Question 1

If the money price of hats rises and no other prices change,the I. relative price of a hat rises.
II) opportunity cost of a hat rises.

Accepted Answer

A)  only I 
B)  both I and II 
C)  only II 
D)  neither I nor II 
A)  only I 
B)  both I and II 
C)  only II 
D)  neither I nor II

Question 2

If the U.S.Surgeon General announced that increased grapefruit juice consumption could help prevent heart attacks,what would happen to the equilibrium price and quantity of grapefruit juice?

Accepted Answer

A)  Price and quantity both increase. 
B)  Price and quantity both decrease. 
C)  Price increases but quantity decreases. 
D)  Price decreases but quantity increases. 
A)  Price and quantity both increase. 
B)  Price and quantity both decrease. 
C)  Price increases but quantity decreases. 
D)  Price decreases but quantity increases.

Question 3

If consumers' incomes increase and the demand for bus rides decreases,

Accepted Answer

A)  bus rides are a normal good. 
B)  consumers are behaving irrationally. 
C)  bus rides are an inferior good. 
D)  none of the above 
A)  bus rides are a normal good. 
B)  consumers are behaving irrationally. 
C)  bus rides are an inferior good. 
D)  none of the above

Question 4

-A change in which of the following would NOT shift the supply curve for sneakers?

Accepted Answer

A)  an increase in technology for making sneakers 
B)  an increase in the price of rubber, used to make sneakers 
C)  an increase in the price of sneakers 
D)  None of the above, that is, each change shifts the supply curve 
A)  an increase in technology for making sneakers 
B)  an increase in the price of rubber, used to make sneakers 
C)  an increase in the price of sneakers 
D)  None of the above, that is, each change shifts the supply curve

Question 5

For normal goods which of the following explains why demand curves slope downward?

Accepted Answer

A)  prices and income 
B)  substitutes and complements 
C)  resources and technology 
D)  substitution effect and income effect 
A)  prices and income 
B)  substitutes and complements 
C)  resources and technology 
D)  substitution effect and income effect

Question 6

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases.As a result,the demand for

Accepted Answer

A)  sweatshirts will increase that is, the demand curve will shift rightward. 
B)  tee-shirts will increase that is, the demand curve will shift rightward. 
C)  sweatshirts will decrease that is, the demand curve will shift leftward. 
D)  tee-shirts will decrease that is, the demand curve will shift leftward. 
A)  sweatshirts will increase that is, the demand curve will shift rightward. 
B)  tee-shirts will increase that is, the demand curve will shift rightward. 
C)  sweatshirts will decrease that is, the demand curve will shift leftward. 
D)  tee-shirts will decrease that is, the demand curve will shift leftward.

Question 7

-The above figures show the market for gasoline.Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

Accepted Answer

A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C 
A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C

Question 8

If the demand for bathing suits and supply of bathing suits both decrease,then definitely the equilibrium

Accepted Answer

A)  price will decrease. 
B)  price will increase. 
C)  quantity will increase. 
D)  quantity will decrease. 
A)  price will decrease. 
B)  price will increase. 
C)  quantity will increase. 
D)  quantity will decrease.

Question 9

$$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { pound) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { supplied } \
\text { (pounds) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { demanded } \
\text { (pounds) }
\end{array} \
\hline 3 & 1 & 7 \
\hline 4 & 2 & 5 \
\hline 5 & 4 & 4 \
\hline 6 & 5 & 2 \
\hline 7 & 6 & 1 \
\hline
\end{array}$$

-The above table shows the demand schedule and supply schedule for chocolate chip cookies.If the price is $4.00 per pound,there is a

Accepted Answer

A)  shortage of 2 pounds of chocolate chip cookies. 
B)  shortage of 3 pounds of chocolate chip cookies. 
C)  shortage of 5 pounds of chocolate chip cookies. 
D)  surplus of 3 pounds of chocolate chip cookies. 
A)  shortage of 2 pounds of chocolate chip cookies. 
B)  shortage of 3 pounds of chocolate chip cookies. 
C)  shortage of 5 pounds of chocolate chip cookies. 
D)  surplus of 3 pounds of chocolate chip cookies.

Question 10

A change in which of the following shifts the demand curve?

Accepted Answer

A)  the number of sellers in the market 
B)  the price of the resources used to produce the product 
C)  the technology with which the product is produced 
D)  the tastes and preferences of consumers 
A)  the number of sellers in the market 
B)  the price of the resources used to produce the product 
C)  the technology with which the product is produced 
D)  the tastes and preferences of consumers

Question 11

Suppose the equilibrium price for soft drinks is $1.00.If the current price in the soft drink market is $1.25 each,

Accepted Answer

A)  there will be a surplus of soft drinks. 
B)  there will be a shortage of soft drinks. 
C)  the supply curve of soft drinks will shift leftward. 
D)  the demand curve for soft drinks will shift leftward. 
A)  there will be a surplus of soft drinks. 
B)  there will be a shortage of soft drinks. 
C)  the supply curve of soft drinks will shift leftward. 
D)  the demand curve for soft drinks will shift leftward.

Question 12

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?
What is the equilibrium price and quantity?

Accepted Answer

At a price of $8 there is a surplus beca

Question 13

-The above figure shows the market for pizza.Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza?

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

-In the figure above,which movement could be the result of the development of a new,more efficient refining technology?

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 15

If the price of an Xbox player falls,then in the market for Xbox games,

Accepted Answer

A)  the demand curve for Xbox games shifts rightward. 
B)  the demand curve for Xbox games shifts leftward. 
C)  there is a movement downward along the demand curve for Xbox games. 
D)  there is a movement upward along the demand curve for Xbox games. 
A)  the demand curve for Xbox games shifts rightward. 
B)  the demand curve for Xbox games shifts leftward. 
C)  there is a movement downward along the demand curve for Xbox games. 
D)  there is a movement upward along the demand curve for Xbox games.

Question 16

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Accepted Answer

A)  is willing to sell 
B)  actually sells 
C)  needs to sell 
D)  should sell 
A)  is willing to sell 
B)  actually sells 
C)  needs to sell 
D)  should sell

Question 17

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased.These changes are a result of a ________ shift of the ________ curve for bottled water.

Accepted Answer

A)  rightward; demand 
B)  rightward; supply 
C)  leftward; supply 
D)  leftward; demand 
A)  rightward; demand 
B)  rightward; supply 
C)  leftward; supply 
D)  leftward; demand

Question 18

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

Accepted Answer

A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall 
A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall

Question 19

-The above figures show the market for hamburger meat.Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

Accepted Answer

A)  Figure A 
B)  Figure C 
C)  Figure D 
D)  Figures A and C 
A)  Figure A 
B)  Figure C 
C)  Figure D 
D)  Figures A and C

Question 20

Suppose a market begins in equilibrium.If supply increases,then at the original equilibrium price the quantity demanded is

Accepted Answer

A)  is less than the quantity supplied and a surplus results. 
B)  is less than the quantity supplied and a shortage results. 
C)  exceeds the quantity supplied and a surplus results. 
D)  exceeds the quantity supplied and a shortage results. 
A)  is less than the quantity supplied and a surplus results. 
B)  is less than the quantity supplied and a shortage results. 
C)  exceeds the quantity supplied and a surplus results. 
D)  exceeds the quantity supplied and a shortage results.

If the money price of hats rises and no other prices change,the I. relative price of a hat rises. II) opportunity cost of a hat rises.

If the U.S.Surgeon General announced that increased grapefruit juice consumption could help prevent heart attacks,what would happen to the equilibrium price and quantity of grapefruit juice?

If consumers' incomes increase and the demand for bus rides decreases,

-A change in which of the following would NOT shift the supply curve for sneakers?

For normal goods which of the following explains why demand curves slope downward?

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases.As a result,the demand for

-The above figures show the market for gasoline.Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

If the demand for bathing suits and supply of bathing suits both decrease,then definitely the equilibrium

Price (dollars per pound) Quantity supplied (pounds) Quantity demanded (pounds) 3 1 7 4 2 5 5 4 4 6 5 2 7 6 1 -The above table shows the demand schedule and supply schedule for chocolate chip cookies.If the price is $4.00 per pound,there is a

A change in which of the following shifts the demand curve?

Suppose the equilibrium price for soft drinks is $1.00.If the current price in the soft drink market is $1.25 each,

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

-The above figure shows the market for pizza.Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza?

-In the figure above,which movement could be the result of the development of a new,more efficient refining technology?

If the price of an Xbox player falls,then in the market for Xbox games,

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased.These changes are a result of a shift of the curve for bottled water.

-The above figures show the market for hamburger meat.Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

Suppose a market begins in equilibrium.If supply increases,then at the original equilibrium price the quantity demanded is

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

If the money price of hats rises and no other prices change,the I. relative price of a hat rises. II) opportunity cost of a hat rises.

If the U.S.Surgeon General announced that increased grapefruit juice consumption could help prevent heart attacks,what would happen to the equilibrium price and quantity of grapefruit juice?

If consumers' incomes increase and the demand for bus rides decreases,

-A change in which of the following would NOT shift the supply curve for sneakers?

For normal goods which of the following explains why demand curves slope downward?

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases.As a result,the demand for

-The above figures show the market for gasoline.Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

If the demand for bathing suits and supply of bathing suits both decrease,then definitely the equilibrium

Price (dollars per pound) Quantity supplied (pounds) Quantity demanded (pounds) 3 1 7 4 2 5 5 4 4 6 5 2 7 6 1 -The above table shows the demand schedule and supply schedule for chocolate chip cookies.If the price is $4.00 per pound,there is a

A change in which of the following shifts the demand curve?

Suppose the equilibrium price for soft drinks is $1.00.If the current price in the soft drink market is $1.25 each,

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

-The above figure shows the market for pizza.Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza?

-In the figure above,which movement could be the result of the development of a new,more efficient refining technology?

If the price of an Xbox player falls,then in the market for Xbox games,

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased.These changes are a result of a ________ shift of the ________ curve for bottled water.

-The above figures show the market for hamburger meat.Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

Suppose a market begins in equilibrium.If supply increases,then at the original equilibrium price the quantity demanded is

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

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased.These changes are a result of a shift of the curve for bottled water.