Question 1

Procter & Gamble Co.is a major soap producer.All of the following,except one,would shift its supply curve of liquid soap to left.Which is the exception?

Accepted Answer

A) an increase in the price of bar soap 
B) an increase in the price of a key ingredient of liquid soap 
C) environmental regulations force Procter & Gamble to use a more costly technology to produce liquid soap 
D) a decrease in the price of liquid soap 
E) an increase in the wage rate for factory workers who produce liquid soap 
A) an increase in the price of bar soap 
B) an increase in the price of a key ingredient of liquid soap 
C) environmental regulations force Procter & Gamble to use a more costly technology to produce liquid soap 
D) a decrease in the price of liquid soap 
E) an increase in the wage rate for factory workers who produce liquid soap

Question 2

In a market system,prices are determined by

Accepted Answer

A) corporate executives 
B) government bureaucrats 
C) supply and demand 
D) total market demand 
E) production costs 
A) corporate executives 
B) government bureaucrats 
C) supply and demand 
D) total market demand 
E) production costs

Question 3

An increase in supply could be caused by a(n)

Accepted Answer

A) increase in price 
B) government-imposed price ceiling 
C) decrease in resource prices 
D) decrease in consumer incomes 
E) unfavorable shift in tastes and preferences 
A) increase in price 
B) government-imposed price ceiling 
C) decrease in resource prices 
D) decrease in consumer incomes 
E) unfavorable shift in tastes and preferences

Question 4

The demand curve for apples slopes downward

Accepted Answer

A) because supply and demand are equal in equilibrium 
B) since producers supply more when consumers demand more 
C) because people are assumed to be basically greedy 
D) because the law of demand holds in the market for apples 
E) because apples are preferred to all other goods 
A) because supply and demand are equal in equilibrium 
B) since producers supply more when consumers demand more 
C) because people are assumed to be basically greedy 
D) because the law of demand holds in the market for apples 
E) because apples are preferred to all other goods

Question 5

If the resource prices faced by a firm rise,the result is a(n)

Accepted Answer

A) decrease in supply 
B) increase in supply 
C) decrease in demand 
D) increase in quantity demanded 
E) decrease in quantity supplied 
A) decrease in supply 
B) increase in supply 
C) decrease in demand 
D) increase in quantity demanded 
E) decrease in quantity supplied

Question 6

If the price of jelly (a complement with peanut butter)decreases,both the demand and supply curves of peanut butter will shift rightward.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would not lead to a change in the supply of chocolate ice cream?

Accepted Answer

A) a change in productive capacity 
B) a change in the price of strawberry ice cream 
C) a change in the price of milk 
D) a change in the price of chocolate ice cream 
E) a change in the expected future price of chocolate ice cream 
A) a change in productive capacity 
B) a change in the price of strawberry ice cream 
C) a change in the price of milk 
D) a change in the price of chocolate ice cream 
E) a change in the expected future price of chocolate ice cream

Question 8

Which of the following would not cause the demand curve for college football tickets to shift?

Accepted Answer

A) an increase in the price of professional football tickets 
B) a decrease in the price of college basketball tickets 
C) an increase in the price of college football tickets 
D) a drop in student incomes 
E) an increase in student preferences for college football tickets 
A) an increase in the price of professional football tickets 
B) a decrease in the price of college basketball tickets 
C) an increase in the price of college football tickets 
D) a drop in student incomes 
E) an increase in student preferences for college football tickets

Question 9

Which of the following would cause a leftward shift of the supply curve for computers?

Accepted Answer

A) an increase in the price of printed circuit boards used to build computers 
B) a decrease in the price of electricity 
C) an increase in incomes of consumers 
D) a decrease in the price of computers 
E) a decrease in the size of the population 
A) an increase in the price of printed circuit boards used to build computers 
B) a decrease in the price of electricity 
C) an increase in incomes of consumers 
D) a decrease in the price of computers 
E) a decrease in the size of the population

Question 10

-Consider the market represented by Figure 3-9.If the price of the good is currently $50.00,the price will

Accepted Answer

A) fall,causing the quantity demanded to fall 
B) fall,causing the quantity supplied to fall 
C) rise,causing the demand curve to shift to the right 
D) rise,causing the supply curve to shift to the left 
E) fall,causing the supply curve to shift to the right 
A) fall,causing the quantity demanded to fall 
B) fall,causing the quantity supplied to fall 
C) rise,causing the demand curve to shift to the right 
D) rise,causing the supply curve to shift to the left 
E) fall,causing the supply curve to shift to the right

Question 11

One of the three Key Steps of economic analysis is

Accepted Answer

A) describing the conditions necessary for equilibrium and a method for determining that equilibrium 
B) determining who are the suppliers and a method for counting the number of suppliers 
C) determining who are the demanders and a method for counting the number of demanders 
D) pairing up each demander with a particular supplier 
E) pairing up each suppliers with a particular demander 
A) describing the conditions necessary for equilibrium and a method for determining that equilibrium 
B) determining who are the suppliers and a method for counting the number of suppliers 
C) determining who are the demanders and a method for counting the number of demanders 
D) pairing up each demander with a particular supplier 
E) pairing up each suppliers with a particular demander

Question 12

If Greg uses a special glue to make model planes that he sells and the price of his model planes increases,then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________.

Accepted Answer

A) increase;decrease 
B) decrease;increase 
C) increase;increase 
D) decrease;decrease 
E) increase;indeterminant 
A) increase;decrease 
B) decrease;increase 
C) increase;increase 
D) decrease;decrease 
E) increase;indeterminant

Question 13

In a circular flow diagram of the economy,households and businesses interact

Accepted Answer

A) in both product markets and resource markets 
B) in neither product markets and resource markets 
C) in product markets but not resource markets 
D) in resource markets but not product markets 
E) very rarely 
A) in both product markets and resource markets 
B) in neither product markets and resource markets 
C) in product markets but not resource markets 
D) in resource markets but not product markets 
E) very rarely

Question 14

Which of the following could cause the market demand curve for hot dogs to shift to the left?

Accepted Answer

A) an increase in the price of hot dogs 
B) a decrease in the price of hamburgers 
C) an increase in the size of the population 
D) an increase in the price of hot dog buns or rolls 
E) an increase in the price of mustard 
A) an increase in the price of hot dogs 
B) a decrease in the price of hamburgers 
C) an increase in the size of the population 
D) an increase in the price of hot dog buns or rolls 
E) an increase in the price of mustard

Question 15

Consider the competitive market for oil.Which of the following would result from the discovery of new oil fields that can be profitably accessed at the current price?

Accepted Answer

A) both b and d 
B) an increase in the demand for oil 
C) an excess demand for oil as oil companies shift resources to developing the new fields 
D) an excess supply of oil if the price of oil fails to drop sufficiently 
E) an increase in the expected future price of oil 
A) both b and d 
B) an increase in the demand for oil 
C) an excess demand for oil as oil companies shift resources to developing the new fields 
D) an excess supply of oil if the price of oil fails to drop sufficiently 
E) an increase in the expected future price of oil

Question 16

In a perfectly competitive market,

Accepted Answer

A) there can be few or many buyers and sellers 
B) the price is driven upward when suppliers hold back on goods and services 
C) each participant is too small to affect the market price 
D) government intervention is needed to ensure that prices are fair for consumers 
E) resources are allocated by a central authority 
A) there can be few or many buyers and sellers 
B) the price is driven upward when suppliers hold back on goods and services 
C) each participant is too small to affect the market price 
D) government intervention is needed to ensure that prices are fair for consumers 
E) resources are allocated by a central authority

Question 17

The quantity demanded of a good

Accepted Answer

A) is the amount that would be purchased with an unlimited income 
B) is the amount that would be demanded even if income were zero 
C) is subject to the buyer's income constraints 
D) is a fixed amount unaffected by the buyer's circumstances 
E) must match the amount actually purchased in the market 
A) is the amount that would be purchased with an unlimited income 
B) is the amount that would be demanded even if income were zero 
C) is subject to the buyer's income constraints 
D) is a fixed amount unaffected by the buyer's circumstances 
E) must match the amount actually purchased in the market

Question 18

An increase in demand coupled with an increase in supply results in a(n)

Accepted Answer

A) increase in price and an ambiguous effect on equilibrium quantity 
B) increase in equilibrium quantity and a decrease in equilibrium price 
C) decrease in equilibrium quantity and an ambiguous effect on equilibrium price 
D) increase in economic rent 
E) ambiguous effect on equilibrium price and an increase in equilibrium quantity 
A) increase in price and an ambiguous effect on equilibrium quantity 
B) increase in equilibrium quantity and a decrease in equilibrium price 
C) decrease in equilibrium quantity and an ambiguous effect on equilibrium price 
D) increase in economic rent 
E) ambiguous effect on equilibrium price and an increase in equilibrium quantity

Question 19

Which of the following would shift the entire supply curve for electricity to the left?

Accepted Answer

A) a decrease in the price per unit of electricity 
B) a decrease in the price of coal used to generate electricity 
C) new EPA regulations that force the closing of the worst polluting coal-burning power plants 
D) a decrease in the price of alternative forms of energy 
E) a technological improvement that reduces the cost of producing electricity 
A) a decrease in the price per unit of electricity 
B) a decrease in the price of coal used to generate electricity 
C) new EPA regulations that force the closing of the worst polluting coal-burning power plants 
D) a decrease in the price of alternative forms of energy 
E) a technological improvement that reduces the cost of producing electricity

Question 20

If the price of ground beef falls,the demand for hamburger buns will

Accepted Answer

A) increase because the two goods are substitutes 
B) decrease because the two goods are complements 
C) decrease because the two goods are substitutes 
D) increase because the two goods are complements 
E) not change unless the price of hamburger buns also changes 
A) increase because the two goods are substitutes 
B) decrease because the two goods are complements 
C) decrease because the two goods are substitutes 
D) increase because the two goods are complements 
E) not change unless the price of hamburger buns also changes

Procter & Gamble Co.is a major soap producer.All of the following,except one,would shift its supply curve of liquid soap to left.Which is the exception?

In a market system,prices are determined by

An increase in supply could be caused by a(n)

The demand curve for apples slopes downward

If the resource prices faced by a firm rise,the result is a(n)

If the price of jelly (a complement with peanut butter)decreases,both the demand and supply curves of peanut butter will shift rightward.

Which of the following would not lead to a change in the supply of chocolate ice cream?

Which of the following would not cause the demand curve for college football tickets to shift?

Which of the following would cause a leftward shift of the supply curve for computers?

-Consider the market represented by Figure 3-9.If the price of the good is currently $50.00,the price will

One of the three Key Steps of economic analysis is

If Greg uses a special glue to make model planes that he sells and the price of his model planes increases,then one would expect that the equilibrium price of the special glue would _ and the equilibrium quantity would ___.

In a circular flow diagram of the economy,households and businesses interact

Which of the following could cause the market demand curve for hot dogs to shift to the left?

Consider the competitive market for oil.Which of the following would result from the discovery of new oil fields that can be profitably accessed at the current price?

In a perfectly competitive market,

The quantity demanded of a good

An increase in demand coupled with an increase in supply results in a(n)

Which of the following would shift the entire supply curve for electricity to the left?

If the price of ground beef falls,the demand for hamburger buns will

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

Procter & Gamble Co.is a major soap producer.All of the following,except one,would shift its supply curve of liquid soap to left.Which is the exception?

In a market system,prices are determined by

An increase in supply could be caused by a(n)

The demand curve for apples slopes downward

If the resource prices faced by a firm rise,the result is a(n)

If the price of jelly (a complement with peanut butter)decreases,both the demand and supply curves of peanut butter will shift rightward.

Which of the following would not lead to a change in the supply of chocolate ice cream?

Which of the following would not cause the demand curve for college football tickets to shift?

Which of the following would cause a leftward shift of the supply curve for computers?

-Consider the market represented by Figure 3-9.If the price of the good is currently $50.00,the price will

One of the three Key Steps of economic analysis is

If Greg uses a special glue to make model planes that he sells and the price of his model planes increases,then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________.

In a circular flow diagram of the economy,households and businesses interact

Which of the following could cause the market demand curve for hot dogs to shift to the left?

Consider the competitive market for oil.Which of the following would result from the discovery of new oil fields that can be profitably accessed at the current price?

In a perfectly competitive market,

The quantity demanded of a good

An increase in demand coupled with an increase in supply results in a(n)

Which of the following would shift the entire supply curve for electricity to the left?

If the price of ground beef falls,the demand for hamburger buns will

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

If Greg uses a special glue to make model planes that he sells and the price of his model planes increases,then one would expect that the equilibrium price of the special glue would _ and the equilibrium quantity would ___.