Question 1

Which of the following does NOT cause a rightward shift in the supply curve?

Accepted Answer

A)  a reduction in resource costs 
B)  an increase in technology 
C)  a reduction in the price of the good 
D)  a reduction in the expected future price of the good 
A)  a reduction in resource costs 
B)  an increase in technology 
C)  a reduction in the price of the good 
D)  a reduction in the expected future price of the good

Question 2

-According to the above table, the equilibrium price of DVDs is

Accepted Answer

A)  $16. 
B)  $14. 
C)  $12. 
D)  $10. 
A)  $16. 
B)  $14. 
C)  $12. 
D)  $10.

Question 3

The law of supply states that other things being equal,

Accepted Answer

A)  supply creates its own demand. 
B)  supply will increase if productivity increases. 
C)  as price increases, quantity supplied increases. 
D)  supply will increase to meet demand if demand increases. 
A)  supply creates its own demand. 
B)  supply will increase if productivity increases. 
C)  as price increases, quantity supplied increases. 
D)  supply will increase to meet demand if demand increases.

Question 4

Gasoline prices in the United States decreased significantly between 2008 and 2009. A decrease in the price of gasoline, holding other things constant, will cause which of the following to occur?

Accepted Answer

A)  increase the demand for gasoline. 
B)  decrease the demand for gasoline. 
C)  increase the quantity of gasoline demanded. 
D)  decrease the quantity of gasoline demanded. 
A)  increase the demand for gasoline. 
B)  decrease the demand for gasoline. 
C)  increase the quantity of gasoline demanded. 
D)  decrease the quantity of gasoline demanded.

Question 5

All of the following will cause a shift in the supply of jeans EXCEPT

Accepted Answer

A)  a decrease in the prices of jeans. 
B)  an increase in the cost of producing jeans. 
C)  a per-unit government subsidy on the production of jeans. 
D)  a decrease in the number of jean manufacturers. 
A)  a decrease in the prices of jeans. 
B)  an increase in the cost of producing jeans. 
C)  a per-unit government subsidy on the production of jeans. 
D)  a decrease in the number of jean manufacturers.

Question 6

-According to the above figure for a gasoline market, at a price of $1 per gallon of gasoline, there would be

Accepted Answer

A)  a shortage of 30 million gallons. 
B)  a surplus of 30 million gallons. 
C)  a shortage of 20 million gallons. 
D)  a surplus of 50 million gallons. 
A)  a shortage of 30 million gallons. 
B)  a surplus of 30 million gallons. 
C)  a shortage of 20 million gallons. 
D)  a surplus of 50 million gallons.

Question 7

Of the following, which is the least likely to be an example of substitute goods?

Accepted Answer

A)  Beer and pretzels 
B)  Margarine and butter 
C)  Beef and chicken 
D)  Tea and coffee 
A)  Beer and pretzels 
B)  Margarine and butter 
C)  Beef and chicken 
D)  Tea and coffee

Question 8

The law of demand

Accepted Answer

A)  is only an assumption that cannot be tested. 
B)  only applies to necessities, not to luxuries. 
C)  is supported by observations of human behavior in the marketplace. 
D)  does not apply to scarce goods. 
A)  is only an assumption that cannot be tested. 
B)  only applies to necessities, not to luxuries. 
C)  is supported by observations of human behavior in the marketplace. 
D)  does not apply to scarce goods.

Exam 3: Demand and Supply

Which of the following does NOT cause a rightward shift in the supply curve?

-According to the above table, the equilibrium price of DVDs is

The law of supply states that other things being equal,

Gasoline prices in the United States decreased significantly between 2008 and 2009. A decrease in the price of gasoline, holding other things constant, will cause which of the following to occur?

All of the following will cause a shift in the supply of jeans EXCEPT

-According to the above figure for a gasoline market, at a price of $1 per gallon of gasoline, there would be

Of the following, which is the least likely to be an example of substitute goods?

The law of demand

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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