Question 1

If the money price of wheat increases and no other prices change,the

Accepted Answer

A)  relative price of wheat falls. 
B)  opportunity cost of wheat rises. 
C)  demand for wheat increases. 
D)  relative price of wheat is unaffected. 
A)  relative price of wheat falls. 
B)  opportunity cost of wheat rises. 
C)  demand for wheat increases. 
D)  relative price of wheat is unaffected.

Question 2

The statement that "demand increases" means that there is a

Accepted Answer

A)  movement to the right along a demand curve. 
B)  movement to the left along a demand curve. 
C)  rightward shift of the demand curve. 
D)  leftward shift of the demand curve. 
A)  movement to the right along a demand curve. 
B)  movement to the left along a demand curve. 
C)  rightward shift of the demand curve. 
D)  leftward shift of the demand curve.

Question 3

As a result of an increase in the supply of a good,the equilibrium quantity ________ and the equilibrium price ________.

Accepted Answer

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

Question 4

Which of the following statements is correct?

Accepted Answer

A)  A change in the quantity demanded means a shift in the demand curve. 
B)  A change in demand means a movement along the demand curve. 
C)  A change in demand and change in quantity demanded means the same thing. 
D)  A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve. 
A)  A change in the quantity demanded means a shift in the demand curve. 
B)  A change in demand means a movement along the demand curve. 
C)  A change in demand and change in quantity demanded means the same thing. 
D)  A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve.

Question 5

Explain how price can be a regulator,that is,how it can coordinate the plans of buyers and sellers.

Accepted Answer

If the price is too high,the quantity su

Question 6

-The above figures show the market for gasoline.Which figure shows the effect of motorists increasing the number of times they take the bus to work rather than driving their own cars?

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

In the market for chocolate chip cookies,if the demand decreases while the supply increases,the price definitely falls but the quantity might increase,decrease,or remain the same.

Accepted Answer

A) True 
 B)False

Question 8

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2010. Packers tickets are a normal good.As a result of the economic recession in 2010 during which people's incomes decreased,the

Accepted Answer

A)  demand for Packers tickets decreased. 
B)  demand curve for Packers tickets shifted rightward. 
C)  quantity demanded of Packers tickets decreased. 
D)  substitution effect changed the quantity demanded. 
A)  demand for Packers tickets decreased. 
B)  demand curve for Packers tickets shifted rightward. 
C)  quantity demanded of Packers tickets decreased. 
D)  substitution effect changed the quantity demanded.

Question 9

Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?

Accepted Answer

A)  an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds 
B)  new federal legislation that raises the legal driving age to twenty-four in all states 
C)  a new fee that used car dealers must pay to the government on all sales of used cars 
D)  All of the above because each is consistent with the "law of demand." 
A)  an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds 
B)  new federal legislation that raises the legal driving age to twenty-four in all states 
C)  a new fee that used car dealers must pay to the government on all sales of used cars 
D)  All of the above because each is consistent with the "law of demand."

Question 10

Suppose the equilibrium price of a gallon of gasoline drops from $4.00 to $3.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week.These changes can be the result of

Accepted Answer

A)  an increase in supply. 
B)  an increase in demand. 
C)  a decrease in supply. 
D)  a decrease in demand. 
A)  an increase in supply. 
B)  an increase in demand. 
C)  a decrease in supply. 
D)  a decrease in demand.

Question 11

An increase in technology for producing personal computers leads to

Accepted Answer

A)  an increase in the demand for personal computers. 
B)  a decrease in the demand for personal computers. 
C)  an increase in the supply of personal computers. 
D)  a decrease in the supply of personal computers. 
A)  an increase in the demand for personal computers. 
B)  a decrease in the demand for personal computers. 
C)  an increase in the supply of personal computers. 
D)  a decrease in the supply of personal computers.

Question 12

The equilibrium price will fall and the equilibrium quantity might increase,decrease,or stay the same when the

Accepted Answer

A)  demand and the supply of a good both increase. 
B)  demand for a good increases and the supply of it decreases. 
C)  demand for a good decreases and the supply of it increases. 
D)  demand and the supply of a good both decrease. 
A)  demand and the supply of a good both increase. 
B)  demand for a good increases and the supply of it decreases. 
C)  demand for a good decreases and the supply of it increases. 
D)  demand and the supply of a good both decrease.

Question 13

What are substitutes in production?

Accepted Answer

Goods are substitutes in produ

Question 14

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

Accepted Answer

A)  A college expects enrollment to increase, despite no change in the tuition. 
B)  Skiing becomes a fashionable winter sports activity. 
C)  The price of hair styling falls. 
D)  Consumers expect lower prices next month for computers. 
A)  A college expects enrollment to increase, despite no change in the tuition. 
B)  Skiing becomes a fashionable winter sports activity. 
C)  The price of hair styling falls. 
D)  Consumers expect lower prices next month for computers.

Question 15

-In the above figure,if the price is $8 then there is a

Accepted Answer

A)  surplus of 100. 
B)  surplus of 200. 
C)  shortage of 100. 
D)  shortage of 200. 
A)  surplus of 100. 
B)  surplus of 200. 
C)  shortage of 100. 
D)  shortage of 200.

Question 16

Last year a very severe ice storm hit the north counties of New York state,and the states of Vermont and Maine.Electric poles were down and no one had power for days.It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.Using a supply and demand diagram,show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

@#IMG-DLM& The demand for kerosene heate

Question 17

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

Accepted Answer

A)  If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease. 
B)  If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. 
C)  If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. 
D)  If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease. 
A)  If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease. 
B)  If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. 
C)  If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. 
D)  If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease.

Question 18

If a market is NOT in equilibrium,then which of the following is likely to occur?

Accepted Answer

A)  The demand curve will shift to bring the market to equilibrium. 
B)  The supply curve will shift to bring the market to equilibrium. 
C)  The price will adjust to bring the market to equilibrium. 
D)  Both A and B are correct. 
A)  The demand curve will shift to bring the market to equilibrium. 
B)  The supply curve will shift to bring the market to equilibrium. 
C)  The price will adjust to bring the market to equilibrium. 
D)  Both A and B are correct.

Question 19

-In the figure above,an increase in the quantity of oil supplied but NOT an increase 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 20

-The above figures show the market for oranges.Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

Accepted Answer

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

If the money price of wheat increases and no other prices change,the

The statement that "demand increases" means that there is a

As a result of an increase in the supply of a good,the equilibrium quantity and the equilibrium price .

Which of the following statements is correct?

Explain how price can be a regulator,that is,how it can coordinate the plans of buyers and sellers.

-The above figures show the market for gasoline.Which figure shows the effect of motorists increasing the number of times they take the bus to work rather than driving their own cars?

In the market for chocolate chip cookies,if the demand decreases while the supply increases,the price definitely falls but the quantity might increase,decrease,or remain the same.

Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?

Suppose the equilibrium price of a gallon of gasoline drops from $4.00 to $3.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week.These changes can be the result of

An increase in technology for producing personal computers leads to

The equilibrium price will fall and the equilibrium quantity might increase,decrease,or stay the same when the

What are substitutes in production?

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

-In the above figure,if the price is $8 then there is a

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

If a market is NOT in equilibrium,then which of the following is likely to occur?

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

-The above figures show the market for oranges.Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

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 wheat increases and no other prices change,the

The statement that "demand increases" means that there is a

As a result of an increase in the supply of a good,the equilibrium quantity ________ and the equilibrium price ________.

Which of the following statements is correct?

Explain how price can be a regulator,that is,how it can coordinate the plans of buyers and sellers.

-The above figures show the market for gasoline.Which figure shows the effect of motorists increasing the number of times they take the bus to work rather than driving their own cars?

In the market for chocolate chip cookies,if the demand decreases while the supply increases,the price definitely falls but the quantity might increase,decrease,or remain the same.

Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?

Suppose the equilibrium price of a gallon of gasoline drops from $4.00 to $3.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week.These changes can be the result of

An increase in technology for producing personal computers leads to

The equilibrium price will fall and the equilibrium quantity might increase,decrease,or stay the same when the

What are substitutes in production?

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

-In the above figure,if the price is $8 then there is a

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

If a market is NOT in equilibrium,then which of the following is likely to occur?

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

-The above figures show the market for oranges.Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

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

As a result of an increase in the supply of a good,the equilibrium quantity and the equilibrium price .