Question 1

The ________ plots the relationship between prices and the quantity producers are willing to sell.

Accepted Answer

A)  average cost curve 
B)  supply curve 
C)  demand curve 
D)  fixed cost curve 
A)  average cost curve 
B)  supply curve 
C)  demand curve 
D)  fixed cost curve

Question 2

In a perfectly competitive market,situations of surplus or shortage of a good ________.

Accepted Answer

A)  can exist simultaneously 
B)  are permanent phenomena 
C)  exist until the government or any ruling authority intervenes 
D)  self-correct due to the competitive nature of the market 
A)  can exist simultaneously 
B)  are permanent phenomena 
C)  exist until the government or any ruling authority intervenes 
D)  self-correct due to the competitive nature of the market

Question 3

The following table shows the supply schedule of bread for three sellers in the economy. Assume that these three sellers constitute the entire market.
  
-Refer to the table above.If the market supply of bread at a price of $4 per loaf is 75 loaves,Seller 2's supply is ________ loaves.

Accepted Answer

A)  20 
B)  30 
C)  35 
D)  55 
A)  20 
B)  30 
C)  35 
D)  55

Question 4

The figure below shows the market demand and the market supply curve for gasoline. It would be useful to find the equations of the curves to answer the questions below.
  
-Refer to the figure above.Suppose that a government regulation mandates a higher quality of gasoline,which raises the marginal cost of each liter by 2.00 euros.Meanwhile,the popularity of hybrid and other energy-efficient vehicles lowers consumers' willingness to pay by 2.00 euros.Then the new equilibrium quantity is ________ and the new equilibrium price ________.

Accepted Answer

A)  800,000 liters; is higher than the old equilibrium price 
B)  600,000 liters; is same as the old equilibrium price 
C)  500,000 liters; is lower than the old equilibrium price 
D)  400,000 liters; could be either higher or lower than the old equilibrium price 
A)  800,000 liters; is higher than the old equilibrium price 
B)  600,000 liters; is same as the old equilibrium price 
C)  500,000 liters; is lower than the old equilibrium price 
D)  400,000 liters; could be either higher or lower than the old equilibrium price

Question 5

Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertical nor horizontal).If the consumers' willingness to pay for the hundredth unit and the seller's willingness to accept for the 175th unit are both $5.00,then ________.

Accepted Answer

A)  the equilibrium price is $5.00 
B)  the equilibrium quantity is 100 units 
C)  there is an excess supply of 75 units at the price of $5.00 
D)  there is an excess demand of 75 units at the price of $5.00 
A)  the equilibrium price is $5.00 
B)  the equilibrium quantity is 100 units 
C)  there is an excess supply of 75 units at the price of $5.00 
D)  there is an excess demand of 75 units at the price of $5.00

The ________ plots the relationship between prices and the quantity producers are willing to sell.

In a perfectly competitive market,situations of surplus or shortage of a good ________.

The following table shows the supply schedule of bread for three sellers in the economy. Assume that these three sellers constitute the entire market. -Refer to the table above.If the market supply of bread at a price of $4 per loaf is 75 loaves,Seller 2's supply is ________ loaves.

Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertical nor horizontal).If the consumers' willingness to pay for the hundredth unit and the seller's willingness to accept for the 175th unit are both $5.00,then ________.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters

Exam 4: Demand, supply, and Equilibrium

The ________ plots the relationship between prices and the quantity producers are willing to sell.

In a perfectly competitive market,situations of surplus or shortage of a good ________.

The following table shows the supply schedule of bread for three sellers in the economy. Assume that these three sellers constitute the entire market. -Refer to the table above.If the market supply of bread at a price of $4 per loaf is 75 loaves,Seller 2's supply is ________ loaves.

Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertical nor horizontal).If the consumers' willingness to pay for the hundredth unit and the seller's willingness to accept for the 175th unit are both $5.00,then ________.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters