Question 1

Supply is a relationship between:

Accepted Answer

A) price of a particular good and quantity of this good buyers are willing to buy. 
B) cost of a particular good and quantity of this good sellers are willing to buy. 
C) price of a particular good and quantity of this good sellers are willing to sell. 
D) cost of a particular good and price buyers are willing to pay. 
A) price of a particular good and quantity of this good buyers are willing to buy. 
B) cost of a particular good and quantity of this good sellers are willing to buy. 
C) price of a particular good and quantity of this good sellers are willing to sell. 
D) cost of a particular good and price buyers are willing to pay.

Question 2

When firms advertise their products,they are attempting to:

Accepted Answer

A) shift the supply curve of the product to the right. 
B) shift the supply curve of the product to the left. 
C) create a surplus of the product. 
D) shift the demand for the product to the left. 
E) shift the demand for the product to the right. 
A) shift the supply curve of the product to the right. 
B) shift the supply curve of the product to the left. 
C) create a surplus of the product. 
D) shift the demand for the product to the left. 
E) shift the demand for the product to the right.

Question 3

A shortage is a market condition existing at any price where the quantity demanded is less than the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following pairs is the best example of substitutes?

Accepted Answer

A) Coffee and cream. 
B) Videotapes and VCRs. 
C) Honey and biscuits. 
D) Tortillas and salsa. 
E) Hiking boots and athletic shoes. 
A) Coffee and cream. 
B) Videotapes and VCRs. 
C) Honey and biscuits. 
D) Tortillas and salsa. 
E) Hiking boots and athletic shoes.

Question 5

If good X is an inferior good,a decrease in consumer income,other things being equal,will shift the:

Accepted Answer

A) demand curve for good X to the right. 
B) demand curve for good X to the left. 
C) supply curve for good X to the right. 
D) supply curve for good X to the left. 
A) demand curve for good X to the right. 
B) demand curve for good X to the left. 
C) supply curve for good X to the right. 
D) supply curve for good X to the left.

Question 6

If the price of potato chips increases,other things being equal,demand for potato-chip dip will:

Accepted Answer

A) not change, only the quantity demanded will change. 
B) increase, because the goods are substitutes. 
C) decrease, because the goods are substitutes. 
D) decrease, because the goods are complements. 
E) increase, because the goods are complements. 
A) not change, only the quantity demanded will change. 
B) increase, because the goods are substitutes. 
C) decrease, because the goods are substitutes. 
D) decrease, because the goods are complements. 
E) increase, because the goods are complements.

Question 7

Which of the following will not cause a shift in the demand curve for good X?

Accepted Answer

A) A change in the price of a complementary good. 
B) A change in the price of good X. 
C) A change in consumer tastes and preferences for good X. 
D) An increase in consumer income. 
A) A change in the price of a complementary good. 
B) A change in the price of good X. 
C) A change in consumer tastes and preferences for good X. 
D) An increase in consumer income.

Question 8

Which of the following factors do not shift supply curves?

Accepted Answer

A) Number of sellers. 
B) Number of buyers. 
C) Technology. 
D) Input prices. 
E) Taxes and subsidies. 
A) Number of sellers. 
B) Number of buyers. 
C) Technology. 
D) Input prices. 
E) Taxes and subsidies.

Question 9

An improvement in technology will:

Accepted Answer

A) increase the demand. 
B) lower the cost of production. 
C) decrease the demand. 
D) increase the cost of production. 
A) increase the demand. 
B) lower the cost of production. 
C) decrease the demand. 
D) increase the cost of production.

Question 10

Surplus (of a good)is a situation in which:

Accepted Answer

A) the quantity supplied is undetermined. 
B) the quantity supplied is equal to the quantity demanded. 
C) the quantity supplied is less than the quantity demanded. 
D) the quantity supplied is greater than the quantity demanded. 
A) the quantity supplied is undetermined. 
B) the quantity supplied is equal to the quantity demanded. 
C) the quantity supplied is less than the quantity demanded. 
D) the quantity supplied is greater than the quantity demanded.

Question 11

A demand curve for The Steel Porcupines' concert tickets would show the:

Accepted Answer

A) number of tickets the box office is willing to sell at various prices. 
B) number of people who need tickets. 
C) quality of people who want to buy these concert tickets. 
D) number of tickets that will be purchased at various prices. 
A) number of tickets the box office is willing to sell at various prices. 
B) number of people who need tickets. 
C) quality of people who want to buy these concert tickets. 
D) number of tickets that will be purchased at various prices.

Question 12

Anything that changes the amount a firm can produce with a given amount of resources will result in a shift of supply curve.

Accepted Answer

A) True 
 B)False

Question 13

At a price of $5,Sam buys 10 units of a product.When the price increases to $6,Sam buys 8 units.Martha says Sam's demand has decreased.Is Martha correct?

Accepted Answer

A) Yes, Martha is correct. Sam's demand has decreased. 
B) No, Martha is incorrect. Sam's demand has increased. 
C) No, Martha is incorrect. Sam's quantity demanded has decreased, and his demand has not changed. 
D) No, Martha is incorrect. Sam's quantity demanded has increased, and his demand has increased. 
E) No, Martha is incorrect. Sam's demand has increased, and his quantity demanded has decreased. 
A) Yes, Martha is correct. Sam's demand has decreased. 
B) No, Martha is incorrect. Sam's demand has increased. 
C) No, Martha is incorrect. Sam's quantity demanded has decreased, and his demand has not changed. 
D) No, Martha is incorrect. Sam's quantity demanded has increased, and his demand has increased. 
E) No, Martha is incorrect. Sam's demand has increased, and his quantity demanded has decreased.

Question 14

The fact that price and quantity demanded are related negatively illustrates the:

Accepted Answer

A) law of supply. 
B) law of quantity supplied. 
C) law of demand. 
D) law of quantity demanded. 
E) point that some facts are unobservable. 
A) law of supply. 
B) law of quantity supplied. 
C) law of demand. 
D) law of quantity demanded. 
E) point that some facts are unobservable.

Question 15

If the current price of a good is the same as that found at the intersection of the market supply and demand curves,then:

Accepted Answer

A) excess demand exists. 
B) excess supply exists. 
C) the price will tend to rise. 
D) the price will tend to fall. 
E) the market is in equilibrium. 
A) excess demand exists. 
B) excess supply exists. 
C) the price will tend to rise. 
D) the price will tend to fall. 
E) the market is in equilibrium.

Question 16

Assuming that oranges and apples can both be grown on the same type of land,a decrease in the price of apples,other things being equal,will cause a/an:

Accepted Answer

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

Question 17

Assume that a computer is a normal good.An increase in consumer income,other things being equal,would:

Accepted Answer

A) cause an upward movement along the demand curve for computers. 
B) cause a downward movement along the demand curve for computers. 
C) shift the demand curve for computers to the left. 
D) shift the demand curve for computers to the right. 
A) cause an upward movement along the demand curve for computers. 
B) cause a downward movement along the demand curve for computers. 
C) shift the demand curve for computers to the left. 
D) shift the demand curve for computers to the right.

Question 18

Assuming that day old bread is an inferior good,an increase in consumer income,other things being equal,will cause a/an:

Accepted Answer

A) rightward shift in the demand curve for day old bread. 
B) downward movement along the demand curve for day old bread. 
C) leftward shift in the demand curve for day old bread. 
D) upward movement along the demand curve for day old bread. 
A) rightward shift in the demand curve for day old bread. 
B) downward movement along the demand curve for day old bread. 
C) leftward shift in the demand curve for day old bread. 
D) upward movement along the demand curve for day old bread.

Question 19

If the market price is below the equilibrium price,then:

Accepted Answer

A) a surplus of product will result. 
B) the quantity supplied will exceed the quantity demanded. 
C) the market supply curve will shift to the right. 
D) the quantity demanded will exceed the quantity supplied. 
E) the market demand curve will shift to the left. 
A) a surplus of product will result. 
B) the quantity supplied will exceed the quantity demanded. 
C) the market supply curve will shift to the right. 
D) the quantity demanded will exceed the quantity supplied. 
E) the market demand curve will shift to the left.

Question 20

An increase in the demand for a good quality steak,a normal good,can be caused by a/an:

Accepted Answer

A) decrease in consumer income. 
B) increase in the price of steak. 
C) increase in the price of tomato sauce. 
D) increase in consumer income. 
E) decrease in the price of sliced ham. 
A) decrease in consumer income. 
B) increase in the price of steak. 
C) increase in the price of tomato sauce. 
D) increase in consumer income. 
E) decrease in the price of sliced ham.

Supply is a relationship between:

When firms advertise their products,they are attempting to:

A shortage is a market condition existing at any price where the quantity demanded is less than the quantity supplied.

Which of the following pairs is the best example of substitutes?

If good X is an inferior good,a decrease in consumer income,other things being equal,will shift the:

If the price of potato chips increases,other things being equal,demand for potato-chip dip will:

Which of the following will not cause a shift in the demand curve for good X?

Which of the following factors do not shift supply curves?

An improvement in technology will:

Surplus (of a good)is a situation in which:

A demand curve for The Steel Porcupines' concert tickets would show the:

Anything that changes the amount a firm can produce with a given amount of resources will result in a shift of supply curve.

At a price of $5,Sam buys 10 units of a product.When the price increases to $6,Sam buys 8 units.Martha says Sam's demand has decreased.Is Martha correct?

The fact that price and quantity demanded are related negatively illustrates the:

If the current price of a good is the same as that found at the intersection of the market supply and demand curves,then:

Assuming that oranges and apples can both be grown on the same type of land,a decrease in the price of apples,other things being equal,will cause a/an:

Assume that a computer is a normal good.An increase in consumer income,other things being equal,would:

Assuming that day old bread is an inferior good,an increase in consumer income,other things being equal,will cause a/an:

If the market price is below the equilibrium price,then:

An increase in the demand for a good quality steak,a normal good,can be caused by a/an:

Thinking like an economist

Production possibilities and opportunity cost

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 3: Market demand and supply

Supply is a relationship between:

When firms advertise their products,they are attempting to:

A shortage is a market condition existing at any price where the quantity demanded is less than the quantity supplied.

Which of the following pairs is the best example of substitutes?

If good X is an inferior good,a decrease in consumer income,other things being equal,will shift the:

If the price of potato chips increases,other things being equal,demand for potato-chip dip will:

Which of the following will not cause a shift in the demand curve for good X?

Which of the following factors do not shift supply curves?

An improvement in technology will:

Surplus (of a good)is a situation in which:

A demand curve for The Steel Porcupines' concert tickets would show the:

Anything that changes the amount a firm can produce with a given amount of resources will result in a shift of supply curve.

At a price of $5,Sam buys 10 units of a product.When the price increases to $6,Sam buys 8 units.Martha says Sam's demand has decreased.Is Martha correct?

The fact that price and quantity demanded are related negatively illustrates the:

If the current price of a good is the same as that found at the intersection of the market supply and demand curves,then:

Assuming that oranges and apples can both be grown on the same type of land,a decrease in the price of apples,other things being equal,will cause a/an:

Assume that a computer is a normal good.An increase in consumer income,other things being equal,would:

Assuming that day old bread is an inferior good,an increase in consumer income,other things being equal,will cause a/an:

If the market price is below the equilibrium price,then:

An increase in the demand for a good quality steak,a normal good,can be caused by a/an:

Thinking like an economist

Production possibilities and opportunity cost

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters