Question 1

A good is said to be a normal good when

Accepted Answer

A) decreases in income lead to an increase in demand for the good 
B) decreases in income lead to a decrease in demand for the good 
C) increases in income lead to a decrease in demand for the good 
D) increases in price lead to a decrease in the quantity demanded of the good 
E) increases in price lead to a decrease in demand for the good 
A) decreases in income lead to an increase in demand for the good 
B) decreases in income lead to a decrease in demand for the good 
C) increases in income lead to a decrease in demand for the good 
D) increases in price lead to a decrease in the quantity demanded of the good 
E) increases in price lead to a decrease in demand for the good

Question 2

Of the following,which is true of the relationship between the quantity of a good supplied and its price?

Accepted Answer

A) As price increases,the quantity supplied usually decreases. 
B) As price increases,the quantity supplied usually increases. 
C) As price increases,supply increases. 
D) When demand increases,so will supply. 
E) They always meet at the point of equilibrium in the market. 
A) As price increases,the quantity supplied usually decreases. 
B) As price increases,the quantity supplied usually increases. 
C) As price increases,supply increases. 
D) When demand increases,so will supply. 
E) They always meet at the point of equilibrium in the market.

Question 3

If the supply of coffee falls due to bad weather conditions in coffee-exporting countries,then the

Accepted Answer

A) price and quantity will rise 
B) price and quantity will fall 
C) price will fall and quantity will rise 
D) price will rise and quantity will fall 
E) quantity will fall,but price may rise or fall 
A) price and quantity will rise 
B) price and quantity will fall 
C) price will fall and quantity will rise 
D) price will rise and quantity will fall 
E) quantity will fall,but price may rise or fall

Question 4

If the price of orange juice rises,the demand for grapefruit juice will

Accepted Answer

A) increase because the two goods are substitutes 
B) increase because it is a complement 
C) decrease because the two goods are substitutes 
D) decrease because the two goods are complements 
E) not change unless the price of grapefruit juice also changes 
A) increase because the two goods are substitutes 
B) increase because it is a complement 
C) decrease because the two goods are substitutes 
D) decrease because the two goods are complements 
E) not change unless the price of grapefruit juice also changes

Question 5

When individuals come together to buy and sell goods and services,they form a(n)

Accepted Answer

A) economy 
B) market 
C) production possibilities frontier 
D) supply curve 
E) demand curve 
A) economy 
B) market 
C) production possibilities frontier 
D) supply curve 
E) demand curve

Question 6

If buyers' tastes and preferences shift in favor of a good,the result is

Accepted Answer

A) an increase in quantity demanded 
B) an increase in demand 
C) an increase in quantity demanded and an increase in supply 
D) a decline in supply 
E) an increase in supply 
A) an increase in quantity demanded 
B) an increase in demand 
C) an increase in quantity demanded and an increase in supply 
D) a decline in supply 
E) an increase in supply

Question 7

-In Figure 3-8,using the supply and demand curves denoted S₁ and D₁,respectively,if demand were to increase to D₂ and the equilibrium price stayed the same there would be a

Accepted Answer

A) surplus 
B) new equilibrium at 50,000 
C) shortage 
D) new equilibrium at 100,000 
E) new equilibrium at 75,000 
A) surplus 
B) new equilibrium at 50,000 
C) shortage 
D) new equilibrium at 100,000 
E) new equilibrium at 75,000

Question 8

Because price and quantity demanded are inversely related,

Accepted Answer

A) the demand curve is usually upward-sloping 
B) buyers purchase more of the good as the price rises 
C) the supply curve must be rising 
D) price and quantity supplied must be positively related 
E) the demand curve is usually downward-sloping 
A) the demand curve is usually upward-sloping 
B) buyers purchase more of the good as the price rises 
C) the supply curve must be rising 
D) price and quantity supplied must be positively related 
E) the demand curve is usually downward-sloping

Question 9

A substitute good is one that

Accepted Answer

A) appeals to a wide spectrum of consumers 
B) is used together with another good 
C) is exchanged on the black market 
D) is produced by the same firm as another good 
E) can be used in place of another good,fulfilling the same basic purpose 
A) appeals to a wide spectrum of consumers 
B) is used together with another good 
C) is exchanged on the black market 
D) is produced by the same firm as another good 
E) can be used in place of another good,fulfilling the same basic purpose

Question 10

Given the demand curve for laptop computers,if the government began to encourage households to own a computer by providing a subsidy to each family that buys one,

Accepted Answer

A) both the equilibrium price and quantity of laptops will increase 
B) both the equilibrium price and quantity of laptops will decrease 
C) the equilibrium price of laptops will increase but the equilibrium quantity will decrease 
D) the equilibrium price of laptops will decrease but the equilibrium quantity will increase 
E) subsidies to households have no effect on either the supply or demand 
A) both the equilibrium price and quantity of laptops will increase 
B) both the equilibrium price and quantity of laptops will decrease 
C) the equilibrium price of laptops will increase but the equilibrium quantity will decrease 
D) the equilibrium price of laptops will decrease but the equilibrium quantity will increase 
E) subsidies to households have no effect on either the supply or demand

Question 11

If the price of new automobiles rises in the U.S.market while prices remain unchanged in foreign markets,

Accepted Answer

A) foreign firms will want to export fewer automobiles to the United States 
B) foreign firms will want to export more automobiles to the United States 
C) foreign firms will not change their exports to the United States since it is a different market 
D) U.S.firms will want to export more automobiles to foreign markets 
E) U.S.firms will not change their exports to foreign markets unless foreign prices also change 
A) foreign firms will want to export fewer automobiles to the United States 
B) foreign firms will want to export more automobiles to the United States 
C) foreign firms will not change their exports to the United States since it is a different market 
D) U.S.firms will want to export more automobiles to foreign markets 
E) U.S.firms will not change their exports to foreign markets unless foreign prices also change

Question 12

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

Accepted Answer

A) quantity demanded 
B) demand 
C) supply 
D) quantity supplied 
E) opportunity cost 
A) quantity demanded 
B) demand 
C) supply 
D) quantity supplied 
E) opportunity cost

Question 13

If a good is a normal good then

Accepted Answer

A) other things equal,no consumer will buy it 
B) a rise in income or wealth will increase the amount of the good that consumers will purchase 
C) a decline in income will increase the amount of it that consumers will purchase 
D) abnormal goods are never substituted for it 
E) normal consumers will always demand it 
A) other things equal,no consumer will buy it 
B) a rise in income or wealth will increase the amount of the good that consumers will purchase 
C) a decline in income will increase the amount of it that consumers will purchase 
D) abnormal goods are never substituted for it 
E) normal consumers will always demand it

Question 14

The demand curve for a product will shift rightward when the price of a substitute decreases.

Accepted Answer

A) True 
 B)False

Question 15

If both the demand and supply curves for computers shift to the right,the price of computers may rise,fall,or remain unchanged.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is correct?

Accepted Answer

A) The demand curve typically slopes upward;the supply curve typically slopes downward. 
B) The demand curve typically slopes downward;the supply curve typically slopes upward. 
C) Both the demand and supply curves typically slope downward. 
D) Both the demand and supply curve typically slope upward. 
E) The demand curve is typically vertical;the supply curve is typically horizontal. 
A) The demand curve typically slopes upward;the supply curve typically slopes downward. 
B) The demand curve typically slopes downward;the supply curve typically slopes upward. 
C) Both the demand and supply curves typically slope downward. 
D) Both the demand and supply curve typically slope upward. 
E) The demand curve is typically vertical;the supply curve is typically horizontal.

Question 17

Which of the following would shift the demand curve for new college textbooks to the right?

Accepted Answer

A) an increase in the price of new college textbooks 
B) a decrease in the price of new college textbooks 
C) an increase in the price of used college textbooks 
D) a decrease in the population of college students 
E) a decrease in the wealth of college students 
A) an increase in the price of new college textbooks 
B) a decrease in the price of new college textbooks 
C) an increase in the price of used college textbooks 
D) a decrease in the population of college students 
E) a decrease in the wealth of college students

Question 18

When households and businesses interact in product markets goods and services are

Accepted Answer

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

Question 19

-In the supply and demand for socks schedules in Figure 3-10,a price of $10 per pair results in

Accepted Answer

A) equilibrium 
B) excess demand of 6 pairs 
C) excess supply of 14 pairs 
D) excess supply of 6 pairs 
E) excess demand of 14 pairs 
A) equilibrium 
B) excess demand of 6 pairs 
C) excess supply of 14 pairs 
D) excess supply of 6 pairs 
E) excess demand of 14 pairs

Question 20

If sellers decide to sell more calculators by mass producing them and lowering the price so consumers will buy more,the supply and demand curves will both shift to the right.

Accepted Answer

A) True 
 B)False

A good is said to be a normal good when

Of the following,which is true of the relationship between the quantity of a good supplied and its price?

If the supply of coffee falls due to bad weather conditions in coffee-exporting countries,then the

If the price of orange juice rises,the demand for grapefruit juice will

When individuals come together to buy and sell goods and services,they form a(n)

If buyers' tastes and preferences shift in favor of a good,the result is

-In Figure 3-8,using the supply and demand curves denoted S₁ and D₁,respectively,if demand were to increase to D₂ and the equilibrium price stayed the same there would be a

Because price and quantity demanded are inversely related,

A substitute good is one that

Given the demand curve for laptop computers,if the government began to encourage households to own a computer by providing a subsidy to each family that buys one,

If the price of new automobiles rises in the U.S.market while prices remain unchanged in foreign markets,

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

If a good is a normal good then

The demand curve for a product will shift rightward when the price of a substitute decreases.

If both the demand and supply curves for computers shift to the right,the price of computers may rise,fall,or remain unchanged.

Which of the following statements is correct?

Which of the following would shift the demand curve for new college textbooks to the right?

When households and businesses interact in product markets goods and services are

-In the supply and demand for socks schedules in Figure 3-10,a price of $10 per pair results in

If sellers decide to sell more calculators by mass producing them and lowering the price so consumers will buy more,the supply and demand curves will both shift to the right.

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

A good is said to be a normal good when

Of the following,which is true of the relationship between the quantity of a good supplied and its price?

If the supply of coffee falls due to bad weather conditions in coffee-exporting countries,then the

If the price of orange juice rises,the demand for grapefruit juice will

When individuals come together to buy and sell goods and services,they form a(n)

If buyers' tastes and preferences shift in favor of a good,the result is

-In Figure 3-8,using the supply and demand curves denoted S₁ and D₁,respectively,if demand were to increase to D₂ and the equilibrium price stayed the same there would be a

Because price and quantity demanded are inversely related,

A substitute good is one that

Given the demand curve for laptop computers,if the government began to encourage households to own a computer by providing a subsidy to each family that buys one,

If the price of new automobiles rises in the U.S.market while prices remain unchanged in foreign markets,

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

If a good is a normal good then

The demand curve for a product will shift rightward when the price of a substitute decreases.

If both the demand and supply curves for computers shift to the right,the price of computers may rise,fall,or remain unchanged.

Which of the following statements is correct?

Which of the following would shift the demand curve for new college textbooks to the right?

When households and businesses interact in product markets goods and services are

-In the supply and demand for socks schedules in Figure 3-10,a price of $10 per pair results in

If sellers decide to sell more calculators by mass producing them and lowering the price so consumers will buy more,the supply and demand curves will both shift to the right.

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