Question 1

A decrease in the price of milk will

Accepted Answer

A)  increase the demand for milk. 
B)  reduce the demand for milk. 
C)  reduce the demand for orange juice, a substitute for milk. 
D)  do both a and c 
A)  increase the demand for milk. 
B)  reduce the demand for milk. 
C)  reduce the demand for orange juice, a substitute for milk. 
D)  do both a and c

Question 2

The invisible hand principle, as developed by Adam Smith in The Wealth of Nations, states that

Accepted Answer

A)  government control over economic activity is essential for the talents of individuals to be directed toward their highest valued use. 
B)  the economic wealth of a nation is determined by a nation's holdings of precious metals, such as gold and silver. 
C)  public policy should prohibit domestic producers from selling their goods to foreigners. 
D)  competitive markets will bring individual self-interest and the public interest into harmony. 
A)  government control over economic activity is essential for the talents of individuals to be directed toward their highest valued use. 
B)  the economic wealth of a nation is determined by a nation's holdings of precious metals, such as gold and silver. 
C)  public policy should prohibit domestic producers from selling their goods to foreigners. 
D)  competitive markets will bring individual self-interest and the public interest into harmony.

Question 3

When there is excess demand for a product in a market,

Accepted Answer

A)  price will tend to 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 tend to 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

In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?

Accepted Answer

A)  It would shift the supply curve to the right. 
B)  It would shift the supply curve to the left. 
C)  It would shift the demand curve to the left. 
D)  It would shift the demand curve to the right. 
A)  It would shift the supply curve to the right. 
B)  It would shift the supply curve to the left. 
C)  It would shift the demand curve to the left. 
D)  It would shift the demand curve to the right.

Question 5

If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be

Accepted Answer

A)  a decrease in the supply of automobiles, which is a shift to the right of the supply curve. 
B)  a decrease in the supply of automobiles, which is a shift to the left of the supply curve. 
C)  an increase in the supply of automobiles, which is a shift to the right of the supply curve. 
D)  an increase in the supply of automobiles, which is a shift to the left of the supply curve. 
A)  a decrease in the supply of automobiles, which is a shift to the right of the supply curve. 
B)  a decrease in the supply of automobiles, which is a shift to the left of the supply curve. 
C)  an increase in the supply of automobiles, which is a shift to the right of the supply curve. 
D)  an increase in the supply of automobiles, which is a shift to the left of the supply curve.

A decrease in the price of milk will

The invisible hand principle, as developed by Adam Smith in The Wealth of Nations, states that

When there is excess demand for a product in a market,

In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?

If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be

The Economic Approach

Some Tools of the Economist

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Applying the Basics: Special Topics in Economics

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Exam 3: Demand, Supply, and the Market Process

A decrease in the price of milk will

The invisible hand principle, as developed by Adam Smith in The Wealth of Nations, states that

When there is excess demand for a product in a market,

In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?

If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be

The Economic Approach

Some Tools of the Economist

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Applying the Basics: Special Topics in Economics

Filters