Question 1

Figure 4-10  
-Refer to Figure 4-10.If the price is $10,then there would be a

Accepted Answer

A)  shortage of 400 and price would rise. 
B)  surplus of 400 and price would rise. 
C)  shortage of 600 and price would rise. 
D)  surplus of 600 and price would rise. 
A)  shortage of 400 and price would rise. 
B)  surplus of 400 and price would rise. 
C)  shortage of 600 and price would rise. 
D)  surplus of 600 and price would rise.

Question 2

Figure 4-10  
-Refer to Figure 4-10.At a price of $15,

Accepted Answer

A)  quantity demanded exceeds quantity supplied. 
B)  there is a shortage. 
C)  there is an excess demand. 
D)  All of the above are correct. 
A)  quantity demanded exceeds quantity supplied. 
B)  there is a shortage. 
C)  there is an excess demand. 
D)  All of the above are correct.

Question 3

Which of the following events will definitely cause equilibrium price to fall?

Accepted Answer

A)  demand increases and supply decreases 
B)  demand and supply both decrease 
C)  demand decreases and supply increases 
D)  demand and supply both increase 
A)  demand increases and supply decreases 
B)  demand and supply both decrease 
C)  demand decreases and supply increases 
D)  demand and supply both increase

Question 4

Prices allocate a market economy's scarce resources.

Accepted Answer

A) True 
 B)False

Question 5

Individual supply curves are summed vertically to obtain the market supply curve.

Accepted Answer

A) True 
 B)False

Question 6

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

Accepted Answer

A) True 
 B)False

Question 7

A higher price for batteries would result in a(n)

Accepted Answer

A)  increase in the demand for flashlights. 
B)  decrease in the demand for flashlights. 
C)  increase in the demand for batteries. 
D)  decrease in the demand for batteries. 
A)  increase in the demand for flashlights. 
B)  decrease in the demand for flashlights. 
C)  increase in the demand for batteries. 
D)  decrease in the demand for batteries.

Question 8

Table 4-1
  
-Refer to Table 4-1.If these are the only four buyers in the market,then the market quantity demanded at a price of $2 is

Accepted Answer

A)  0 units. 
B)  3.5 units. 
C)  6 units. 
D)  14 units. 
A)  0 units. 
B)  3.5 units. 
C)  6 units. 
D)  14 units.

Question 9

There is no shortage of scarce resources in a market economy because

Accepted Answer

A)  the government makes shortages illegal. 
B)  resources are abundant in market economies. 
C)  prices adjust to eliminate shortages. 
D)  quantity supplied is always greater than quantity demanded in market economies. 
A)  the government makes shortages illegal. 
B)  resources are abundant in market economies. 
C)  prices adjust to eliminate shortages. 
D)  quantity supplied is always greater than quantity demanded in market economies.

Question 10

If buyers and sellers in a certain market are price takers,then individually

Accepted Answer

A)  they have no influence on market price. 
B)  they have some influence on market price,but that influence is limited. 
C)  buyers will be able to find prices lower than those determined in the market. 
D)  sellers will find it difficult to sell all they want to sell at the market price. 
A)  they have no influence on market price. 
B)  they have some influence on market price,but that influence is limited. 
C)  buyers will be able to find prices lower than those determined in the market. 
D)  sellers will find it difficult to sell all they want to sell at the market price.

Question 11

When quantity demanded increases at every possible price,we know that the demand curve has

Accepted Answer

A)  shifted to the left. 
B)  shifted to the right. 
C)  not shifted;rather,we have moved along the demand curve to a new point on the same curve. 
D)  not shifted;rather,the demand curve has become steeper. 
A)  shifted to the left. 
B)  shifted to the right. 
C)  not shifted;rather,we have moved along the demand curve to a new point on the same curve. 
D)  not shifted;rather,the demand curve has become steeper.

Question 12

Table 4-1
  
-Refer to Table 4-1.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Accepted Answer

A)  decreases by 1.75 units. 
B)  increases by 2 units. 
C)  decreases by 7 units. 
D)  decreases by 24 units. 
A)  decreases by 1.75 units. 
B)  increases by 2 units. 
C)  decreases by 7 units. 
D)  decreases by 24 units.

Question 13

Table 4-6
A country club usually only allows members to purchase tickets for its celebrity golf tournament,but the club is considering allowing non-members to purchase tickets this year.The demand and supply schedules are as follows:
  
-Refer to Table 4-6.If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $30,then there will be

Accepted Answer

A)  a shortage of 300 tickets. 
B)  a surplus of 300 tickets. 
C)  600 tickets sold. 
D)  600 tickets unsold. 
A)  a shortage of 300 tickets. 
B)  a surplus of 300 tickets. 
C)  600 tickets sold. 
D)  600 tickets unsold.

Question 14

A market supply curve shows

Accepted Answer

A)  the total quantity supplied at all possible prices. 
B)  the average quantity supplied by producers at all possible prices. 
C)  how quantity supplied changes when the number of sellers changes. 
D)  suppliers' responses,in terms of the amounts they will supply,to the demands of buyers. 
A)  the total quantity supplied at all possible prices. 
B)  the average quantity supplied by producers at all possible prices. 
C)  how quantity supplied changes when the number of sellers changes. 
D)  suppliers' responses,in terms of the amounts they will supply,to the demands of buyers.

Question 15

Equilibrium price will unambiguously increase when

Accepted Answer

A)  demand increases and supply does not change,when demand does not change and supply decreases,and when demand decreases and supply increases simultaneously. 
B)  demand increases and supply does not change,when demand does not change and supply decreases,and when demand increases and supply decreases simultaneously. 
C)  demand decreases and supply does not change,when demand does not change and supply increases,and when demand decreases and supply increases simultaneously. 
D)  demand decreases and supply does not change,when demand does not change and supply increases,and when demand increases and supply decreases simultaneously. 
A)  demand increases and supply does not change,when demand does not change and supply decreases,and when demand decreases and supply increases simultaneously. 
B)  demand increases and supply does not change,when demand does not change and supply decreases,and when demand increases and supply decreases simultaneously. 
C)  demand decreases and supply does not change,when demand does not change and supply increases,and when demand decreases and supply increases simultaneously. 
D)  demand decreases and supply does not change,when demand does not change and supply increases,and when demand increases and supply decreases simultaneously.

Question 16

Most markets in the economy are

Accepted Answer

A)  markets in which sellers,rather than buyers,control the price of the product. 
B)  markets in which buyers,rather than sellers,control the price of the product. 
C)  perfectly competitive. 
D)  highly competitive. 
A)  markets in which sellers,rather than buyers,control the price of the product. 
B)  markets in which buyers,rather than sellers,control the price of the product. 
C)  perfectly competitive. 
D)  highly competitive.

Question 17

The market supply curve

Accepted Answer

A)  is found by vertically adding the individual supply curves. 
B)  slopes downward. 
C)  represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good. 
D)  represents the sum of the quantities supplied by all the sellers at each price of the good. 
A)  is found by vertically adding the individual supply curves. 
B)  slopes downward. 
C)  represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good. 
D)  represents the sum of the quantities supplied by all the sellers at each price of the good.

Question 18

Figure 4-10  
-Refer to Figure 4-10.In this market,equilibrium price and quantity,respectively,are

Accepted Answer

A)  $15 and 400. 
B)  $20 and 600. 
C)  $25 and 500. 
D)  $25 and 800. 
A)  $15 and 400. 
B)  $20 and 600. 
C)  $25 and 500. 
D)  $25 and 800.

Question 19

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 cars as a result of the adoption of new technology on assembly lines?

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 20

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

Accepted Answer

A)  An increase in the demand for gasoline. 
B)  An increase in the price of gasoline. 
C)  An increase in the number of producers of gasoline 
D)  An increase in the price of oil,an input into the production of gasoline. 
A)  An increase in the demand for gasoline. 
B)  An increase in the price of gasoline. 
C)  An increase in the number of producers of gasoline 
D)  An increase in the price of oil,an input into the production of gasoline.

Exam 4: The Market Forces of Supply and Demand

Figure 4-10 -Refer to Figure 4-10.If the price is $10,then there would be a

Figure 4-10 -Refer to Figure 4-10.At a price of $15,

Which of the following events will definitely cause equilibrium price to fall?

Prices allocate a market economy's scarce resources.

Individual supply curves are summed vertically to obtain the market supply curve.

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

A higher price for batteries would result in a(n)

Table 4-1 -Refer to Table 4-1.If these are the only four buyers in the market,then the market quantity demanded at a price of $2 is

There is no shortage of scarce resources in a market economy because

If buyers and sellers in a certain market are price takers,then individually

When quantity demanded increases at every possible price,we know that the demand curve has

Table 4-1 -Refer to Table 4-1.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

A market supply curve shows

Equilibrium price will unambiguously increase when

Most markets in the economy are

The market supply curve

Figure 4-10 -Refer to Figure 4-10.In this market,equilibrium price and quantity,respectively,are

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 cars as a result of the adoption of new technology on assembly lines?

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

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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