Question 1

A decrease in quantity demanded is given by a(n):

Accepted Answer

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

Question 2

Assuming that soybeans and tobacco can both be grown on the same land, a decrease in the price of tobacco, other things being equal, causes a(n):

Accepted Answer

A)  rightward shift of the supply curve for tobacco. 
B)  upward movement along the supply curve for soybeans. 
C)  rightward shift in the supply curve for soybeans. 
D)  leftward shift in the supply curve for soybeans. 
A)  rightward shift of the supply curve for tobacco. 
B)  upward movement along the supply curve for soybeans. 
C)  rightward shift in the supply curve for soybeans. 
D)  leftward shift in the supply curve for soybeans.

Question 3

If consumer tastes are changing more in favor of the consumption of a particular good the:

Accepted Answer

A)  market demand curve will shift to the left. 
B)  consumer will move up a given demand curve, decreasing the quantity demanded. 
C)  maket demand curve would shift to the right. 
D)  consumer would move down a given demand curve, increasing the quantity demanded. 
A)  market demand curve will shift to the left. 
B)  consumer will move up a given demand curve, decreasing the quantity demanded. 
C)  maket demand curve would shift to the right. 
D)  consumer would move down a given demand curve, increasing the quantity demanded.

Question 4

For a normal good, an increase in consumer income will cause the market demand for the product to:

Accepted Answer

A)  decrease, which is a shift to the left of the demand curve. 
B)  decrease, which is a shift to the right of the demand curve. 
C)  increase, which is a shift to the left of the demand curve. 
D)  increase, which is a shift to the right of the demand curve. 
A)  decrease, which is a shift to the left of the demand curve. 
B)  decrease, which is a shift to the right of the demand curve. 
C)  increase, which is a shift to the left of the demand curve. 
D)  increase, which is a shift to the right of the demand curve.

Question 5

According to the law of supply:

Accepted Answer

A)  producers are willing to supply larger amounts of a good as its price increases. 
B)  a direct relationship exists between the price of a good and the amount buyers choose to buy. 
C)  an inverse relationship exists between the price of a good and the amount buyers wish to buy. 
D)  an inverse relationship exists between the price of a good and the amount producers supply. 
A)  producers are willing to supply larger amounts of a good as its price increases. 
B)  a direct relationship exists between the price of a good and the amount buyers choose to buy. 
C)  an inverse relationship exists between the price of a good and the amount buyers wish to buy. 
D)  an inverse relationship exists between the price of a good and the amount producers supply.

Question 6

The development of new technology typically:

Accepted Answer

A)  shifts the supply curve to the right. 
B)  reduces profits. 
C)  results in a downward movement along a supply curve. 
D)  shifts the demand curve to the right. 
A)  shifts the supply curve to the right. 
B)  reduces profits. 
C)  results in a downward movement along a supply curve. 
D)  shifts the demand curve to the right.

Question 7

Exhibit 3-8  Demand and Supply Data for Video Games
    Price   Quantity Demanded of Video Games   Quantity Supplied of Video Games     $75   400   900     70   450   850     65   500   800     60   550   750     55   600   700     50   650   650     45   700   600     40   750   550   
-In Exhibit 3-8, the equilibrium market price in this video game market would be:

Accepted Answer

A)  $65 
B)  $60 
C)  $55 
D)  $50 
A)  $65 
B)  $60 
C)  $55 
D)  $50

Question 8

​
-In Exhibit 3-16, if the market price of chairs is initially $15, a movement toward equilibrium would require:

Accepted Answer

A)  ​no change, because an equilibrium already exists. 
B)  ​the price to fall below $15 and both the quantity supplied and the quantity demanded to fall. 
C)  ​the price to remain the same, but the supply curve to shift to the left. 
D)  ​the price to fall below $15, the quantity supplied to fall, and the quantity demanded to rise.​ 
A)  ​no change, because an equilibrium already exists. 
B)  ​the price to fall below $15 and both the quantity supplied and the quantity demanded to fall. 
C)  ​the price to remain the same, but the supply curve to shift to the left. 
D)  ​the price to fall below $15, the quantity supplied to fall, and the quantity demanded to rise.​

Question 9

Which of the following would increase the supply of laptop computers?

Accepted Answer

A)  Higher wage rates for the workers that produce laptop computers. 
B)  A technological improvement that lowers the cost of producing laptop computers. 
C)  An increase in the price of computer chips used to produce laptop computers. 
D)  An increase in the price of laptop computers. 
A)  Higher wage rates for the workers that produce laptop computers. 
B)  A technological improvement that lowers the cost of producing laptop computers. 
C)  An increase in the price of computer chips used to produce laptop computers. 
D)  An increase in the price of laptop computers.

Question 10

Assuming that generic brands are inferior goods, an increase in consumer income, other things being equal, will cause a(n):

Accepted Answer

A)  leftward shift in the demand curve for generic goods. 
B)  downward movement along the demand curve for generic goods. 
C)  rightward shift in the demand curve for generic goods. 
D)  upward movement along the demand curve for generic goods. 
A)  leftward shift in the demand curve for generic goods. 
B)  downward movement along the demand curve for generic goods. 
C)  rightward shift in the demand curve for generic goods. 
D)  upward movement along the demand curve for generic goods.

Question 11

Which of the following is true for the law of demand?

Accepted Answer

A)  Sellers increase the quantity of a good available as the price of the good increases. 
B)  An increase in price results from false needs. 
C)  There is an inverse relationship between the price of a good and the quantity of the good demanded. 
D)  Prices increase as more units of a product are demanded. 
A)  Sellers increase the quantity of a good available as the price of the good increases. 
B)  An increase in price results from false needs. 
C)  There is an inverse relationship between the price of a good and the quantity of the good demanded. 
D)  Prices increase as more units of a product are demanded.

Question 12

Exhibit 3-5 Supply for Tucker's Cola Data
    Quantity supplied per week (millions of gallons)   Price per gallon     6   $3.00     5     2.50     4     2.00     3     1.50     2     1.00     1       .50   
-Exhibit 3-5 shows the supply schedule for Tucker's Cola. If Tucker's Cola and Refresh Cola are the only two suppliers in the cola market and Refresh Cola is willing to sell 5 million gallons when the price is $3.00, 4 million gallons when the price is $2.50, 3 million gallons when the price is $2.00, 2 million gallons when the price is $1.50, 1 million gallons when the price is $1.00, and 0 gallons when the price is $0.50 or less,

Accepted Answer

A)  the market quantity supplied of cola will be 7 million gallons when the price is $2.00. 
B)  Tucker's Cola follows the law of supply, but Refresh Cola does not. 
C)  the market quantity supplied of cola is decreasing as price increases. 
D)  the market supply curve is horizontal. 
A)  the market quantity supplied of cola will be 7 million gallons when the price is $2.00. 
B)  Tucker's Cola follows the law of supply, but Refresh Cola does not. 
C)  the market quantity supplied of cola is decreasing as price increases. 
D)  the market supply curve is horizontal.

Question 13

A decrease in the number of dry cleaners in an area is represented by a(n):

Accepted Answer

A)  downward movement along the dry cleaning supply curve. 
B)  upward movement along the dry cleaning supply curve. 
C)  leftward shift in the dry cleaning supply curve. 
D)  rightward shift in the dry cleaning supply curve. 
A)  downward movement along the dry cleaning supply curve. 
B)  upward movement along the dry cleaning supply curve. 
C)  leftward shift in the dry cleaning supply curve. 
D)  rightward shift in the dry cleaning supply curve.

Question 14

To finance medical care, the federal government raises the tax per pack paid by sellers of cigarettes. Other things being equal, the price of cigarettes rises because of a(n):

Accepted Answer

A)  upward movement along the supply curve for cigarettes. 
B)  rightward shift of the supply curve for cigarettes. 
C)  upward movement along the demand curve for cigarettes. 
D)  leftward shift of the supply curve for cigarettes. 
A)  upward movement along the supply curve for cigarettes. 
B)  rightward shift of the supply curve for cigarettes. 
C)  upward movement along the demand curve for cigarettes. 
D)  leftward shift of the supply curve for cigarettes.

Question 15

A shift occurs in the supply curve for salt when:

Accepted Answer

A)  the price of salt increases. 
B)  improvements are made in the production process. 
C)  salt is found to be associated with high blood pressure. 
D)  consumers expect the price of salt to increase in the future. 
A)  the price of salt increases. 
B)  improvements are made in the production process. 
C)  salt is found to be associated with high blood pressure. 
D)  consumers expect the price of salt to increase in the future.

Question 16

Exhibit 3-6 Milk market
    Price per Quart   Quantity Demanded (Quarts per week)   Quantity Supplied (Quarts per week)     0.70   20   180     0.60   60   140     0.50   100   100     0.40   140   60     0.30   180   20    
-In Exhibit 3-6, which of the following are the equilibrium price and equilibrium  quantity in the milk market?

Accepted Answer

A)  $0.70 per quart and 200 quarts of milk. 
B)  $0.30 per quart and 100 quarts of milk. 
C)  $0.50 per quart and 100 quarts of milk. 
D)  $0.40 per quart and 60 quarts of milk. 
A)  $0.70 per quart and 200 quarts of milk. 
B)  $0.30 per quart and 100 quarts of milk. 
C)  $0.50 per quart and 100 quarts of milk. 
D)  $0.40 per quart and 60 quarts of milk.

Question 17

When the price of a good is above its equilibrium price, a:

Accepted Answer

A)  surplus puts upward pressure on the price. 
B)  surplus puts downward pressure on the price. 
C)  shortage puts upward pressure on the price. 
D)  shortage puts downward pressure on the price. 
A)  surplus puts upward pressure on the price. 
B)  surplus puts downward pressure on the price. 
C)  shortage puts upward pressure on the price. 
D)  shortage puts downward pressure on the price.

Question 18

Assume that the equilibrium price for a good is $5. If the market price is $10, a:

Accepted Answer

A)  shortage causes the price to decline toward $5. 
B)  surplus causes the price to rise above $10. 
C)  shortage causes the price to rise above $10. 
D)  surplus causes the price to decline toward $5. 
A)  shortage causes the price to decline toward $5. 
B)  surplus causes the price to rise above $10. 
C)  shortage causes the price to rise above $10. 
D)  surplus causes the price to decline toward $5.

Question 19

A movement along a demand curve is called a change in:

Accepted Answer

A)  income. 
B)  quantity demanded. 
C)  demand. 
D)  tastes. 
A)  income. 
B)  quantity demanded. 
C)  demand. 
D)  tastes.

Question 20

The use of a price system eliminates:

Accepted Answer

A)  scarcity. 
B)  equilibrium. 
C)  shortages and surpluses. 
D)  changes in supply and demand. 
A)  scarcity. 
B)  equilibrium. 
C)  shortages and surpluses. 
D)  changes in supply and demand.

Price	Quantity Demanded of Video Games	Quantity Supplied of Video Games
$75	400	900
70	450	850
65	500	800
60	550	750
55	600	700
50	650	650
45	700	600
40	750	550

Quantity supplied per week (millions of gallons)	Price per gallon
6	$3.00
5	2.50
4	2.00
3	1.50
2	1.00
1	.50

Price per Quart	Quantity Demanded (Quarts per week)	Quantity Supplied (Quarts per week)
0.70	20	180
0.60	60	140
0.50	100	100
0.40	140	60
0.30	180	20

Exam 3: Market Demand and Supply

A decrease in quantity demanded is given by a(n):

Assuming that soybeans and tobacco can both be grown on the same land, a decrease in the price of tobacco, other things being equal, causes a(n):

If consumer tastes are changing more in favor of the consumption of a particular good the:

For a normal good, an increase in consumer income will cause the market demand for the product to:

According to the law of supply:

The development of new technology typically:

Exhibit 3-8 Demand and Supply Data for Video Games Price Quantity Demanded of Video Games Quantity Supplied of Video Games $75 400 900 70 450 850 65 500 800 60 550 750 55 600 700 50 650 650 45 700 600 40 750 550 -In Exhibit 3-8, the equilibrium market price in this video game market would be:

​ -In Exhibit 3-16, if the market price of chairs is initially $15, a movement toward equilibrium would require:

Which of the following would increase the supply of laptop computers?

Assuming that generic brands are inferior goods, an increase in consumer income, other things being equal, will cause a(n):

Which of the following is true for the law of demand?

A decrease in the number of dry cleaners in an area is represented by a(n):

To finance medical care, the federal government raises the tax per pack paid by sellers of cigarettes. Other things being equal, the price of cigarettes rises because of a(n):

A shift occurs in the supply curve for salt when:

Exhibit 3-6 Milk market Price per Quart Quantity Demanded (Quarts per week) Quantity Supplied (Quarts per week) 0.70 20 180 0.60 60 140 0.50 100 100 0.40 140 60 0.30 180 20 -In Exhibit 3-6, which of the following are the equilibrium price and equilibrium quantity in the milk market?

When the price of a good is above its equilibrium price, a:

Assume that the equilibrium price for a good is $5. If the market price is $10, a:

A movement along a demand curve is called a change in:

The use of a price system eliminates:

Introducing the Economic Way of Thinking

Production Possibilities Opportunity Cost and Economic Growth

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution Poverty and Discrimination

Antitrust and Regulation

Environmental Economics

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits Surpluses and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less Developed Countries

Understanding Direct and Inverse Relationships between Variables

Filters

-In Exhibit 3-16, if the market price of chairs is initially $15, a movement toward equilibrium would require: