Question 1

Which of the following could cause the supply of carrots to decrease?

Accepted Answer

A) Consumers' incomes decrease. 
B) There is a technological advance in carrot production. 
C) Fertiliser costs increase. 
D) The number of farmers growing carrots increases. 
E) The price of carrots decreases. 
A) Consumers' incomes decrease. 
B) There is a technological advance in carrot production. 
C) Fertiliser costs increase. 
D) The number of farmers growing carrots increases. 
E) The price of carrots decreases.

Question 2

Exhibit 3-7 Supply and demand curves
  
-Which of the graphs in Exhibit 3-7 illustrates a surplus existing at the indicated market price?

Accepted Answer

A)  Graph A. 
B)  Graph B. 
C)  Graph C. 
D)  Graphs A and C. 
A)  Graph A. 
B)  Graph B. 
C)  Graph C. 
D)  Graphs A and C.

Question 3

A shortage of wheat:

Accepted Answer

A) is impossible if people are hungry. 
B) is impossible if the price of wheat is higher than the market equilibrium. 
C) will result when the quantity supplied exceeds the quantity demanded at the current price. 
D) is unlikely to cause any change in the price of wheat. 
E) indicates that the problem of scarcity of wheat has been solved. 
A) is impossible if people are hungry. 
B) is impossible if the price of wheat is higher than the market equilibrium. 
C) will result when the quantity supplied exceeds the quantity demanded at the current price. 
D) is unlikely to cause any change in the price of wheat. 
E) indicates that the problem of scarcity of wheat has been solved.

Question 4

A demand curve:

Accepted Answer

A) has a positive slope. 
B) has a negative slope. 
C) is constant regardless of price. 
D) is based on the assumption of a stable supply curve. 
A) has a positive slope. 
B) has a negative slope. 
C) is constant regardless of price. 
D) is based on the assumption of a stable supply curve.

Question 5

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 $5 is _____.

Accepted Answer

A) 3 
B) 25 
C) 17 
D) 8 
E) 26 
A) 3 
B) 25 
C) 17 
D) 8 
E) 26

Question 6

There is news that the price of Tucker's Cider Explosion will increase significantly next week.If the demand for Tucker's Cider Explosion reacts only to this factor and shifts to the right,the position of this demand curve has reacted to a change in:

Accepted Answer

A) tastes. 
B) income levels. 
C) the price of other goods. 
D) the number of buyers. 
E) expectations. 
A) tastes. 
B) income levels. 
C) the price of other goods. 
D) the number of buyers. 
E) expectations.

Question 7

The distinction between changes in quantity demanded and changes in demand
Exhibit 3-2 Demand curves
  
-Which of the graphs in Exhibit 3-2 depicts the effect of an increase in income on the demand for luxury cars?

Accepted Answer

A)  Graph A. 
B)  Graph B. 
C)  Graph C. 
D)  Graph D. 
A)  Graph A. 
B)  Graph B. 
C)  Graph C. 
D)  Graph D.

Question 8

If apple growers expect the price of apples to increase,they would:

Accepted Answer

A) increase the current supply. 
B) supply regardless of future prices. 
C) restrict the current supply. 
D) start growing tomatoes. 
A) increase the current supply. 
B) supply regardless of future prices. 
C) restrict the current supply. 
D) start growing tomatoes.

Question 9

Exhibit 3-6 Demand and supply curves
  
-In Exhibit 3-6,Panel A,the movement from A to B describes a/an:

Accepted Answer

A) increase in demand and an increase in the quantity supplied. 
B) increase in the quantity demanded and an increase in supply. 
C) decrease in demand and a decrease in the quantity supplied. 
D) decrease in the quantity demanded and a decrease in supply. 
E) decrease in the quantity demanded and an increase in supply. 
A) increase in demand and an increase in the quantity supplied. 
B) increase in the quantity demanded and an increase in supply. 
C) decrease in demand and a decrease in the quantity supplied. 
D) decrease in the quantity demanded and a decrease in supply. 
E) decrease in the quantity demanded and an increase in supply.

Question 10

The equilibrium price is best defined as the price at which:

Accepted Answer

A) quality demanded is equal to quantity supplied. 
B) suppliers want to supply more goods. 
C) demanders want to buy more goods. 
D) quantity demanded is equal to quantity supplied. 
E) the quantity demanded increases 
A) quality demanded is equal to quantity supplied. 
B) suppliers want to supply more goods. 
C) demanders want to buy more goods. 
D) quantity demanded is equal to quantity supplied. 
E) the quantity demanded increases

Question 11

Which of the following must be true if good X is a normal good and income increases?

Accepted Answer

A) The demand for X will increase, and thus the price and quantity sold and bought will decrease. 
B) The demand for X will decrease, and thus the price and quantity sold and bought will decrease. 
C) The demand for X will increase, and thus the price and quantity sold and bought will increase. 
D) The demand for X will decrease, and thus the price and quantity sold and bought will increase. 
E) The demand for X will increase, and thus the price and quantity sold and bought will remain the same. 
A) The demand for X will increase, and thus the price and quantity sold and bought will decrease. 
B) The demand for X will decrease, and thus the price and quantity sold and bought will decrease. 
C) The demand for X will increase, and thus the price and quantity sold and bought will increase. 
D) The demand for X will decrease, and thus the price and quantity sold and bought will increase. 
E) The demand for X will increase, and thus the price and quantity sold and bought will remain the same.

Question 12

When the price of a good in a market is above equilibrium:

Accepted Answer

A) the quantity supplied exceeds the quantity demanded. 
B) a surplus is observed. 
C) the price will fall in the near future. 
D) all of these factors apply. 
A) the quantity supplied exceeds the quantity demanded. 
B) a surplus is observed. 
C) the price will fall in the near future. 
D) all of these factors apply.

Question 13

An increase in income increases the supply of all goods.

Accepted Answer

A) True 
 B)False

Question 14

If more people enter medical school,we can expect:

Accepted Answer

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

Question 15

Exhibit 3-3 Supply curves
  
-In Exhibit 3-3,which of the following could have caused the shift in the supply curve from S₁ to S₂?

Accepted Answer

A) Increase in demand. 
B) Decrease in demand. 
C) Decrease in the number of suppliers in the market. 
D) Increase in the number of sellers. 
E) Increase in the cost of materials. 
A) Increase in demand. 
B) Decrease in demand. 
C) Decrease in the number of suppliers in the market. 
D) Increase in the number of sellers. 
E) Increase in the cost of materials.

Question 16

Other things being equal,a fall in the price of Coca-Cola will increase the quantity of Coca-Cola produced.

Accepted Answer

A) True 
 B)False

Question 17

The effect of a decrease in the price of coffee,other things being equal,causes a:

Accepted Answer

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

Question 18

If a shortage exists in a market then:

Accepted Answer

A) the price is cannot be determined. 
B) the quantity demanded is less than the quantity supplied. 
C) the price will fall in the near future. 
D) the price will increase in the near future. 
A) the price is cannot be determined. 
B) the quantity demanded is less than the quantity supplied. 
C) the price will fall in the near future. 
D) the price will increase in the near future.

Question 19

The supply curve for chicken will shift to the right if production costs increase.

Accepted Answer

A) True 
 B)False

Question 20

A decrease in supply means that:

Accepted Answer

A) demand will increase by the same amount. 
B) the quantity demanded will increase. 
C) there is a movement down and to the left along the supply curve. 
D) the quantity supplied at every price will decrease. 
E) the supply curve will shift out and to the right. 
A) demand will increase by the same amount. 
B) the quantity demanded will increase. 
C) there is a movement down and to the left along the supply curve. 
D) the quantity supplied at every price will decrease. 
E) the supply curve will shift out and to the right.

Which of the following could cause the supply of carrots to decrease?

Exhibit 3-7 Supply and demand curves -Which of the graphs in Exhibit 3-7 illustrates a surplus existing at the indicated market price?

A shortage of wheat:

A demand curve:

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 $5 is _____.

There is news that the price of Tucker's Cider Explosion will increase significantly next week.If the demand for Tucker's Cider Explosion reacts only to this factor and shifts to the right,the position of this demand curve has reacted to a change in:

The distinction between changes in quantity demanded and changes in demand Exhibit 3-2 Demand curves -Which of the graphs in Exhibit 3-2 depicts the effect of an increase in income on the demand for luxury cars?

If apple growers expect the price of apples to increase,they would:

Exhibit 3-6 Demand and supply curves -In Exhibit 3-6,Panel A,the movement from A to B describes a/an:

The equilibrium price is best defined as the price at which:

Which of the following must be true if good X is a normal good and income increases?

When the price of a good in a market is above equilibrium:

An increase in income increases the supply of all goods.

If more people enter medical school,we can expect:

Exhibit 3-3 Supply curves -In Exhibit 3-3,which of the following could have caused the shift in the supply curve from S₁ to S₂?

Other things being equal,a fall in the price of Coca-Cola will increase the quantity of Coca-Cola produced.

The effect of a decrease in the price of coffee,other things being equal,causes a:

If a shortage exists in a market then:

The supply curve for chicken will shift to the right if production costs increase.

A decrease in supply means that:

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

Which of the following could cause the supply of carrots to decrease?

Exhibit 3-7 Supply and demand curves -Which of the graphs in Exhibit 3-7 illustrates a surplus existing at the indicated market price?

A shortage of wheat:

A demand curve:

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 $5 is _____.

There is news that the price of Tucker's Cider Explosion will increase significantly next week.If the demand for Tucker's Cider Explosion reacts only to this factor and shifts to the right,the position of this demand curve has reacted to a change in:

The distinction between changes in quantity demanded and changes in demand Exhibit 3-2 Demand curves -Which of the graphs in Exhibit 3-2 depicts the effect of an increase in income on the demand for luxury cars?

If apple growers expect the price of apples to increase,they would:

Exhibit 3-6 Demand and supply curves -In Exhibit 3-6,Panel A,the movement from A to B describes a/an:

The equilibrium price is best defined as the price at which:

Which of the following must be true if good X is a normal good and income increases?

When the price of a good in a market is above equilibrium:

An increase in income increases the supply of all goods.

If more people enter medical school,we can expect:

Exhibit 3-3 Supply curves -In Exhibit 3-3,which of the following could have caused the shift in the supply curve from S₁ to S₂?

Other things being equal,a fall in the price of Coca-Cola will increase the quantity of Coca-Cola produced.

The effect of a decrease in the price of coffee,other things being equal,causes a:

If a shortage exists in a market then:

The supply curve for chicken will shift to the right if production costs increase.

A decrease in supply means that:

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