Question 1

The supply-and-demand model may not be appropriate in markets with large transaction costs.

Accepted Answer

A) True 
 B)False

Question 2

Producer groups tend to lobby for

Accepted Answer

A)  price floors. 
B)  price ceilings. 
C)  quantity quotas. 
D)  taxes. 
A)  price floors. 
B)  price ceilings. 
C)  quantity quotas. 
D)  taxes.

Question 3

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for the air we are currently breathing?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  None of the above. 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  None of the above.

Question 4

-The above figure shows the market for apples.If a consumer group convinces the government to set a maximum price of $2 per pound,then

Accepted Answer

A)  300 pounds of apples will be sold at $2. 
B)  no apples will be supplied. 
C)  no apples will be demanded. 
D)  None of the above. 
A)  300 pounds of apples will be sold at $2. 
B)  no apples will be supplied. 
C)  no apples will be demanded. 
D)  None of the above.

Question 5

-The figure above shows a graph of the market for pizzas in a large town.What characterizes the equilibrium in this market?

Accepted Answer

A)  There is excess supply at the equilibrium price of $7. 
B)  The government has selected the appropriate price for pizzas. 
C)  The quantity supplied equals the quantity demanded. 
D)  Supply equals demand. 
A)  There is excess supply at the equilibrium price of $7. 
B)  The government has selected the appropriate price for pizzas. 
C)  The quantity supplied equals the quantity demanded. 
D)  Supply equals demand.

Question 6

If government regulations increase the cost of producing gasoline while at the same time government regulations reduce the cost of driving a relatively inefficient sport utility vehicle (SUV),

Accepted Answer

A)  the supply of gasoline is expected to increase. 
B)  the demand for gasoline is expected to decrease. 
C)  the price of gasoline is expected to increase, whereas the total consumption of gasoline can increase, decrease, or stay the same. 
D)  the supply of gasoline is expected to decrease. 
A)  the supply of gasoline is expected to increase. 
B)  the demand for gasoline is expected to decrease. 
C)  the price of gasoline is expected to increase, whereas the total consumption of gasoline can increase, decrease, or stay the same. 
D)  the supply of gasoline is expected to decrease.

Question 7

Once an equilibrium is achieved,it can persist indefinitely because

Accepted Answer

A)  shocks that shift the demand curve or the supply curve cannot occur. 
B)  shocks to the demand curve are always exactly offset by shocks to the supply curve. 
C)  the government never intervenes in markets at equilibrium. 
D)  in the absence of supply/demand shocks no one applies pressure to change the price. 
A)  shocks that shift the demand curve or the supply curve cannot occur. 
B)  shocks to the demand curve are always exactly offset by shocks to the supply curve. 
C)  the government never intervenes in markets at equilibrium. 
D)  in the absence of supply/demand shocks no one applies pressure to change the price.

Question 8

The expression "increase in quantity supplied" is illustrated graphically as a

Accepted Answer

A)  leftward shift in the supply curve. 
B)  rightward shift in the supply curve. 
C)  movement up along the supply curve. 
D)  movement down along the supply curve. 
A)  leftward shift in the supply curve. 
B)  rightward shift in the supply curve. 
C)  movement up along the supply curve. 
D)  movement down along the supply curve.

Question 9

When two goods are complements,a shock that lowers the price of one good causes the price of the other good to

Accepted Answer

A)  remain unchanged. 
B)  decrease. 
C)  increase. 
D)  change in an unpredictable manner. 
A)  remain unchanged. 
B)  decrease. 
C)  increase. 
D)  change in an unpredictable manner.

Question 10

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for typewriters after technological advances in computerized word-processing software occur?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D

Question 11

What is one reason the supply and demand model might NOT be appropriate to the health-care industry?

Accepted Answer

A)  Consumers do not have full information. 
B)  Providers do not know the demand for health-care services. 
C)  Consumers do not know how to value their own health. 
D)  The costs of finding a doctor are too low. 
A)  Consumers do not have full information. 
B)  Providers do not know the demand for health-care services. 
C)  Consumers do not know how to value their own health. 
D)  The costs of finding a doctor are too low.

The supply-and-demand model may not be appropriate in markets with large transaction costs.

Producer groups tend to lobby for

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for the air we are currently breathing?

-The above figure shows the market for apples.If a consumer group convinces the government to set a maximum price of $2 per pound,then

-The figure above shows a graph of the market for pizzas in a large town.What characterizes the equilibrium in this market?

If government regulations increase the cost of producing gasoline while at the same time government regulations reduce the cost of driving a relatively inefficient sport utility vehicle (SUV),

Once an equilibrium is achieved,it can persist indefinitely because

The expression "increase in quantity supplied" is illustrated graphically as a

When two goods are complements,a shock that lowers the price of one good causes the price of the other good to

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for typewriters after technological advances in computerized word-processing software occur?

What is one reason the supply and demand model might NOT be appropriate to the health-care industry?

Introduction

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 2: Supply and Demand

The supply-and-demand model may not be appropriate in markets with large transaction costs.

Producer groups tend to lobby for

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for the air we are currently breathing?

-The above figure shows the market for apples.If a consumer group convinces the government to set a maximum price of $2 per pound,then

-The figure above shows a graph of the market for pizzas in a large town.What characterizes the equilibrium in this market?

If government regulations increase the cost of producing gasoline while at the same time government regulations reduce the cost of driving a relatively inefficient sport utility vehicle (SUV),

Once an equilibrium is achieved,it can persist indefinitely because

The expression "increase in quantity supplied" is illustrated graphically as a

When two goods are complements,a shock that lowers the price of one good causes the price of the other good to

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for typewriters after technological advances in computerized word-processing software occur?

What is one reason the supply and demand model might NOT be appropriate to the health-care industry?

Introduction

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters