Question 1

A complement is a good

Accepted Answer

A)  of lower quality than another good. 
B)  used in conjunction with another good. 
C)  used instead of another good. 
D)  of higher quality than another good. 
A)  of lower quality than another good. 
B)  used in conjunction with another good. 
C)  used instead of another good. 
D)  of higher quality than another good.

Question 2

-The above figure shows the market for hamburger.Which figure shows the effect of an announcement by the U.S.Food and Drug Administration (FDA)that eating hamburger causes early death?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 3

When does a shortage occur?

Accepted Answer

A shortage occurs when the pri

Question 4

A recession occurs and people's incomes decrease.Knowing that an iPad is a normal good,you predict that the demand for an iPad

Accepted Answer

A)  increases. 
B)  decreases. 
C)  might increase or decrease. 
D)  remains unchanged. 
A)  increases. 
B)  decreases. 
C)  might increase or decrease. 
D)  remains unchanged.

Question 5

An increase the expected future price of a good

Accepted Answer

A)  increases its demand. 
B)  decreases its demand. 
C)  increases its supply. 
D)  has no effect on either its demand or its supply. 
A)  increases its demand. 
B)  decreases its demand. 
C)  increases its supply. 
D)  has no effect on either its demand or its supply.

Question 6

The relative price of a good is greater than the money price of a good.

Accepted Answer

A) True 
 B)False

Question 7

-Consider the demand curves for soft drinks shown in the figure above.Initially the economy is at point a.If people come to expect that the price of a soft drink will increase in the future,there will be a movement to a point such as

Accepted Answer

A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d. 
A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d.

Question 8

-The figure above shows the demand for fruit snacks.Which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 9

An increase in price results in increase in supply but not an increase in the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 10

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in demand?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 11

-The figure illustrates the market for chairs.If the supply of chairs increases,the price of a chair ________ $40 and the quantity ________.

Accepted Answer

A)  will rise above; demanded will decrease 
B)  will rise above; supplied will increase 
C)  will fall below; demanded will increase 
D)  will fall below; demanded will decrease 
A)  will rise above; demanded will decrease 
B)  will rise above; supplied will increase 
C)  will fall below; demanded will increase 
D)  will fall below; demanded will decrease

Question 12

In a market,at the equilibrium price,

Accepted Answer

A)  neither buyers nor sellers can do business at a better price. 
B)  buyers are willing to pay a higher price, but sellers do not ask for a higher price. 
C)  buyers are paying the minimum price they are willing to pay for any amount of output and sellers are charging the maximum price they are willing to charge for any amount of production. 
D)  None of the above is true. 
A)  neither buyers nor sellers can do business at a better price. 
B)  buyers are willing to pay a higher price, but sellers do not ask for a higher price. 
C)  buyers are paying the minimum price they are willing to pay for any amount of output and sellers are charging the maximum price they are willing to charge for any amount of production. 
D)  None of the above is true.

Question 13

-The above figure shows the market for hamburger.Which panel shows the effect of a new excise tax on all beef products?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 14

When demand increases,the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A)  rises; decreases 
B)  falls; decreases 
C)  rises; increases 
D)  falls; increases 
A)  rises; decreases 
B)  falls; decreases 
C)  rises; increases 
D)  falls; increases

Question 15

-Consider the demand curves for soft drinks shown in the figure above.Moving from point a to point c means that

Accepted Answer

A)  the marginal benefit of each additional soft drink falls. 
B)  the opportunity cost of another soft drink increases. 
C)  people's incomes have decreased. 
D)  the price of a soft drink has increased. 
A)  the marginal benefit of each additional soft drink falls. 
B)  the opportunity cost of another soft drink increases. 
C)  people's incomes have decreased. 
D)  the price of a soft drink has increased.

Question 16

A demand curve is also a willingness-and-ability-to-pay curve.

Accepted Answer

A) True 
 B)False

Question 17

A rise in the price of a good causes producers to supply more of the good.This statement illustrates

Accepted Answer

A)  the law of supply. 
B)  the law of demand. 
C)  a change in supply. 
D)  the nature of an inferior good. 
A)  the law of supply. 
B)  the law of demand. 
C)  a change in supply. 
D)  the nature of an inferior good.

Question 18

When economists speak of preferences as influencing demand,they are referring to

Accepted Answer

A)  directly observable changes in prices and income. 
B)  an individual's attitudes toward goods and services. 
C)  the excess of wants over the available supplies. 
D)  the availability of a good to all income classes. 
A)  directly observable changes in prices and income. 
B)  an individual's attitudes toward goods and services. 
C)  the excess of wants over the available supplies. 
D)  the availability of a good to all income classes.

Question 19

What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

Accepted Answer

A)  The equilibrium quantity of wooden desks increases and the equilibrium price falls. 
B)  The equilibrium quantity of wooden desks increases and the equilibrium price rises. 
C)  The equilibrium quantity of wooden desks decreases and the equilibrium price falls. 
D)  The equilibrium quantity of wooden desks decreases and the equilibrium price rises. 
A)  The equilibrium quantity of wooden desks increases and the equilibrium price falls. 
B)  The equilibrium quantity of wooden desks increases and the equilibrium price rises. 
C)  The equilibrium quantity of wooden desks decreases and the equilibrium price falls. 
D)  The equilibrium quantity of wooden desks decreases and the equilibrium price rises.

Question 20

When the demand for blue jeans increases,what happens next?

Accepted Answer

If the demand for blue jeans increases,t

A complement is a good

-The above figure shows the market for hamburger.Which figure shows the effect of an announcement by the U.S.Food and Drug Administration (FDA)that eating hamburger causes early death?

When does a shortage occur?

A recession occurs and people's incomes decrease.Knowing that an iPad is a normal good,you predict that the demand for an iPad

An increase the expected future price of a good

The relative price of a good is greater than the money price of a good.

-Consider the demand curves for soft drinks shown in the figure above.Initially the economy is at point a.If people come to expect that the price of a soft drink will increase in the future,there will be a movement to a point such as

-The figure above shows the demand for fruit snacks.Which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

An increase in price results in increase in supply but not an increase in the quantity supplied.

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in demand?

-The figure illustrates the market for chairs.If the supply of chairs increases,the price of a chair $40 and the quantity .

In a market,at the equilibrium price,

-The above figure shows the market for hamburger.Which panel shows the effect of a new excise tax on all beef products?

When demand increases,the equilibrium price and the equilibrium quantity .

-Consider the demand curves for soft drinks shown in the figure above.Moving from point a to point c means that

A demand curve is also a willingness-and-ability-to-pay curve.

A rise in the price of a good causes producers to supply more of the good.This statement illustrates

When economists speak of preferences as influencing demand,they are referring to

What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

When the demand for blue jeans increases,what happens next?

What Is Economics

The Economic Problem

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 3: Demand and Supply

A complement is a good

-The above figure shows the market for hamburger.Which figure shows the effect of an announcement by the U.S.Food and Drug Administration (FDA)that eating hamburger causes early death?

When does a shortage occur?

A recession occurs and people's incomes decrease.Knowing that an iPad is a normal good,you predict that the demand for an iPad

An increase the expected future price of a good

The relative price of a good is greater than the money price of a good.

-Consider the demand curves for soft drinks shown in the figure above.Initially the economy is at point a.If people come to expect that the price of a soft drink will increase in the future,there will be a movement to a point such as

-The figure above shows the demand for fruit snacks.Which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

An increase in price results in increase in supply but not an increase in the quantity supplied.

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in demand?

-The figure illustrates the market for chairs.If the supply of chairs increases,the price of a chair ________ $40 and the quantity ________.

In a market,at the equilibrium price,

-The above figure shows the market for hamburger.Which panel shows the effect of a new excise tax on all beef products?

When demand increases,the equilibrium price ________ and the equilibrium quantity ________.

-Consider the demand curves for soft drinks shown in the figure above.Moving from point a to point c means that

A demand curve is also a willingness-and-ability-to-pay curve.

A rise in the price of a good causes producers to supply more of the good.This statement illustrates

When economists speak of preferences as influencing demand,they are referring to

What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

When the demand for blue jeans increases,what happens next?

What Is Economics

The Economic Problem

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

-The figure illustrates the market for chairs.If the supply of chairs increases,the price of a chair $40 and the quantity .

When demand increases,the equilibrium price and the equilibrium quantity .