Question 1

The demand schedule shows that the price of a good and quantity demanded are directly related to each other.

Accepted Answer

A) True 
 B)False

Question 2

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.?
  
-Refer to Table 3.5. If government imposes a price ceiling of $2:

Accepted Answer

A)  the price will be above equilibrium. 
B)  the price will fall to $1 because producers will be forced to incur losses. 
C)  demand will increase. 
D)  a surplus will result equal to 20 units. 
E)  a shortage will result equal to 20 units. 
A)  the price will be above equilibrium. 
B)  the price will fall to $1 because producers will be forced to incur losses. 
C)  demand will increase. 
D)  a surplus will result equal to 20 units. 
E)  a shortage will result equal to 20 units.

Question 3

If an increase in the price of good X causes the demand curve for product Y to shift to the right, then X and Y are most likely to be which of the following?

Accepted Answer

A)  Shoes and laces 
B)  Tennis balls and tennis rackets 
C)  Turkey and chicken 
D)  Knives and forks 
E)  DVD players and DVDs 
A)  Shoes and laces 
B)  Tennis balls and tennis rackets 
C)  Turkey and chicken 
D)  Knives and forks 
E)  DVD players and DVDs

Question 4

When a market is in surplus, there is pressure for the price to move upward.

Accepted Answer

A) True 
 B)False

Question 5

Margarine and butter can both be used as a spread on toast. This means that they are:

Accepted Answer

A)  independent goods. 
B)  complementary goods. 
C)  substitute goods. 
D)  Giffen goods. 
E)  inferior goods. 
A)  independent goods. 
B)  complementary goods. 
C)  substitute goods. 
D)  Giffen goods. 
E)  inferior goods.

Question 6

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.?
  
-Refer to Table 3.5. If government imposes a price floor of $2:

Accepted Answer

A)  the price floor will not have an effect. 
B)  the price will fall to $1 because producers will be forced to incur losses. 
C)  demand will increase. 
D)  a surplus will result equal to 20 units. 
E)  a shortage will result equal to 20 units. 
A)  the price floor will not have an effect. 
B)  the price will fall to $1 because producers will be forced to incur losses. 
C)  demand will increase. 
D)  a surplus will result equal to 20 units. 
E)  a shortage will result equal to 20 units.

Question 7

The output level that occurs in any market that is in equilibrium:

Accepted Answer

A)  is the quantity where the supply curve intersects the y-axis. 
B)  is the quantity where the demand curve intersects the x-axis. 
C)  is the quantity at an output level where buyers will pay more than suppliers require. 
D)  is an output level where buyers will not pay as much as suppliers require. 
E)  is the quantity where the demand and supply curves intersect each other. 
A)  is the quantity where the supply curve intersects the y-axis. 
B)  is the quantity where the demand curve intersects the x-axis. 
C)  is the quantity at an output level where buyers will pay more than suppliers require. 
D)  is an output level where buyers will not pay as much as suppliers require. 
E)  is the quantity where the demand and supply curves intersect each other.

Question 8

The figure given below represents the equilibrium in the market for bicycles under different demand and supply situations. The vertical axis in each panel shows the price of bikes.?Figure 3.2
  
-Refer to Figure 3.2. Which of the following panels represents the equilibrium situation in the bicycle market, if there were an increase in the price of metal used in the production of bicycles?

Accepted Answer

A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  Panel D 
E)  Panel E 
A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  Panel D 
E)  Panel E

Question 9

Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?

Accepted Answer

A)  The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living. 
B)  The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own. 
C)  Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient. 
D)  There will be no shortages under the first-come first-serve basis of allocation. 
E)  A random process of allocation is fair in the sense that everyone gains and there are no losers. 
A)  The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living. 
B)  The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own. 
C)  Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient. 
D)  There will be no shortages under the first-come first-serve basis of allocation. 
E)  A random process of allocation is fair in the sense that everyone gains and there are no losers.

Question 10

Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?

Accepted Answer

A)  Demand has increased 
B)  Demand has decreased 
C)  Supply has increased 
D)  Supply has decreased 
E)  Quantity supplied has decreased 
A)  Demand has increased 
B)  Demand has decreased 
C)  Supply has increased 
D)  Supply has decreased 
E)  Quantity supplied has decreased

Question 11

The table given below reports the quantity demanded and supplied of a commodity in a market at different price levels.?
  
-Refer to Table 3.4. In the market represented by this table, at equilibrium:

Accepted Answer

A)  the market price is $5 per unit. 
B)  there is a surplus of 900 units. 
C)  there is a shortage of 900 units. 
D)  900 units are traded at a price of $3 per unit. 
E)  the market price is $1 per unit and the quantity traded is 500 units. 
A)  the market price is $5 per unit. 
B)  there is a surplus of 900 units. 
C)  there is a shortage of 900 units. 
D)  900 units are traded at a price of $3 per unit. 
E)  the market price is $1 per unit and the quantity traded is 500 units.

Question 12

The table given below represents the supply schedules of the only three DVD producers in the market for DVDs.?
  
-According to Table 3.2, if the supply schedules 1, 2, and 3 are the market supply schedules for DVDs in three different time periods, what could explain the change from the Supply 1 schedule to the Supply 2 schedule?

Accepted Answer

A)  A decrease in the price of DVDs 
B)  A decrease in the cost of DVD players 
C)  A change in consumer preferences 
D)  A change in the average income of consumers 
E)  An increase in the cost of producing DVDs 
A)  A decrease in the price of DVDs 
B)  A decrease in the cost of DVD players 
C)  A change in consumer preferences 
D)  A change in the average income of consumers 
E)  An increase in the cost of producing DVDs

Question 13

Which of the following determines the quantity demanded of a commodity?

Accepted Answer

A)  The income levels of consumers 
B)  The price of the commodity 
C)  The prices of related commodities 
D)  The number of buyers 
E)  Consumers' expectations 
A)  The income levels of consumers 
B)  The price of the commodity 
C)  The prices of related commodities 
D)  The number of buyers 
E)  Consumers' expectations

Question 14

A price floor is the minimum price that consumers have to pay for a particular product.

Accepted Answer

A) True 
 B)False

Question 15

If more firms enter the telecommunications industry, we can expect the equilibrium price of telecom services to decrease and the equilibrium number of services to increase.

Accepted Answer

A) True 
 B)False

Question 16

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. Calculate the market demand at prices $5, $4, $3, $2, and $1 respectively.

Accepted Answer

A)  Market demand is 30, 40, 50, 60, and 70 
B)  Market demand is 30, 60, 90, 120, and 150 
C)  Market demand is 30, 50, 70, 90, and 1,100 
D)  Market demand is 10, 30, 40, 50, and 70 
E)  Market demand is 10, 20, 30, 40, and 50 
A)  Market demand is 30, 40, 50, 60, and 70 
B)  Market demand is 30, 60, 90, 120, and 150 
C)  Market demand is 30, 50, 70, 90, and 1,100 
D)  Market demand is 10, 30, 40, 50, and 70 
E)  Market demand is 10, 20, 30, 40, and 50

The demand schedule shows that the price of a good and quantity demanded are directly related to each other.

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.? -Refer to Table 3.5. If government imposes a price ceiling of $2:

If an increase in the price of good X causes the demand curve for product Y to shift to the right, then X and Y are most likely to be which of the following?

When a market is in surplus, there is pressure for the price to move upward.

Margarine and butter can both be used as a spread on toast. This means that they are:

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.? -Refer to Table 3.5. If government imposes a price floor of $2:

The output level that occurs in any market that is in equilibrium:

Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?

Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?

The table given below reports the quantity demanded and supplied of a commodity in a market at different price levels.? -Refer to Table 3.4. In the market represented by this table, at equilibrium:

Which of the following determines the quantity demanded of a commodity?

A price floor is the minimum price that consumers have to pay for a particular product.

If more firms enter the telecommunications industry, we can expect the equilibrium price of telecom services to decrease and the equilibrium number of services to increase.

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. Calculate the market demand at prices $5, $4, $3, $2, and $1 respectively.

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

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Exam 3: The Market and Price System

The demand schedule shows that the price of a good and quantity demanded are directly related to each other.

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.? -Refer to Table 3.5. If government imposes a price ceiling of $2:

If an increase in the price of good X causes the demand curve for product Y to shift to the right, then X and Y are most likely to be which of the following?

When a market is in surplus, there is pressure for the price to move upward.

Margarine and butter can both be used as a spread on toast. This means that they are:

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.? -Refer to Table 3.5. If government imposes a price floor of $2:

The output level that occurs in any market that is in equilibrium:

Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?

Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?

The table given below reports the quantity demanded and supplied of a commodity in a market at different price levels.? -Refer to Table 3.4. In the market represented by this table, at equilibrium:

Which of the following determines the quantity demanded of a commodity?

A price floor is the minimum price that consumers have to pay for a particular product.

If more firms enter the telecommunications industry, we can expect the equilibrium price of telecom services to decrease and the equilibrium number of services to increase.

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. Calculate the market demand at prices $5, $4, $3, $2, and $1 respectively.

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