Question 1

Which of the following will NOT cause a change in the supply of a product?

Accepted Answer

A) a change in the price of alternative goods that could be produced with the same resources 
B) a natural disaster 
C) a change in the price of suppliers' inputs 
D) a change in the price of the product 
A) a change in the price of alternative goods that could be produced with the same resources 
B) a natural disaster 
C) a change in the price of suppliers' inputs 
D) a change in the price of the product

Question 2

Wheat and oats are both used to make cereal and grown in the prairies.What would happen to the supply and demand of oats if the price of wheat were to rise?

Accepted Answer

An increase in the price of wheat would

Question 3

Which of the following would reduce the supply of microcomputers?

Accepted Answer

A) higher wage rates for the workers that assemble the computers 
B) a reduction in the price of computers 
C) a technological improvement that lowers the cost of producing the computers 
D) a reduction in the price of computer chips used to produce the computers 
A) higher wage rates for the workers that assemble the computers 
B) a reduction in the price of computers 
C) a technological improvement that lowers the cost of producing the computers 
D) a reduction in the price of computer chips used to produce the computers

Question 4

FIGURE 3-5
  
-Refer to Figure 3-5.What does a change from Point A to Point D represent?

Accepted Answer

A) an increase in supply 
B) a decrease in supply 
C) an increase in quantity supplied 
D) a decrease in quantity supplied 
A) an increase in supply 
B) a decrease in supply 
C) an increase in quantity supplied 
D) a decrease in quantity supplied

Question 5

According to the substitution effect,what impact will an increase in the price of oranges have on consumers?

Accepted Answer

A) It will leave consumers with less money to spend on all goods. 
B) It will cause consumers to consume fewer apples because more money is spent on oranges. 
C) It will cause consumers to replace some oranges with other fruit that is now relatively cheaper than oranges. 
D) It will cause consumers to spend more on oranges because a higher price signals that oranges are better than apples. 
A) It will leave consumers with less money to spend on all goods. 
B) It will cause consumers to consume fewer apples because more money is spent on oranges. 
C) It will cause consumers to replace some oranges with other fruit that is now relatively cheaper than oranges. 
D) It will cause consumers to spend more on oranges because a higher price signals that oranges are better than apples.

Question 6

What is the result of an increase in a product's price?

Accepted Answer

A) Product supply does not change, but quantity supplied increases. 
B) Product supply does not change, but quantity supplied decreases. 
C) Product supply decreases. 
D) Product supply increases. 
A) Product supply does not change, but quantity supplied increases. 
B) Product supply does not change, but quantity supplied decreases. 
C) Product supply decreases. 
D) Product supply increases.

Question 7

Which of the following would NOT shift a product's demand curve?

Accepted Answer

A) an increase in the price of the product 
B) an increase in the price of a complement 
C) an increase in the price of a substitute 
D) a decrease in consumer income 
A) an increase in the price of the product 
B) an increase in the price of a complement 
C) an increase in the price of a substitute 
D) a decrease in consumer income

Question 8

FIGURE 3-5
  
-Refer to Figure 3-5.What does a change from Point A to Point B represent?

Accepted Answer

A) a decrease in quantity supplied 
B) an increase in supply 
C) a decrease in supply 
D) an increase in quantity supplied 
A) a decrease in quantity supplied 
B) an increase in supply 
C) a decrease in supply 
D) an increase in quantity supplied

Question 9

FIGURE 3-5
  
-Refer to Figure 3-5.What does a change from Point A to Point E represent?

Accepted Answer

A) a decrease in supply 
B) a decrease in quantity supplied 
C) an increase in quantity supplied 
D) an increase in supply 
A) a decrease in supply 
B) a decrease in quantity supplied 
C) an increase in quantity supplied 
D) an increase in supply

Question 10

A technological advance that reduces the cost of producing computers will shift the supply curve of computers to the right.

Accepted Answer

A) True 
 B)False

Question 11

Other things constant,what effect will an increase in the price of beef have?

Accepted Answer

A) It will encourage consumers to buy more beef. 
B) It will shift the demand curve for beef to the left. 
C) It will shift the demand curve for beef to the right. 
D) It will discourage consumers from buying as much beef. 
A) It will encourage consumers to buy more beef. 
B) It will shift the demand curve for beef to the left. 
C) It will shift the demand curve for beef to the right. 
D) It will discourage consumers from buying as much beef.

Question 12

Roxanne considers movie tickets and DVD rentals to be substitute forms of entertainment.What will an increase in the price of a DVD rental likely result in for Roxanne?

Accepted Answer

A) a decrease in her quantity of movie tickets demanded 
B) an increase in her demand for movie tickets 
C) an increase in her quantity of DVD rentals demanded 
D) a decrease in her supply of movie tickets 
A) a decrease in her quantity of movie tickets demanded 
B) an increase in her demand for movie tickets 
C) an increase in her quantity of DVD rentals demanded 
D) a decrease in her supply of movie tickets

Question 13

If the demand for milk is downward sloping,then what will an increase in the price of milk result in?

Accepted Answer

A) a decrease in the demand for milk 
B) an increase in the demand for milk 
C) an increase in the quantity of milk demanded 
D) a decrease in the quantity of milk demanded 
A) a decrease in the demand for milk 
B) an increase in the demand for milk 
C) an increase in the quantity of milk demanded 
D) a decrease in the quantity of milk demanded

Question 14

Which of the following would increase the demand for 35mm film?

Accepted Answer

A) a reduction in the price of 35mm film cameras 
B) a reduction in the price of digital cameras (that do not use film) 
C) an increase in the price of 35 mm film 
D) an increase in the price of vacation packages 
A) a reduction in the price of 35mm film cameras 
B) a reduction in the price of digital cameras (that do not use film) 
C) an increase in the price of 35 mm film 
D) an increase in the price of vacation packages

Question 15

Increasing opportunity costs is one explanation for the law of supply.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following factors will NOT affect the supply of shoes?

Accepted Answer

A) higher prices for leather 
B) an increase in consumer income 
C) higher wages for shoe factory workers 
D) a technological improvement that reduces waste of leather and other raw materials in shoe production 
A) higher prices for leather 
B) an increase in consumer income 
C) higher wages for shoe factory workers 
D) a technological improvement that reduces waste of leather and other raw materials in shoe production

Question 17

A market is a place where some sort of exchange occurs.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following will NOT increase the demand for iced tea?

Accepted Answer

A) an increase in advertising that makes drinking iced tea more appealing 
B) a decrease in the price of iced tea 
C) an increase in the income of consumers (assume that iced tea is a normal good) 
D) an increase in the price of iced coffee, a substitute product 
A) an increase in advertising that makes drinking iced tea more appealing 
B) a decrease in the price of iced tea 
C) an increase in the income of consumers (assume that iced tea is a normal good) 
D) an increase in the price of iced coffee, a substitute product

Question 19

What is the difference between a change in quantity demanded and a change in demand?

Accepted Answer

A) A change in demand is caused by a change in a good's own price, while a change in quantity demanded is caused by a change in some other variable, such as income, tastes, or expectations. 
B) A change in quantity demanded is a change in the amount people actually buy, while a change in demand is a change in the amount they want to buy. 
C) A change in demand is a change in the amount people actually buy, while a change in quantity demanded is a change in the amount they want to buy. 
D) A change in quantity demanded is caused by a change in a good's own price, while a change in demand is caused by a change in some other variable, such as income, tastes, or expectations. 
A) A change in demand is caused by a change in a good's own price, while a change in quantity demanded is caused by a change in some other variable, such as income, tastes, or expectations. 
B) A change in quantity demanded is a change in the amount people actually buy, while a change in demand is a change in the amount they want to buy. 
C) A change in demand is a change in the amount people actually buy, while a change in quantity demanded is a change in the amount they want to buy. 
D) A change in quantity demanded is caused by a change in a good's own price, while a change in demand is caused by a change in some other variable, such as income, tastes, or expectations.

Question 20

If hot dogs are inferior goods,the demand for hot dogs will rise as consumer income falls.

Accepted Answer

A) True 
 B)False

Which of the following will NOT cause a change in the supply of a product?

Wheat and oats are both used to make cereal and grown in the prairies.What would happen to the supply and demand of oats if the price of wheat were to rise?

Which of the following would reduce the supply of microcomputers?

FIGURE 3-5 -Refer to Figure 3-5.What does a change from Point A to Point D represent?

According to the substitution effect,what impact will an increase in the price of oranges have on consumers?

What is the result of an increase in a product's price?

Which of the following would NOT shift a product's demand curve?

FIGURE 3-5 -Refer to Figure 3-5.What does a change from Point A to Point B represent?

FIGURE 3-5 -Refer to Figure 3-5.What does a change from Point A to Point E represent?

A technological advance that reduces the cost of producing computers will shift the supply curve of computers to the right.

Other things constant,what effect will an increase in the price of beef have?

Roxanne considers movie tickets and DVD rentals to be substitute forms of entertainment.What will an increase in the price of a DVD rental likely result in for Roxanne?

If the demand for milk is downward sloping,then what will an increase in the price of milk result in?

Which of the following would increase the demand for 35mm film?

Increasing opportunity costs is one explanation for the law of supply.

Which of the following factors will NOT affect the supply of shoes?

A market is a place where some sort of exchange occurs.

Which of the following will NOT increase the demand for iced tea?

What is the difference between a change in quantity demanded and a change in demand?

If hot dogs are inferior goods,the demand for hot dogs will rise as consumer income falls.

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Economic Growth in the Global Economy

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters

Exam 3: Supply and Demand

Which of the following will NOT cause a change in the supply of a product?

Wheat and oats are both used to make cereal and grown in the prairies.What would happen to the supply and demand of oats if the price of wheat were to rise?

Which of the following would reduce the supply of microcomputers?

FIGURE 3-5 -Refer to Figure 3-5.What does a change from Point A to Point D represent?

According to the substitution effect,what impact will an increase in the price of oranges have on consumers?

What is the result of an increase in a product's price?

Which of the following would NOT shift a product's demand curve?

FIGURE 3-5 -Refer to Figure 3-5.What does a change from Point A to Point B represent?

FIGURE 3-5 -Refer to Figure 3-5.What does a change from Point A to Point E represent?

A technological advance that reduces the cost of producing computers will shift the supply curve of computers to the right.

Other things constant,what effect will an increase in the price of beef have?

Roxanne considers movie tickets and DVD rentals to be substitute forms of entertainment.What will an increase in the price of a DVD rental likely result in for Roxanne?

If the demand for milk is downward sloping,then what will an increase in the price of milk result in?

Which of the following would increase the demand for 35mm film?

Increasing opportunity costs is one explanation for the law of supply.

Which of the following factors will NOT affect the supply of shoes?

A market is a place where some sort of exchange occurs.

Which of the following will NOT increase the demand for iced tea?

What is the difference between a change in quantity demanded and a change in demand?

If hot dogs are inferior goods,the demand for hot dogs will rise as consumer income falls.

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Economic Growth in the Global Economy

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters