Question 1

Which of the following would not lead to a change in the supply of chocolate ice cream?

Accepted Answer

A)  a change in productive capacity 
B)  a change in the price of strawberry ice cream 
C)  a change in the price of milk 
D)  a change in the price of chocolate ice cream 
E)  a change in the expected future price of chocolate ice cream 
A)  a change in productive capacity 
B)  a change in the price of strawberry ice cream 
C)  a change in the price of milk 
D)  a change in the price of chocolate ice cream 
E)  a change in the expected future price of chocolate ice cream

Question 2

Which of the following is the best definition of a spot market?

Accepted Answer

A)  A market in which a good is bought or sold with the idea that the price will increase in the future 
B)  A market in which a good is bought or sold with the hope that the price will decrease in the future 
C)  A market in which prices do not fluctuate up or down very easily 
D)  A market in which a good is bought or sold for immediate delivery or consumption 
E)  A market in which the good being traded is used to remove spots on clothes 
A)  A market in which a good is bought or sold with the idea that the price will increase in the future 
B)  A market in which a good is bought or sold with the hope that the price will decrease in the future 
C)  A market in which prices do not fluctuate up or down very easily 
D)  A market in which a good is bought or sold for immediate delivery or consumption 
E)  A market in which the good being traded is used to remove spots on clothes

Question 3

Which of the following best defines quantity supplied?

Accepted Answer

A)  the amount of a good sellers would choose to produce,in a given set of circumstances 
B)  the amount of a good sellers will be able to sell,in a given set of circumstances 
C)  the various amounts of a good sellers would like to sell over various sets of circumstances 
D)  the amount of a good sellers would like to sell if they could choose the price for which it sold 
E)  the amount of a good that sellers would be able to sell if they could choose the price for which it sold 
A)  the amount of a good sellers would choose to produce,in a given set of circumstances 
B)  the amount of a good sellers will be able to sell,in a given set of circumstances 
C)  the various amounts of a good sellers would like to sell over various sets of circumstances 
D)  the amount of a good sellers would like to sell if they could choose the price for which it sold 
E)  the amount of a good that sellers would be able to sell if they could choose the price for which it sold

Question 4

Which of the following would shift the demand curve for new college textbooks to the right?

Accepted Answer

A)  an increase in the price of new college textbooks 
B)  a decrease in the price of new college textbooks 
C)  an increase in the price of used college textbooks 
D)  a decrease in the population of college students 
E)  a decrease in the wealth of college students 
A)  an increase in the price of new college textbooks 
B)  a decrease in the price of new college textbooks 
C)  an increase in the price of used college textbooks 
D)  a decrease in the population of college students 
E)  a decrease in the wealth of college students

Question 5

An increase in supply results in a(n)

Accepted Answer

A)  increase in demand 
B)  decrease in equilibrium quantity and an increase in equilibrium price 
C)  decrease in equilibrium quantity and a decrease in equilibrium price 
D)  decrease in equilibrium price and an increase in equilibrium quantity 
E)  unfavorable shift in tastes and preferences 
A)  increase in demand 
B)  decrease in equilibrium quantity and an increase in equilibrium price 
C)  decrease in equilibrium quantity and a decrease in equilibrium price 
D)  decrease in equilibrium price and an increase in equilibrium quantity 
E)  unfavorable shift in tastes and preferences

Question 6

Which of the following statements about markets is false?

Accepted Answer

A)  markets are used to allocate resources in market systems 
B)  markets can vary in geographical size 
C)  prices are used to allocate goods in markets 
D)  markets are used to allocate resources in centrally-planned socialist economic systems 
E)  supply and demand explains how prices are set in competitive markets 
A)  markets are used to allocate resources in market systems 
B)  markets can vary in geographical size 
C)  prices are used to allocate goods in markets 
D)  markets are used to allocate resources in centrally-planned socialist economic systems 
E)  supply and demand explains how prices are set in competitive markets

Question 7

If two goods are often consumed together,they are

Accepted Answer

A)  substitute goods 
B)  inferior goods 
C)  complementary goods 
D)  normal goods 
E)  unrelated goods 
A)  substitute goods 
B)  inferior goods 
C)  complementary goods 
D)  normal goods 
E)  unrelated goods

Question 8

In a circular flow diagram of the economy,households and businesses interact

Accepted Answer

A)  in both product markets and resource markets 
B)  in neither product markets and resource markets 
C)  in product markets but not resource markets 
D)  in resource markets but not product markets 
E)  very rarely 
A)  in both product markets and resource markets 
B)  in neither product markets and resource markets 
C)  in product markets but not resource markets 
D)  in resource markets but not product markets 
E)  very rarely

Question 9

The three-step procedure for economic analysis

Accepted Answer

A)  works better in macroeconomics than in microeconomics 
B)  begins with characterizing the market 
C)  helps governments decide how to change the market equilibrium 
D)  focuses on goals and constraints 
E)  is used only in microeconomics 
A)  works better in macroeconomics than in microeconomics 
B)  begins with characterizing the market 
C)  helps governments decide how to change the market equilibrium 
D)  focuses on goals and constraints 
E)  is used only in microeconomics

Question 10

Supply curves are usually assumed to slope upward because

Accepted Answer

A)  profits fall as prices rise 
B)  a higher price leads to increases in demand 
C)  a higher price leads to decreases in demand 
D)  a higher price attracts resources from other less valued uses 
E)  firms drop out of the market as prices rise 
A)  profits fall as prices rise 
B)  a higher price leads to increases in demand 
C)  a higher price leads to decreases in demand 
D)  a higher price attracts resources from other less valued uses 
E)  firms drop out of the market as prices rise

Question 11

All of the following,except one,would increase the demand for a particular model of a Ford automobile.Assume that this model is a normal good.Which is the exception?

Accepted Answer

A)  an increase in buyers' incomes 
B)  increased prices of other Ford models 
C)  an expected future increase in the price 
D)  an increase in the U.S.population 
E)  a decrease in the price of steel 
A)  an increase in buyers' incomes 
B)  increased prices of other Ford models 
C)  an expected future increase in the price 
D)  an increase in the U.S.population 
E)  a decrease in the price of steel

Question 12

In analyzing the market for a particular good,the most appropriate size of the market to consider

Accepted Answer

A)  is the global market 
B)  is a local market 
C)  is a national market 
D)  is a state-wide market 
E)  depends on the purpose of the analysis 
A)  is the global market 
B)  is a local market 
C)  is a national market 
D)  is a state-wide market 
E)  depends on the purpose of the analysis

Question 13

Which of the following would not lead to a shift of the demand curve for apples?

Accepted Answer

A)  an increase in the price of oranges 
B)  a decrease in incomes for consumers 
C)  a decrease in the supply of apples 
D)  an increased preference for apples 
E)  a decrease in the population 
A)  an increase in the price of oranges 
B)  a decrease in incomes for consumers 
C)  a decrease in the supply of apples 
D)  an increased preference for apples 
E)  a decrease in the population

Question 14

Holding everything else constant,as the price of natural gas rises,selling natural gas becomes

Accepted Answer

A)  more profitable,and the quantity supplied falls 
B)  less profitable,and the quantity supplied rises 
C)  less profitable,and the quantity supplied falls 
D)  more profitable,and the quantity supplied rises 
E)  more profitable,but the quantity supplied does not change 
A)  more profitable,and the quantity supplied falls 
B)  less profitable,and the quantity supplied rises 
C)  less profitable,and the quantity supplied falls 
D)  more profitable,and the quantity supplied rises 
E)  more profitable,but the quantity supplied does not change

Question 15

A decrease in equilibrium price and an increase in equilibrium quantity could be brought about by a(n)

Accepted Answer

A)  increase in demand 
B)  decrease in demand 
C)  increase in resource prices 
D)  improvement in production technology 
E)  favorable shift in tastes and preferences 
A)  increase in demand 
B)  decrease in demand 
C)  increase in resource prices 
D)  improvement in production technology 
E)  favorable shift in tastes and preferences

Question 16

An increase in demand causes

Accepted Answer

A)  a surplus 
B)  excess supply 
C)  an increase in supply 
D)  an increase in equilibrium price and equilibrium quantity 
E)  an improvement in technology 
A)  a surplus 
B)  excess supply 
C)  an increase in supply 
D)  an increase in equilibrium price and equilibrium quantity 
E)  an improvement in technology

Question 17

An increase in buyers' incomes

Accepted Answer

A)  increases the quantity demanded of a good 
B)  decreases the quantity demanded of a good 
C)  increases the demand for a normal good 
D)  increases the demand for an inferior good 
E)  decreases the quantity demanded of a normal good 
A)  increases the quantity demanded of a good 
B)  decreases the quantity demanded of a good 
C)  increases the demand for a normal good 
D)  increases the demand for an inferior good 
E)  decreases the quantity demanded of a normal good

Question 18

A decrease in the price of a particular good,with all other variables constant,causes

Accepted Answer

A)  a shift to a different demand schedule with higher quantities demanded 
B)  a shift to a different demand schedule with lower quantities demanded 
C)  a movement along a given demand curve to a lower quantity demanded 
D)  a movement along a given demand curve to a higher quantity demanded 
E)  no movement along a given demand curve unless supply also changes 
A)  a shift to a different demand schedule with higher quantities demanded 
B)  a shift to a different demand schedule with lower quantities demanded 
C)  a movement along a given demand curve to a lower quantity demanded 
D)  a movement along a given demand curve to a higher quantity demanded 
E)  no movement along a given demand curve unless supply also changes

Question 19

-Assuming that baseball and football cards are substitutes.What might explain the shift in demand curve for baseball cards from D₂ to D₁ in Figure 3-6?

Accepted Answer

A)  an increase in the price of baseball cards 
B)  a decrease in the price of baseball cards 
C)  an increase in income (assuming that baseball cards are a normal good) 
D)  an increase in the population 
E)  a decrease in the price of football cards 
A)  an increase in the price of baseball cards 
B)  a decrease in the price of baseball cards 
C)  an increase in income (assuming that baseball cards are a normal good) 
D)  an increase in the population 
E)  a decrease in the price of football cards

Question 20

Which of the following could lead to an increase in the equilibrium quantity of a good?

Accepted Answer

A)  a decrease in supply and a decrease in demand 
B)  an increase in the price of an input 
C)  an increase in demand and an increase in supply 
D)  a decrease in demand regardless of supply 
E)  a decrease in technology 
A)  a decrease in supply and a decrease in demand 
B)  an increase in the price of an input 
C)  an increase in demand and an increase in supply 
D)  a decrease in demand regardless of supply 
E)  a decrease in technology

Which of the following would not lead to a change in the supply of chocolate ice cream?

Which of the following is the best definition of a spot market?

Which of the following best defines quantity supplied?

Which of the following would shift the demand curve for new college textbooks to the right?

An increase in supply results in a(n)

Which of the following statements about markets is false?

If two goods are often consumed together,they are

In a circular flow diagram of the economy,households and businesses interact

The three-step procedure for economic analysis

Supply curves are usually assumed to slope upward because

All of the following,except one,would increase the demand for a particular model of a Ford automobile.Assume that this model is a normal good.Which is the exception?

In analyzing the market for a particular good,the most appropriate size of the market to consider

Which of the following would not lead to a shift of the demand curve for apples?

Holding everything else constant,as the price of natural gas rises,selling natural gas becomes

A decrease in equilibrium price and an increase in equilibrium quantity could be brought about by a(n)

An increase in demand causes

An increase in buyers' incomes

A decrease in the price of a particular good,with all other variables constant,causes

-Assuming that baseball and football cards are substitutes.What might explain the shift in demand curve for baseball cards from D₂ to D₁ in Figure 3-6?

Which of the following could lead to an increase in the equilibrium quantity of a good?

What is Economics?

Scarcity, Choice, and Economic Systems

Working With Supply and Demand

What Macroeconomics Tries to Explain

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters

Exam 3: Supply and Demand

Which of the following would not lead to a change in the supply of chocolate ice cream?

Which of the following is the best definition of a spot market?

Which of the following best defines quantity supplied?

Which of the following would shift the demand curve for new college textbooks to the right?

An increase in supply results in a(n)

Which of the following statements about markets is false?

If two goods are often consumed together,they are

In a circular flow diagram of the economy,households and businesses interact

The three-step procedure for economic analysis

Supply curves are usually assumed to slope upward because

All of the following,except one,would increase the demand for a particular model of a Ford automobile.Assume that this model is a normal good.Which is the exception?

In analyzing the market for a particular good,the most appropriate size of the market to consider

Which of the following would not lead to a shift of the demand curve for apples?

Holding everything else constant,as the price of natural gas rises,selling natural gas becomes

A decrease in equilibrium price and an increase in equilibrium quantity could be brought about by a(n)

An increase in demand causes

An increase in buyers' incomes

A decrease in the price of a particular good,with all other variables constant,causes

-Assuming that baseball and football cards are substitutes.What might explain the shift in demand curve for baseball cards from D₂ to D₁ in Figure 3-6?

Which of the following could lead to an increase in the equilibrium quantity of a good?

What is Economics?

Scarcity, Choice, and Economic Systems

Working With Supply and Demand

What Macroeconomics Tries to Explain

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters