Question 1

The sum of all the individual supply curves for a product is called

Accepted Answer

A)  total supply. 
B)  market supply. 
C)  aggregate supply. 
D)  total output. 
A)  total supply. 
B)  market supply. 
C)  aggregate supply. 
D)  total output.

Question 2

A movement upward and to the right 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 3

A decrease in quantity demanded

Accepted Answer

A)  results in a movement downward and to the right along a demand curve. 
B)  results in a movement upward and to the left along a demand curve. 
C)  shifts the demand curve to the left. 
D)  shifts the demand curve to the right. 
A)  results in a movement downward and to the right along a demand curve. 
B)  results in a movement upward and to the left along a demand curve. 
C)  shifts the demand curve to the left. 
D)  shifts the demand curve to the right.

Question 4

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months.As a result,we can expect the supply of lumber to

Accepted Answer

A)  fall in six months but not now. 
B)  increase in six months when the price goes up. 
C)  fall now. 
D)  increase now to meet as much demand as possible. 
A)  fall in six months but not now. 
B)  increase in six months when the price goes up. 
C)  fall now. 
D)  increase now to meet as much demand as possible.

Question 5

Which of the following is not an example of a market?

Accepted Answer

A)  A small town has only one seller of electricity. 
B)  In the United States, a sick person cannot legally purchase a kidney. 
C)  In Florida, there are many buyers and sellers of key lime pie. 
D)  The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities. 
A)  A small town has only one seller of electricity. 
B)  In the United States, a sick person cannot legally purchase a kidney. 
C)  In Florida, there are many buyers and sellers of key lime pie. 
D)  The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.

Question 6

If something happens to alter the quantity demanded at any given price,then the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 7

The market demand curve

Accepted Answer

A)  is found by vertically adding the individual demand curves. 
B)  slopes upward. 
C)  represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. 
D)  represents the sum of the quantities demanded by all the buyers at each price of the good. 
A)  is found by vertically adding the individual demand curves. 
B)  slopes upward. 
C)  represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. 
D)  represents the sum of the quantities demanded by all the buyers at each price of the good.

Question 8

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Accepted Answer

A) True 
 B)False

Question 9

A decrease 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 10

You love peanut butter.You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought and that this will cause the price of peanuts to double by the end of the year.As a result,your demand for peanut butter

Accepted Answer

A)  will increase but not until the end of the year. 
B)  increases today. 
C)  decreases as you look for a substitute good. 
D)  shifts left today. 
A)  will increase but not until the end of the year. 
B)  increases today. 
C)  decreases as you look for a substitute good. 
D)  shifts left today.

Question 11

The supply curve for milk

Accepted Answer

A)  shifts when the price of milk changes because the price of milk is measured on the vertical axis of the graph. 
B)  shifts when the price of milk changes because the quantity supplied of milk is measured on the horizontal axis of the graph. 
C)  does not shift when the price of milk changes because the price of milk is measured on the vertical axis of the graph. 
D)  does not shift when the price of milk changes because the price of milk is measured on the horizontal axis of the graph. 
A)  shifts when the price of milk changes because the price of milk is measured on the vertical axis of the graph. 
B)  shifts when the price of milk changes because the quantity supplied of milk is measured on the horizontal axis of the graph. 
C)  does not shift when the price of milk changes because the price of milk is measured on the vertical axis of the graph. 
D)  does not shift when the price of milk changes because the price of milk is measured on the horizontal axis of the graph.

Question 12

A demand schedule is a table that shows the relationship between

Accepted Answer

A)  quantity demanded and quantity supplied. 
B)  income and quantity demanded. 
C)  price and quantity demanded. 
D)  price and income. 
A)  quantity demanded and quantity supplied. 
B)  income and quantity demanded. 
C)  price and quantity demanded. 
D)  price and income.

Question 13

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 14

If a increase in income decreases 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 15

There is no shortage of scarce resources in a market economy because

Accepted Answer

A)  the government makes shortages illegal. 
B)  resources are abundant in market economies. 
C)  prices adjust to eliminate shortages. 
D)  quantity supplied is always greater than quantity demanded in market economies. 
A)  the government makes shortages illegal. 
B)  resources are abundant in market economies. 
C)  prices adjust to eliminate shortages. 
D)  quantity supplied is always greater than quantity demanded in market economies.

Question 16

Supply and demand together determine the price and quantity of a good sold in a market.

Accepted Answer

A) True 
 B)False

Question 17

Equilibrium quantity must decrease when demand

Accepted Answer

A)  increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
B)  increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
C)  decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
D)  decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
A)  increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
B)  increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
C)  decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
D)  decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.

Question 18

Table 4-5
  
-Refer to Table 4-5.If these are the only four sellers in the market,then the market quantity supplied at a price of $8 is

Accepted Answer

A)  10 units. 
B)  20 units. 
C)  32 units. 
D)  40 units. 
A)  10 units. 
B)  20 units. 
C)  32 units. 
D)  40 units.

Question 19

In a competitive market,the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Accepted Answer

A) True 
 B)False

Question 20

In a market economy,supply and demand are important because they

Accepted Answer

A)  play a critical role in the allocation of the economy's scarce resources. 
B)  determine how much of each good gets produced. 
C)  can be used to predict the impact on the economy of various events and policies. 
D)  All of the above are correct. 
A)  play a critical role in the allocation of the economy's scarce resources. 
B)  determine how much of each good gets produced. 
C)  can be used to predict the impact on the economy of various events and policies. 
D)  All of the above are correct.

Exam 4: The Market Forces of Supply and Demand.

The sum of all the individual supply curves for a product is called

A movement upward and to the right along a supply curve is called a(n)

A decrease in quantity demanded

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months.As a result,we can expect the supply of lumber to

Which of the following is not an example of a market?

If something happens to alter the quantity demanded at any given price,then the demand curve shifts.

The market demand curve

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

A decrease in supply is represented by a

You love peanut butter.You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought and that this will cause the price of peanuts to double by the end of the year.As a result,your demand for peanut butter

The supply curve for milk

A demand schedule is a table that shows the relationship between

A decrease in the price of pizza will shift the supply curve for pizza to the left.

If a increase in income decreases the demand for a good,then the good is a(n)

There is no shortage of scarce resources in a market economy because

Supply and demand together determine the price and quantity of a good sold in a market.

Equilibrium quantity must decrease when demand

Table 4-5 -Refer to Table 4-5.If these are the only four sellers in the market,then the market quantity supplied at a price of $8 is

In a competitive market,the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

In a market economy,supply and demand are important because they

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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