Question 1

Step one of the "Three Steps for Analyzing Changes in Equilibrium" is

Accepted Answer

A)  decide which direction the curve shifts. 
B)  decide whether the event shifts the supply or demand curve. 
C)  use the supply-and-demand diagram to see how the shift changes the equilibrium. 
D)  Any of these could be used first. 
A)  decide which direction the curve shifts. 
B)  decide whether the event shifts the supply or demand curve. 
C)  use the supply-and-demand diagram to see how the shift changes the equilibrium. 
D)  Any of these could be used first.

Question 2

A rightward shift of 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 3

In a market,the price of any good adjusts until quantity demanded equals quantity supplied.

Accepted Answer

A) True 
 B)False

Question 4

A decrease 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 5

Which of the following events would cause the price of oranges to fall?

Accepted Answer

A)  There is a shortage of oranges. 
B)  An article is published in which it is claimed that tangerines cause a serious disease,and oranges and tangerines are substitutes. 
C)  The price of land throughout Florida decreases,and Florida produces a significant proportion of the nation's oranges. 
D)  All of the above are correct. 
A)  There is a shortage of oranges. 
B)  An article is published in which it is claimed that tangerines cause a serious disease,and oranges and tangerines are substitutes. 
C)  The price of land throughout Florida decreases,and Florida produces a significant proportion of the nation's oranges. 
D)  All of the above are correct.

Question 6

Today,people changed their expectations about the future.This change

Accepted Answer

A)  can cause a movement along a demand curve. 
B)  can affect future demand,but not today's demand. 
C)  can affect today's demand. 
D)  cannot affect either today's demand or future demand. 
A)  can cause a movement along a demand curve. 
B)  can affect future demand,but not today's demand. 
C)  can affect today's demand. 
D)  cannot affect either today's demand or future demand.

Question 7

Which of the following would cause price to increase?

Accepted Answer

A)  an increase in supply 
B)  a decrease in demand 
C)  a surplus of the good 
D)  a shortage of the good 
A)  an increase in supply 
B)  a decrease in demand 
C)  a surplus of the good 
D)  a shortage of the good

Question 8

A decrease 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 9

In a market economy,supply and demand determine

Accepted Answer

A)  both the quantity of each good produced and the price at which it is sold. 
B)  the quantity of each good produced,but not the price at which it is sold. 
C)  the price at which each good is sold,but not the quantity of each good produced. 
D)  neither the quantity of each good produced nor the price at which it is sold. 
A)  both the quantity of each good produced and the price at which it is sold. 
B)  the quantity of each good produced,but not the price at which it is sold. 
C)  the price at which each good is sold,but not the quantity of each good produced. 
D)  neither the quantity of each good produced nor the price at which it is sold.

Question 10

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises,the price of steel rises,public transportation becomes cheaper and more comfortable,and auto-workers negotiate higher wages?

Accepted Answer

A)  Price will fall and the effect on quantity is ambiguous. 
B)  Price will rise and the effect on quantity is ambiguous. 
C)  Quantity will fall and the effect on price is ambiguous. 
D)  Quantity will rise and the effect on price is ambiguous. 
A)  Price will fall and the effect on quantity is ambiguous. 
B)  Price will rise and the effect on quantity is ambiguous. 
C)  Quantity will fall and the effect on price is ambiguous. 
D)  Quantity will rise and the effect on price is ambiguous.

Question 11

Suppose there is an earthquake that destroys several corn canneries.Which of the following would not be a direct result of this event?

Accepted Answer

A)  Sellers would not be able to produce and sell as much as before at each relevant price. 
B)  The supply would decrease. 
C)  Buyers would not be willing to buy as much as before at each relevant price. 
D)  The equilibrium price would rise. 
A)  Sellers would not be able to produce and sell as much as before at each relevant price. 
B)  The supply would decrease. 
C)  Buyers would not be willing to buy as much as before at each relevant price. 
D)  The equilibrium price would rise.

Question 12

When the price of a good or service changes,

Accepted Answer

A)  the supply curve shifts in the opposite direction. 
B)  the demand curve shifts in the opposite direction. 
C)  the demand curve shifts in the same direction. 
D)  there is a movement along a given demand curve. 
A)  the supply curve shifts in the opposite direction. 
B)  the demand curve shifts in the opposite direction. 
C)  the demand curve shifts in the same direction. 
D)  there is a movement along a given demand curve.

Question 13

An increase in the price of ink will shift the supply curve for pens to the left.

Accepted Answer

A) True 
 B)False

Question 14

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 15

If the demand for a good falls when income falls,then the good is called

Accepted Answer

A)  a normal good. 
B)  a regular good. 
C)  a luxury good. 
D)  an inferior good. 
A)  a normal good. 
B)  a regular good. 
C)  a luxury good. 
D)  an inferior good.

Question 16

Equilibrium price will unambiguously decrease 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 17

If the number of buyers in a market decreases,then

Accepted Answer

A)  demand will increase. 
B)  demand will decrease. 
C)  supply will increase. 
D)  supply will decrease. 
A)  demand will increase. 
B)  demand will decrease. 
C)  supply will increase. 
D)  supply will decrease.

Question 18

The market supply curve shows how the total quantity supplied of a good varies as input prices vary,holding constant all the other factors that influence producers' decisions about how much to sell.

Accepted Answer

A) True 
 B)False

Question 19

When a seller expects the price of its product to decrease in the future,the seller's supply curve shifts left now.

Accepted Answer

A) True 
 B)False

Question 20

Today's supply curve for gasoline could shift in response to

Accepted Answer

A)  a change in today's price of gasoline. 
B)  a change in the expected future price of gasoline. 
C)  a change in the number of buyers of gasoline. 
D)  All of the above are correct. 
A)  a change in today's price of gasoline. 
B)  a change in the expected future price of gasoline. 
C)  a change in the number of buyers of gasoline. 
D)  All of the above are correct.

Exam 4: The Market Forces of Supply and Demand

Step one of the "Three Steps for Analyzing Changes in Equilibrium" is

A rightward shift of a supply curve is called

In a market,the price of any good adjusts until quantity demanded equals quantity supplied.

A decrease in quantity supplied

Which of the following events would cause the price of oranges to fall?

Today,people changed their expectations about the future.This change

Which of the following would cause price to increase?

A decrease in supply is represented by

In a market economy,supply and demand determine

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises,the price of steel rises,public transportation becomes cheaper and more comfortable,and auto-workers negotiate higher wages?

Suppose there is an earthquake that destroys several corn canneries.Which of the following would not be a direct result of this event?

When the price of a good or service changes,

An increase in the price of ink will shift the supply curve for pens to the left.

It is not possible for demand and supply to shift at the same time.

If the demand for a good falls when income falls,then the good is called

Equilibrium price will unambiguously decrease when

If the number of buyers in a market decreases,then

The market supply curve shows how the total quantity supplied of a good varies as input prices vary,holding constant all the other factors that influence producers' decisions about how much to sell.

When a seller expects the price of its product to decrease in the future,the seller's supply curve shifts left now.

Today's supply curve for gasoline could shift in response to

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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