Question 1

Market demand curves are obtained by

Accepted Answer

A)  determining the price each consumer is willing to pay for the good and summing those prices across all consumers. 
B)  observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph. 
C)  summing the quantities every consumer is willing to buy at each different price. 
D)  observing the behavior of an individual consumer in a market. 
E)  averaging the quantities every consumer is willing to buy at each different price. 
A)  determining the price each consumer is willing to pay for the good and summing those prices across all consumers. 
B)  observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph. 
C)  summing the quantities every consumer is willing to buy at each different price. 
D)  observing the behavior of an individual consumer in a market. 
E)  averaging the quantities every consumer is willing to buy at each different price.

Question 2

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Both Figure A and Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Both Figure A and Figure D

Question 3

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound

Accepted Answer

A)  will rise. 
B)  will fall 
C)  will remain the same. 
D)  might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. 
E)  None of the above answers is correct. 
A)  will rise. 
B)  will fall 
C)  will remain the same. 
D)  might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. 
E)  None of the above answers is correct.

Question 4

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

Accepted Answer

A)  equilibrium quantity of bread increases. 
B)  equilibrium quantity of peanut butter definitely decreases. 
C)  equilibrium quantity of peanut butter might increase or might decrease. 
D)  equilibrium price of peanut butter definitely rises. 
E)  equilibrium price of peanut butter definitely falls. 
A)  equilibrium quantity of bread increases. 
B)  equilibrium quantity of peanut butter definitely decreases. 
C)  equilibrium quantity of peanut butter might increase or might decrease. 
D)  equilibrium price of peanut butter definitely rises. 
E)  equilibrium price of peanut butter definitely falls.

Question 5

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

Accepted Answer

A)  the price of a substitute good 
B)  income 
C)  expectations 
D)  preferences 
E)  the price of a complement good 
A)  the price of a substitute good 
B)  income 
C)  expectations 
D)  preferences 
E)  the price of a complement good

Question 6

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Accepted Answer

A)  the demand for personal computers decreased. 
B)  the initial price was too high and nobody bought personal computers. 
C)  there were technological advances in the production of personal computers. 
D)  people's incomes increased and personal computers are an inferior good. 
E)  None of the above answers is correct. 
A)  the demand for personal computers decreased. 
B)  the initial price was too high and nobody bought personal computers. 
C)  there were technological advances in the production of personal computers. 
D)  people's incomes increased and personal computers are an inferior good. 
E)  None of the above answers is correct.

Question 7

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Accepted Answer

A)  will rise. 
B)  will fall. 
C)  will remain the same. 
D)  might rise, fall, or remain the same but more information is needed. 
E)  will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers. 
A)  will rise. 
B)  will fall. 
C)  will remain the same. 
D)  might rise, fall, or remain the same but more information is needed. 
E)  will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.

Question 8

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

Accepted Answer

A)  an advance in the technology used to produce personal computers 
B)  an increase in the number of firms producing personal computer 
C)  a fall in the cost of the components used to assemble personal computers 
D)  a rise the price of a personal computer 
E)  a change in the expected future price of a personal computer 
A)  an advance in the technology used to produce personal computers 
B)  an increase in the number of firms producing personal computer 
C)  a fall in the cost of the components used to assemble personal computers 
D)  a rise the price of a personal computer 
E)  a change in the expected future price of a personal computer

Question 9

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

Accepted Answer

A)  The supply of wheat increased and the supply of corn decreased. 
B)  The quantity of wheat supplied increased and quantity of corn supplied decreased. 
C)  The supply of wheat increased and the quantity of corn supplied decreased 
D)  The quantity of wheat supplied increased and the supply of corn decreased. 
E)  The supply of wheat decreased and the supply of corn decreased. 
A)  The supply of wheat increased and the supply of corn decreased. 
B)  The quantity of wheat supplied increased and quantity of corn supplied decreased. 
C)  The supply of wheat increased and the quantity of corn supplied decreased 
D)  The quantity of wheat supplied increased and the supply of corn decreased. 
E)  The supply of wheat decreased and the supply of corn decreased.

Question 10

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

Accepted Answer

A)  increases the demand for corn. 
B)  increases the supply of corn. 
C)  decreases the supply of corn. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  increases the demand for corn. 
B)  increases the supply of corn. 
C)  decreases the supply of corn. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 11

If the price of tangerines increases,the price of oranges also rises because

Accepted Answer

A)  consumers consider the two goods complements and so sellers decreased the supply of oranges. 
B)  consumers consider the two goods substitutes and demand for oranges increases. 
C)  if the supply of tangerines decreased, then the supply of oranges also must decrease. 
D)  buyers must have expected a higher price for oranges and thus increased their demand for oranges. 
E)  buyers' incomes must have decreased and oranges are an inferior good. 
A)  consumers consider the two goods complements and so sellers decreased the supply of oranges. 
B)  consumers consider the two goods substitutes and demand for oranges increases. 
C)  if the supply of tangerines decreased, then the supply of oranges also must decrease. 
D)  buyers must have expected a higher price for oranges and thus increased their demand for oranges. 
E)  buyers' incomes must have decreased and oranges are an inferior good.

Question 12

Which of the following describes the law of demand? When other things remain the same,as

Accepted Answer

A)  the price of gas falls, the quantity demanded of gas increases. 
B)  the quantity demanded of bread increases, the price of bread falls. 
C)  the price of peanut butter increases, the quantity demanded of jelly decreases. 
D)  your income increases, you'll buy more hamburgers. 
E)  more people decide to eat pizza, the demand for pizza increases. 
A)  the price of gas falls, the quantity demanded of gas increases. 
B)  the quantity demanded of bread increases, the price of bread falls. 
C)  the price of peanut butter increases, the quantity demanded of jelly decreases. 
D)  your income increases, you'll buy more hamburgers. 
E)  more people decide to eat pizza, the demand for pizza increases.

Question 13

Market equilibrium occurs when

Accepted Answer

A)  all markets become equal. 
B)  the quantity demanded equals the quantity supplied. 
C)  opposing forces pull demand and supply apart. 
D)  demand and supply move in opposite direction. 
E)  demand and supply change so that they are equal at all possible prices. 
A)  all markets become equal. 
B)  the quantity demanded equals the quantity supplied. 
C)  opposing forces pull demand and supply apart. 
D)  demand and supply move in opposite direction. 
E)  demand and supply change so that they are equal at all possible prices.

Question 14

What is the difference between quantity supplied and supply?

Accepted Answer

Quantity supplied is the amount that peo

Question 15

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

Accepted Answer

A)  studies showing using cellular phones can cause brain cancer 
B)  a decrease in the price of cellular phones 
C)  a decrease in the quantity demanded of cellular phones 
D)  an increase in the services provided by cellular phones, such as text messaging 
E)  an increase in the price of cellular phones 
A)  studies showing using cellular phones can cause brain cancer 
B)  a decrease in the price of cellular phones 
C)  a decrease in the quantity demanded of cellular phones 
D)  an increase in the services provided by cellular phones, such as text messaging 
E)  an increase in the price of cellular phones

Question 16

What is the "quantity demanded"?

Accepted Answer

A)  the amount of a good people desire 
B)  the amount of a good people are able and willing to buy during a specific time period and at a given price 
C)  the amount of a good people are able and willing to buy at all possible prices 
D)  the maximum amount of a good that can be consumed during a specific time period 
E)  the minimum amount of a good that people are willing to buy during a specific time period and at a given price 
A)  the amount of a good people desire 
B)  the amount of a good people are able and willing to buy during a specific time period and at a given price 
C)  the amount of a good people are able and willing to buy at all possible prices 
D)  the maximum amount of a good that can be consumed during a specific time period 
E)  the minimum amount of a good that people are willing to buy during a specific time period and at a given price

Question 17

In a recession,consumers have less income to spend.As a result,if dining out is a normal good,then which of the following would happen to the demand curve for dining out?

Accepted Answer

A)  The demand curve would shift leftward. 
B)  The demand curve would not shift but the price of dining out would rise. 
C)  The effect on the demand curve is unknown. 
D)  The demand curve would shift rightward. 
E)  The demand curve would not shift but the price of dining out would fall. 
A)  The demand curve would shift leftward. 
B)  The demand curve would not shift but the price of dining out would rise. 
C)  The effect on the demand curve is unknown. 
D)  The demand curve would shift rightward. 
E)  The demand curve would not shift but the price of dining out would fall.

Question 18

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances,you predict that the

Accepted Answer

A)  equilibrium quantity of computers will increase. 
B)  equilibrium quantity of computers will decrease. 
C)  equilibrium price of a computer will rise. 
D)  equilibrium price of a computer will fall. 
E)  equilibrium quantity of computers might increase, decrease, or not change. 
A)  equilibrium quantity of computers will increase. 
B)  equilibrium quantity of computers will decrease. 
C)  equilibrium price of a computer will rise. 
D)  equilibrium price of a computer will fall. 
E)  equilibrium quantity of computers might increase, decrease, or not change.

Question 19

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

Accepted Answer

A)  It shifts the supply curve leftward. 
B)  It shifts the supply curve rightward. 
C)  It does not shift the supply curve or create a movement along it. 
D)  The supply curve will shift but there is not enough information to tell if the change shifts the supply curve rightward, leftward, or not at all. 
E)  It creates a movement downward along the supply curve. 
A)  It shifts the supply curve leftward. 
B)  It shifts the supply curve rightward. 
C)  It does not shift the supply curve or create a movement along it. 
D)  The supply curve will shift but there is not enough information to tell if the change shifts the supply curve rightward, leftward, or not at all. 
E)  It creates a movement downward along the supply curve.

Question 20

-In the above figure,the shift in the supply curve from S to S₂ might reflect

Accepted Answer

A)  a decrease in the cost of the tomato sauce used to produce pizza. 
B)  a decrease in the number of pizza producers. 
C)  an increase in the price of a pizza. 
D)  an increase in income if pizza is a normal good. 
E)  an increase in the price of a good that is a substitute for consumers. 
A)  a decrease in the cost of the tomato sauce used to produce pizza. 
B)  a decrease in the number of pizza producers. 
C)  an increase in the price of a pizza. 
D)  an increase in income if pizza is a normal good. 
E)  an increase in the price of a good that is a substitute for consumers.

Market demand curves are obtained by

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

If the price of tangerines increases,the price of oranges also rises because

Which of the following describes the law of demand? When other things remain the same,as

Market equilibrium occurs when

What is the difference between quantity supplied and supply?

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

What is the "quantity demanded"?

In a recession,consumers have less income to spend.As a result,if dining out is a normal good,then which of the following would happen to the demand curve for dining out?

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances,you predict that the

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

-In the above figure,the shift in the supply curve from S to S₂ might reflect

Getting Started

The Usand Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 4: Demand and Supply

Market demand curves are obtained by

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

If the price of tangerines increases,the price of oranges also rises because

Which of the following describes the law of demand? When other things remain the same,as

Market equilibrium occurs when

What is the difference between quantity supplied and supply?

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

What is the "quantity demanded"?

In a recession,consumers have less income to spend.As a result,if dining out is a normal good,then which of the following would happen to the demand curve for dining out?

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances,you predict that the

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

-In the above figure,the shift in the supply curve from S to S₂ might reflect

Getting Started

The Usand Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters