Question 1

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price.This observation is evidence of

Accepted Answer

A)  a surplus at printed ticket prices. 
B)  a shortage at printed ticket prices. 
C)  the tournament not being televised. 
D)  the tournament getting too much television exposure. 
A)  a surplus at printed ticket prices. 
B)  a shortage at printed ticket prices. 
C)  the tournament not being televised. 
D)  the tournament getting too much television exposure.

Question 2

Which of the following correctly describes how price adjustments eliminate a shortage?

Accepted Answer

A)  As the price rises, the quantity demanded decreases while the quantity supplied increases. 
B)  As the price rises, the quantity demanded increases while the quantity supplied decreases. 
C)  As the price falls, the quantity demanded decreases while the quantity supplied increases. 
D)  As the price falls, the quantity demanded increases while the quantity supplied decreases. 
A)  As the price rises, the quantity demanded decreases while the quantity supplied increases. 
B)  As the price rises, the quantity demanded increases while the quantity supplied decreases. 
C)  As the price falls, the quantity demanded decreases while the quantity supplied increases. 
D)  As the price falls, the quantity demanded increases while the quantity supplied decreases.

Question 3

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in income if fruit snacks are a normal good?

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 4

Auto workers negotiate a wage increase.How does this wage hike affect the supply of cars?

Accepted Answer

A)  It decreases the supply. 
B)  It increase the supply. 
C)  It has no effect. 
D)  There is not enough information to tell if the change increases, decreases, or has no effect on the supply of cars. 
A)  It decreases the supply. 
B)  It increase the supply. 
C)  It has no effect. 
D)  There is not enough information to tell if the change increases, decreases, or has no effect on the supply of cars.

Question 5

The number of firms producing computer memory chips decreases.As a result,the price of a memory chip ________ and the quantity of memory chips ________.

Accepted Answer

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

Question 6

Normal goods are those for which demand decreases as

Accepted Answer

A)  the price of a complement falls. 
B)  the price of a substitute falls. 
C)  income decreases. 
D)  the good's own price rises. 
A)  the price of a complement falls. 
B)  the price of a substitute falls. 
C)  income decreases. 
D)  the good's own price rises.

Question 7

Some sales managers are talking shop.Which of the following quotations refers to a movement along the demand curve?

Accepted Answer

A)  "Since our competitors raised their prices our sales have doubled." 
B)  "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
C)  "We decided to cut our prices, and the increase in our sales has been remarkable." 
D)  none of the above 
A)  "Since our competitors raised their prices our sales have doubled." 
B)  "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
C)  "We decided to cut our prices, and the increase in our sales has been remarkable." 
D)  none of the above

Question 8

In 2007 Nike reduced the price of its running shoes by 20 percent. As a result,the substitution effect caused

Accepted Answer

A)  the demand for Nike shoes to increase. 
B)  people to switch from Adidas shoes and buy more Nikes. 
C)  the relative price of Nikes to increase. 
D)  the demand curve for Nikes to shift rightward. 
A)  the demand for Nike shoes to increase. 
B)  people to switch from Adidas shoes and buy more Nikes. 
C)  the relative price of Nikes to increase. 
D)  the demand curve for Nikes to shift rightward.

Question 9

-In the figure above,an increase in the supply of oil would result in a movement from

Accepted Answer

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

Question 10

$$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { cellular } \
\text { phone) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { demanded } \
\text { (thousands) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { supplied } \
\text { (thousands) }
\end{array} \
\hline 100 & 50 & 100 \
\hline 80 & 55 & 80 \
\hline 50 & 60 & 60 \
\hline 20 & 100 & 40 \
\hline
\end{array}$$
-Using the data in the above table,at the price of $80 a phone,a

Accepted Answer

A)  shortage of 25 thousand cellular telephones occurs. 
B)  surplus of 80 thousand cellular telephones occurs. 
C)  surplus of 25 thousand cellular telephones occurs. 
D)  shortage of 55 thousand cellular telephones occurs. 
A)  shortage of 25 thousand cellular telephones occurs. 
B)  surplus of 80 thousand cellular telephones occurs. 
C)  surplus of 25 thousand cellular telephones occurs. 
D)  shortage of 55 thousand cellular telephones occurs.

Question 11

-The above figures show the market for oranges.Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

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 12

For consumers,chocolate chip cookies and doughnuts are substitutes.So,an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

Accepted Answer

A) True 
 B)False

Question 13

The interaction of supply and demand explains

Accepted Answer

A)  the prices of goods and services but not their quantities. 
B)  the quantities of goods and services but not their prices. 
C)  both the prices and the quantities of goods and services. 
D)  neither the prices nor the quantities of goods and services. 
A)  the prices of goods and services but not their quantities. 
B)  the quantities of goods and services but not their prices. 
C)  both the prices and the quantities of goods and services. 
D)  neither the prices nor the quantities of goods and services.

Question 14

-In the above figure,in order for the equilibrium price to remain constant while the equilibrium quantity increases,the

Accepted Answer

A)  supply and demand curves both would have to shift leftward. 
B)  supply curve would have to shift leftward and the demand curve would have to shift rightward. 
C)  supply curve would have to shift rightward and the demand curve would have to shift leftward. 
D)  supply and demand curves both would have to shift rightward. 
A)  supply and demand curves both would have to shift leftward. 
B)  supply curve would have to shift leftward and the demand curve would have to shift rightward. 
C)  supply curve would have to shift rightward and the demand curve would have to shift leftward. 
D)  supply and demand curves both would have to shift rightward.

Question 15

Which of the following is the best way to describe equilibrium in a market?
At equilibrium,the

Accepted Answer

A)  price is the lowest possible. 
B)  price is usually affordable to most people. 
C)  supply and demand curves can never shift again. 
D)  quantity supplied equals the quantity demanded. 
A)  price is the lowest possible. 
B)  price is usually affordable to most people. 
C)  supply and demand curves can never shift again. 
D)  quantity supplied equals the quantity demanded.

Question 16

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00.If the price of a DVD rental increases by $0.50,the relative price a downloaded movie

Accepted Answer

A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed. 
A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed.

Question 17

-In the figure above,a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from

Accepted Answer

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

Question 18

-The above figures show the market for gasoline.Which figure shows the effect of a nation-wide strike by municipal bus drivers,which causes more people to drive their cars to work?

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 19

A price below the equilibrium price results in

Accepted Answer

A)  a surplus. 
B)  a shortage. 
C)  excess supply. 
D)  a further price fall. 
A)  a surplus. 
B)  a shortage. 
C)  excess supply. 
D)  a further price fall.

Question 20

-Which of the following does NOT shift the supply curve?

Accepted Answer

A)  a technological advance 
B)  a decrease in the wages of labor used in production of the good 
C)  a fall in the price of a substitute in production 
D)  an increase in the price of the good 
A)  a technological advance 
B)  a decrease in the wages of labor used in production of the good 
C)  a fall in the price of a substitute in production 
D)  an increase in the price of the good

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price.This observation is evidence of

Which of the following correctly describes how price adjustments eliminate a shortage?

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in income if fruit snacks are a normal good?

Auto workers negotiate a wage increase.How does this wage hike affect the supply of cars?

The number of firms producing computer memory chips decreases.As a result,the price of a memory chip and the quantity of memory chips .

Normal goods are those for which demand decreases as

Some sales managers are talking shop.Which of the following quotations refers to a movement along the demand curve?

In 2007 Nike reduced the price of its running shoes by 20 percent. As a result,the substitution effect caused

-In the figure above,an increase in the supply of oil would result in a movement from

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the above table,at the price of $80 a phone,a

-The above figures show the market for oranges.Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

For consumers,chocolate chip cookies and doughnuts are substitutes.So,an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

The interaction of supply and demand explains

-In the above figure,in order for the equilibrium price to remain constant while the equilibrium quantity increases,the

Which of the following is the best way to describe equilibrium in a market? At equilibrium,the

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00.If the price of a DVD rental increases by $0.50,the relative price a downloaded movie

-In the figure above,a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from

-The above figures show the market for gasoline.Which figure shows the effect of a nation-wide strike by municipal bus drivers,which causes more people to drive their cars to work?

A price below the equilibrium price results in

-Which of the following does NOT shift the supply curve?

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

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price.This observation is evidence of

Which of the following correctly describes how price adjustments eliminate a shortage?

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in income if fruit snacks are a normal good?

Auto workers negotiate a wage increase.How does this wage hike affect the supply of cars?

The number of firms producing computer memory chips decreases.As a result,the price of a memory chip ________ and the quantity of memory chips ________.

Normal goods are those for which demand decreases as

Some sales managers are talking shop.Which of the following quotations refers to a movement along the demand curve?

In 2007 Nike reduced the price of its running shoes by 20 percent. As a result,the substitution effect caused

-In the figure above,an increase in the supply of oil would result in a movement from

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the above table,at the price of $80 a phone,a

-The above figures show the market for oranges.Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

For consumers,chocolate chip cookies and doughnuts are substitutes.So,an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

The interaction of supply and demand explains

-In the above figure,in order for the equilibrium price to remain constant while the equilibrium quantity increases,the

Which of the following is the best way to describe equilibrium in a market? At equilibrium,the

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00.If the price of a DVD rental increases by $0.50,the relative price a downloaded movie

-In the figure above,a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from

-The above figures show the market for gasoline.Which figure shows the effect of a nation-wide strike by municipal bus drivers,which causes more people to drive their cars to work?

A price below the equilibrium price results in

-Which of the following does NOT shift the supply curve?

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 number of firms producing computer memory chips decreases.As a result,the price of a memory chip and the quantity of memory chips .