Question 1

Table 4-1
  
-Refer to Table 4-1.Whose demand does not obey the law of demand?

Accepted Answer

A)  Aaron's 
B)  Angela's 
C)  Austin's 
D)  Alyssa's 
A)  Aaron's 
B)  Angela's 
C)  Austin's 
D)  Alyssa's

Question 2

Fill in the table below,showing whether equilibrium price and equilibrium quantity go up,go down,stay the same,or change ambiguously.

Accepted Answer

The answer of Fill in the table below,showing whether equilibrium...

Question 3

Figure 4-12
The diagram below pertains to the demand for turkey in the United States.  
-Refer to Figure 4-12.All else equal,sellers expecting the price of turkey to rise in the future would cause a current move

Accepted Answer

A)  from DA to DB. 
B)  from DB to DA. 
C)  from x to y. 
D)  from y to x. 
A)  from DA to DB. 
B)  from DB to DA. 
C)  from x to y. 
D)  from y to x.

Question 4

If a good or service has only one seller,then the seller is called a monopoly.

Accepted Answer

A) True 
 B)False

Question 5

A group of buyers and sellers of a particular good or service is called a(n)

Accepted Answer

A)  coalition. 
B)  economy. 
C)  market. 
D)  competition. 
A)  coalition. 
B)  economy. 
C)  market. 
D)  competition.

Question 6

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes (an inferior good)to increase?

Accepted Answer

A)  an increase in consumer income 
B)  a decrease in consumer income 
C)  greater government restrictions on agricultural chemicals 
D)  fewer government restrictions on agricultural chemicals 
A)  an increase in consumer income 
B)  a decrease in consumer income 
C)  greater government restrictions on agricultural chemicals 
D)  fewer government restrictions on agricultural chemicals

Question 7

Which of the following would not shift the demand curve for mp3 players?

Accepted Answer

A)  a decrease in the price of mp3 players 
B)  a fad that makes mp3 players more popular among 12-25 year olds 
C)  an increase in the price of CDs,a complement for mp3 players 
D)  a decrease in the price of satellite radio,a substitute for mp3 players 
A)  a decrease in the price of mp3 players 
B)  a fad that makes mp3 players more popular among 12-25 year olds 
C)  an increase in the price of CDs,a complement for mp3 players 
D)  a decrease in the price of satellite radio,a substitute for mp3 players

Question 8

Table 4-2
  
-Refer to Table 4-2.If these are the only four buyers in the market,then when the price decreases from $6 to $4,the market quantity demanded

Accepted Answer

A)  increases by 0.75 units. 
B)  increases by 3 units. 
C)  increases by 8 units. 
D)  decreases by 27 units. 
A)  increases by 0.75 units. 
B)  increases by 3 units. 
C)  increases by 8 units. 
D)  decreases by 27 units.

Question 9

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

A)  a decrease in the price of gasoline 
B)  an increase in consumer income,assuming gasoline is a normal good 
C)  an increase in the price of cars,a complement for gasoline 
D)  a decrease in the expected future price of gasoline 
A)  a decrease in the price of gasoline 
B)  an increase in consumer income,assuming gasoline is a normal good 
C)  an increase in the price of cars,a complement for gasoline 
D)  a decrease in the expected future price of gasoline

Question 10

If,at the current price,there is a shortage of a good,then

Accepted Answer

A)  sellers are producing more than buyers wish to buy. 
B)  the market must be in equilibrium. 
C)  the price is below the equilibrium price. 
D)  quantity demanded equals quantity supplied. 
A)  sellers are producing more than buyers wish to buy. 
B)  the market must be in equilibrium. 
C)  the price is below the equilibrium price. 
D)  quantity demanded equals quantity supplied.

Question 11

Figure 4-12
The diagram below pertains to the demand for turkey in the United States.  
-Refer to Figure 4-12.All else equal,an increase in the productivity of turkey farmers would cause a move

Accepted Answer

A)  from DA to DB. 
B)  from DB to DA. 
C)  from x to y. 
D)  from y to x. 
A)  from DA to DB. 
B)  from DB to DA. 
C)  from x to y. 
D)  from y to x.

Question 12

Suppose there is an increase in the price of steel.We would expect the supply curve for steel beams

Accepted Answer

A)  to shift rightward. 
B)  to shift leftward. 
C)  to become flatter. 
D)  to remain unchanged. 
A)  to shift rightward. 
B)  to shift leftward. 
C)  to become flatter. 
D)  to remain unchanged.

Question 13

Advances in production technology typically reduce firms' costs.

Accepted Answer

A) True 
 B)False

Question 14

Most markets in the economy are highly competitive.

Accepted Answer

A) True 
 B)False

Question 15

Figure 4-14
Panel (a)Panel (b)     Panel (c)Panel (d)    
-Refer to Figure 4-14.Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 16

The supply curve for cookbooks shifts

Accepted Answer

A)  when a determinant of the supply of cookbooks other than technology changes. 
B)  when a determinant of the supply of cookbooks other than the price of cookbooks changes. 
C)  when any determinant of the supply of cookbooks changes. 
D)  only when the number of cookbook-sellers changes. 
A)  when a determinant of the supply of cookbooks other than technology changes. 
B)  when a determinant of the supply of cookbooks other than the price of cookbooks changes. 
C)  when any determinant of the supply of cookbooks changes. 
D)  only when the number of cookbook-sellers changes.

Question 17

A movement downward and to the left along a supply curve is called

Accepted Answer

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

Question 18

In a market,to find the total amount supplied at a particular price,

Accepted Answer

A)  we must add up all of the amounts that firms are willing and able to supply at that price. 
B)  we must take the average of the amounts that firms are willing and able to supply at that price. 
C)  we must add all of the costs that firms incur to supply the product at that price. 
D)  all determinants of demand must be taken into account. 
A)  we must add up all of the amounts that firms are willing and able to supply at that price. 
B)  we must take the average of the amounts that firms are willing and able to supply at that price. 
C)  we must add all of the costs that firms incur to supply the product at that price. 
D)  all determinants of demand must be taken into account.

Question 19

Table 4-5
  
-Refer to Table 4-5.If the price were $8,a

Accepted Answer

A)  shortage of 20 units would exist and price would tend to rise. 
B)  surplus of 25 units would exist and price would tend to fall. 
C)  shortage of 25 units would exist and price would tend to rise. 
D)  surplus of 45 units would exist and price would tend to fall. 
A)  shortage of 20 units would exist and price would tend to rise. 
B)  surplus of 25 units would exist and price would tend to fall. 
C)  shortage of 25 units would exist and price would tend to rise. 
D)  surplus of 45 units would exist and price would tend to fall.

Question 20

For a market for a good or service to exist,

Accepted Answer

A)  there must be a group of buyers and sellers. 
B)  there must be a specific time and place at which the good or service is traded. 
C)  there must be a high degree of organization present. 
D)  All of the above are correct. 
A)  there must be a group of buyers and sellers. 
B)  there must be a specific time and place at which the good or service is traded. 
C)  there must be a high degree of organization present. 
D)  All of the above are correct.

Exam 4: The Market Forces of Supply and Demand

Table 4-1 -Refer to Table 4-1.Whose demand does not obey the law of demand?

Fill in the table below,showing whether equilibrium price and equilibrium quantity go up,go down,stay the same,or change ambiguously.

Figure 4-12 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-12.All else equal,sellers expecting the price of turkey to rise in the future would cause a current move

If a good or service has only one seller,then the seller is called a monopoly.

A group of buyers and sellers of a particular good or service is called a(n)

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes (an inferior good)to increase?

Which of the following would not shift the demand curve for mp3 players?

Table 4-2 -Refer to Table 4-2.If these are the only four buyers in the market,then when the price decreases from $6 to $4,the market quantity demanded

Which of the following would shift the demand curve for gasoline to the right?

If,at the current price,there is a shortage of a good,then

Figure 4-12 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-12.All else equal,an increase in the productivity of turkey farmers would cause a move

Suppose there is an increase in the price of steel.We would expect the supply curve for steel beams

Advances in production technology typically reduce firms' costs.

Most markets in the economy are highly competitive.

Figure 4-14 Panel (a)Panel (b) Panel (c)Panel (d) -Refer to Figure 4-14.Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

The supply curve for cookbooks shifts

A movement downward and to the left along a supply curve is called

In a market,to find the total amount supplied at a particular price,

Table 4-5 -Refer to Table 4-5.If the price were $8,a

For a market for a good or service to exist,

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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