Question 1

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

Accepted Answer

A)  price will rise. 
B)  quantity supplied will decrease. 
C)  supply curve will shift leftward. 
D)  supply curve will shift rightward. 
A)  price will rise. 
B)  quantity supplied will decrease. 
C)  supply curve will shift leftward. 
D)  supply curve will shift rightward.

Question 2

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco.The relative price of a pizza is

Accepted Answer

A)  $12 per pizza. 
B)  $24 per pizza. 
C)  6 tacos per pizza. 
D)  1/6 pizza per taco. 
A)  $12 per pizza. 
B)  $24 per pizza. 
C)  6 tacos per pizza. 
D)  1/6 pizza per taco.

Question 3

Growers expect that the price of a bushel of wheat will increase in one month.This belief results in

Accepted Answer

A)  an increase in current supply of wheat. 
B)  a decrease in current supply of wheat. 
C)  a decrease in future supply of wheat. 
D)  no change in current or future supply of wheat. 
A)  an increase in current supply of wheat. 
B)  a decrease in current supply of wheat. 
C)  a decrease in future supply of wheat. 
D)  no change in current or future supply of wheat.

Question 4

The price of a computer is $1,000 and the price of a car is $12,000.What is the relative price of a car?
What is the relative price of a computer?

Accepted Answer

The relative price of a car is

Question 5

What is the law of demand?

Accepted Answer

The law of demand states that other thin

Question 6

If macaroni and cheese is an inferior good,then a decrease in income will result in

Accepted Answer

A)  an increase in the demand for macaroni and cheese. 
B)  a decrease in the demand for macaroni and cheese. 
C)  an increase in the supply of macaroni and cheese. 
D)  a decrease in the supply of macaroni and cheese. 
A)  an increase in the demand for macaroni and cheese. 
B)  a decrease in the demand for macaroni and cheese. 
C)  an increase in the supply of macaroni and cheese. 
D)  a decrease in the supply of macaroni and cheese.

Question 7

-The above figures show the market for gasoline.Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

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 8

Farmers can use their land to grow soy beans or corn.If the price of corn rises,

Accepted Answer

A)  the supply of soybeans decreases and the soybean supply curve shifts leftward. 
B)  the supply of soybeans increases. 
C)  the supply of corn increases and the corn supply curve shifts rightward. 
D)  the supply of corn increases. 
A)  the supply of soybeans decreases and the soybean supply curve shifts leftward. 
B)  the supply of soybeans increases. 
C)  the supply of corn increases and the corn supply curve shifts rightward. 
D)  the supply of corn increases.

Question 9

-In the above figure,a price of $15 per dozen for roses would result in

Accepted Answer

A)  equilibrium. 
B)  a shortage. 
C)  a surplus. 
D)  downward pressure on prices. 
A)  equilibrium. 
B)  a shortage. 
C)  a surplus. 
D)  downward pressure on prices.

Question 10

If the quantity supplied exceeds the quantity demanded,then there is

Accepted Answer

A)  a shortage and the price is below the equilibrium price. 
B)  a shortage and the price is above the equilibrium price. 
C)  a surplus and the price is below the equilibrium price. 
D)  a surplus and the price is above the equilibrium price. 
A)  a shortage and the price is below the equilibrium price. 
B)  a shortage and the price is above the equilibrium price. 
C)  a surplus and the price is below the equilibrium price. 
D)  a surplus and the price is above the equilibrium price.

Question 11

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.

Accepted Answer

A)  raise; increase 
B)  raise; decrease 
C)  lower; increase 
D)  lower; decrease 
A)  raise; increase 
B)  raise; decrease 
C)  lower; increase 
D)  lower; decrease

Question 12

Long-distance travel by bus is an inferior good.As people's incomes increase and other things remain the same,you predict that the

Accepted Answer

A)  price of long-distance travel by bus will fall and the demand for long-distance travel by bus will increase. 
B)  price of long-distance travel by bus will fall. 
C)  demand for long-distance travel by bus will decrease and the price will rise. 
D)  demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls. 
A)  price of long-distance travel by bus will fall and the demand for long-distance travel by bus will increase. 
B)  price of long-distance travel by bus will fall. 
C)  demand for long-distance travel by bus will decrease and the price will rise. 
D)  demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls.

Question 13

When both the demand for a good increases and the supply of the good increases,the equilibrium quantity definitely increases.

Accepted Answer

A) True 
 B)False

Question 14

You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased.You predict that the demand for coffee

Accepted Answer

A)  has increased with no change in the supply of coffee. 
B)  has increased but it is not as large as the increase in supply. 
C)  has not changed but that the supply of coffee has decreased. 
D)  has increased less than supply of coffee has decreased. 
A)  has increased with no change in the supply of coffee. 
B)  has increased but it is not as large as the increase in supply. 
C)  has not changed but that the supply of coffee has decreased. 
D)  has increased less than supply of coffee has decreased.

Question 15

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. This means that at the price in 2010,the

Accepted Answer

A)  quantity demanded of Packer season tickets is 72,922. 
B)  quantity demanded of Packer season tickets is about 80,000. 
C)  quantity demanded of Packer season tickets is about 153,000. 
D)  demand for Packer season tickets is 72,922. 
A)  quantity demanded of Packer season tickets is 72,922. 
B)  quantity demanded of Packer season tickets is about 80,000. 
C)  quantity demanded of Packer season tickets is about 153,000. 
D)  demand for Packer season tickets is 72,922.

Question 16

-The equilibrium price in the above figure is

Accepted Answer

A)  $2. 
B)  $4. 
C)  $6. 
D)  $8. 
A)  $2. 
B)  $4. 
C)  $6. 
D)  $8.

Question 17

The "law of demand" is illustrated by a

Accepted Answer

A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct. 
A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

An increase in the number of producers of gruel ________ the supply of gruel and shifts the supply curve of gruel ________.

Accepted Answer

A)  increases; rightward 
B)  increases; leftward 
C)  decreases; rightward 
D)  decreases; leftward 
A)  increases; rightward 
B)  increases; leftward 
C)  decreases; rightward 
D)  decreases; leftward

Question 20

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco.The relative price of a pizza is

Growers expect that the price of a bushel of wheat will increase in one month.This belief results in

The price of a computer is $1,000 and the price of a car is $12,000.What is the relative price of a car? What is the relative price of a computer?

What is the law of demand?

If macaroni and cheese is an inferior good,then a decrease in income will result in

-The above figures show the market for gasoline.Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

Farmers can use their land to grow soy beans or corn.If the price of corn rises,

-In the above figure,a price of $15 per dozen for roses would result in

If the quantity supplied exceeds the quantity demanded,then there is

A fall in the price of wheat fertilizer the equilibrium price of wheat and the equilibrium quantity of wheat.

Long-distance travel by bus is an inferior good.As people's incomes increase and other things remain the same,you predict that the

When both the demand for a good increases and the supply of the good increases,the equilibrium quantity definitely increases.

You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased.You predict that the demand for coffee

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. This means that at the price in 2010,the

-The equilibrium price in the above figure is

The "law of demand" is illustrated by a

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

An increase in the number of producers of gruel the supply of gruel and shifts the supply curve of gruel .

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

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

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco.The relative price of a pizza is

Growers expect that the price of a bushel of wheat will increase in one month.This belief results in

The price of a computer is $1,000 and the price of a car is $12,000.What is the relative price of a car? What is the relative price of a computer?

What is the law of demand?

If macaroni and cheese is an inferior good,then a decrease in income will result in

-The above figures show the market for gasoline.Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

Farmers can use their land to grow soy beans or corn.If the price of corn rises,

-In the above figure,a price of $15 per dozen for roses would result in

If the quantity supplied exceeds the quantity demanded,then there is

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.

Long-distance travel by bus is an inferior good.As people's incomes increase and other things remain the same,you predict that the

When both the demand for a good increases and the supply of the good increases,the equilibrium quantity definitely increases.

You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased.You predict that the demand for coffee

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. This means that at the price in 2010,the

-The equilibrium price in the above figure is

The "law of demand" is illustrated by a

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

An increase in the number of producers of gruel ________ the supply of gruel and shifts the supply curve of gruel ________.

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

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

A fall in the price of wheat fertilizer the equilibrium price of wheat and the equilibrium quantity of wheat.

An increase in the number of producers of gruel the supply of gruel and shifts the supply curve of gruel .