Question 1

The quantity demanded of a good

Accepted Answer

A)  is the amount that would be purchased with an unlimited income 
B)  is the amount that would be demanded even if income were zero 
C)  is subject to the buyer's income constraints 
D)  is a fixed amount unaffected by the buyer's circumstances 
E)  must match the amount actually purchased in the market 
A)  is the amount that would be purchased with an unlimited income 
B)  is the amount that would be demanded even if income were zero 
C)  is subject to the buyer's income constraints 
D)  is a fixed amount unaffected by the buyer's circumstances 
E)  must match the amount actually purchased in the market

Question 2

A decrease in demand for a normal good could be caused by a(n)

Accepted Answer

A)  increase in price 
B)  decrease in price 
C)  decrease in consumer incomes 
D)  increase in consumer incomes 
E)  increase in production costs 
A)  increase in price 
B)  decrease in price 
C)  decrease in consumer incomes 
D)  increase in consumer incomes 
E)  increase in production costs

Question 3

The demand curve for a product will shift rightward when the price of a substitute decreases.

Accepted Answer

A) True 
 B)False

Question 4

Of the following,which is most likely to be a normal good?

Accepted Answer

A)  hamburger 
B)  automobiles 
C)  used clothing 
D)  low-rent housing units 
E)  macaroni and cheese 
A)  hamburger 
B)  automobiles 
C)  used clothing 
D)  low-rent housing units 
E)  macaroni and cheese

Question 5

With other things constant,the supply schedule for a particular good indicates the quantities

Accepted Answer

A)  actually sold with different productive capacities 
B)  supplied with different productive capacities 
C)  actually sold at various prices of the good 
D)  supplied at various prices of the good 
E)  supplied at various prices of the good and with various productive capacities 
A)  actually sold with different productive capacities 
B)  supplied with different productive capacities 
C)  actually sold at various prices of the good 
D)  supplied at various prices of the good 
E)  supplied at various prices of the good and with various productive capacities

Question 6

Which of the following could cause the market demand curve for hot dogs to shift to the left?

Accepted Answer

A)  an increase in the price of hot dogs 
B)  a decrease in the price of hamburgers 
C)  an increase in the size of the population 
D)  an increase in the price of hot dog buns or rolls 
E)  an increase in the price of mustard 
A)  an increase in the price of hot dogs 
B)  a decrease in the price of hamburgers 
C)  an increase in the size of the population 
D)  an increase in the price of hot dog buns or rolls 
E)  an increase in the price of mustard

Question 7

A decrease in both equilibrium price and quantity could be produced by a(n)

Accepted Answer

A)  decrease in supply,with demand constant 
B)  increase in supply,with demand constant 
C)  decrease in demand,with supply constant 
D)  increase in demand,with supply constant 
E)  improvement in technology 
A)  decrease in supply,with demand constant 
B)  increase in supply,with demand constant 
C)  decrease in demand,with supply constant 
D)  increase in demand,with supply constant 
E)  improvement in technology

Question 8

When households and businesses interact in product markets goods and services are

Accepted Answer

A)  not exchanged 
B)  flowing toward businesses 
C)  flowing toward households 
D)  not used at all 
E)  flowing to both businesses and households 
A)  not exchanged 
B)  flowing toward businesses 
C)  flowing toward households 
D)  not used at all 
E)  flowing to both businesses and households

Question 9

If the demand for new automobiles falls when income falls,automobiles are said to be normal goods.

Accepted Answer

A) True 
 B)False

Question 10

The law of demand states that the quantity demanded of a good and

Accepted Answer

A)  the price of a substitute are positively related 
B)  its price are inversely related 
C)  its price are positively related if it is an inferior good 
D)  the wealth of buyers are positively related 
E)  its price are inversely related if it is a normal good 
A)  the price of a substitute are positively related 
B)  its price are inversely related 
C)  its price are positively related if it is an inferior good 
D)  the wealth of buyers are positively related 
E)  its price are inversely related if it is a normal good

Question 11

A group of buyers and sellers with the potential to trade with each other is known as a(n)

Accepted Answer

A)  trading bloc 
B)  cartel 
C)  market 
D)  industry 
E)  sector 
A)  trading bloc 
B)  cartel 
C)  market 
D)  industry 
E)  sector

Question 12

-Suppose that initially the market for DVDs is at point A on demand curve D₂ in Figure 3-3.If the price of cassette tapes decreased,

Accepted Answer

A)  the demand curve will shift to D₃ 
B)  equilibrium will move to point B on demand curve D₁ 
C)  equilibrium will move to point C on demand curve D₁ 
D)  there will be no change from point A 
E)  the demand curve will shift to D₂ 
A)  the demand curve will shift to D₃ 
B)  equilibrium will move to point B on demand curve D₁ 
C)  equilibrium will move to point C on demand curve D₁ 
D)  there will be no change from point A 
E)  the demand curve will shift to D₂

Question 13

If the price of film increases,the demand for film processing would decrease;moreover,the equilibrium price and quantity of film processing should also decrease.

Accepted Answer

A) True 
 B)False

Question 14

-In Figure 3-11,suppose that initially the market is in equilibrium as defined by the demand and supply curves D₁ and S₁.Which price/quantity combination could result from a decrease in the wages paid to workers?

Accepted Answer

A)  $100 and 50,000 
B)  $120 and 50,000 
C)  $75 and 75,000 
D)  $120 and 75,000 
E)  $120 and 100,000 
A)  $100 and 50,000 
B)  $120 and 50,000 
C)  $75 and 75,000 
D)  $120 and 75,000 
E)  $120 and 100,000

Question 15

Each point along the market demand curve shows

Accepted Answer

A)  the quantity of the good that firms would be willing and able to supply at a specific price 
B)  the relationship between the price of the good and total quantity demanded at a series of prices 
C)  the opportunity cost of supplying a given quantity of goods to the market 
D)  the quantity of the good that consumers would be willing and able to purchase at a specific price 
E)  how population changes affect the quantity demanded at a specific price 
A)  the quantity of the good that firms would be willing and able to supply at a specific price 
B)  the relationship between the price of the good and total quantity demanded at a series of prices 
C)  the opportunity cost of supplying a given quantity of goods to the market 
D)  the quantity of the good that consumers would be willing and able to purchase at a specific price 
E)  how population changes affect the quantity demanded at a specific price

Question 16

Assume the most typical shapes for the demand and supply in a competitive market.Suppose that demand falls and supply increases.Which of the following statements is correct?

Accepted Answer

A)  The equilibrium price will fall;the equilibrium quantity may rise or fall. 
B)  The equilibrium price will rise;the equilibrium quantity may rise or fall. 
C)  The equilibrium quantity will fall;the equilibrium price may rise or fall. 
D)  The equilibrium quantity will rise;the equilibrium price may rise or fall. 
E)  The equilibrium price will fall;the equilibrium quantity will not change. 
A)  The equilibrium price will fall;the equilibrium quantity may rise or fall. 
B)  The equilibrium price will rise;the equilibrium quantity may rise or fall. 
C)  The equilibrium quantity will fall;the equilibrium price may rise or fall. 
D)  The equilibrium quantity will rise;the equilibrium price may rise or fall. 
E)  The equilibrium price will fall;the equilibrium quantity will not change.

Question 17

The amount of a commodity that buyers in the market would like to purchase at a particular price is

Accepted Answer

A)  equilibrium 
B)  quantity supplied 
C)  quantity produced 
D)  infinite 
E)  quantity demanded 
A)  equilibrium 
B)  quantity supplied 
C)  quantity produced 
D)  infinite 
E)  quantity demanded

Question 18

All of the following would be examples of a spot markets except one.Which would not be a spot market?

Accepted Answer

A)  The market for milk 
B)  The market for beauty salon services 
C)  The market for higher education 
D)  The market for basketball cards 
E)  The market for used cars 
A)  The market for milk 
B)  The market for beauty salon services 
C)  The market for higher education 
D)  The market for basketball cards 
E)  The market for used cars

The quantity demanded of a good

A decrease in demand for a normal good could be caused by a(n)

The demand curve for a product will shift rightward when the price of a substitute decreases.

Of the following,which is most likely to be a normal good?

With other things constant,the supply schedule for a particular good indicates the quantities

Which of the following could cause the market demand curve for hot dogs to shift to the left?

A decrease in both equilibrium price and quantity could be produced by a(n)

When households and businesses interact in product markets goods and services are

If the demand for new automobiles falls when income falls,automobiles are said to be normal goods.

The law of demand states that the quantity demanded of a good and

A group of buyers and sellers with the potential to trade with each other is known as a(n)

-Suppose that initially the market for DVDs is at point A on demand curve D₂ in Figure 3-3.If the price of cassette tapes decreased,

If the price of film increases,the demand for film processing would decrease;moreover,the equilibrium price and quantity of film processing should also decrease.

-In Figure 3-11,suppose that initially the market is in equilibrium as defined by the demand and supply curves D₁ and S₁.Which price/quantity combination could result from a decrease in the wages paid to workers?

Each point along the market demand curve shows

Assume the most typical shapes for the demand and supply in a competitive market.Suppose that demand falls and supply increases.Which of the following statements is correct?

The amount of a commodity that buyers in the market would like to purchase at a particular price is

All of the following would be examples of a spot markets except one.Which would not be a spot market?

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

The quantity demanded of a good

A decrease in demand for a normal good could be caused by a(n)

The demand curve for a product will shift rightward when the price of a substitute decreases.

Of the following,which is most likely to be a normal good?

With other things constant,the supply schedule for a particular good indicates the quantities

Which of the following could cause the market demand curve for hot dogs to shift to the left?

A decrease in both equilibrium price and quantity could be produced by a(n)

When households and businesses interact in product markets goods and services are

If the demand for new automobiles falls when income falls,automobiles are said to be normal goods.

The law of demand states that the quantity demanded of a good and

A group of buyers and sellers with the potential to trade with each other is known as a(n)

-Suppose that initially the market for DVDs is at point A on demand curve D₂ in Figure 3-3.If the price of cassette tapes decreased,

If the price of film increases,the demand for film processing would decrease;moreover,the equilibrium price and quantity of film processing should also decrease.

-In Figure 3-11,suppose that initially the market is in equilibrium as defined by the demand and supply curves D₁ and S₁.Which price/quantity combination could result from a decrease in the wages paid to workers?

Each point along the market demand curve shows

Assume the most typical shapes for the demand and supply in a competitive market.Suppose that demand falls and supply increases.Which of the following statements is correct?

The amount of a commodity that buyers in the market would like to purchase at a particular price is

All of the following would be examples of a spot markets except one.Which would not be a spot market?

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