Question 1

Identify the correct statement.

Accepted Answer

A)  Demand is the total quantity of a product that people are willing, even if unable, to purchase at a given price. 
B)  Demand for a product is the same as the quantity demanded of a product. 
C)  Demand represents the different quantities of a good or service that provides consumers the same amount of utility. 
D)  Demand is the quantity of a product that people are willing and able to purchase at different prices. 
E)  Demand is the quantity of a product that producers are willing to produce at a particular price. 
A)  Demand is the total quantity of a product that people are willing, even if unable, to purchase at a given price. 
B)  Demand for a product is the same as the quantity demanded of a product. 
C)  Demand represents the different quantities of a good or service that provides consumers the same amount of utility. 
D)  Demand is the quantity of a product that people are willing and able to purchase at different prices. 
E)  Demand is the quantity of a product that producers are willing to produce at a particular price.

Question 2

Inferior goods are low quality goods that people prefer to buy less of.

Accepted Answer

A) True 
 B)False

Question 3

Assume that Ford Motor Company engineers achieve a revolutionary technological breakthrough in the production process of automobiles. Which of the following is expected to take place?

Accepted Answer

A)  A movement up along the existing supply curve for Ford automobiles 
B)  The supply of Ford automobiles will remain unchanged 
C)  An inward shift of the supply curve for Ford automobiles 
D)  A downward movement along an existing supply curve for Ford automobiles 
E)  An outward shift of the supply curve for Ford automobiles 
A)  A movement up along the existing supply curve for Ford automobiles 
B)  The supply of Ford automobiles will remain unchanged 
C)  An inward shift of the supply curve for Ford automobiles 
D)  A downward movement along an existing supply curve for Ford automobiles 
E)  An outward shift of the supply curve for Ford automobiles

Question 4

The relationship between prices and the corresponding quantities supplied is shown in a:

Accepted Answer

A)  supply schedule. 
B)  demand schedule. 
C)  price-earnings ratio. 
D)  production possibilities curve. 
E)  total output schedule. 
A)  supply schedule. 
B)  demand schedule. 
C)  price-earnings ratio. 
D)  production possibilities curve. 
E)  total output schedule.

Question 5

In a market where the price is restricted by price floors or price ceilings,

Accepted Answer

A)  all sellers will be able to sell everything they produce. 
B)  surpluses and shortages will exist. 
C)  all buyers will get what they want. 
D)  disequilibrium will automatically correct itself. 
E)  surpluses and shortages will put pressure on the price to move to its equilibrium. 
A)  all sellers will be able to sell everything they produce. 
B)  surpluses and shortages will exist. 
C)  all buyers will get what they want. 
D)  disequilibrium will automatically correct itself. 
E)  surpluses and shortages will put pressure on the price to move to its equilibrium.

Question 6

_______ ensure that resources are allocated to where they are most highly valued.

Accepted Answer

A)  Communist governments 
B)  Consumers 
C)  Suppliers 
D)  Non-governmental organizations 
E)  Markets 
A)  Communist governments 
B)  Consumers 
C)  Suppliers 
D)  Non-governmental organizations 
E)  Markets

Question 7

A price floor does not benefit producers.

Accepted Answer

A) True 
 B)False

Question 8

Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?

Accepted Answer

A)  The demand curve will rotate inward at the given price level. 
B)  The will be a movement up along the demand curve. 
C)  The demand curve will rotate outward at the given price level. 
D)  There will be a downward movement along the demand curve. 
E)  The demand curve will become steeper. 
A)  The demand curve will rotate inward at the given price level. 
B)  The will be a movement up along the demand curve. 
C)  The demand curve will rotate outward at the given price level. 
D)  There will be a downward movement along the demand curve. 
E)  The demand curve will become steeper.

Question 9

An example of barter is voluntary work at an old-age home.

Accepted Answer

A) True 
 B)False

Question 10

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.?
  
-Refer to Table 3.1. If Quantity Demanded 1, Quantity Demanded 2, and Quantity Demanded 3 are market demand schedules, then the change from Quantity Demanded 1 to Quantity Demanded 2 may have been due to:

Accepted Answer

A)  an increase in price. 
B)  a decrease in the number of sellers. 
C)  an increase in the number of buyers. 
D)  a decrease in price. 
E)  an increase in the price of a complementary good. 
A)  an increase in price. 
B)  a decrease in the number of sellers. 
C)  an increase in the number of buyers. 
D)  a decrease in price. 
E)  an increase in the price of a complementary good.

Question 11

A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good.

Accepted Answer

A) True 
 B)False

Question 12

The exchange of goods and services directly without money is called:

Accepted Answer

A)  creative destruction. 
B)  barter. 
C)  arbitration. 
D)  currency trade. 
E)  illegal trade. 
A)  creative destruction. 
B)  barter. 
C)  arbitration. 
D)  currency trade. 
E)  illegal trade.

Question 13

In the market for eggs, a removal of the price ceiling on eggs results in:

Accepted Answer

A)  an increase in the demand for eggs. 
B)  farmers supplying more eggs to the market. 
C)  consumers demanding a larger quantity of eggs. 
D)  farmers supplying less eggs to the market. 
E)  consumers demanding a smaller quantity of eggs. 
A)  an increase in the demand for eggs. 
B)  farmers supplying more eggs to the market. 
C)  consumers demanding a larger quantity of eggs. 
D)  farmers supplying less eggs to the market. 
E)  consumers demanding a smaller quantity of eggs.

Question 14

The demand for luxurious goods are usually unaffected by an increase in income.

Accepted Answer

A) True 
 B)False

Question 15

The term barter refers to exchanges made:

Accepted Answer

A)  only with the use of money. 
B)  without the use of money. 
C)  outside the U.S. economy. 
D)  only in underdeveloped countries. 
E)  within countries in a monetary union. 
A)  only with the use of money. 
B)  without the use of money. 
C)  outside the U.S. economy. 
D)  only in underdeveloped countries. 
E)  within countries in a monetary union.

Question 16

The table given below reports the quantity of bread loaves demanded and supplied at different per unit prices.?
  
-Refer to Table 3.3. Which of the following would occur in the market for bread if the market price exceeded the equilibrium price by $1?

Accepted Answer

A)  The quantity of bread demanded in the market would increase. 
B)  The bread market would face a surplus of 36 loaves of bread. 
C)  The supply of bread in the market would increase. 
D)  The bread market would face a shortage of 72 loaves of bread. 
E)  The demand for bread in the market would decrease. 
A)  The quantity of bread demanded in the market would increase. 
B)  The bread market would face a surplus of 36 loaves of bread. 
C)  The supply of bread in the market would increase. 
D)  The bread market would face a shortage of 72 loaves of bread. 
E)  The demand for bread in the market would decrease.

Question 17

According to the law of demand, if the price of movie rentals decreases, ceteris paribus,:

Accepted Answer

A)  the demand for movie rentals would increase. 
B)  the quantity demanded of movie rentals would decrease. 
C)  the quantity demanded of movie rentals would increase. 
D)  the demand for movie rentals would decrease. 
E)  the quantity demanded of movie rentals would not change. 
A)  the demand for movie rentals would increase. 
B)  the quantity demanded of movie rentals would decrease. 
C)  the quantity demanded of movie rentals would increase. 
D)  the demand for movie rentals would decrease. 
E)  the quantity demanded of movie rentals would not change.

Question 18

Barter requires a double coincidence of wants. This means that:

Accepted Answer

A)  at least two traders must demand a commodity. 
B)  any two traders involved in a transaction must have money. 
C)  each trader must demand at least two commodities. 
D)  either of the two traders involved in a transaction must have money. 
E)  when two traders are involved in a transaction each trader must want what the other has to offer. 
A)  at least two traders must demand a commodity. 
B)  any two traders involved in a transaction must have money. 
C)  each trader must demand at least two commodities. 
D)  either of the two traders involved in a transaction must have money. 
E)  when two traders are involved in a transaction each trader must want what the other has to offer.

Question 19

The amount of a product that people are willing and able to purchase at a specific price is referred to as the:

Accepted Answer

A)  demand. 
B)  quantity demanded. 
C)  law of demand. 
D)  consumption function. 
E)  purchasing power. 
A)  demand. 
B)  quantity demanded. 
C)  law of demand. 
D)  consumption function. 
E)  purchasing power.

Question 20

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.?
  
-Refer to Table 3.1. If Quantity Demanded 1, Quantity Demanded 2, and Quantity Demanded 3 are market demand schedules, then the change from Quantity Demanded 1 to Quantity Demanded 3 may have been due to:

Accepted Answer

A)  an increase in price. 
B)  an increase in the number of sellers. 
C)  a decrease in price. 
D)  a decrease in the number of buyers. 
E)  an increase in the price of a substitute good. 
A)  an increase in price. 
B)  an increase in the number of sellers. 
C)  a decrease in price. 
D)  a decrease in the number of buyers. 
E)  an increase in the price of a substitute good.

Identify the correct statement.

Inferior goods are low quality goods that people prefer to buy less of.

Assume that Ford Motor Company engineers achieve a revolutionary technological breakthrough in the production process of automobiles. Which of the following is expected to take place?

The relationship between prices and the corresponding quantities supplied is shown in a:

In a market where the price is restricted by price floors or price ceilings,

_______ ensure that resources are allocated to where they are most highly valued.

A price floor does not benefit producers.

Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?

An example of barter is voluntary work at an old-age home.

A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good.

The exchange of goods and services directly without money is called:

In the market for eggs, a removal of the price ceiling on eggs results in:

The demand for luxurious goods are usually unaffected by an increase in income.

The term barter refers to exchanges made:

The table given below reports the quantity of bread loaves demanded and supplied at different per unit prices.? -Refer to Table 3.3. Which of the following would occur in the market for bread if the market price exceeded the equilibrium price by $1?

According to the law of demand, if the price of movie rentals decreases, ceteris paribus,:

Barter requires a double coincidence of wants. This means that:

The amount of a product that people are willing and able to purchase at a specific price is referred to as the:

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters

Exam 3: The Market and Price System

Identify the correct statement.

Inferior goods are low quality goods that people prefer to buy less of.

Assume that Ford Motor Company engineers achieve a revolutionary technological breakthrough in the production process of automobiles. Which of the following is expected to take place?

The relationship between prices and the corresponding quantities supplied is shown in a:

In a market where the price is restricted by price floors or price ceilings,

_______ ensure that resources are allocated to where they are most highly valued.

A price floor does not benefit producers.

Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?

An example of barter is voluntary work at an old-age home.

A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good.

The exchange of goods and services directly without money is called:

In the market for eggs, a removal of the price ceiling on eggs results in:

The demand for luxurious goods are usually unaffected by an increase in income.

The term barter refers to exchanges made:

The table given below reports the quantity of bread loaves demanded and supplied at different per unit prices.? -Refer to Table 3.3. Which of the following would occur in the market for bread if the market price exceeded the equilibrium price by $1?

According to the law of demand, if the price of movie rentals decreases, ceteris paribus,:

Barter requires a double coincidence of wants. This means that:

The amount of a product that people are willing and able to purchase at a specific price is referred to as the:

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters