Question 1

The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:

Accepted Answer

A) cigarette smokers often wear cotton shirts. 
B) when incomes rise, people consume more cotton and tobacco. 
C) firms can switch from growing tobacco to cotton and vice versa. 
D) tobacco is an input in the production of cotton. 
E) cotton and tobacco are unrelated markets in all ways. 
A) cigarette smokers often wear cotton shirts. 
B) when incomes rise, people consume more cotton and tobacco. 
C) firms can switch from growing tobacco to cotton and vice versa. 
D) tobacco is an input in the production of cotton. 
E) cotton and tobacco are unrelated markets in all ways.

Question 2

A shortage occurs when a good is in great demand.

Accepted Answer

A) True 
 B)False

Question 3

Demand is a relationship between two economic variables:

Accepted Answer

A) the cost of a particular good and the quantity of the good produced. 
B) the cost of a particular good and the quantity of the good consumers are willing to buy. 
C) the price of a particular good and the price consumers are willing to pay. 
D) the price of a particular good and the quantity of the good consumers are willing to buy. 
A) the cost of a particular good and the quantity of the good produced. 
B) the cost of a particular good and the quantity of the good consumers are willing to buy. 
C) the price of a particular good and the price consumers are willing to pay. 
D) the price of a particular good and the quantity of the good consumers are willing to buy.

The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:

A shortage occurs when a good is in great demand.

Demand is a relationship between two economic variables:

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

The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:

A shortage occurs when a good is in great demand.

Demand is a relationship between two economic variables:

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