Question 1

A monopoly is a market

Accepted Answer

A)  with one seller,and that seller is a price taker. 
B)  with one seller,and that seller sets the price. 
C)  with one buyer,and that buyer is a price taker. 
D)  with one buyer,and that buyer sets the price. 
A)  with one seller,and that seller is a price taker. 
B)  with one seller,and that seller sets the price. 
C)  with one buyer,and that buyer is a price taker. 
D)  with one buyer,and that buyer sets the price.

Question 2

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

A)  is referred to as the law of supply. 
B)  applies only to a few goods in the economy. 
C)  is represented by a downward-sloping supply curve. 
D)  All of the above are correct. 
A)  is referred to as the law of supply. 
B)  applies only to a few goods in the economy. 
C)  is represented by a downward-sloping supply curve. 
D)  All of the above are correct.

Question 3

An increase in quantity supplied

Accepted Answer

A)  results in a movement downward and to the left along a fixed supply curve. 
B)  results in a movement upward and to the right along a fixed supply curve. 
C)  shifts the supply curve to the left. 
D)  shifts the supply curve to the right. 
A)  results in a movement downward and to the left along a fixed supply curve. 
B)  results in a movement upward and to the right along a fixed supply curve. 
C)  shifts the supply curve to the left. 
D)  shifts the supply curve to the right.

Question 4

Which of the following is not a characteristic of a perfectly competitive market?

Accepted Answer

A)  Sellers set the price of the product. 
B)  There are many sellers. 
C)  Buyers must accept the price the market determines. 
D)  All of the above are characteristics of a perfectly competitive market. 
A)  Sellers set the price of the product. 
B)  There are many sellers. 
C)  Buyers must accept the price the market determines. 
D)  All of the above are characteristics of a perfectly competitive market.

Question 5

Holding the nonprice determinants of demand constant,a change in price would

Accepted Answer

A)  result in either a decrease in demand or an increase in demand. 
B)  result in a movement along a stationary demand curve. 
C)  result in a shift of supply. 
D)  have no effect on the quantity demanded. 
A)  result in either a decrease in demand or an increase in demand. 
B)  result in a movement along a stationary demand curve. 
C)  result in a shift of supply. 
D)  have no effect on the quantity demanded.

Question 6

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 7

In a market economy,supply and demand are important because they

Accepted Answer

A)  play a critical role in the allocation of the economy's scarce resources. 
B)  determine how much of each good gets produced. 
C)  can be used to predict the impact on the economy of various events and policies. 
D)  All of the above are correct. 
A)  play a critical role in the allocation of the economy's scarce resources. 
B)  determine how much of each good gets produced. 
C)  can be used to predict the impact on the economy of various events and policies. 
D)  All of the above are correct.

Question 8

The line that relates the price of a good and the quantity supplied of that good is called the

Accepted Answer

A)  supply schedule,and it usually slopes upward. 
B)  supply schedule,and it usually slopes downward. 
C)  supply curve,and it usually slopes upward. 
D)  supply curve,and it usually slopes downward. 
A)  supply schedule,and it usually slopes upward. 
B)  supply schedule,and it usually slopes downward. 
C)  supply curve,and it usually slopes upward. 
D)  supply curve,and it usually slopes downward.

Question 9

"Other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises." This relationship between price and quantity demanded

Accepted Answer

A)  applies to most goods in the economy. 
B)  is represented by a downward-sloping demand curve. 
C)  is referred to as the law of demand. 
D)  All of the above are correct. 
A)  applies to most goods in the economy. 
B)  is represented by a downward-sloping demand curve. 
C)  is referred to as the law of demand. 
D)  All of the above are correct.

Question 10

Table 4-7
The demand schedule below pertains to sandwiches demanded per week.
  
-Refer to Table 4-7.Suppose Charlie,Maxine,and Quinn are the only demanders of sandwiches.Also suppose x = 2.Then

Accepted Answer

A)  the slope of Quinn's demand curve is -1/2 and the slope of the market demand curve is -5/2. 
B)  the slope of Quinn's demand curve is -1/2 and the slope of the market demand curve is -2/5. 
C)  the slope of Quinn's demand curve is -2 and the slope of the market demand curve is -5/2. 
D)  the slope of Quinn's demand curve is -2 and the slope of the market demand curve is -2/5. 
A)  the slope of Quinn's demand curve is -1/2 and the slope of the market demand curve is -5/2. 
B)  the slope of Quinn's demand curve is -1/2 and the slope of the market demand curve is -2/5. 
C)  the slope of Quinn's demand curve is -2 and the slope of the market demand curve is -5/2. 
D)  the slope of Quinn's demand curve is -2 and the slope of the market demand curve is -2/5.

Question 11

An increase in supply is represented by

Accepted Answer

A)  a movement downward and to the left along a supply curve. 
B)  a movement upward and to the right along a supply curve. 
C)  a rightward shift of a supply curve. 
D)  a leftward shift of a supply curve. 
A)  a movement downward and to the left along a supply curve. 
B)  a movement upward and to the right along a supply curve. 
C)  a rightward shift of a supply curve. 
D)  a leftward shift of a supply curve.

Question 12

Figure 4-13
The diagram below pertains to the supply of paper in university markets.  
-Refer to Figure 4-13.All else equal,sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move

Accepted Answer

A)  from x to y. 
B)  from y to x. 
C)  from SA to SB. 
D)  from SB to SA. 
A)  from x to y. 
B)  from y to x. 
C)  from SA to SB. 
D)  from SB to SA.

Question 13

In a market economy,prices are the signals that guide the allocation of scarce resources.

Accepted Answer

a.b.
The equilibrium price (Pe)is $4 and

Question 14

Figure 4-6  
-Refer to Figure 4-6.The movement from point A to point B on the graph is called

Accepted Answer

A)  a decrease in supply. 
B)  an increase in supply. 
C)  an increase in the quantity supplied. 
D)  a decrease in the quantity supplied. 
A)  a decrease in supply. 
B)  an increase in supply. 
C)  an increase in the quantity supplied. 
D)  a decrease in the quantity supplied.

Question 15

Figure 4-8  
-Refer to Figure 4-8.At a price of $35,

Accepted Answer

A)  there would be a shortage of 400 units. 
B)  there would be a surplus of 200 units. 
C)  there would be a surplus of 400 units. 
D)  there would be a surplus of 600 units. 
A)  there would be a shortage of 400 units. 
B)  there would be a surplus of 200 units. 
C)  there would be a surplus of 400 units. 
D)  there would be a surplus of 600 units.

Question 16

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies,while all the other factors that affect how much consumers want to buy are held constant.

Accepted Answer

A) True 
 B)False

Question 17

An increase in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 18

Table 4-8
  
-Refer to Table 4-8.Which space represents a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Accepted Answer

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

Question 19

A surplus is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following events could cause an increase in the supply of ceiling fans?

Accepted Answer

A)  The number of sellers of ceiling fans increases. 
B)  There is an increase in the price of air conditioners,and consumers regard air conditioners and ceiling fans as substitutes. 
C)  There is an increase in the price of the motor that powers ceiling fans. 
D)  All of the above are correct. 
A)  The number of sellers of ceiling fans increases. 
B)  There is an increase in the price of air conditioners,and consumers regard air conditioners and ceiling fans as substitutes. 
C)  There is an increase in the price of the motor that powers ceiling fans. 
D)  All of the above are correct.

Exam 4: The Market Forces of Supply and Demand

A monopoly is a market

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

An increase in quantity supplied

Which of the following is not a characteristic of a perfectly competitive market?

Holding the nonprice determinants of demand constant,a change in price would

A decrease in the price of pizza will shift the supply curve for pizza to the left.

In a market economy,supply and demand are important because they

The line that relates the price of a good and the quantity supplied of that good is called the

"Other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises." This relationship between price and quantity demanded

Table 4-7 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-7.Suppose Charlie,Maxine,and Quinn are the only demanders of sandwiches.Also suppose x = 2.Then

An increase in supply is represented by

Figure 4-13 The diagram below pertains to the supply of paper in university markets. -Refer to Figure 4-13.All else equal,sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move

In a market economy,prices are the signals that guide the allocation of scarce resources.

Figure 4-6 -Refer to Figure 4-6.The movement from point A to point B on the graph is called

Figure 4-8 -Refer to Figure 4-8.At a price of $35,

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies,while all the other factors that affect how much consumers want to buy are held constant.

An increase in demand shifts the demand curve to the left.

Table 4-8 -Refer to Table 4-8.Which space represents a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

A surplus is the same as an excess demand.

Which of the following events could cause an increase in the supply of ceiling fans?

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

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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 Macroeconomics: Basic Concepts

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

Five Debates Over Macroeconomic Policy

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