Question 1

Farmers can choose to produce eggs and/or milk.If there is a successful advertising campaign for people to 'drink milk',then what will be the effect on the egg market?

Accepted Answer

A) None, since consumers do not see eggs and milk as related goods. 
B) Egg demand will increase. 
C) Egg demand will decrease. 
D) Egg supply will increase. 
E) Egg supply will decrease. 
A) None, since consumers do not see eggs and milk as related goods. 
B) Egg demand will increase. 
C) Egg demand will decrease. 
D) Egg supply will increase. 
E) Egg supply will decrease.

Question 2

A supply schedule shows the relationship between:

Accepted Answer

A) demand and supply. 
B) supply and income. 
C) price and income. 
D) quantity supplied and price. 
E) income and quantity supplied. 
A) demand and supply. 
B) supply and income. 
C) price and income. 
D) quantity supplied and price. 
E) income and quantity supplied.

Question 3

Assume that brand X is an inferior good and name brand Y is a normal good.An increase in consumer income,other things being equal,will cause a/an:

Accepted Answer

A) upward movement along the demand curve for name brand Y. 
B) downward movement along the demand curve for brand X. 
C) rightward shift in the demand curve for brand X. 
D) leftward shift in the demand curve for brand X. 
A) upward movement along the demand curve for name brand Y. 
B) downward movement along the demand curve for brand X. 
C) rightward shift in the demand curve for brand X. 
D) leftward shift in the demand curve for brand X.

Question 4

A shift of the demand curve occurs if there is:

Accepted Answer

A) an increase in price. 
B) a change due to any factor except price. 
C) a decrease in price. 
D) shift of the supply curve to the left. 
E) shift of the supply curve to the right. 
A) an increase in price. 
B) a change due to any factor except price. 
C) a decrease in price. 
D) shift of the supply curve to the left. 
E) shift of the supply curve to the right.

Question 5

A complementary good is:

Accepted Answer

A) a good that is not related to any other good. 
B) a good that is given to you for free. 
C) a good that is jointly consumed with another good. 
D) a good that is consumed instead of another good. 
A) a good that is not related to any other good. 
B) a good that is given to you for free. 
C) a good that is jointly consumed with another good. 
D) a good that is consumed instead of another good.

Question 6

How do retailers react to a surplus?

Accepted Answer

A) The surplus has no effect on retailers. 
B) Competition forces sellers to reduce their prices. 
C) Competition forces retailers to offer more goods. 
D) The surplus will force sellers to increase their prices. 
A) The surplus has no effect on retailers. 
B) Competition forces sellers to reduce their prices. 
C) Competition forces retailers to offer more goods. 
D) The surplus will force sellers to increase their prices.

Question 7

If people expect the price of bread to increase next month:

Accepted Answer

A) demand for bread will decrease. 
B) quantity of bread demanded will decrease. 
C) quantity of bread demanded will increase. 
D) demand for bread will increase. 
E) quantity of bread demanded will not change. 
A) demand for bread will decrease. 
B) quantity of bread demanded will decrease. 
C) quantity of bread demanded will increase. 
D) demand for bread will increase. 
E) quantity of bread demanded will not change.

Question 8

If government introduces a new subsidy to poultry farmers,we can expect:

Accepted Answer

A) no effect on the supply or demand of poultry - just a movement along the curves. 
B) the demand for poultry to decrease. 
C) the demand for poultry to increase. 
D) the supply of poultry to decrease. 
E) the supply of poultry to increase. 
A) no effect on the supply or demand of poultry - just a movement along the curves. 
B) the demand for poultry to decrease. 
C) the demand for poultry to increase. 
D) the supply of poultry to decrease. 
E) the supply of poultry to increase.

Question 9

The major non-price determinants of demand for good A are:

Accepted Answer

A) supply of the good A 
B) tastes and preferences. 
C) number of sellers. 
D)  price of the good A. 
A) supply of the good A 
B) tastes and preferences. 
C) number of sellers. 
D)  price of the good A.

Question 10

Exhibit 3-1 Market demand
  
-Suppose there are only three people in the economy: Jane,Harry and Bob.The individual demand for corn for each of these consumers is given in Exhibit 3-1.The total quantity demanded of corn if the market price is $4 is _____.

Accepted Answer

A) 3 
B) 8 
C) 17 
D) 25 
E) 36 
A) 3 
B) 8 
C) 17 
D) 25 
E) 36

Question 11

Which of the following will not shift the demand curve for televisions?

Accepted Answer

A) An increase in the price of televisions. 
B) An increase in consumer income. 
C) An increase in the price of radios (a substitute). 
D) An increase in the price of cable services (a complement). 
A) An increase in the price of televisions. 
B) An increase in consumer income. 
C) An increase in the price of radios (a substitute). 
D) An increase in the price of cable services (a complement).

Question 12

Exhibit 3-3 Supply curves
  
-In Exhibit 3-3,a shift in the supply curve from S₁ to S₂ can be because of:

Accepted Answer

A) subsidies to consumers. 
B) higher taxes imposed on producers. 
C) changes in consumer preferences. 
D) technological innovation. 
A) subsidies to consumers. 
B) higher taxes imposed on producers. 
C) changes in consumer preferences. 
D) technological innovation.

Question 13

Exhibit 3-5 Demand and supply data for radios
  
-In Exhibit 3-5,if there is a surplus of radios of 300 units,the current price of radios must be:

Accepted Answer

A) $60. 
B) $55. 
C) $70. 
D) $45. 
E) $40. 
A) $60. 
B) $55. 
C) $70. 
D) $45. 
E) $40.

Question 14

Assume Qs represents the quantity supplied at a given price and Qd represents quantity demanded at a given price.Which of the following market conditions produces an upward movement of the price?

Accepted Answer

A) Qs = 10, Qd = 5. 
B) Qs = 5, Qd = 5. 
C) Qs = 5, Qd = 10. 
D) Qs = 5, Qd = 3. 
A) Qs = 10, Qd = 5. 
B) Qs = 5, Qd = 5. 
C) Qs = 5, Qd = 10. 
D) Qs = 5, Qd = 3.

Question 15

Which of the following would decrease the supply of airline travel?

Accepted Answer

A) Reduced numbers of airline travellers. 
B) New airline companies beginning operations. 
C) Higher fuel costs. 
D) Lower prices for airline tickets. 
A) Reduced numbers of airline travellers. 
B) New airline companies beginning operations. 
C) Higher fuel costs. 
D) Lower prices for airline tickets.

Question 16

Assuming that hamburgers and hot dogs are substitutes,an increase in the price of hamburgers,other things being equal,results in a:

Accepted Answer

A) rightward shift in the demand curve for hot dogs. 
B) leftward shift in the demand curve for hamburgers. 
C) rightward shift in the demand curve for hamburgers. 
D) leftward shift in the demand curve for hot dogs. 
A) rightward shift in the demand curve for hot dogs. 
B) leftward shift in the demand curve for hamburgers. 
C) rightward shift in the demand curve for hamburgers. 
D) leftward shift in the demand curve for hot dogs.

Question 17

The law of supply indicates that a decrease in price will cause a decrease in supply,which is reflected graphically as a leftward shift of the supply curve.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following will increase the supply of a good?

Accepted Answer

A) An increase in the price of another good producers could produce. 
B) A lower price paid for resources used in the production of the good. 
C) A decrease in the number of sellers. 
D) An increase in taxes paid to the government by producers. 
A) An increase in the price of another good producers could produce. 
B) A lower price paid for resources used in the production of the good. 
C) A decrease in the number of sellers. 
D) An increase in taxes paid to the government by producers.

Question 19

A change in supply cannot be caused by a change in:

Accepted Answer

A) resource prices. 
B) technology. 
C) expectations of consumers. 
D) prices of other goods. 
E) the number of suppliers. 
A) resource prices. 
B) technology. 
C) expectations of consumers. 
D) prices of other goods. 
E) the number of suppliers.

Question 20

If consumers are anticipating a wet summer,then:

Accepted Answer

A) the demand for hotdogs will increase. 
B) the demand for raincoats will shift to the right. 
C) the demand for umbrellas will not be affected. 
D) the demand for umbrellas will shift to the left. 
A) the demand for hotdogs will increase. 
B) the demand for raincoats will shift to the right. 
C) the demand for umbrellas will not be affected. 
D) the demand for umbrellas will shift to the left.

Farmers can choose to produce eggs and/or milk.If there is a successful advertising campaign for people to 'drink milk',then what will be the effect on the egg market?

A supply schedule shows the relationship between:

Assume that brand X is an inferior good and name brand Y is a normal good.An increase in consumer income,other things being equal,will cause a/an:

A shift of the demand curve occurs if there is:

A complementary good is:

How do retailers react to a surplus?

If people expect the price of bread to increase next month:

If government introduces a new subsidy to poultry farmers,we can expect:

The major non-price determinants of demand for good A are:

Exhibit 3-1 Market demand -Suppose there are only three people in the economy: Jane,Harry and Bob.The individual demand for corn for each of these consumers is given in Exhibit 3-1.The total quantity demanded of corn if the market price is $4 is _____.

Which of the following will not shift the demand curve for televisions?

Exhibit 3-3 Supply curves -In Exhibit 3-3,a shift in the supply curve from S₁ to S₂ can be because of:

Exhibit 3-5 Demand and supply data for radios -In Exhibit 3-5,if there is a surplus of radios of 300 units,the current price of radios must be:

Assume Qs represents the quantity supplied at a given price and Qd represents quantity demanded at a given price.Which of the following market conditions produces an upward movement of the price?

Which of the following would decrease the supply of airline travel?

Assuming that hamburgers and hot dogs are substitutes,an increase in the price of hamburgers,other things being equal,results in a:

The law of supply indicates that a decrease in price will cause a decrease in supply,which is reflected graphically as a leftward shift of the supply curve.

Which of the following will increase the supply of a good?

A change in supply cannot be caused by a change in:

If consumers are anticipating a wet summer,then:

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

Farmers can choose to produce eggs and/or milk.If there is a successful advertising campaign for people to 'drink milk',then what will be the effect on the egg market?

A supply schedule shows the relationship between:

Assume that brand X is an inferior good and name brand Y is a normal good.An increase in consumer income,other things being equal,will cause a/an:

A shift of the demand curve occurs if there is:

A complementary good is:

How do retailers react to a surplus?

If people expect the price of bread to increase next month:

If government introduces a new subsidy to poultry farmers,we can expect:

The major non-price determinants of demand for good A are:

Exhibit 3-1 Market demand -Suppose there are only three people in the economy: Jane,Harry and Bob.The individual demand for corn for each of these consumers is given in Exhibit 3-1.The total quantity demanded of corn if the market price is $4 is _____.

Which of the following will not shift the demand curve for televisions?

Exhibit 3-3 Supply curves -In Exhibit 3-3,a shift in the supply curve from S₁ to S₂ can be because of:

Exhibit 3-5 Demand and supply data for radios -In Exhibit 3-5,if there is a surplus of radios of 300 units,the current price of radios must be:

Assume Qs represents the quantity supplied at a given price and Qd represents quantity demanded at a given price.Which of the following market conditions produces an upward movement of the price?

Which of the following would decrease the supply of airline travel?

Assuming that hamburgers and hot dogs are substitutes,an increase in the price of hamburgers,other things being equal,results in a:

The law of supply indicates that a decrease in price will cause a decrease in supply,which is reflected graphically as a leftward shift of the supply curve.

Which of the following will increase the supply of a good?

A change in supply cannot be caused by a change in:

If consumers are anticipating a wet summer,then:

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