Question 1

The supply curve

Accepted Answer

A)  represents the quantity supplied at any given price. 
B)  represents the quantity actually sold at any given price. 
C)  is the opposite of the demand curve. 
D)  always intersects the demand curve. 
A)  represents the quantity supplied at any given price. 
B)  represents the quantity actually sold at any given price. 
C)  is the opposite of the demand curve. 
D)  always intersects the demand curve.

Question 2

-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 coffee after severe weather destroys a large portion of the coffee crop?

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 3

The quantity demanded for a good

Accepted Answer

A)  must equal the quantity actually sold. 
B)  can be less than the quantity actually sold. 
C)  can be greater than the quantity actually sold. 
D)  is always greater than the quantity actually sold. 
A)  must equal the quantity actually sold. 
B)  can be less than the quantity actually sold. 
C)  can be greater than the quantity actually sold. 
D)  is always greater than the quantity actually sold.

Question 4

If a good is not produced,then there is no demand for it.

Accepted Answer

A) True 
 B)False

Question 5

Holding all other factors constant,consumers demand more of a good the

Accepted Answer

A)  higher its price. 
B)  lower its price. 
C)  steeper the downward slope of the demand curve. 
D)  steeper the upward slope of the demand curve. 
A)  higher its price. 
B)  lower its price. 
C)  steeper the downward slope of the demand curve. 
D)  steeper the upward slope of the demand curve.

Question 6

-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 non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?

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 7

When there is a binding price floor

Accepted Answer

A)  there is no equilibrium. 
B)  the quantity demanded does not equal the quantity supplied. 
C)  all potential producers are happy because they can sell the good at a higher price. 
D)  the government is helping consumers at the expense of producers. 
A)  there is no equilibrium. 
B)  the quantity demanded does not equal the quantity supplied. 
C)  all potential producers are happy because they can sell the good at a higher price. 
D)  the government is helping consumers at the expense of producers.

Question 8

Consumers and firms are known as price takers only if

Accepted Answer

A)  no market exists to determine the equilibrium price. 
B)  they can set the market price. 
C)  they cannot unilaterally affect the market price. 
D)  excess demand exists. 
A)  no market exists to determine the equilibrium price. 
B)  they can set the market price. 
C)  they cannot unilaterally affect the market price. 
D)  excess demand exists.

Question 9

-The above figure shows a graph of the market for pizzas in a large town.As a result of concern over the affordability of pizza,the government restricts sellers from charging a price over $7.As a result,the quantity of pizzas consumed will

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain unchanged. 
D)  be indeterminable. 
A)  increase. 
B)  decrease. 
C)  remain unchanged. 
D)  be indeterminable.

Question 10

In the labor market,if the government imposes a minimum wage that is below the equilibrium wage,then

Accepted Answer

A)  workers who wish to work at the minimum wage will have a difficult time finding jobs. 
B)  firms will hire fewer workers than without the minimum wage law. 
C)  some workers may lose their jobs as a result. 
D)  nothing will happen to the wage rate or employment. 
A)  workers who wish to work at the minimum wage will have a difficult time finding jobs. 
B)  firms will hire fewer workers than without the minimum wage law. 
C)  some workers may lose their jobs as a result. 
D)  nothing will happen to the wage rate or employment.

Question 11

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the

Accepted Answer

A)  supply curve is unchanged. 
B)  supply curve is vertical. 
C)  demand curve becomes vertical. 
D)  demand curve becomes horizontal. 
A)  supply curve is unchanged. 
B)  supply curve is vertical. 
C)  demand curve becomes vertical. 
D)  demand curve becomes horizontal.

Question 12

In some markets,________ act to adjust the price to bring the market into equilibrium.

Accepted Answer

A)  bulls 
B)  regulators 
C)  market makers 
D)  web sites 
A)  bulls 
B)  regulators 
C)  market makers 
D)  web sites

Question 13

A market is said to "clear" when

Accepted Answer

A)  sellers give up selling their goods because they can't find any buyers. 
B)  buyers and sellers are able to buy and sell as much as they want at the market price. 
C)  the government decides to shut it down. 
D)  sellers run out of goods to sell. 
A)  sellers give up selling their goods because they can't find any buyers. 
B)  buyers and sellers are able to buy and sell as much as they want at the market price. 
C)  the government decides to shut it down. 
D)  sellers run out of goods to sell.

Question 14

If the price of automobiles were to decrease substantially,the demand curve for public transportation would most likely

Accepted Answer

A)  shift rightward. 
B)  shift leftward. 
C)  remain unchanged. 
D)  remain unchanged while quantity demanded would change. 
A)  shift rightward. 
B)  shift leftward. 
C)  remain unchanged. 
D)  remain unchanged while quantity demanded would change.

Question 15

Producer 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 16

Suppose there are 100 identical firms in the rag industry,and each firm is willing to supply 10 rags at any price.The market supply curve will be a

Accepted Answer

A)  vertical line where Q = 10. 
B)  vertical line where Q = 100. 
C)  vertical line where Q = 1000. 
D)  horizontal line where Q = 1000. 
A)  vertical line where Q = 10. 
B)  vertical line where Q = 100. 
C)  vertical line where Q = 1000. 
D)  horizontal line where Q = 1000.

Question 17

Technological innovation in the production of computers has led to

Accepted Answer

A)  a decrease in the quantity demanded for computers. 
B)  a rightward shift of the supply curve for computers. 
C)  a decrease in the quantity supplied of computers. 
D)  None of the above. 
A)  a decrease in the quantity demanded for computers. 
B)  a rightward shift of the supply curve for computers. 
C)  a decrease in the quantity supplied of computers. 
D)  None of the above.

Question 18

Suppose a market were currently at equilibrium.A rightward shift of the supply curve would cause a(n)

Accepted Answer

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

Question 19

-The figure above shows a graph of the market for pizzas in a large town.What characterizes the equilibrium in this market?

Accepted Answer

A)  There is excess supply at the equilibrium price of $7. 
B)  The government has selected the appropriate price for pizzas. 
C)  The quantity supplied equals the quantity demanded. 
D)  Supply equals demand. 
A)  There is excess supply at the equilibrium price of $7. 
B)  The government has selected the appropriate price for pizzas. 
C)  The quantity supplied equals the quantity demanded. 
D)  Supply equals demand.

Question 20

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be demanded unless price is less than

Accepted Answer

A)  $0. 
B)  $5. 
C)  $12. 
D)  $14. 
A)  $0. 
B)  $5. 
C)  $12. 
D)  $14.

The supply curve

-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 coffee after severe weather destroys a large portion of the coffee crop?

The quantity demanded for a good

If a good is not produced,then there is no demand for it.

Holding all other factors constant,consumers demand more of a good the

-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 non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?

When there is a binding price floor

Consumers and firms are known as price takers only if

-The above figure shows a graph of the market for pizzas in a large town.As a result of concern over the affordability of pizza,the government restricts sellers from charging a price over $7.As a result,the quantity of pizzas consumed will

In the labor market,if the government imposes a minimum wage that is below the equilibrium wage,then

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the

In some markets,________ act to adjust the price to bring the market into equilibrium.

A market is said to "clear" when

If the price of automobiles were to decrease substantially,the demand curve for public transportation would most likely

Producer groups tend to lobby for

Suppose there are 100 identical firms in the rag industry,and each firm is willing to supply 10 rags at any price.The market supply curve will be a

Technological innovation in the production of computers has led to

Suppose a market were currently at equilibrium.A rightward shift of the supply curve would cause a(n)

-The figure above shows a graph of the market for pizzas in a large town.What characterizes the equilibrium in this market?

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be demanded unless price is less than

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

The supply curve

-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 coffee after severe weather destroys a large portion of the coffee crop?

The quantity demanded for a good

If a good is not produced,then there is no demand for it.

Holding all other factors constant,consumers demand more of a good the

-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 non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?

When there is a binding price floor

Consumers and firms are known as price takers only if

-The above figure shows a graph of the market for pizzas in a large town.As a result of concern over the affordability of pizza,the government restricts sellers from charging a price over $7.As a result,the quantity of pizzas consumed will

In the labor market,if the government imposes a minimum wage that is below the equilibrium wage,then

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the

In some markets,________ act to adjust the price to bring the market into equilibrium.

A market is said to "clear" when

If the price of automobiles were to decrease substantially,the demand curve for public transportation would most likely

Producer groups tend to lobby for

Suppose there are 100 identical firms in the rag industry,and each firm is willing to supply 10 rags at any price.The market supply curve will be a

Technological innovation in the production of computers has led to

Suppose a market were currently at equilibrium.A rightward shift of the supply curve would cause a(n)

-The figure above shows a graph of the market for pizzas in a large town.What characterizes the equilibrium in this market?

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be demanded unless price is less than

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