Question 1

An increase in the price of a good will

Accepted Answer

A) increase supply. 
B) decrease supply. 
C) increase quantity supplied. 
D) decrease quantity supplied. 
A) increase supply. 
B) decrease supply. 
C) increase quantity supplied. 
D) decrease quantity supplied.

Question 2

Figure 4-12    
-Refer to Figure 4-12. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $4 is

Accepted Answer

A) 4 units. 
B) 8 units. 
C) 12 units. 
D) 16 units. 
A) 4 units. 
B) 8 units. 
C) 12 units. 
D) 16 units.

Question 3

The market demand curve

Accepted Answer

A) is the sum of all individual demand curves. 
B) is the demand curve for every product in an industry. 
C) shows the average quantity demanded by individual demanders at each price. 
D) is always flatter than an individual demand curve. 
A) is the sum of all individual demand curves. 
B) is the demand curve for every product in an industry. 
C) shows the average quantity demanded by individual demanders at each price. 
D) is always flatter than an individual demand curve.

Question 4

If a firm is a price taker, it operates in a

Accepted Answer

A) competitive market. 
B) monopoly market. 
C) oligopoly market. 
D) monopolistically competitive market. 
A) competitive market. 
B) monopoly market. 
C) oligopoly market. 
D) monopolistically competitive market.

Question 5

Table 4-1
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { Qurantit; Demanded } \
\text { by Michelle }
\end{array} & \begin{array} { c } 
\text { Qurintity Demtanded } \
\text { by Laura }
\end{array} & \begin{array} { c } 
\text { Quantity Damanded } \
\text { by Hillary }
\end{array} \
\hline \$ 5 & 5 & 4 & 11 \
\hline \$ 4 & 6 & 6 & 13 \
\hline \$ 3 & 7 & 8 & 15 \
\hline \$ 2 & 8 & 10 & 17 \
\hline 1 & 9 & 12 & 19 \
\hline \$ 0 & 10 & 14 & 21 \
\hline
\end{array}$$
-Refer to Table 4-1. If the market consists of Michelle and Laura only and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A) 2 units. 
B) 3 units. 
C) 4 units. 
D) 5 units. 
A) 2 units. 
B) 3 units. 
C) 4 units. 
D) 5 units.

Question 6

The supply curve for a good is a line that relates

Accepted Answer

A) profit and quantity supplied. 
B) quantity supplied and quantity demanded. 
C) price and quantity supplied. 
D) price and profit. 
A) profit and quantity supplied. 
B) quantity supplied and quantity demanded. 
C) price and quantity supplied. 
D) price and profit.

Question 7

Figure 4-21  
-Refer to Figure 4-21. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Accepted Answer

A) Point A to Point B 
B) Point C to Point B 
C) Point C to Point D 
D) Point A to Point D 
A) Point A to Point B 
B) Point C to Point B 
C) Point C to Point D 
D) Point A to Point D

Question 8

Table 4-4
 $\begin{array}{|c|c|c|c|c|}
\hline \text { Price } & \begin{array}{c}
\text { Firm A's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array}{c}
\text { Firm B's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array}{c}
\text { Firm C's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array}{c}
\text { Firm D's } \
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline \$ 0 & 10 & 0 & 0 & 0 \
\hline \$ 2 & 8 & 3 & 4 & 5 \
\hline \$ 4 & 6 & 6 & 8 & 10 \
\hline \$ 6 & 4 & 9 & 12 & 15 \
\hline \$ 8 & 2 & 12 & 8 & 20 \
\hline \$ 10 & 0 & 15 & 4 & 25 \
\hline
\end{array}$

-Refer to Table 4-4. If these are the only four sellers in the market, then when the price decreases from $4 to $2, the market quantity supplied

Accepted Answer

A) increases by 10 units. 
B) decreases by 10 units. 
C) decreases by 20 units. 
D) decreases by 30 units. 
A) increases by 10 units. 
B) decreases by 10 units. 
C) decreases by 20 units. 
D) decreases by 30 units.

Question 9

If a determinant of demand other than price changes, the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 10

You wear either shorts or sweatpants every day. You notice that sweatpants have gone on sale, so your demand for

Accepted Answer

A) sweatpants will increase. 
B) sweatpants will decrease. 
C) shorts will increase. 
D) shorts will decrease. 
A) sweatpants will increase. 
B) sweatpants will decrease. 
C) shorts will increase. 
D) shorts will decrease.

Question 11

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Accepted Answer

A) True 
 B)False

Question 12

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good rises, and when the price falls, the quantity demanded falls.

Accepted Answer

A) True 
 B)False

Question 13

If goods A and B are complements, then an increase in the price of good A will result in

Accepted Answer

A) more of good A being sold. 
B) more of good B being sold. 
C) less of good B being sold. 
D) no difference in the quantity sold of either good. 
A) more of good A being sold. 
B) more of good B being sold. 
C) less of good B being sold. 
D) no difference in the quantity sold of either good.

Question 14

Figure 4-18  
-Refer to Figure 4-18. What is the equilibrium price in this market?

Accepted Answer

A) $0 
B) $5 
C) $7.50 
D) $10 
A) $0 
B) $5 
C) $7.50 
D) $10

Question 15

For teenagers, a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A) 1 percent reduction in the quantity demanded of cigarettes. 
B) 4 percent reduction in the quantity demanded of cigarettes. 
C) 10 percent reduction in the quantity demanded of cigarettes. 
D) 12 percent reduction in the quantity demanded of cigarettes. 
A) 1 percent reduction in the quantity demanded of cigarettes. 
B) 4 percent reduction in the quantity demanded of cigarettes. 
C) 10 percent reduction in the quantity demanded of cigarettes. 
D) 12 percent reduction in the quantity demanded of cigarettes.

Question 16

Figure 4-2    
-Refer to Figure 4-2. If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $6 is

Accepted Answer

A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 12 units. 
A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 12 units.

Question 17

Table 4-5
 $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { Firm A's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Firm B's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Firm C's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Firm D's } \
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline \$ 1 &0 & 0 &0 & 0 \
\hline \$ 2 & 3 & 4 & 2 & 1 \
\hline \$ 4 & 6 & 8 & 4 & 2 \
\hline \$ 6 & 9 & 12 & 6 & 3 \
\hline \$ 8 & 12 & 16 & 8 & 4 \
\hline \$ 10 & 15 & 20 & 10 & 5 \
\hline
\end{array}$$
-Refer to Table 4-5. If these are the only four sellers in the market, then the market quantity supplied at a price of $8 is

Accepted Answer

A) 10 units. 
B) 20 units. 
C) 32 units. 
D) 40 units. 
A) 10 units. 
B) 20 units. 
C) 32 units. 
D) 40 units.

Question 18

Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra?

Accepted Answer

A) the government 
B) prices 
C) subsidies 
D) the Federal Reserve 
A) the government 
B) prices 
C) subsidies 
D) the Federal Reserve

Question 19

A surplus is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 20

Figure 4-1  
-Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

Accepted Answer

A) an increase in price. 
B) a decrease in price. 
C) a decrease in the price of a substitute good. 
D) an increase in income. 
A) an increase in price. 
B) a decrease in price. 
C) a decrease in the price of a substitute good. 
D) an increase in income.

An increase in the price of a good will

Figure 4-12 -Refer to Figure 4-12. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $4 is

The market demand curve

If a firm is a price taker, it operates in a

The supply curve for a good is a line that relates

Figure 4-21 -Refer to Figure 4-21. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

If a determinant of demand other than price changes, the demand curve shifts.

You wear either shorts or sweatpants every day. You notice that sweatpants have gone on sale, so your demand for

Most studies have found that tobacco and marijuana are substitutes rather than complements.

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good rises, and when the price falls, the quantity demanded falls.

If goods A and B are complements, then an increase in the price of good A will result in

Figure 4-18 -Refer to Figure 4-18. What is the equilibrium price in this market?

For teenagers, a 10 percent increase in the price of cigarettes leads to a

Figure 4-2 -Refer to Figure 4-2. If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $6 is

Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra?

A surplus is the same as an excess demand.

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 4: The Market Forces of Supply and Demand

An increase in the price of a good will

Figure 4-12 -Refer to Figure 4-12. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $4 is

The market demand curve

If a firm is a price taker, it operates in a

The supply curve for a good is a line that relates

Figure 4-21 -Refer to Figure 4-21. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

If a determinant of demand other than price changes, the demand curve shifts.

You wear either shorts or sweatpants every day. You notice that sweatpants have gone on sale, so your demand for

Most studies have found that tobacco and marijuana are substitutes rather than complements.

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good rises, and when the price falls, the quantity demanded falls.

If goods A and B are complements, then an increase in the price of good A will result in

Figure 4-18 -Refer to Figure 4-18. What is the equilibrium price in this market?

For teenagers, a 10 percent increase in the price of cigarettes leads to a

Figure 4-2 -Refer to Figure 4-2. If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $6 is

Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra?

A surplus is the same as an excess demand.

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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