Question 1

-In Figure 3-5,a movement from point G to point H would represent

Accepted Answer

A) a change in demand 
B) the impact of a decrease in the price of a substitute good 
C) higher prices for the inputs used to produce this product 
D) a change in demand plus a change in quantity demanded 
E) a change in quantity demanded 
A) a change in demand 
B) the impact of a decrease in the price of a substitute good 
C) higher prices for the inputs used to produce this product 
D) a change in demand plus a change in quantity demanded 
E) a change in quantity demanded

Question 2

In a competitive market,excess demand for a good exists whenever

Accepted Answer

A) the current price is below the equilibrium price 
B) resources are scarce 
C) the quantity supplied at the current price exceeds the quantity demanded 
D) sellers are subject to the constraints imposed by input prices and technology 
E) the current price is above the equilibrium price 
A) the current price is below the equilibrium price 
B) resources are scarce 
C) the quantity supplied at the current price exceeds the quantity demanded 
D) sellers are subject to the constraints imposed by input prices and technology 
E) the current price is above the equilibrium price

Question 3

Complementary goods

Accepted Answer

A) are usually used in conjunction with each other 
B) are usually used in place of one another 
C) do not adhere to the law of demand 
D) are goods whose demand rises as incomes rise 
E) are goods whose demand falls as wealth falls 
A) are usually used in conjunction with each other 
B) are usually used in place of one another 
C) do not adhere to the law of demand 
D) are goods whose demand rises as incomes rise 
E) are goods whose demand falls as wealth falls

Question 4

If the price of film increases,the demand for film processing would decrease;moreover,the equilibrium price and quantity of film processing should also decrease.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is assumed constant along the demand curve for gasoline?

Accepted Answer

A) the price of gasoline and the prices of related goods 
B) the price of gasoline,buyers' incomes,and tastes 
C) all variables affecting demand other than the price of gasoline 
D) all variables affecting demand other than the supply of gasoline 
E) buyers' incomes and tastes,but not the prices of related goods 
A) the price of gasoline and the prices of related goods 
B) the price of gasoline,buyers' incomes,and tastes 
C) all variables affecting demand other than the price of gasoline 
D) all variables affecting demand other than the supply of gasoline 
E) buyers' incomes and tastes,but not the prices of related goods

Question 6

What do supply and demand curves have in common?

Accepted Answer

A) They both usually slope upward. 
B) They both show a relationship between quantity and price. 
C) They both usually slope downward. 
D) They can both shift in response to changes in income or wealth. 
E) Neither of them is influenced by the size of the population. 
A) They both usually slope upward. 
B) They both show a relationship between quantity and price. 
C) They both usually slope downward. 
D) They can both shift in response to changes in income or wealth. 
E) Neither of them is influenced by the size of the population.

Question 7

Which of the following sets of goods are most likely to be complementary goods?

Accepted Answer

A) shoes and pizza 
B) automobiles and computers 
C) baseballs and baseball gloves 
D) football tickets and baseball tickets 
E) Dell and Gateway computers 
A) shoes and pizza 
B) automobiles and computers 
C) baseballs and baseball gloves 
D) football tickets and baseball tickets 
E) Dell and Gateway computers

Question 8

The term quantity demanded

Accepted Answer

A) can refer to either an individual or all buyers in a market 
B) only refers to all buyers in a specific market 
C) only refers to individual buyers in a market 
D) refers to how many units of a good a buyer would be willing and able to purchase at a series of prices 
E) determines price when it intersects with the supply curve 
A) can refer to either an individual or all buyers in a market 
B) only refers to all buyers in a specific market 
C) only refers to individual buyers in a market 
D) refers to how many units of a good a buyer would be willing and able to purchase at a series of prices 
E) determines price when it intersects with the supply curve

Question 9

If the demand for new automobiles falls when income falls,automobiles are said to be normal goods.

Accepted Answer

A) True 
 B)False

Question 10

The three-step procedure for economic analysis

Accepted Answer

A) works better in macroeconomics than in microeconomics 
B) begins with characterizing the market 
C) helps governments decide how to change the market equilibrium 
D) focuses on goals and constraints 
E) is used only in microeconomics 
A) works better in macroeconomics than in microeconomics 
B) begins with characterizing the market 
C) helps governments decide how to change the market equilibrium 
D) focuses on goals and constraints 
E) is used only in microeconomics

Question 11

The quantity supplied of a good

Accepted Answer

A) is the amount that sellers would provide if the firms faced no constraints 
B) is the amount that sellers would provide if input prices were zero 
C) must match the amount actually purchased in the market 
D) is a fixed amount unaffected by the sellers' circumstances 
E) is subject to the constraints imposed by technology and input prices 
A) is the amount that sellers would provide if the firms faced no constraints 
B) is the amount that sellers would provide if input prices were zero 
C) must match the amount actually purchased in the market 
D) is a fixed amount unaffected by the sellers' circumstances 
E) is subject to the constraints imposed by technology and input prices

Question 12

Holding everything else constant,as the price of natural gas rises,selling natural gas becomes

Accepted Answer

A) more profitable,and the quantity supplied falls 
B) less profitable,and the quantity supplied rises 
C) less profitable,and the quantity supplied falls 
D) more profitable,and the quantity supplied rises 
E) more profitable,but the quantity supplied does not change 
A) more profitable,and the quantity supplied falls 
B) less profitable,and the quantity supplied rises 
C) less profitable,and the quantity supplied falls 
D) more profitable,and the quantity supplied rises 
E) more profitable,but the quantity supplied does not change

Question 13

Characterizing a market involves

Accepted Answer

A) counting the number of demanders and measuring their quantity demanded 
B) counting the number of suppliers and measuring their costs 
C) equating the number of suppliers and the number of demanders 
D) deciding which market best suits the problem being analyzed 
E) deciding how to increase the degree of competition 
A) counting the number of demanders and measuring their quantity demanded 
B) counting the number of suppliers and measuring their costs 
C) equating the number of suppliers and the number of demanders 
D) deciding which market best suits the problem being analyzed 
E) deciding how to increase the degree of competition

Question 14

Which of the following is assumed constant along a given supply curve for pistachio ice cream?

Accepted Answer

A) the price of pistachios and the price of pistachio ice cream 
B) the price of pistachio ice cream and the price of alternate flavors of ice cream 
C) the prices of alternate goods,but not the prices of inputs 
D) all variables affecting supply other than the productive capacity of the industry 
E) all variables affecting supply other than the price of pistachio ice cream 
A) the price of pistachios and the price of pistachio ice cream 
B) the price of pistachio ice cream and the price of alternate flavors of ice cream 
C) the prices of alternate goods,but not the prices of inputs 
D) all variables affecting supply other than the productive capacity of the industry 
E) all variables affecting supply other than the price of pistachio ice cream

Question 15

An increase in both equilibrium price and quantity could be produced by a(n)

Accepted Answer

A) decrease in supply,with demand constant 
B) increase in supply,with demand constant 
C) decrease in demand,with supply constant 
D) increase in demand,with supply constant 
E) rise in resource prices 
A) decrease in supply,with demand constant 
B) increase in supply,with demand constant 
C) decrease in demand,with supply constant 
D) increase in demand,with supply constant 
E) rise in resource prices

Question 16

An increase in the price of gasoline will cause a(n)

Accepted Answer

A) an increase in the quantity of gasoline demanded 
B) decrease in the quantity of gasoline demanded 
C) no change in the quantity of gasoline demanded 
D) increase in the demand for gasoline 
E) decrease in the demand for gasoline 
A) an increase in the quantity of gasoline demanded 
B) decrease in the quantity of gasoline demanded 
C) no change in the quantity of gasoline demanded 
D) increase in the demand for gasoline 
E) decrease in the demand for gasoline

Question 17

When households and businesses interact in resource markets money

Accepted Answer

A) is not exchanged 
B) is flowing toward businesses 
C) is flowing toward households 
D) is not used at all 
E) is flowing to both businesses and households 
A) is not exchanged 
B) is flowing toward businesses 
C) is flowing toward households 
D) is not used at all 
E) is flowing to both businesses and households

Question 18

All of the following would be examples of a spot markets except one.Which would not be a spot market?

Accepted Answer

A) The market for milk 
B) The market for beauty salon services 
C) The market for higher education 
D) The market for basketball cards 
E) The market for used cars 
A) The market for milk 
B) The market for beauty salon services 
C) The market for higher education 
D) The market for basketball cards 
E) The market for used cars

Question 19

Which of the following items is most likely to be an inferior good?

Accepted Answer

A) bus tickets 
B) airline tickets 
C) housing 
D) stereo equipment 
E) home computers 
A) bus tickets 
B) airline tickets 
C) housing 
D) stereo equipment 
E) home computers

Question 20

A decrease in demand for a normal good could be caused by a(n)

Accepted Answer

A) increase in price 
B) decrease in price 
C) decrease in consumer incomes 
D) increase in consumer incomes 
E) increase in production costs 
A) increase in price 
B) decrease in price 
C) decrease in consumer incomes 
D) increase in consumer incomes 
E) increase in production costs

-In Figure 3-5,a movement from point G to point H would represent

In a competitive market,excess demand for a good exists whenever

Complementary goods

If the price of film increases,the demand for film processing would decrease;moreover,the equilibrium price and quantity of film processing should also decrease.

Which of the following is assumed constant along the demand curve for gasoline?

What do supply and demand curves have in common?

Which of the following sets of goods are most likely to be complementary goods?

The term quantity demanded

If the demand for new automobiles falls when income falls,automobiles are said to be normal goods.

The three-step procedure for economic analysis

The quantity supplied of a good

Holding everything else constant,as the price of natural gas rises,selling natural gas becomes

Characterizing a market involves

Which of the following is assumed constant along a given supply curve for pistachio ice cream?

An increase in both equilibrium price and quantity could be produced by a(n)

An increase in the price of gasoline will cause a(n)

When households and businesses interact in resource markets money

All of the following would be examples of a spot markets except one.Which would not be a spot market?

Which of the following items is most likely to be an inferior good?

A decrease in demand for a normal good could be caused by a(n)

What Is Economics

Scarcity, choice, and Economic Systems

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 3: Supply and Demand

-In Figure 3-5,a movement from point G to point H would represent

In a competitive market,excess demand for a good exists whenever

Complementary goods

If the price of film increases,the demand for film processing would decrease;moreover,the equilibrium price and quantity of film processing should also decrease.

Which of the following is assumed constant along the demand curve for gasoline?

What do supply and demand curves have in common?

Which of the following sets of goods are most likely to be complementary goods?

The term quantity demanded

If the demand for new automobiles falls when income falls,automobiles are said to be normal goods.

The three-step procedure for economic analysis

The quantity supplied of a good

Holding everything else constant,as the price of natural gas rises,selling natural gas becomes

Characterizing a market involves

Which of the following is assumed constant along a given supply curve for pistachio ice cream?

An increase in both equilibrium price and quantity could be produced by a(n)

An increase in the price of gasoline will cause a(n)

When households and businesses interact in resource markets money

All of the following would be examples of a spot markets except one.Which would not be a spot market?

Which of the following items is most likely to be an inferior good?

A decrease in demand for a normal good could be caused by a(n)

What Is Economics

Scarcity, choice, and Economic Systems

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters