Question 1

A surplus of shoes will cause _____

Accepted Answer

A)  a decrease in the supply of shoes. 
B)  a decrease in the demand for shoes. 
C)  an increase in the price of leather. 
D)  a rightward shift of the supply curve of shoes. 
E)  a decrease in the price of shoes. 
A)  a decrease in the supply of shoes. 
B)  a decrease in the demand for shoes. 
C)  an increase in the price of leather. 
D)  a rightward shift of the supply curve of shoes. 
E)  a decrease in the price of shoes.

Question 2

Exhibit 4.5
  
-Exhibit 4.5 shows the supply curves of a non-durable good. A shift from the supply curve S to S' could be caused by _____

Accepted Answer

A)  a decrease in consumer income. 
B)  an increase in the current price of the product. 
C)  a patent application that restricts the use of a particular production technology. 
D)  several competing producers going out of business. 
E)  an expectation of a higher product price in the future among suppliers. 
A)  a decrease in consumer income. 
B)  an increase in the current price of the product. 
C)  a patent application that restricts the use of a particular production technology. 
D)  several competing producers going out of business. 
E)  an expectation of a higher product price in the future among suppliers.

Question 3

Exhibit 4.7
  
-In the Exhibit given below, a price floor set at $20.00 will _____

Accepted Answer

A)  reduce the equilibrium quantity. 
B)  lead to a surplus of 10 units. 
C)  increase the equilibrium price. 
D)  lead to a surplus of 20 units. 
E)  have no impact on the equilibrium price and quantity. 
A)  reduce the equilibrium quantity. 
B)  lead to a surplus of 10 units. 
C)  increase the equilibrium price. 
D)  lead to a surplus of 20 units. 
E)  have no impact on the equilibrium price and quantity.

Question 4

The substitution effect of a price change describes the change in the quantity demanded of a good due to a change in its relative price.

Accepted Answer

A) True 
 B)False

Question 5

Classified ads and job web sites reduce the transaction costs of finding a new job.

Accepted Answer

A) True 
 B)False

Question 6

A decrease in the price of peanut butter will cause a leftward shift of the supply curve of peanut butter.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following can account for a decrease in the demand for peanut butter, a normal good?

Accepted Answer

A)  an increase in the supply of peanut butter 
B)  an increase in the price of peanut butter 
C)  a substantial increase in the price of bread 
D)  a drought in Georgia that destroyed 30 percent of the peanut crop 
E)  an increase in consumer income 
A)  an increase in the supply of peanut butter 
B)  an increase in the price of peanut butter 
C)  a substantial increase in the price of bread 
D)  a drought in Georgia that destroyed 30 percent of the peanut crop 
E)  an increase in consumer income

Question 8

Exhibit 4.6
  
-For a downward-sloping demand curve, all other things remaining constant, a rightward shift of the supply curve _____

Accepted Answer

A)  has no impact on the equilibrium price and quantity. 
B)  decreases both the equilibrium price and equilibrium quantity. 
C)  increases both the equilibrium price and equilibrium quantity. 
D)  decreases the equilibrium price and increases the equilibrium quantity. 
E)  increases the equilibrium price and decreases the equilibrium quantity. 
A)  has no impact on the equilibrium price and quantity. 
B)  decreases both the equilibrium price and equilibrium quantity. 
C)  increases both the equilibrium price and equilibrium quantity. 
D)  decreases the equilibrium price and increases the equilibrium quantity. 
E)  increases the equilibrium price and decreases the equilibrium quantity.

Question 9

Which of the following is most likely to shift the current supply curve of a good to the right?

Accepted Answer

A)  an increase in the price of a resource used in the good's production 
B)  an expectation of a higher price in the near future 
C)  an increase in the price of the good 
D)  a decrease in the price of an alternative good 
E)  an improvement in the technology used in the good's production 
A)  an increase in the price of a resource used in the good's production 
B)  an expectation of a higher price in the near future 
C)  an increase in the price of the good 
D)  a decrease in the price of an alternative good 
E)  an improvement in the technology used in the good's production

Question 10

Which of the following situations indicates a shortage of a product in the market to suppliers?

Accepted Answer

A)  The quantity supplied exceeds the quantity demanded at a particular price. 
B)  The quantity demanded decreases substantially. 
C)  The stock of inventories of most suppliers increases. 
D)  The quantity demanded exceeds the quantity supplied at a particular price. 
E)  The price of the product declines to an all-time low. 
A)  The quantity supplied exceeds the quantity demanded at a particular price. 
B)  The quantity demanded decreases substantially. 
C)  The stock of inventories of most suppliers increases. 
D)  The quantity demanded exceeds the quantity supplied at a particular price. 
E)  The price of the product declines to an all-time low.

Question 11

_____ is the amount offered for sale per period at a particular price, as reflected by a point on a supply curve.

Accepted Answer

A)  Individual supply 
B)  Law of supply 
C)  Supply 
D)  Quantity supplied 
E)  Market supply 
A)  Individual supply 
B)  Law of supply 
C)  Supply 
D)  Quantity supplied 
E)  Market supply

Question 12

Given upward-sloping supply curve, all other things remaining constant, a decrease in demand will lead to a(n) _____

Accepted Answer

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

Question 13

The relationship between the price of pizza and the quantity of pizza supplied is called _____

Accepted Answer

A)  demand. 
B)  supply. 
C)  the law of demand. 
D)  the law of supply. 
E)  there is a market for pizza. 
A)  demand. 
B)  supply. 
C)  the law of demand. 
D)  the law of supply. 
E)  there is a market for pizza.

Question 14

A shortage of textbooks is most likely to cause _____

Accepted Answer

A)  a decrease in the supply of textbooks. 
B)  a decrease in the demand for textbooks. 
C)  a decrease in the price of paper. 
D)  an increase in the cost of printing. 
E)  an increase in the price of textbooks. 
A)  a decrease in the supply of textbooks. 
B)  a decrease in the demand for textbooks. 
C)  a decrease in the price of paper. 
D)  an increase in the cost of printing. 
E)  an increase in the price of textbooks.

Question 15

If both demand and supply increase in a market that is initially in equilibrium, the equilibrium price will _____

Accepted Answer

A)  remain unchanged while the equilibrium quantity will decrease. 
B)  remain unchanged while the equilibrium quantity will increase. 
C)  increase only if supply increases more than demand. 
D)  increase only if demand increases more than supply. 
E)  decrease only if supply increases less than demand. 
A)  remain unchanged while the equilibrium quantity will decrease. 
B)  remain unchanged while the equilibrium quantity will increase. 
C)  increase only if supply increases more than demand. 
D)  increase only if demand increases more than supply. 
E)  decrease only if supply increases less than demand.

Question 16

Table 4.6
  
-Refer to Table 4.6. In which of the following combination does the equilibrium quantity increase?

Accepted Answer

A)  Box A 
B)  Box B 
C)  Box C 
D)  Box D 
E)  Equilibrium quantity does not increase in any combination. 
A)  Box A 
B)  Box B 
C)  Box C 
D)  Box D 
E)  Equilibrium quantity does not increase in any combination.

Question 17

A movement along the demand curve for a good can be attributed to a change in _____

Accepted Answer

A)  the demand for the good. 
B)  the opportunity cost of producing the good. 
C)  the quantity demanded of the good. 
D)  the substitution effect of consuming the good. 
E)  the income and preference of a consumer. 
A)  the demand for the good. 
B)  the opportunity cost of producing the good. 
C)  the quantity demanded of the good. 
D)  the substitution effect of consuming the good. 
E)  the income and preference of a consumer.

Question 18

Exhibit 4.6
  
-Identify the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles for a given demand curve.

Accepted Answer

A)  an increase in both the equilibrium price and equilibrium quantity 
B)  a decrease in both the equilibrium price and equilibrium quantity 
C)  an increase in the equilibrium price and a decrease in the equilibrium quantity 
D)  a decrease in the equilibrium price and an increase in the equilibrium quantity 
E)  an increase in the equilibrium price but no change in the equilibrium quantity 
A)  an increase in both the equilibrium price and equilibrium quantity 
B)  a decrease in both the equilibrium price and equilibrium quantity 
C)  an increase in the equilibrium price and a decrease in the equilibrium quantity 
D)  a decrease in the equilibrium price and an increase in the equilibrium quantity 
E)  an increase in the equilibrium price but no change in the equilibrium quantity

Question 19

For a given upward-sloping supply curve, an increase in the demand for chocolate chips will result in a _____

Accepted Answer

A)  higher equilibrium price and a lower equilibrium quantity, all other things remaining constant. 
B)  lower equilibrium price and a lower equilibrium quantity, all other things remaining constant. 
C)  lower equilibrium price and a higher equilibrium quantity, all other things remaining constant. 
D)  higher equilibrium price and a higher equilibrium quantity, all other things remaining constant. 
E)  decrease in the quantity supplied of chocolate chips, all other things remaining constant. 
A)  higher equilibrium price and a lower equilibrium quantity, all other things remaining constant. 
B)  lower equilibrium price and a lower equilibrium quantity, all other things remaining constant. 
C)  lower equilibrium price and a higher equilibrium quantity, all other things remaining constant. 
D)  higher equilibrium price and a higher equilibrium quantity, all other things remaining constant. 
E)  decrease in the quantity supplied of chocolate chips, all other things remaining constant.

Question 20

Which of the following will cause the demand curve for gasoline to shift leftward?

Accepted Answer

A)  a decrease in the price of gasoline 
B)  an increase in the price of gasoline 
C)  a leftward shift of the supply curve of gasoline 
D)  a rightward shift of the supply curve of cars 
E)  an increase in the price of cars 
A)  a decrease in the price of gasoline 
B)  an increase in the price of gasoline 
C)  a leftward shift of the supply curve of gasoline 
D)  a rightward shift of the supply curve of cars 
E)  an increase in the price of cars

A surplus of shoes will cause _____

Exhibit 4.5 -Exhibit 4.5 shows the supply curves of a non-durable good. A shift from the supply curve S to S' could be caused by _____

Exhibit 4.7 -In the Exhibit given below, a price floor set at $20.00 will _____

The substitution effect of a price change describes the change in the quantity demanded of a good due to a change in its relative price.

Classified ads and job web sites reduce the transaction costs of finding a new job.

A decrease in the price of peanut butter will cause a leftward shift of the supply curve of peanut butter.

Which of the following can account for a decrease in the demand for peanut butter, a normal good?

Exhibit 4.6 -For a downward-sloping demand curve, all other things remaining constant, a rightward shift of the supply curve _____

Which of the following is most likely to shift the current supply curve of a good to the right?

Which of the following situations indicates a shortage of a product in the market to suppliers?

_____ is the amount offered for sale per period at a particular price, as reflected by a point on a supply curve.

Given upward-sloping supply curve, all other things remaining constant, a decrease in demand will lead to a(n) _____

The relationship between the price of pizza and the quantity of pizza supplied is called _____

A shortage of textbooks is most likely to cause _____

If both demand and supply increase in a market that is initially in equilibrium, the equilibrium price will _____

Table 4.6 -Refer to Table 4.6. In which of the following combination does the equilibrium quantity increase?

A movement along the demand curve for a good can be attributed to a change in _____

Exhibit 4.6 -Identify the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles for a given demand curve.

For a given upward-sloping supply curve, an increase in the demand for chocolate chips will result in a _____

Which of the following will cause the demand curve for gasoline to shift leftward?

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.

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Exam 4: Demand, Supply, and Markets.

A surplus of shoes will cause _____

Exhibit 4.5 -Exhibit 4.5 shows the supply curves of a non-durable good. A shift from the supply curve S to S' could be caused by _____

Exhibit 4.7 -In the Exhibit given below, a price floor set at $20.00 will _____

The substitution effect of a price change describes the change in the quantity demanded of a good due to a change in its relative price.

Classified ads and job web sites reduce the transaction costs of finding a new job.

A decrease in the price of peanut butter will cause a leftward shift of the supply curve of peanut butter.

Which of the following can account for a decrease in the demand for peanut butter, a normal good?

Exhibit 4.6 -For a downward-sloping demand curve, all other things remaining constant, a rightward shift of the supply curve _____

Which of the following is most likely to shift the current supply curve of a good to the right?

Which of the following situations indicates a shortage of a product in the market to suppliers?

_____ is the amount offered for sale per period at a particular price, as reflected by a point on a supply curve.

Given upward-sloping supply curve, all other things remaining constant, a decrease in demand will lead to a(n) _____

The relationship between the price of pizza and the quantity of pizza supplied is called _____

A shortage of textbooks is most likely to cause _____

If both demand and supply increase in a market that is initially in equilibrium, the equilibrium price will _____

Table 4.6 -Refer to Table 4.6. In which of the following combination does the equilibrium quantity increase?

A movement along the demand curve for a good can be attributed to a change in _____

Exhibit 4.6 -Identify the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles for a given demand curve.

For a given upward-sloping supply curve, an increase in the demand for chocolate chips will result in a _____

Which of the following will cause the demand curve for gasoline to shift leftward?

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