Question 1

An individual who is only willing to pay a relatively low amount for a particular good

Accepted Answer

A)  would fall in the upper portion of the demand curve. 
B)  would fall in the middle portion of the demand curve. 
C)  would fall in the lower portion of the demand curve. 
D)  would not be considered part of the demand curve. 
A)  would fall in the upper portion of the demand curve. 
B)  would fall in the middle portion of the demand curve. 
C)  would fall in the lower portion of the demand curve. 
D)  would not be considered part of the demand curve. C

Question 2

Once an equilibrium is achieved,it can persist indefinitely because

Accepted Answer

A)  shocks that shift the demand curve or the supply curve cannot occur. 
B)  shocks to the demand curve are always exactly offset by shocks to the supply curve. 
C)  the government never intervenes in markets at equilibrium. 
D)  in the absence of supply/demand shocks no one applies pressure to change the price. 
A)  shocks that shift the demand curve or the supply curve cannot occur. 
B)  shocks to the demand curve are always exactly offset by shocks to the supply curve. 
C)  the government never intervenes in markets at equilibrium. 
D)  in the absence of supply/demand shocks no one applies pressure to change the price. D

Question 3

Which of the following is NOT a characteristic of perfectly competitive markets?

Accepted Answer

A)  Transactions costs are a very small part of the sale. 
B)  There are three suppliers that form an oligopoly. 
C)  It is easy to find a trading partner. 
D)  All products are identical. 
A)  Transactions costs are a very small part of the sale. 
B)  There are three suppliers that form an oligopoly. 
C)  It is easy to find a trading partner. 
D)  All products are identical. B

Question 4

A leftward shift of the supply curve will lead to a(n)

Accepted Answer

A)  increase in equilibrium price. 
B)  excess demand at the old equilibrium price. 
C)  decrease in quantity demanded. 
D)  All of the above. 
A)  increase in equilibrium price. 
B)  excess demand at the old equilibrium price. 
C)  decrease in quantity demanded. 
D)  All of the above.

Question 5

If the price of automobiles were to increase substantially,the demand curve for gasoline would most likely

Accepted Answer

A)  shift leftward. 
B)  shift rightward. 
C)  remain unchanged. 
D)  become steeper. 
A)  shift leftward. 
B)  shift rightward. 
C)  remain unchanged. 
D)  become steeper.

Question 6

A market equilibrium occurs

Accepted Answer

A)  only with government regulation. 
B)  only because of the profit motive of firms. 
C)  only because of the complacency of consumers. 
D)  through the interaction of self-interested consumers and producers. 
A)  only with government regulation. 
B)  only because of the profit motive of firms. 
C)  only because of the complacency of consumers. 
D)  through the interaction of self-interested consumers and producers.

Question 7

The CB radio was very popular in the 1970s and 1980s for communicating while driving,and people bought them because other drivers had them too and they could therefore talk with many others on their trips.This illustrates

Accepted Answer

A)  that the demand curve for CB radios was inelastic. 
B)  the network effect. 
C)  that CB radios and gasoline are complementary goods. 
D)  the effects of mobile phones on the demand curve for CB radios. 
A)  that the demand curve for CB radios was inelastic. 
B)  the network effect. 
C)  that CB radios and gasoline are complementary goods. 
D)  the effects of mobile phones on the demand curve for CB radios.

Question 8

Suppose the demand curve for a good shifts rightward,causing the equilibrium price to increase.This increase in the price of the good results in

Accepted Answer

A)  a rightward shift of the supply curve. 
B)  an increase in quantity supplied. 
C)  a leftward shift of the supply curve. 
D)  a downward movement along the supply curve. 
A)  a rightward shift of the supply curve. 
B)  an increase in quantity supplied. 
C)  a leftward shift of the supply curve. 
D)  a downward movement along the supply curve.

Question 9

Which of the following is NOT a characteristic of perfectly competitive markets?

Accepted Answer

A)  Transactions costs are a very small part of the sale. 
B)  All market participants are price-takers. 
C)  It is easy to find a trading partner. 
D)  Products are differentiated. 
A)  Transactions costs are a very small part of the sale. 
B)  All market participants are price-takers. 
C)  It is easy to find a trading partner. 
D)  Products are differentiated.

Question 10

-The above figure shows a graph of the market for pizzas in a large town.If the price falls from $10 to $7 per pizza,the quantity of pizzas demanded will

Accepted Answer

A)  increase by 20. 
B)  decrease by 30. 
C)  increase by 30. 
D)  decrease by 10. 
A)  increase by 20. 
B)  decrease by 30. 
C)  increase by 30. 
D)  decrease by 10.

Question 11

-The above figure shows a graph of the market for pizzas in a large town.At a price of $5,there will be

Accepted Answer

A)  excess demand. 
B)  excess supply. 
C)  equilibrium. 
D)  zero demand. 
A)  excess demand. 
B)  excess supply. 
C)  equilibrium. 
D)  zero demand.

Question 12

If the supply curve of a product changes so that sellers are now willing to sell 2 additional units at any given price,the supply curve will

Accepted Answer

A)  shift leftward by 2 units. 
B)  shift rightward by 2 units. 
C)  shift vertically up by 2 units. 
D)  shift vertically down by 2 units. 
A)  shift leftward by 2 units. 
B)  shift rightward by 2 units. 
C)  shift vertically up by 2 units. 
D)  shift vertically down by 2 units.

Question 13

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

Accepted Answer

A)  an increase in price but a decrease in quantity. 
B)  a decrease in price but an increase in quantity. 
C)  an increase in both price and quantity. 
D)  a decrease in both price and quantity. 
A)  an increase in price but a decrease in quantity. 
B)  a decrease in price but an increase in quantity. 
C)  an increase in both price and quantity. 
D)  a decrease in both price and quantity.

Question 14

If the demand curve is vertical a rightward shift of the supply curve will lead to

Accepted Answer

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

Question 15

Recently,many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop.If one of these laws passes,we would expect

Accepted Answer

A)  the supply curve for soda pop to shift to the right. 
B)  the supply curve for soda pop to become more vertical. 
C)  the demand curve for soda pop to shift to the right. 
D)  the demand curve for soda pop to shift to the left. 
A)  the supply curve for soda pop to shift to the right. 
B)  the supply curve for soda pop to become more vertical. 
C)  the demand curve for soda pop to shift to the right. 
D)  the demand curve for soda pop to shift to the left.

Question 16

Consumer groups tend to lobby for

Accepted Answer

A)  price floors. 
B)  price ceilings. 
C)  quantity quotas. 
D)  taxes. 
A)  price floors. 
B)  price ceilings. 
C)  quantity quotas. 
D)  taxes.

Question 17

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for computers after technological advances in making computers occur?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D

Question 18

Which of the following cultural events likely increased the demand for the product highlighted in the event?

Accepted Answer

A)  the banning of cigarette advertising on television 
B)  the inclusion of Reese's Pieces in the movie E.T. 
C)  increased environmental awareness about the impacts of sport utility vehicles (SUVs) 
D)  concerns over "Mad Cow" disease in beef 
A)  the banning of cigarette advertising on television 
B)  the inclusion of Reese's Pieces in the movie E.T. 
C)  increased environmental awareness about the impacts of sport utility vehicles (SUVs) 
D)  concerns over "Mad Cow" disease in beef

Question 19

A price floor that is set above the equilibrium price

Accepted Answer

A)  causes suppliers to lose money. 
B)  creates a shortage. 
C)  is non-binding. 
D)  creates a surplus. 
A)  causes suppliers to lose money. 
B)  creates a shortage. 
C)  is non-binding. 
D)  creates a surplus.

Question 20

If the price is $5 and the quantity demanded is 100 units,then at a price of $10,the quantity demanded will be

Accepted Answer

A)  less than or equal to 100 units. 
B)  greater than or equal to 100 units. 
C)  less than or equal to 1000 units. 
D)  equal to 100 units. 
A)  less than or equal to 100 units. 
B)  greater than or equal to 100 units. 
C)  less than or equal to 1000 units. 
D)  equal to 100 units.

An individual who is only willing to pay a relatively low amount for a particular good

Once an equilibrium is achieved,it can persist indefinitely because

Which of the following is NOT a characteristic of perfectly competitive markets?

A leftward shift of the supply curve will lead to a(n)

If the price of automobiles were to increase substantially,the demand curve for gasoline would most likely

A market equilibrium occurs

The CB radio was very popular in the 1970s and 1980s for communicating while driving,and people bought them because other drivers had them too and they could therefore talk with many others on their trips.This illustrates

Suppose the demand curve for a good shifts rightward,causing the equilibrium price to increase.This increase in the price of the good results in

Which of the following is NOT a characteristic of perfectly competitive markets?

-The above figure shows a graph of the market for pizzas in a large town.If the price falls from $10 to $7 per pizza,the quantity of pizzas demanded will

-The above figure shows a graph of the market for pizzas in a large town.At a price of $5,there will be

If the supply curve of a product changes so that sellers are now willing to sell 2 additional units at any given price,the supply curve will

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

If the demand curve is vertical a rightward shift of the supply curve will lead to

Recently,many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop.If one of these laws passes,we would expect

Consumer groups tend to lobby for

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for computers after technological advances in making computers occur?

Which of the following cultural events likely increased the demand for the product highlighted in the event?

A price floor that is set above the equilibrium price

If the price is $5 and the quantity demanded is 100 units,then at a price of $10,the quantity demanded will be

Introduction

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

Exam 2: Supply and Demand

An individual who is only willing to pay a relatively low amount for a particular good

Once an equilibrium is achieved,it can persist indefinitely because

Which of the following is NOT a characteristic of perfectly competitive markets?

A leftward shift of the supply curve will lead to a(n)

If the price of automobiles were to increase substantially,the demand curve for gasoline would most likely

A market equilibrium occurs

The CB radio was very popular in the 1970s and 1980s for communicating while driving,and people bought them because other drivers had them too and they could therefore talk with many others on their trips.This illustrates

Suppose the demand curve for a good shifts rightward,causing the equilibrium price to increase.This increase in the price of the good results in

Which of the following is NOT a characteristic of perfectly competitive markets?

-The above figure shows a graph of the market for pizzas in a large town.If the price falls from $10 to $7 per pizza,the quantity of pizzas demanded will

-The above figure shows a graph of the market for pizzas in a large town.At a price of $5,there will be

If the supply curve of a product changes so that sellers are now willing to sell 2 additional units at any given price,the supply curve will

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

If the demand curve is vertical a rightward shift of the supply curve will lead to

Recently,many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop.If one of these laws passes,we would expect

Consumer groups tend to lobby for

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for computers after technological advances in making computers occur?

Which of the following cultural events likely increased the demand for the product highlighted in the event?

A price floor that is set above the equilibrium price

If the price is $5 and the quantity demanded is 100 units,then at a price of $10,the quantity demanded will be

Introduction

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters