Question 1

A price floor set below the equilibrium price will result in a surplus.

Accepted Answer

A) True 
 B)False

Question 2

The explanation for the law of demand begins with _____

Accepted Answer

A)  a small number of wants satisfied by scarce resources. 
B)  finite wants satisfied by infinite resources. 
C)  unlimited wants confronting scarce resources. 
D)  unlimited wants matching up with unlimited resources. 
E)  prices acting as signals to existing and potential suppliers. 
A)  a small number of wants satisfied by scarce resources. 
B)  finite wants satisfied by infinite resources. 
C)  unlimited wants confronting scarce resources. 
D)  unlimited wants matching up with unlimited resources. 
E)  prices acting as signals to existing and potential suppliers.

Question 3

_____ are the costs of time and information required for exchange.

Accepted Answer

A)  Surplus costs 
B)  Shortage costs 
C)  Transaction costs 
D)  Market costs 
E)  Opportunity costs 
A)  Surplus costs 
B)  Shortage costs 
C)  Transaction costs 
D)  Market costs 
E)  Opportunity costs

Question 4

Suppose a consumer can choose to consume either apples or oranges. Which of the following is likely to occur if the price of each fruit increases by 15 percent?

Accepted Answer

A)  The consumer will substitute apples for oranges. 
B)  The income effect of the price change will be positive. 
C)  The substitution effect of the price change will be zero. 
D)  The consumer will demand more of both of the goods. 
E)  The consumer will substitute oranges for apples. 
A)  The consumer will substitute apples for oranges. 
B)  The income effect of the price change will be positive. 
C)  The substitution effect of the price change will be zero. 
D)  The consumer will demand more of both of the goods. 
E)  The consumer will substitute oranges for apples.

Question 5

Which of the following statements about a demand curve is true?

Accepted Answer

A)  The demand curve for a good will not shift when the money income of consumers increases. 
B)  If price increases, the demand curve will shift to the right. 
C)  The demand curve for a good will not shift when price changes. 
D)  If a supply curve shifts, thereby changing price, the demand curve will shift as well. 
E)  If a demand curve shifts, the supply curve will shift as well irrespective of whether price changes. 
A)  The demand curve for a good will not shift when the money income of consumers increases. 
B)  If price increases, the demand curve will shift to the right. 
C)  The demand curve for a good will not shift when price changes. 
D)  If a supply curve shifts, thereby changing price, the demand curve will shift as well. 
E)  If a demand curve shifts, the supply curve will shift as well irrespective of whether price changes.

A price floor set below the equilibrium price will result in a surplus.

The explanation for the law of demand begins with _____

_____ are the costs of time and information required for exchange.

Suppose a consumer can choose to consume either apples or oranges. Which of the following is likely to occur if the price of each fruit increases by 15 percent?

Which of the following statements about a demand curve is true?

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 4: Demand, Supply, and Markets.

A price floor set below the equilibrium price will result in a surplus.

The explanation for the law of demand begins with _____

_____ are the costs of time and information required for exchange.

Suppose a consumer can choose to consume either apples or oranges. Which of the following is likely to occur if the price of each fruit increases by 15 percent?

Which of the following statements about a demand curve is true?

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters