Question 1

An increase in demand is represented by a

Accepted Answer

A) shift of the demand curve to the left. 
B) shift of the demand curve to the right. 
C) movement down the demand curve. 
D) movement up the demand curve. 
A) shift of the demand curve to the left. 
B) shift of the demand curve to the right. 
C) movement down the demand curve. 
D) movement up the demand curve.

Question 2

-Given the market data for good X in the above table, an equilibrium quantity is established at

Accepted Answer

A) 90 units. 
B) 60 units. 
C) 30 units. 
D) 120 units. 
A) 90 units. 
B) 60 units. 
C) 30 units. 
D) 120 units.

Question 3

-Refer to the above table. What is the market quantity demanded at a price of $8?

Accepted Answer

A) 5 
B) 15 
C) 35 
D) 44 
A) 5 
B) 15 
C) 35 
D) 44

Question 4

Regarding the law of supply, which of the following statements is correct?

Accepted Answer

A) As the price of a good or service rises, the quantity supplied will increase. 
B) As the price of a good or service rises, the quantity supplied will decrease. 
C) The ceteris paribus assumption does not apply. 
D) As demand falls, supply rises. 
A) As the price of a good or service rises, the quantity supplied will increase. 
B) As the price of a good or service rises, the quantity supplied will decrease. 
C) The ceteris paribus assumption does not apply. 
D) As demand falls, supply rises.

Question 5

Demand is a schedule of

Accepted Answer

A) how much of a good a person wants. 
B) how much of a good people will purchase at each different possible price. 
C) how much of a good people will purchase at each income level. 
D) each possible price and the amount people will buy when their incomes change. 
A) how much of a good a person wants. 
B) how much of a good people will purchase at each different possible price. 
C) how much of a good people will purchase at each income level. 
D) each possible price and the amount people will buy when their incomes change.

Question 6

For a demand schedule, which of the following is held constant?

Accepted Answer

A) relative prices 
B) quantity demanded 
C) quality of the good 
D) nominal prices 
A) relative prices 
B) quantity demanded 
C) quality of the good 
D) nominal prices

Question 7

-Refer to the above figure. Excess quantity demanded will exist when

Accepted Answer

A) the price is between $0 and $6. 
B) the price equals $6. 
C) the price equals $10. 
D) quantity demanded equals 3. 
A) the price is between $0 and $6. 
B) the price equals $6. 
C) the price equals $10. 
D) quantity demanded equals 3.

Question 8

Ceteris paribus, as the price of a good or service increases

Accepted Answer

A) people will buy more of it. 
B) people will buy less of it. 
C) people will want less of it. 
D) people will want more of it. 
A) people will buy more of it. 
B) people will buy less of it. 
C) people will want less of it. 
D) people will want more of it.

Question 9

If there is a surplus

Accepted Answer

A) fewer producers want to sell the product because it is too scarce. 
B) consumers will drive up the price further. 
C) firms will drive up the price to enhance profits. 
D) the price will decline to the equilibrium level. 
A) fewer producers want to sell the product because it is too scarce. 
B) consumers will drive up the price further. 
C) firms will drive up the price to enhance profits. 
D) the price will decline to the equilibrium level.

Question 10

Which one of the following statements is FALSE?

Accepted Answer

A) There is an inverse (negative)relationship between product price and quantity supplied. 
B) There is some price at which quantity supplied of a product is zero. 
C) As product price increases, producers are willing to put more of the good on the market for sale. 
D) In order to entice producers to offer more of a product on the market for sale, product price must rise. 
A) There is an inverse (negative)relationship between product price and quantity supplied. 
B) There is some price at which quantity supplied of a product is zero. 
C) As product price increases, producers are willing to put more of the good on the market for sale. 
D) In order to entice producers to offer more of a product on the market for sale, product price must rise.

Question 11

If the price of personal computers were to rise, then the demand for printers would decrease because personal computers and printers are

Accepted Answer

A) complementary goods. 
B) consumer goods. 
C) inferior goods. 
D) substitute goods. 
A) complementary goods. 
B) consumer goods. 
C) inferior goods. 
D) substitute goods.

Question 12

For a normal good, an increase in consumer income will lead to I. a movement down the demand curve
II. a rightward shift in the demand curve
III. a reduction in supply

Accepted Answer

A) I only 
B) II only 
C) III only 
D) Both II and III 
A) I only 
B) II only 
C) III only 
D) Both II and III

Question 13

Other things being equal, an increase in the price of a good leads to an increase in the amount produced. This is known as

Accepted Answer

A) the law of demand. 
B) the law of supply. 
C) ceteris paribus. 
D) equilibrium. 
A) the law of demand. 
B) the law of supply. 
C) ceteris paribus. 
D) equilibrium.

Question 14

The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?

Accepted Answer

A) The demand for ferry service would increase. 
B) The demand for ferry service would decrease. 
C) There would be an upward movement along the demand curve for transits through the Chunnel. 
D) There would be a downward movement along the demand curve for transits through the Chunnel. 
A) The demand for ferry service would increase. 
B) The demand for ferry service would decrease. 
C) There would be an upward movement along the demand curve for transits through the Chunnel. 
D) There would be a downward movement along the demand curve for transits through the Chunnel.

Question 15

-Refer to the above figure. A movement from Point A to Point B is caused by

Accepted Answer

A) an increase in income. 
B) an expectation of a decrease in the price of the good in that figure. 
C) a decrease in the price of the good in that figure. 
D) all of the above. 
A) an increase in income. 
B) an expectation of a decrease in the price of the good in that figure. 
C) a decrease in the price of the good in that figure. 
D) all of the above.

Question 16

Which of the following pairs of goods is LEAST likely to be a pair of complements?

Accepted Answer

A) gasoline and vehicles 
B) coffee and sugar 
C) beer and wine 
D) razors and razor blades 
A) gasoline and vehicles 
B) coffee and sugar 
C) beer and wine 
D) razors and razor blades

Question 17

An increase in the price of steel to producers of refrigerators will cause

Accepted Answer

A) the quantity demanded for steel to increase. 
B) the demand for refrigerators to decrease. 
C) the quantity supplied of refrigerators to increase. 
D) the supply curve for refrigerators to shift left. 
A) the quantity demanded for steel to increase. 
B) the demand for refrigerators to decrease. 
C) the quantity supplied of refrigerators to increase. 
D) the supply curve for refrigerators to shift left.

Question 18

The law of demand shows that there is

Accepted Answer

A) an inverse relationship between price and profit. 
B) an inverse relationship between price and resource cost. 
C) an inverse relationship between price and quantity demanded. 
D) a direct relationship between price and quantity demanded. 
A) an inverse relationship between price and profit. 
B) an inverse relationship between price and resource cost. 
C) an inverse relationship between price and quantity demanded. 
D) a direct relationship between price and quantity demanded.

Question 19

The price of a new textbook is $60 in one year and $75 two years later, while the price of a used copy of the textbook increased from $25 to $37.50. The relative price of a new textbook

Accepted Answer

A) increased by 25 percent. 
B) increased from 2.4 to 3. 
C) decreased from 2.4 to 2.0. 
D) decreased from 1.4 to 1.25 
A) increased by 25 percent. 
B) increased from 2.4 to 3. 
C) decreased from 2.4 to 2.0. 
D) decreased from 1.4 to 1.25

Question 20

Which of the following statements is consistent with an increase in supply?

Accepted Answer

A) The price of labor input has increased. 
B) There has been an advance in technology. 
C) Consumers' incomes have increased. 
D) The market price has decreased. 
A) The price of labor input has increased. 
B) There has been an advance in technology. 
C) Consumers' incomes have increased. 
D) The market price has decreased.

An increase in demand is represented by a

-Given the market data for good X in the above table, an equilibrium quantity is established at

-Refer to the above table. What is the market quantity demanded at a price of $8?

Regarding the law of supply, which of the following statements is correct?

Demand is a schedule of

For a demand schedule, which of the following is held constant?

-Refer to the above figure. Excess quantity demanded will exist when

Ceteris paribus, as the price of a good or service increases

If there is a surplus

Which one of the following statements is FALSE?

If the price of personal computers were to rise, then the demand for printers would decrease because personal computers and printers are

For a normal good, an increase in consumer income will lead to I. a movement down the demand curve II. a rightward shift in the demand curve III. a reduction in supply

Other things being equal, an increase in the price of a good leads to an increase in the amount produced. This is known as

The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?

-Refer to the above figure. A movement from Point A to Point B is caused by

Which of the following pairs of goods is LEAST likely to be a pair of complements?

An increase in the price of steel to producers of refrigerators will cause

The law of demand shows that there is

The price of a new textbook is $60 in one year and $75 two years later, while the price of a used copy of the textbook increased from $25 to $37.50. The relative price of a new textbook

Which of the following statements is consistent with an increase in supply?

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 3: Demand and Supply

An increase in demand is represented by a

-Given the market data for good X in the above table, an equilibrium quantity is established at

-Refer to the above table. What is the market quantity demanded at a price of $8?

Regarding the law of supply, which of the following statements is correct?

Demand is a schedule of

For a demand schedule, which of the following is held constant?

-Refer to the above figure. Excess quantity demanded will exist when

Ceteris paribus, as the price of a good or service increases

If there is a surplus

Which one of the following statements is FALSE?

If the price of personal computers were to rise, then the demand for printers would decrease because personal computers and printers are

For a normal good, an increase in consumer income will lead to I. a movement down the demand curve II. a rightward shift in the demand curve III. a reduction in supply

Other things being equal, an increase in the price of a good leads to an increase in the amount produced. This is known as

The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?

-Refer to the above figure. A movement from Point A to Point B is caused by

Which of the following pairs of goods is LEAST likely to be a pair of complements?

An increase in the price of steel to producers of refrigerators will cause

The law of demand shows that there is

The price of a new textbook is $60 in one year and $75 two years later, while the price of a used copy of the textbook increased from $25 to $37.50. The relative price of a new textbook

Which of the following statements is consistent with an increase in supply?

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters