Question 1

-In the above figure,a change in quantity supplied with unchanged supply is represented by a movement from

Accepted Answer

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

Question 2

The price of a tomato increases and people buy more lettuce.You infer that lettuce and tomatoes are ________.

Accepted Answer

A)  complements 
B)  normal goods 
C)  substitutes 
D)  inferior goods 
A)  complements 
B)  normal goods 
C)  substitutes 
D)  inferior goods

Question 3

We observe that the equilibrium price of digital cameras has fallen and the equilibrium quantity of digital cameras has increased.Which of the following events could be responsible for this?

Accepted Answer

A)  Technological advances in digital camera production. 
B)  Consumers' preferences changed in favor of digital cameras. 
C)  The price of film cameras rose. 
D)  Workers who make digital cameras received a pay raise. 
A)  Technological advances in digital camera production. 
B)  Consumers' preferences changed in favor of digital cameras. 
C)  The price of film cameras rose. 
D)  Workers who make digital cameras received a pay raise.

Question 4

If the demand for digital cameras increases when consumers' income rise,then digital cameras are

Accepted Answer

A)  a normal good. 
B)  an inferior good. 
C)  a substitute good for video cameras. 
D)  a complement to video cameras. 
A)  a normal good. 
B)  an inferior good. 
C)  a substitute good for video cameras. 
D)  a complement to video cameras.

Question 5

A severe drought has damaged this year's lettuce crop.The initial effect on the lettuce market is a

Accepted Answer

A)  decrease in the demand for lettuce. 
B)  decrease in the supply of lettuce. 
C)  decrease in both the demand and supply of lettuce. 
D)  rightward movement along the demand curve for lettuce. 
A)  decrease in the demand for lettuce. 
B)  decrease in the supply of lettuce. 
C)  decrease in both the demand and supply of lettuce. 
D)  rightward movement along the demand curve for lettuce.

Question 6

-The above figures show the market for hamburger meat.Which figure shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

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 7

An economist says: "The supply curve has two interpretations." What does the economist mean?

Accepted Answer

The first interpretation is that the sup

Question 8

-The above figures show the market for oranges.Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

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 9

Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?

Accepted Answer

A)  a fall in the price of a factor production used to produce X 
B)  an advance in the technology for producing X 
C)  an increase in the price of good Y, a complement in the production of X 
D)  an increase in the price of X 
A)  a fall in the price of a factor production used to produce X 
B)  an advance in the technology for producing X 
C)  an increase in the price of good Y, a complement in the production of X 
D)  an increase in the price of X

Question 10

An economist says: "The demand curve has two interpretations." What does the economist mean?

Accepted Answer

The first interpretation is that the dem

Question 11

$$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { disc) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { demanded }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { disc) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { supplied }
\end{array} \
\hline 4 & 36,000 & 4 & 4,000 \
\hline 8 & 32,000 & 8 & 8,000 \
\hline 12 & 28,000 & 12 & 12,000 \
\hline 16 & 24,000 & 16 & 16,000 \
\hline 20 & 20,000 & 20 & 20,000 \
\hline 24 & 16,000 & 24 & 24,000 \
\hline 28 & 12,000 & 28 & 28,000 \
\hline 32 & 8,000 & 32 & 32,000 \
\hline 36 & 4,000 & 36 & 36,000 \
\hline
\end{array}$$
-The above table gives the demand and supply schedules for Blu-ray discs.Based on the table,the equilibrium quantity and price of a Blu-ray discs is

Accepted Answer

A)  28,000 and $12. 
B)  20,000 and $20. 
C)  16,000 and $24. 
D)  16,000 and $16. 
A)  28,000 and $12. 
B)  20,000 and $20. 
C)  16,000 and $24. 
D)  16,000 and $16.

Question 12

Which of the following influences people's buying plans and does not shift the demand curve?

Accepted Answer

A)  the price of the good 
B)  the prices of related goods 
C)  income 
D)  preferences 
A)  the price of the good 
B)  the prices of related goods 
C)  income 
D)  preferences

Question 13

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

Accepted Answer

@#IMG-DLM& Natural gas and home heating oil are su

Question 14

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ,respectively,the equilibrium price is P* = (ad + bc) / (b + d).

Accepted Answer

A) True 
 B)False

Question 15

If the good in the above figure is a normal good and income rises,then the new equilibrium quantity

Accepted Answer

A)  is less than 300 units. 
B)  is 300 units. 
C)  is more than 300 units. 
D)  could be less than, equal to, or more than 300 units. 
A)  is less than 300 units. 
B)  is 300 units. 
C)  is more than 300 units. 
D)  could be less than, equal to, or more than 300 units.

Question 16

The law of demand implies that,other things remaining the same,

Accepted Answer

A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. 
C)  as income increases, the quantity of cheeseburgers demanded will increase. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger will fall. 
A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. 
C)  as income increases, the quantity of cheeseburgers demanded will increase. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger will fall.

Question 17

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

Accepted Answer

The fall in the price of a complement in

Question 18

The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________.

Accepted Answer

A)  increases; shifts the demand curve for golf balls rightward 
B)  decreases; shifts the demand curve for golf balls leftward 
C)  decreases; creates a movement up along the demand curve for golf balls 
D)  increases; creates a movement down along the demand curve for golf balls 
A)  increases; shifts the demand curve for golf balls rightward 
B)  decreases; shifts the demand curve for golf balls leftward 
C)  decreases; creates a movement up along the demand curve for golf balls 
D)  increases; creates a movement down along the demand curve for golf balls

Question 19

Which of the following lists has variables that all shift a good's demand curve?

Accepted Answer

A)  price of the good, preferences, prices of substitution goods, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  expectation of future price, price of the good, number of buyers, income 
D)  Both answers A and B are correct. 
A)  price of the good, preferences, prices of substitution goods, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  expectation of future price, price of the good, number of buyers, income 
D)  Both answers A and B are correct.

Question 20

The opportunity cost of a good is the same as its

Accepted Answer

A)  money price. 
B)  relative price. 
C)  price index. 
D)  none of the above 
A)  money price. 
B)  relative price. 
C)  price index. 
D)  none of the above

-In the above figure,a change in quantity supplied with unchanged supply is represented by a movement from

The price of a tomato increases and people buy more lettuce.You infer that lettuce and tomatoes are ________.

We observe that the equilibrium price of digital cameras has fallen and the equilibrium quantity of digital cameras has increased.Which of the following events could be responsible for this?

If the demand for digital cameras increases when consumers' income rise,then digital cameras are

A severe drought has damaged this year's lettuce crop.The initial effect on the lettuce market is a

-The above figures show the market for hamburger meat.Which figure shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

An economist says: "The supply curve has two interpretations." What does the economist mean?

-The above figures show the market for oranges.Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?

An economist says: "The demand curve has two interpretations." What does the economist mean?

Which of the following influences people's buying plans and does not shift the demand curve?

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ,respectively,the equilibrium price is P* = (ad + bc) / (b + d).

If the good in the above figure is a normal good and income rises,then the new equilibrium quantity

The law of demand implies that,other things remaining the same,

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

The law of demand concludes that a rise in the price of a golf ball the quantity demanded and .

Which of the following lists has variables that all shift a good's demand curve?

The opportunity cost of a good is the same as its

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

-In the above figure,a change in quantity supplied with unchanged supply is represented by a movement from

The price of a tomato increases and people buy more lettuce.You infer that lettuce and tomatoes are ________.

We observe that the equilibrium price of digital cameras has fallen and the equilibrium quantity of digital cameras has increased.Which of the following events could be responsible for this?

If the demand for digital cameras increases when consumers' income rise,then digital cameras are

A severe drought has damaged this year's lettuce crop.The initial effect on the lettuce market is a

-The above figures show the market for hamburger meat.Which figure shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

An economist says: "The supply curve has two interpretations." What does the economist mean?

-The above figures show the market for oranges.Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?

An economist says: "The demand curve has two interpretations." What does the economist mean?

Which of the following influences people's buying plans and does not shift the demand curve?

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ,respectively,the equilibrium price is P* = (ad + bc) / (b + d).

If the good in the above figure is a normal good and income rises,then the new equilibrium quantity

The law of demand implies that,other things remaining the same,

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________.

Which of the following lists has variables that all shift a good's demand curve?

The opportunity cost of a good is the same as its

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 law of demand concludes that a rise in the price of a golf ball the quantity demanded and .