium price?

Accepted Answer

A)  $10 
B)  $15 
C)  $20 
D)  $25 
A)  $10 
B)  $15 
C)  $20 
D)  $25

Question 19

If American cheese and cheddar cheese are substitutes,then which of the following would increase the demand for cheddar cheese?

Accepted Answer

A)  a decrease in the price of cheddar cheese 
B)  an increase in the price of American cheese 
C)  a decrease in the price of American cheese 
D)  Both b and c are correct. 
A)  a decrease in the price of cheddar cheese 
B)  an increase in the price of American cheese 
C)  a decrease in the price of American cheese 
D)  Both b and c are correct.

Question 20

Figure 4-13
  
-Refer to Figure 4-13.The shift from S to S' is called a(n)

Accepted Answer

A)  decrease in supply. 
B)  decrease in quantity supplied. 
C)  increase in supply. 
D)  increase in quantity supplied. 
A)  decrease in supply. 
B)  decrease in quantity supplied. 
C)  increase in supply. 
D)  increase in quantity supplied.

Exam 4: The Market Forces of Supply and Demand.

Suppose the United States had a short-term shortage of farmers.Which mechanisms would adjust to remove the shortage?

Figure 4-9 -Refer to Figure 4-9.The movement from point A to point B on the graph is caused by

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

Table 4-3 -Refer to Table 4-3.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Figure 4-8 -Refer to Figure 4-8.The movement from Point A to Point B represents a(n)

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

Fill in the table below,showing whether equilibrium price and equilibrium quantity go up,go down,stay the same,or change ambiguously.

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Figure 4-22 -Refer to Figure 4-22.Which of the four panels illustrates a decrease in quantity supplied?

Consider the market for new DVDs.If DVD players became cheaper,buyers expected DVD prices to fall next year,used DVDs became more expensive,and DVD production technology improved,then the equilibrium price of a new DVD would

Figure 4-17 -Refer to Figure 4-17.If the price is $10,then there would be a

If the demand for a good falls when income falls,then the good is called an inferior good.

The equilibrium price is the same as the market-clearing price.

Saddle shoes are not popular right now,so very few are being produced.If saddle shoes become popular,then how will this affect the market for saddle shoes?

The market demand curve

Years ago,thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall.This behavior indicates

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

If American cheese and cheddar cheese are substitutes,then which of the following would increase the demand for cheddar cheese?

Figure 4-13 -Refer to Figure 4-13.The shift from S to S' is called a(n)

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.

Application: 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 Market For the Factors of Production.

Earnings and Discrimination.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

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