Question 1

If quantity supplied is greater than the quantity demanded,then according to the market process:

Accepted Answer

A) the shortage exists and the price will increase to the equilibrium level. 
B) the surplus exists and the price will increase to the equilibrium level. 
C) the shortage exists and the price will decrease to the equilibrium level. 
D) the surplus exists and the price will decrease to the equilibrium level. 
A) the shortage exists and the price will increase to the equilibrium level. 
B) the surplus exists and the price will increase to the equilibrium level. 
C) the shortage exists and the price will decrease to the equilibrium level. 
D) the surplus exists and the price will decrease to the equilibrium level.

Question 2

If consumer incomes go up and laptops are a normal good,the effect on the demand for laptops,ceteris paribus,will be a/an:

Accepted Answer

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

Question 3

The introduction of the carbon trading scheme which requires polluters to purchase permits will:

Accepted Answer

A) shift the supply curve to the left. 
B) shift the supply curve to the right. 
C) increase the quantity supplied. 
D) decrease the quantity supplied. 
E) decrease the demand. 
A) shift the supply curve to the left. 
B) shift the supply curve to the right. 
C) increase the quantity supplied. 
D) decrease the quantity supplied. 
E) decrease the demand.

Question 4

Which of the following will not cause a movement along the supply curve?

Accepted Answer

A) Changes in consumers' expectations. 
B) Increases in consumers' income. 
C) Changes in consumers' preferences. 
D) Changes in input prices. 
A) Changes in consumers' expectations. 
B) Increases in consumers' income. 
C) Changes in consumers' preferences. 
D) Changes in input prices.

Question 5

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

Accepted Answer

A) ambiguous change in price and a decrease in quantity. 
B) increase in price and an ambiguous change in quantity. 
C) increase in both price and quantity. 
D) decrease in both price and quantity. 
E) change in supply that dominates a change in demand. 
A) ambiguous change in price and a decrease in quantity. 
B) increase in price and an ambiguous change in quantity. 
C) increase in both price and quantity. 
D) decrease in both price and quantity. 
E) change in supply that dominates a change in demand.

Question 6

Supply is:

Accepted Answer

A) the number of units available. 
B) the cost of resources. 
C) the relationship between the number of units available and demand. 
D) the relationship between a range of prices and quantities supplied. 
A) the number of units available. 
B) the cost of resources. 
C) the relationship between the number of units available and demand. 
D) the relationship between a range of prices and quantities supplied.

Question 7

The law of supply states that:

Accepted Answer

A) there is a negative relationship between the price of a good and the quantity of it purchased by suppliers. 
B) there is a positive relationship between the price of a good and the quantity that buyers choose to purchase. 
C) there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers. 
D) at a lower price, a greater quantity will be supplied. 
A) there is a negative relationship between the price of a good and the quantity of it purchased by suppliers. 
B) there is a positive relationship between the price of a good and the quantity that buyers choose to purchase. 
C) there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers. 
D) at a lower price, a greater quantity will be supplied.

Question 8

There is a technological advance in the production of digital watches.This will cause:

Accepted Answer

A) demand to increase. 
B) supply to increase. 
C) demand to decrease. 
D) supply to decrease. 
E) the price to increase. 
A) demand to increase. 
B) supply to increase. 
C) demand to decrease. 
D) supply to decrease. 
E) the price to increase.

Question 9

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 a reduction in the price of iPhones on the demand for the iPhones?

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 10

The demand curve shows how the quantity demanded is related to the price.A change in other variables will:

Accepted Answer

A) shift the demand curve to the left. 
B) shift the demand curve to the right. 
C) not shift the demand curve. 
D) shift the demand curve. 
A) shift the demand curve to the left. 
B) shift the demand curve to the right. 
C) not shift the demand curve. 
D) shift the demand curve.

Question 11

If an individual's income increases,then the demand for a normal good will:

Accepted Answer

A) decrease. 
B) increase. 
C) remain constant. 
D) rotate. 
E) fall to zero. 
A) decrease. 
B) increase. 
C) remain constant. 
D) rotate. 
E) fall to zero.

Question 12

Exhibit 3-3 Supply curves
  
-In Exhibit 3-3,a shift in the supply curve from S₁ to S₂ represents a/an:

Accepted Answer

A) decrease in supply. 
B) decrease in the quantity supplied. 
C) increase in supply. 
D) increase in the quantity supplied. 
E) increase in demand. 
A) decrease in supply. 
B) decrease in the quantity supplied. 
C) increase in supply. 
D) increase in the quantity supplied. 
E) increase in demand.

Question 13

A shift occurs in the supply curve for salt when:

Accepted Answer

A) the price of salt increases. 
B) improvements are made in the production process. 
C) salt is found to be associated with high blood pressure. 
D) consumers expect the price of salt to increase in the future. 
A) the price of salt increases. 
B) improvements are made in the production process. 
C) salt is found to be associated with high blood pressure. 
D) consumers expect the price of salt to increase in the future.

Question 14

When the price of a good is above its equilibrium price,a:

Accepted Answer

A) surplus puts upward pressure on the price. 
B) surplus puts downward pressure on the price. 
C) shortage puts upward pressure on the price. 
D) shortage puts downward pressure on the price. 
A) surplus puts upward pressure on the price. 
B) surplus puts downward pressure on the price. 
C) shortage puts upward pressure on the price. 
D) shortage puts downward pressure on the price.

Question 15

If the quantity demanded is less than the quantity supplied,then:

Accepted Answer

A) the price will have to increase to establish equilibrium. 
B) there will be a surplus. 
C) the quantity supplied will be less than the quantity demanded. 
D) the demand will shift to the right. 
A) the price will have to increase to establish equilibrium. 
B) there will be a surplus. 
C) the quantity supplied will be less than the quantity demanded. 
D) the demand will shift to the right.

Question 16

A shortage of a product means a/an:

Accepted Answer

A) excess supply of the product. 
B) excess demand of the product. 
C) situation where the quantity demanded is less than the quantity supplied. 
D) situation where the quantity supplied exceeds the quantity demanded. 
E) situation where the current market price is too high. 
A) excess supply of the product. 
B) excess demand of the product. 
C) situation where the quantity demanded is less than the quantity supplied. 
D) situation where the quantity supplied exceeds the quantity demanded. 
E) situation where the current market price is too high.

Question 17

A leftward shift of a supply curve is called a/an:

Accepted Answer

A) decrease in demand. 
B) increase in supply. 
C) decrease in supply. 
D) increase in quantity supplied. 
E) decrease in quantity supplied. 
A) decrease in demand. 
B) increase in supply. 
C) decrease in supply. 
D) increase in quantity supplied. 
E) decrease in quantity supplied.

Question 18

Complementary goods are goods:

Accepted Answer

A) that are consumed jointly. 
B) that are consumed one in place of the other. 
C) for which demand increases when the price of its complementary goods increases. 
D) for which demand decreases when the price of its complementary goods decreases. 
E) that are inversely related. 
A) that are consumed jointly. 
B) that are consumed one in place of the other. 
C) for which demand increases when the price of its complementary goods increases. 
D) for which demand decreases when the price of its complementary goods decreases. 
E) that are inversely related.

Question 19

The relationship between changes in the non-price determinants of supply and the supply curve:

Accepted Answer

A) is positive and significant. 
B) depends on the nature of the non-price determinant of supply. 
C) always results in an increase in supply. 
D) indicates a rightward shift of the supply curve for all goods and services. 
A) is positive and significant. 
B) depends on the nature of the non-price determinant of supply. 
C) always results in an increase in supply. 
D) indicates a rightward shift of the supply curve for all goods and services.

Question 20

Suppose that X and Y are complementary goods.If the price of good X decreases,we can expect the:

Accepted Answer

A) demand for good X to increase. 
B) quantity demanded of good Y to decrease. 
C) quantity demanded of good Y to increase. 
D) demand for good Y to decrease. 
E) demand for good Y to increase. 
A) demand for good X to increase. 
B) quantity demanded of good Y to decrease. 
C) quantity demanded of good Y to increase. 
D) demand for good Y to decrease. 
E) demand for good Y to increase.

If quantity supplied is greater than the quantity demanded,then according to the market process:

If consumer incomes go up and laptops are a normal good,the effect on the demand for laptops,ceteris paribus,will be a/an:

The introduction of the carbon trading scheme which requires polluters to purchase permits will:

Which of the following will not cause a movement along the supply curve?

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

Supply is:

The law of supply states that:

There is a technological advance in the production of digital watches.This will cause:

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 a reduction in the price of iPhones on the demand for the iPhones?

The demand curve shows how the quantity demanded is related to the price.A change in other variables will:

If an individual's income increases,then the demand for a normal good will:

Exhibit 3-3 Supply curves -In Exhibit 3-3,a shift in the supply curve from S₁ to S₂ represents a/an:

A shift occurs in the supply curve for salt when:

When the price of a good is above its equilibrium price,a:

If the quantity demanded is less than the quantity supplied,then:

A shortage of a product means a/an:

A leftward shift of a supply curve is called a/an:

Complementary goods are goods:

The relationship between changes in the non-price determinants of supply and the supply curve:

Suppose that X and Y are complementary goods.If the price of good X decreases,we can expect the:

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

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Exam 3: Market demand and supply

If quantity supplied is greater than the quantity demanded,then according to the market process:

If consumer incomes go up and laptops are a normal good,the effect on the demand for laptops,ceteris paribus,will be a/an:

The introduction of the carbon trading scheme which requires polluters to purchase permits will:

Which of the following will not cause a movement along the supply curve?

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

Supply is:

The law of supply states that:

There is a technological advance in the production of digital watches.This will cause:

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 a reduction in the price of iPhones on the demand for the iPhones?

The demand curve shows how the quantity demanded is related to the price.A change in other variables will:

If an individual's income increases,then the demand for a normal good will:

Exhibit 3-3 Supply curves -In Exhibit 3-3,a shift in the supply curve from S₁ to S₂ represents a/an:

A shift occurs in the supply curve for salt when:

When the price of a good is above its equilibrium price,a:

If the quantity demanded is less than the quantity supplied,then:

A shortage of a product means a/an:

A leftward shift of a supply curve is called a/an:

Complementary goods are goods:

The relationship between changes in the non-price determinants of supply and the supply curve:

Suppose that X and Y are complementary goods.If the price of good X decreases,we can expect the:

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