Question 1

Figure 4-5
  
-Refer to Figure 4-5.The movement from point A to point B on the graph represents

Accepted Answer

A) an increased willingness and ability on the part of suppliers to supply the good at each possible price. 
B) an increase in the number of suppliers. 
C) a decrease in the price of a relevant input. 
D) an increase in the price of the good that is being supplied and suppliers' response to that price change. 
A) an increased willingness and ability on the part of suppliers to supply the good at each possible price. 
B) an increase in the number of suppliers. 
C) a decrease in the price of a relevant input. 
D) an increase in the price of the good that is being supplied and suppliers' response to that price change.

Question 2

An increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,

Accepted Answer

A) the demand for tires increases and the supply of tires decreases. 
B) the supply of tires decreases and the demand for tires is unaffected. 
C) the supply of tires increases and the demand for tires is unaffected. 
D) none of the above is necessarily correct. 
A) the demand for tires increases and the supply of tires decreases. 
B) the supply of tires decreases and the demand for tires is unaffected. 
C) the supply of tires increases and the demand for tires is unaffected. 
D) none of the above is necessarily correct.

Question 3

Table 4-4
  
-Refer to Table 4-4.Which space represents a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A) a. 
B) B. 
C) C. 
D) D. 
A) a. 
B) B. 
C) C. 
D) D.

Question 4

Figure 4-2
  
-Refer to Figure 4-2.The shift from D to D₁ is called

Accepted Answer

A) an increase in demand. 
B) a decrease in demand. 
C) a decrease in quantity demanded. 
D) an increase in quantity demanded. 
A) an increase in demand. 
B) a decrease in demand. 
C) a decrease in quantity demanded. 
D) an increase in quantity demanded.

Question 5

Which of the following sets of events would most likely cause an increase in the price of a new house?

Accepted Answer

A) higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future 
B) lower wages for carpenters, lower wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future 
C) lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population and expectations of higher house prices in the future 
D) higher wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population and expectations of lower house prices in the future 
A) higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future 
B) lower wages for carpenters, lower wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future 
C) lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population and expectations of higher house prices in the future 
D) higher wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population and expectations of lower house prices in the future

Question 6

A demand schedule is a table showing the relationship between

Accepted Answer

A) quantity demanded and quantity supplied, and those quantities are usually positively related. 
B) quantity demanded and quantity supplied, and those quantities are usually negatively related. 
C) price and quantity demanded, and those quantities are usually positively related. 
D) price and quantity demanded, and those quantities are usually negatively related. 
A) quantity demanded and quantity supplied, and those quantities are usually positively related. 
B) quantity demanded and quantity supplied, and those quantities are usually negatively related. 
C) price and quantity demanded, and those quantities are usually positively related. 
D) price and quantity demanded, and those quantities are usually negatively related.

Question 7

Baseballs and baseball bats are substitute goods.

Accepted Answer

A) True 
 B)False

Question 8

Figure 4-2
  
-Refer to Figure 4-2.If the demand curve shifts from D to D₁,then

Accepted Answer

A) firms would be willing to supply less of the good than before at each possible price. 
B) people are willing to buy less of the good than before at each possible price. 
C) people's incomes evidently have decreased. 
D) the price of the product has increased, causing consumers to buy less of the product. 
A) firms would be willing to supply less of the good than before at each possible price. 
B) people are willing to buy less of the good than before at each possible price. 
C) people's incomes evidently have decreased. 
D) the price of the product has increased, causing consumers to buy less of the product.

Question 9

Suppose Spencer and Kate are the only two demanders of lemonade.Each month,Spencer buys six glasses of lemonade when the price is $1.00 per glass,and he buys four glasses when the price is $1.50 per glass.Each month,Kate buys four glasses of lemonade when the price is $1.00 per glass,and she buys two glasses when the price is $1.50 per glass.Which of the following points is on the market demand curve?

Accepted Answer

A) (quantity demanded = 4, price = $2.50) 
B) (quantity demanded = 16, price = $2.50) 
C) (quantity demanded = 3, price = $1.50) 
D) (quantity demanded = 10, price = $1.00) 
A) (quantity demanded = 4, price = $2.50) 
B) (quantity demanded = 16, price = $2.50) 
C) (quantity demanded = 3, price = $1.50) 
D) (quantity demanded = 10, price = $1.00)

Question 10

A very hot summer in Atlanta will cause

Accepted Answer

A) the demand for lemonade to shift to the left. 
B) the demand for air conditioners to decrease. 
C) the demand for jackets to decrease. 
D) a movement downward and to the right along the demand curve for jackets. 
A) the demand for lemonade to shift to the left. 
B) the demand for air conditioners to decrease. 
C) the demand for jackets to decrease. 
D) a movement downward and to the right along the demand curve for jackets.

Question 11

Prices,which are determined by all buyers and sellers as they interact in the marketplace,allocate the economy's scarce resources.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following are the words most commonly used by economists?

Accepted Answer

A) surplus and shortage 
B) resources and allocation 
C) supply and demand 
D) theory and practice 
A) surplus and shortage 
B) resources and allocation 
C) supply and demand 
D) theory and practice

Question 13

The supply of a good is negatively related to the

Accepted Answer

A) price of inputs used to make the good. 
B) demand for the good by consumers. 
C) price of the good itself. 
D) amount of profit a firm can expect to receive from selling the good. 
A) price of inputs used to make the good. 
B) demand for the good by consumers. 
C) price of the good itself. 
D) amount of profit a firm can expect to receive from selling the good.

Question 14

Figure 4-7
  
-Refer to Figure 4-7.At a price of $35,

Accepted Answer

A) there would be a shortage of 400 units. 
B) there would be a surplus of 200 units. 
C) there would be a surplus of 400 units. 
D) there would be an excess supply of 200 units. 
A) there would be a shortage of 400 units. 
B) there would be a surplus of 200 units. 
C) there would be a surplus of 400 units. 
D) there would be an excess supply of 200 units.

Question 15

For a market for a good or service to exist,

Accepted Answer

A) there must be a group of buyers and sellers. 
B) there must be a specific time and place at which the good or service is traded. 
C) the price of the good must be determined by the sellers. 
D) All of the above are correct. 
A) there must be a group of buyers and sellers. 
B) there must be a specific time and place at which the good or service is traded. 
C) the price of the good must be determined by the sellers. 
D) All of the above are correct.

Question 16

A demand schedule is a table showing the relationship between

Accepted Answer

A) quantity demanded and quantity supplied. 
B) income and quantity demanded. 
C) price and quantity demanded. 
D) price and expected price. 
A) quantity demanded and quantity supplied. 
B) income and quantity demanded. 
C) price and quantity demanded. 
D) price and expected price.

Question 17

Pizza is a normal good if

Accepted Answer

A) the demand for pizza rises when income rises. 
B) the demand for pizza rises when the price of pizza falls. 
C) the demand curve for pizza slopes downward. 
D) the demand curve for pizza shifts to the right when the price of burritos falls, assuming pizza and burritos are substitutes. 
A) the demand for pizza rises when income rises. 
B) the demand for pizza rises when the price of pizza falls. 
C) the demand curve for pizza slopes downward. 
D) the demand curve for pizza shifts to the right when the price of burritos falls, assuming pizza and burritos are substitutes.

Question 18

Figure 4-3
  
-Refer to Figure 4-3.The graph shows the demand for cigarettes.The arrows are consistent with which of the following events?

Accepted Answer

A) The price of marijuana, a complement to cigarettes, increased. 
B) Mandatory health warnings were placed on cigarette packages. 
C) Several foreign countries banned U.S.cigarettes in their countries. 
D) A tax was placed on cigarettes. 
A) The price of marijuana, a complement to cigarettes, increased. 
B) Mandatory health warnings were placed on cigarette packages. 
C) Several foreign countries banned U.S.cigarettes in their countries. 
D) A tax was placed on cigarettes.

Question 19

The table shows individual demand schedules for a market.
Table 4-1
  
-Refer to Table 4-1.If the price increases from $1.00 to $1.50,

Accepted Answer

A) the market demand decreases by 20 units. 
B) individual demand curves, when drawn, will shift to the left. 
C) the quantity demanded in the market decreases by 2 units. 
D) the quantity demanded in the market decreases by 7 units. 
A) the market demand decreases by 20 units. 
B) individual demand curves, when drawn, will shift to the left. 
C) the quantity demanded in the market decreases by 2 units. 
D) the quantity demanded in the market decreases by 7 units.

Question 20

The current price of neckties is $30 and the equilibrium price of neckties is $25.As a result,

Accepted Answer

A) the quantity supplied of neckties exceeds the quantity demanded of neckties at the $30 price. 
B) the equilibrium quantity of neckties exceeds the quantity demanded at the $30 price. 
C) There is a surplus of neckties at the $30 price. 
D) All of the above are correct. 
A) the quantity supplied of neckties exceeds the quantity demanded of neckties at the $30 price. 
B) the equilibrium quantity of neckties exceeds the quantity demanded at the $30 price. 
C) There is a surplus of neckties at the $30 price. 
D) All of the above are correct.

Exam 4: The Market Forces of Supply and Demand

Figure 4-5 -Refer to Figure 4-5.The movement from point A to point B on the graph represents

An increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,

Table 4-4 -Refer to Table 4-4.Which space represents a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Figure 4-2 -Refer to Figure 4-2.The shift from D to D₁ is called

Which of the following sets of events would most likely cause an increase in the price of a new house?

A demand schedule is a table showing the relationship between

Baseballs and baseball bats are substitute goods.

Figure 4-2 -Refer to Figure 4-2.If the demand curve shifts from D to D₁,then

A very hot summer in Atlanta will cause

Prices,which are determined by all buyers and sellers as they interact in the marketplace,allocate the economy's scarce resources.

Which of the following are the words most commonly used by economists?

The supply of a good is negatively related to the

Figure 4-7 -Refer to Figure 4-7.At a price of $35,

For a market for a good or service to exist,

A demand schedule is a table showing the relationship between

Pizza is a normal good if

Figure 4-3 -Refer to Figure 4-3.The graph shows the demand for cigarettes.The arrows are consistent with which of the following events?

The table shows individual demand schedules for a market. Table 4-1 -Refer to Table 4-1.If the price increases from $1.00 to $1.50,

The current price of neckties is $30 and the equilibrium price of neckties is $25.As a result,

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Applications

Supply, demand, and Government Policies

Consumers, producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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