Question 1

Figure 4-15
  
-Refer to Figure 4-15.Equilibrium price and quantity are,respectively,

Accepted Answer

A)  $15 and 200 units. 
B)  $25 and 600 units. 
C)  $25 and 400 units. 
D)  $35 and 200 units. 
A)  $15 and 200 units. 
B)  $25 and 600 units. 
C)  $25 and 400 units. 
D)  $35 and 200 units.

Question 2

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 both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $20,then there will be

Accepted Answer

A)  a shortage of 300 tickets. 
B)  a surplus of 300 tickets. 
C)  300 tickets sold. 
D)  600 tickets unsold. 
A)  a shortage of 300 tickets. 
B)  a surplus of 300 tickets. 
C)  300 tickets sold. 
D)  600 tickets unsold.

Question 3

Which of the following might cause the demand curve for an inferior good to shift to the left?

Accepted Answer

A)  a decrease in income 
B)  an increase in the price of a substitute 
C)  an increase in the price of a complement 
D)  None of the above is correct. 
A)  a decrease in income 
B)  an increase in the price of a substitute 
C)  an increase in the price of a complement 
D)  None of the above is correct.

Question 4

The difference between a supply schedule and a supply curve is that a supply schedule

Accepted Answer

A)  incorporates demand and a supply curve does not. 
B)  incorporates profit and a supply curve does not. 
C)  can shift, but a supply curve cannot shift. 
D)  is a table, and a supply curve is drawn on a graph. 
A)  incorporates demand and a supply curve does not. 
B)  incorporates profit and a supply curve does not. 
C)  can shift, but a supply curve cannot shift. 
D)  is a table, and a supply curve is drawn on a graph.

Question 5

An example of a perfectly competitive market would be the

Accepted Answer

A)  cable TV market. 
B)  soybean market. 
C)  breakfast cereal market. 
D)  shampoo market. 
A)  cable TV market. 
B)  soybean market. 
C)  breakfast cereal market. 
D)  shampoo market.

Question 6

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand,they may put some of their current production into storage and supply less in the market today.

Accepted Answer

A) True 
 B)False

Question 7

A decrease in demand is represented by a

Accepted Answer

A)  movement downward and to the right along a demand curve. 
B)  movement upward and to the left along a demand curve. 
C)  rightward shift of a demand curve. 
D)  leftward shift of a demand curve. 
A)  movement downward and to the right along a demand curve. 
B)  movement upward and to the left along a demand curve. 
C)  rightward shift of a demand curve. 
D)  leftward shift of a demand curve.

Question 8

A movement downward and to the left along a supply curve is called a(n)

Accepted Answer

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

Question 9

Figure 4-18
  
-Refer to Figure 4-18.At a price of $12,there is a

Accepted Answer

A)  surplus of 1 unit. 
B)  surplus of 2 units. 
C)  shortage of 1 unit. 
D)  shortage of 2 units. 
A)  surplus of 1 unit. 
B)  surplus of 2 units. 
C)  shortage of 1 unit. 
D)  shortage of 2 units.

Question 10

A leftward shift of a demand curve is called a(n)

Accepted Answer

A)  increase in demand. 
B)  decrease in demand. 
C)  decrease in quantity demanded. 
D)  increase in quantity demanded. 
A)  increase in demand. 
B)  decrease in demand. 
C)  decrease in quantity demanded. 
D)  increase in quantity demanded.

Question 11

An increase in supply is represented by a

Accepted Answer

A)  movement downward and to the left along a supply curve. 
B)  movement upward and to the right along a supply curve. 
C)  rightward shift of a supply curve. 
D)  leftward shift of a supply curve. 
A)  movement downward and to the left along a supply curve. 
B)  movement upward and to the right along a supply curve. 
C)  rightward shift of a supply curve. 
D)  leftward shift of a supply curve.

Question 12

Figure 4-10
  
-Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for tennis racquets?

Accepted Answer

A)  a decrease in the price of tennis balls 
B)  an expectation by firms that the price of tennis racquets will increase in the very near future 
C)  a decrease in the price of tennis racquet strings 
D)  an improvement in technology that allows firms to use less labor in the production of tennis racquets 
A)  a decrease in the price of tennis balls 
B)  an expectation by firms that the price of tennis racquets will increase in the very near future 
C)  a decrease in the price of tennis racquet strings 
D)  an improvement in technology that allows firms to use less labor in the production of tennis racquets

Question 13

Table 4-4
  
-Refer to Table 4-4.If these are the only four sellers in the market,then the market quantity supplied at a price of $4 is

Accepted Answer

A)  4 units. 
B)  7.5 units. 
C)  10 units. 
D)  30 units. 
A)  4 units. 
B)  7.5 units. 
C)  10 units. 
D)  30 units.

Question 14

Figure 4-21
  
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

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 15

Most markets in the economy are

Accepted Answer

A)  markets in which sellers, rather than buyers, control the price of the product. 
B)  markets in which buyers, rather than sellers, control the price of the product. 
C)  perfectly competitive. 
D)  highly competitive. 
A)  markets in which sellers, rather than buyers, control the price of the product. 
B)  markets in which buyers, rather than sellers, control the price of the product. 
C)  perfectly competitive. 
D)  highly competitive.

Question 16

Which of the following is not a characteristic of a perfectly competitive market?

Accepted Answer

A)  Different sellers sell identical products. 
B)  There are many sellers. 
C)  Sellers must accept the price the market determines. 
D)  All of the above are characteristics of a perfectly competitive market. 
A)  Different sellers sell identical products. 
B)  There are many sellers. 
C)  Sellers must accept the price the market determines. 
D)  All of the above are characteristics of a perfectly competitive market.

Question 17

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Accepted Answer

A)  prices at and above the equilibrium price. 
B)  prices at and below the equilibrium price. 
C)  prices above and below the equilibrium price, but not at the equilibrium price. 
D)  the equilibrium price but not above or below the equilibrium price. 
A)  prices at and above the equilibrium price. 
B)  prices at and below the equilibrium price. 
C)  prices above and below the equilibrium price, but not at the equilibrium price. 
D)  the equilibrium price but not above or below the equilibrium price.

Question 18

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

A)  is referred to as the law of supply. 
B)  applies only to a few goods in the economy. 
C)  is represented by a downward-sloping supply curve. 
D)  All of the above are correct. 
A)  is referred to as the law of supply. 
B)  applies only to a few goods in the economy. 
C)  is represented by a downward-sloping supply curve. 
D)  All of the above are correct.

Question 19

Suppose roses are currently selling for $20 per dozen,but the equilibrium price of roses is $30 per dozen.We would expect a

Accepted Answer

A)  shortage to exist and the market price of roses to increase. 
B)  shortage to exist and the market price of roses to decrease. 
C)  surplus to exist and the market price of roses to increase. 
D)  surplus to exist and the market price of roses to decrease. 
A)  shortage to exist and the market price of roses to increase. 
B)  shortage to exist and the market price of roses to decrease. 
C)  surplus to exist and the market price of roses to increase. 
D)  surplus to exist and the market price of roses to decrease.

Question 20

An example of a perfectly competitive market would be the market for

Accepted Answer

A)  tennis racquets. 
B)  pizza. 
C)  garbage collection. 
D)  wheat. 
A)  tennis racquets. 
B)  pizza. 
C)  garbage collection. 
D)  wheat.

Exam 4: The Market Forces of Supply and Demand.

Figure 4-15 -Refer to Figure 4-15.Equilibrium price and quantity are,respectively,

Which of the following might cause the demand curve for an inferior good to shift to the left?

The difference between a supply schedule and a supply curve is that a supply schedule

An example of a perfectly competitive market would be the

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand,they may put some of their current production into storage and supply less in the market today.

A decrease in demand is represented by a

A movement downward and to the left along a supply curve is called a(n)

Figure 4-18 -Refer to Figure 4-18.At a price of $12,there is a

A leftward shift of a demand curve is called a(n)

An increase in supply is represented by a

Figure 4-10 -Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for tennis racquets?

Table 4-4 -Refer to Table 4-4.If these are the only four sellers in the market,then the market quantity supplied at a price of $4 is

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

Most markets in the economy are

Which of the following is not a characteristic of a perfectly competitive market?

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Suppose roses are currently selling for $20 per dozen,but the equilibrium price of roses is $30 per dozen.We would expect a

An example of a perfectly competitive market would be the market for

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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