Question 1

Table 4-7
  
-Refer to Table 4-7.If the price were $8,a

Accepted Answer

A)  shortage of 20 units would exist, and price would tend to rise. 
B)  surplus of 25 units would exist, and price would tend to fall. 
C)  shortage of 25 units would exist, and price would tend to rise. 
D)  surplus of 45 units would exist, and price would tend to fall. 
A)  shortage of 20 units would exist, and price would tend to rise. 
B)  surplus of 25 units would exist, and price would tend to fall. 
C)  shortage of 25 units would exist, and price would tend to rise. 
D)  surplus of 45 units would exist, and price would tend to fall.

Question 2

Pizza is a normal good if the demand

Accepted Answer

A)  for pizza rises when income rises. 
B)  for pizza rises when the price of pizza falls. 
C)  curve for pizza slopes upward. 
D)  curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes. 
A)  for pizza rises when income rises. 
B)  for pizza rises when the price of pizza falls. 
C)  curve for pizza slopes upward. 
D)  curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.

Question 3

An increase in which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A)  demand for gasoline 
B)  price of gasoline 
C)  number of producers of gasoline 
D)  price of oil, an input into the production of gasoline 
A)  demand for gasoline 
B)  price of gasoline 
C)  number of producers of gasoline 
D)  price of oil, an input into the production of gasoline

Question 4

The current price of neckties is $30,but the equilibrium price of neckties is $25.As a result,

Accepted Answer

A)  the quantity supplied of neckties exceeds the quantity demanded of neckties at the $30 price. 
B)  the equilibrium quantity of neckties exceeds the quantity demanded at the $30 price. 
C)  there is a surplus of neckties at the $30 price. 
D)  All of the above are correct. 
A)  the quantity supplied of neckties exceeds the quantity demanded of neckties at the $30 price. 
B)  the equilibrium quantity of neckties exceeds the quantity demanded at the $30 price. 
C)  there is a surplus of neckties at the $30 price. 
D)  All of the above are correct.

Question 5

You wear either shorts or sweatpants every day.You notice that sweatpants have gone on sale,so your demand for

Accepted Answer

A)  sweatpants will increase. 
B)  sweatpants will decrease. 
C)  shorts will increase. 
D)  shorts will decrease. 
A)  sweatpants will increase. 
B)  sweatpants will decrease. 
C)  shorts will increase. 
D)  shorts will decrease.

Question 6

Figure 4-11
  
-Refer to Figure 4-11.If these are the only two sellers in the market,then the market quantity supplied at a price of $6 is

Accepted Answer

A)  2 units. 
B)  10 units. 
C)  12 units. 
D)  22 units. 
A)  2 units. 
B)  10 units. 
C)  12 units. 
D)  22 units.

Question 7

In a perfectly competitive market,buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Question 8

In any economic system,scarce resources have to be allocated among competing uses.Market economies harness the forces of

Accepted Answer

A)  government to allocate scarce resources. 
B)  supply and demand to allocate scarce resources. 
C)  credit cards to allocate scarce resources. 
D)  nature to allocate scarce resources. 
A)  government to allocate scarce resources. 
B)  supply and demand to allocate scarce resources. 
C)  credit cards to allocate scarce resources. 
D)  nature to allocate scarce resources.

Question 9

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Accepted Answer

A) True 
 B)False

Question 10

Table 4-4
  
-Refer to Table 4-4.If these are the only four sellers in the market,then when the price increases from $6 to $8,the market quantity supplied

Accepted Answer

A)  increases by 0.5 units. 
B)  increases by 2 units. 
C)  decreases by 4 units. 
D)  increases by 42 units. 
A)  increases by 0.5 units. 
B)  increases by 2 units. 
C)  decreases by 4 units. 
D)  increases by 42 units.

Question 11

In a competitive market,the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)  a single buyer. 
B)  a single seller. 
C)  one buyer and one seller working together. 
D)  all buyers and all sellers. 
A)  a single buyer. 
B)  a single seller. 
C)  one buyer and one seller working together. 
D)  all buyers and all sellers.

Question 12

Most markets in the economy are highly competitive.

Accepted Answer

A) True 
 B)False

Question 13

An increase in the price of a good will

Accepted Answer

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

Question 14

In a perfectly competitive market,at the market price,buyers

Accepted Answer

A)  cannot buy all they want, and sellers cannot sell all they want. 
B)  cannot buy all they want, but sellers can sell all they want. 
C)  can buy all they want, but sellers cannot sell all they want. 
D)  can buy all they want, and sellers can sell all they want. 
A)  cannot buy all they want, and sellers cannot sell all they want. 
B)  cannot buy all they want, but sellers can sell all they want. 
C)  can buy all they want, but sellers cannot sell all they want. 
D)  can buy all they want, and sellers can sell all they want.

Question 15

When quantity supplied exceeds quantity demanded at the current market price,the market has a surplus,and market price will likely rise in the future to eliminate the surplus.

Accepted Answer

A) True 
 B)False

Question 16

If a decrease in income increases the demand for a good,then the good is a(n)

Accepted Answer

A)  substitute good. 
B)  complementary good. 
C)  normal good. 
D)  inferior good. 
A)  substitute good. 
B)  complementary good. 
C)  normal good. 
D)  inferior good.

Question 17

"Other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises." This relationship between price and quantity demanded

Accepted Answer

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

Question 18

Figure 4-22

-Refer to Figure 4-22.Panel (a)shows which of the following?

Accepted Answer

A)  an increase in demand and an increase in quantity supplied 
B)  an increase in demand and an increase in supply 
C)  an increase in quantity demanded and an increase in quantity supplied 
D)  an increase in quantity demanded and an increase in supply 
A)  an increase in demand and an increase in quantity supplied 
B)  an increase in demand and an increase in supply 
C)  an increase in quantity demanded and an increase in quantity supplied 
D)  an increase in quantity demanded and an increase in supply

Question 19

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west.Your first step would be to

Accepted Answer

A)  decide which direction to shift the curve. 
B)  decide whether the fires affected demand or supply. 
C)  graph the shift to see the effect on equilibrium. 
D)  None of the above is correct. 
A)  decide which direction to shift the curve. 
B)  decide whether the fires affected demand or supply. 
C)  graph the shift to see the effect on equilibrium. 
D)  None of the above is correct.

Question 20

When quantity demanded exceeds quantity supplied at the current market price,the market has a shortage,and market price will likely rise in the future to eliminate the shortage.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand.

Table 4-7 -Refer to Table 4-7.If the price were $8,a

Pizza is a normal good if the demand

An increase in which of the following would shift the supply curve for gasoline to the right?

The current price of neckties is $30,but the equilibrium price of neckties is $25.As a result,

You wear either shorts or sweatpants every day.You notice that sweatpants have gone on sale,so your demand for

Figure 4-11 -Refer to Figure 4-11.If these are the only two sellers in the market,then the market quantity supplied at a price of $6 is

In a perfectly competitive market,buyers and sellers are price setters.

In any economic system,scarce resources have to be allocated among competing uses.Market economies harness the forces of

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Table 4-4 -Refer to Table 4-4.If these are the only four sellers in the market,then when the price increases from $6 to $8,the market quantity supplied

In a competitive market,the quantity of a product produced and the price of the product are determined by

Most markets in the economy are highly competitive.

An increase in the price of a good will

In a perfectly competitive market,at the market price,buyers

When quantity supplied exceeds quantity demanded at the current market price,the market has a surplus,and market price will likely rise in the future to eliminate the surplus.

If a decrease in income increases the demand for a good,then the good is a(n)

"Other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises." This relationship between price and quantity demanded

Figure 4-22 -Refer to Figure 4-22.Panel (a)shows which of the following?

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west.Your first step would be to

When quantity demanded exceeds quantity supplied at the current market price,the market has a shortage,and market price will likely rise in the future to eliminate the shortage.

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.

Filters