Question 1

Local cable television companies frequently are monopolists.

Accepted Answer

A) True 
 B)False

Question 2

The forces that make market economies work are

Accepted Answer

A)  work and leisure. 
B)  politics and religion. 
C)  supply and demand. 
D)  taxes and government spending. 
A)  work and leisure. 
B)  politics and religion. 
C)  supply and demand. 
D)  taxes and government spending.

Question 3

Figure 4-21  
-Refer to Figure 4-21. At a price of $16, there is a

Accepted Answer

A)  surplus of 1 unit. 
B)  surplus of 3 units. 
C)  shortage of 1 unit. 
D)  shortage of 3 units. 
A)  surplus of 1 unit. 
B)  surplus of 3 units. 
C)  shortage of 1 unit. 
D)  shortage of 3 units.

Question 4

Figure 4-22  
-Refer to Figure 4-22. At a price of $8, there is a

Accepted Answer

A)  surplus of 4 units. 
B)  surplus of 8 units. 
C)  shortage of 4 units. 
D)  shortage of 8 units. 
A)  surplus of 4 units. 
B)  surplus of 8 units. 
C)  shortage of 4 units. 
D)  shortage of 8 units.

Question 5

Assume Diana buys computers in a competitive market. It follows that

Accepted Answer

A)  Diana has a limited number of sellers to turn to when she buys a computer. 
B)  Diana will find herself negotiating with sellers whenever she buys a computer. 
C)  if Diana buys a large number of computers, the price of computers will rise noticeably. 
D)  None of the above is correct. 
A)  Diana has a limited number of sellers to turn to when she buys a computer. 
B)  Diana will find herself negotiating with sellers whenever she buys a computer. 
C)  if Diana buys a large number of computers, the price of computers will rise noticeably. 
D)  None of the above is correct.

Question 6

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
  
-Refer to Table 4-15. Assuming these are the only four suppliers in this market and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is the price, what is the equilibrium price?

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 7

Which of the following would shift the supply of Packers football jerseys to the right?

Accepted Answer

A)  The Packers make it to the Super Bowl. 
B)  The price of the jerseys increases by $15. 
C)  The cost to distribute the jerseys increases. 
D)  The cost of the fabric used to make the jerseys decreases. 
A)  The Packers make it to the Super Bowl. 
B)  The price of the jerseys increases by $15. 
C)  The cost to distribute the jerseys increases. 
D)  The cost of the fabric used to make the jerseys decreases.

Question 8

Figure 4-5  
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Accepted Answer

A)  an increase in the price of DVDs 
B)  a decrease in the price of DVD players 
C)  a change in consumer preferences toward watching movies in movie theaters rather than at home 
D)  an expectation by buyers that their incomes will increase in the very near future 
A)  an increase in the price of DVDs 
B)  a decrease in the price of DVD players 
C)  a change in consumer preferences toward watching movies in movie theaters rather than at home 
D)  an expectation by buyers that their incomes will increase in the very near future

Question 9

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
  
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following: • x = 2.
-The current price of a sandwich is $3.00.
-The market quantity supplied of sandwiches is 4.
-The slope of the supply curve is 2.
Then there is currently a

Accepted Answer

A)  shortage of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00. 
B)  shortage of 6 sandwiches, and the equilibrium price of a sandwich is $5.00. 
C)  surplus of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00. 
D)  surplus of 6 sandwiches, and the equilibrium price of a sandwich is $5.00. 
A)  shortage of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00. 
B)  shortage of 6 sandwiches, and the equilibrium price of a sandwich is $5.00. 
C)  surplus of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00. 
D)  surplus of 6 sandwiches, and the equilibrium price of a sandwich is $5.00.

Question 10

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

Accepted Answer

A)  are direct policy tools used by government agencies to regulate the economy. 
B)  illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. 
C)  can be used to predict the impact on the economy of various events and policies. 
D)  All of the above are correct. 
A)  are direct policy tools used by government agencies to regulate the economy. 
B)  illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. 
C)  can be used to predict the impact on the economy of various events and policies. 
D)  All of the above are correct.

Question 11

Table 4-10
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
  
-Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

Accepted Answer

A)  -200 cases 
B)  -100 cases 
C)  100 cases 
D)  200 cases 
A)  -200 cases 
B)  -100 cases 
C)  100 cases 
D)  200 cases

Question 12

A movement upward and to the right along a supply curve is called a(n)

Accepted Answer

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

Question 13

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises?

Accepted Answer

A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price would decrease, and the equilibrium quantity would increase. 
A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price would decrease, and the equilibrium quantity would increase.

Question 14

Figure 4-21  
-Refer to Figure 4-21. At a price of $4, there is a

Accepted Answer

A)  surplus of 1 unit. 
B)  surplus of 3 units. 
C)  shortage of 1 unit. 
D)  shortage of 3 units. 
A)  surplus of 1 unit. 
B)  surplus of 3 units. 
C)  shortage of 1 unit. 
D)  shortage of 3 units.

Question 15

Figure 4-5  
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

Accepted Answer

A)  a decrease in the price of golf balls 
B)  an increase in the price of green fees 
C)  an expectation by buyers that their incomes will increase in the very near future 
D)  a change in consumer tastes away from golf and toward tennis 
A)  a decrease in the price of golf balls 
B)  an increase in the price of green fees 
C)  an expectation by buyers that their incomes will increase in the very near future 
D)  a change in consumer tastes away from golf and toward tennis

Question 16

A university's football stadium is never more than half-full during football games. This indicates

Accepted Answer

A)  the ticket price is above the equilibrium price. 
B)  the ticket price is below the equilibrium price. 
C)  the ticket price is at the equilibrium price. 
D)  nothing about the equilibrium price. 
A)  the ticket price is above the equilibrium price. 
B)  the ticket price is below the equilibrium price. 
C)  the ticket price is at the equilibrium price. 
D)  nothing about the equilibrium price.

Question 17

Table 4-1
  
-Refer to Table 4-1. If the market consists of Laura and Hillary only and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A)  2 units. 
B)  3 units. 
C)  4 units. 
D)  5 units. 
A)  2 units. 
B)  3 units. 
C)  4 units. 
D)  5 units.

Question 18

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

Accepted Answer

A)  sum the quantities that individual firms are willing and able to supply at that price. 
B)  calculate the average of the quantities that individual firms are willing and able to supply at that price. 
C)  sum the costs that individual firms incur to supply the product at that price. 
D)  account for all determinants of demand. 
A)  sum the quantities that individual firms are willing and able to supply at that price. 
B)  calculate the average of the quantities that individual firms are willing and able to supply at that price. 
C)  sum the costs that individual firms incur to supply the product at that price. 
D)  account for all determinants of demand.

Question 19

The demand for a good or service is determined by

Accepted Answer

A)  those who buy the good or service. 
B)  the government. 
C)  those who sell the good or service. 
D)  both those who buy and those who sell the good or service. 
A)  those who buy the good or service. 
B)  the government. 
C)  those who sell the good or service. 
D)  both those who buy and those who sell the good or service.

Question 20

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Accepted Answer

A)  a smaller quantity of labor to be used. 
B)  the supply of cars to increase. 
C)  the firms' costs to fall. 
D)  individual car manufacturers to move up and to the right along their individual supply curves. 
A)  a smaller quantity of labor to be used. 
B)  the supply of cars to increase. 
C)  the firms' costs to fall. 
D)  individual car manufacturers to move up and to the right along their individual supply curves.

Local cable television companies frequently are monopolists.

The forces that make market economies work are

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Figure 4-22 -Refer to Figure 4-22. At a price of $8, there is a

Assume Diana buys computers in a competitive market. It follows that

Which of the following would shift the supply of Packers football jerseys to the right?

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

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

Table 4-10 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

A movement upward and to the right along a supply curve is called a(n)

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises?

Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

A university's football stadium is never more than half-full during football games. This indicates

Table 4-1 -Refer to Table 4-1. If the market consists of Laura and Hillary only and the price falls by $1, the quantity demanded in the market increases by

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

The demand for a good or service is determined by

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

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

Filters

Exam 4: The Market Forces of Supply and Demand

Local cable television companies frequently are monopolists.

The forces that make market economies work are

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Figure 4-22 -Refer to Figure 4-22. At a price of $8, there is a

Assume Diana buys computers in a competitive market. It follows that

Which of the following would shift the supply of Packers football jerseys to the right?

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

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

Table 4-10 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

A movement upward and to the right along a supply curve is called a(n)

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises?

Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

A university's football stadium is never more than half-full during football games. This indicates

Table 4-1 -Refer to Table 4-1. If the market consists of Laura and Hillary only and the price falls by $1, the quantity demanded in the market increases by

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

The demand for a good or service is determined by

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

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

Filters