Question 1

The increase in the price of a good that is used as an input for a second good, would (for the second good)

Accepted Answer

A) move its supply curve to the right. 
B) move its supply curve to the left. 
C) cause a movement along the supply curve to a (higher price, higher quantity)point. 
D) cause a movement along the supply curve to a (lower price, lower quantity)point. 
A) move its supply curve to the right. 
B) move its supply curve to the left. 
C) cause a movement along the supply curve to a (higher price, higher quantity)point. 
D) cause a movement along the supply curve to a (lower price, lower quantity)point.

Question 2

-From Table 2.1, and under the most likely scenario where columns A and B are assigned to represent quantity demanded and quantity supplied, which is the equilibrium price?

Accepted Answer

A) $1 
B) $2 
C) $3 
D) $4 
A) $1 
B) $2 
C) $3 
D) $4

Question 3

-Of the collection of supply and demand diagrams in Figure 2.2 which one(s)show the result of an increase in the expected future price?

Accepted Answer

A) Figure 1 
B) Figure 4 
C) Figures 2 and 3 
D) Figures 1 and 4 
A) Figure 1 
B) Figure 4 
C) Figures 2 and 3 
D) Figures 1 and 4

Question 4

-From Table 2.3, at the price of $5 there is a

Accepted Answer

A) shortage of 4. 
B) surplus of 2. 
C) neither a shortage nor a surplus. 
D) surplus of 4. 
A) shortage of 4. 
B) surplus of 2. 
C) neither a shortage nor a surplus. 
D) surplus of 4.

Question 5

The quintessential example of an inferior good would be

Accepted Answer

A) steak for someone who liked beef. 
B) the substitution of Granny Smith for Golden Delicious apples. 
C) Ramen Noodles for a poor college student. 
D) peanut butter and jelly for a young boy or girl. 
A) steak for someone who liked beef. 
B) the substitution of Granny Smith for Golden Delicious apples. 
C) Ramen Noodles for a poor college student. 
D) peanut butter and jelly for a young boy or girl.

Question 6

If goods A and B are considered complements, a decrease in the price of A would cause

Accepted Answer

A) the demand curve for B to the right. 
B) the demand curve for B to the left. 
C) cause a movement along the demand curve for B to a (higher price, lower quantity)point. 
D) cause a movement along the demand curve for B to a (lower price, higher quantity)point. 
A) the demand curve for B to the right. 
B) the demand curve for B to the left. 
C) cause a movement along the demand curve for B to a (higher price, lower quantity)point. 
D) cause a movement along the demand curve for B to a (lower price, higher quantity)point.

Question 7

The group of people who are willing to offer money in exchange for goods and services are called

Accepted Answer

A) profiteers. 
B) benefactors. 
C) consumers. 
D) producers. 
A) profiteers. 
B) benefactors. 
C) consumers. 
D) producers.

Question 8

The quintessential example of a normal good would be

Accepted Answer

A) steak for someone who liked beef. 
B) the substitution of Granny Smith for Golden Delicious apples. 
C) Ramen Noodles for a poor college student. 
D) peanut butter and jelly for a young boy or girl. 
A) steak for someone who liked beef. 
B) the substitution of Granny Smith for Golden Delicious apples. 
C) Ramen Noodles for a poor college student. 
D) peanut butter and jelly for a young boy or girl.

Question 9

Which of the following is the best example of the concept of "normal"?

Accepted Answer

A) SUV's 
B) Coke and Pepsi 
C) Ramen noodles 
D) Hot dogs and hot dog buns 
A) SUV's 
B) Coke and Pepsi 
C) Ramen noodles 
D) Hot dogs and hot dog buns

Question 10

If the price of a good is expected to rise in the future its

Accepted Answer

A) demand curve will shift to the right. 
B) supply curve will shift to the left. 
C) demand curve will shift to the left. 
D) a and b 
A) demand curve will shift to the right. 
B) supply curve will shift to the left. 
C) demand curve will shift to the left. 
D) a and b

Question 11

If demand decreases and the price doesn't change, there will be a

Accepted Answer

A) surplus. 
B) both a shortage and a surplus. 
C) shortage 
D) neither a shortage nor a surplus. 
A) surplus. 
B) both a shortage and a surplus. 
C) shortage 
D) neither a shortage nor a surplus.

Question 12

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in income if a good is considered inferior?

Accepted Answer

A) Figure 1 
B) Figure 2 
C) Figure 3 
D) Figure 4 
A) Figure 1 
B) Figure 2 
C) Figure 3 
D) Figure 4

Question 13

Which of the following is the best example of the concept of "another potential output"?

Accepted Answer

A) SUV's 
B) Ramen noodles 
C) Coke and Pepsi 
D) corn and soybeans 
A) SUV's 
B) Ramen noodles 
C) Coke and Pepsi 
D) corn and soybeans

Question 14

Economists argue that markets serve the interests of society primarily because

Accepted Answer

A) consumers are made better off (regardless of whether producers are made better off). 
B) producers are made better off (regardless of whether consumers are made better off). 
C) both consumers and producers are made better off. 
D) money is made available for government. 
A) consumers are made better off (regardless of whether producers are made better off). 
B) producers are made better off (regardless of whether consumers are made better off). 
C) both consumers and producers are made better off. 
D) money is made available for government.

Question 15

If the price of a typical good falls, the quantity supplied for that good will

Accepted Answer

A) decrease. 
B) increase. 
C) remain the same. 
D) automatically increase to zero. 
A) decrease. 
B) increase. 
C) remain the same. 
D) automatically increase to zero.

Question 16

-Of the collection of supply and demand diagrams in Figure 2.2 which one shows the result of an increase in technology in the market for anything?

Accepted Answer

A) Figure 1 
B) Figure 2 
C) Figure 3 
D) Figure 4 
A) Figure 1 
B) Figure 2 
C) Figure 3 
D) Figure 4

Question 17

The decrease in technology used to produce a good would

Accepted Answer

A) move its supply curve to the right. 
B) move its supply curve to the left. 
C) cause a movement along the supply curve to a (higher price, higher quantity)point. 
D) cause a movement along the supply curve to a (lower price, lower quantity)point. 
A) move its supply curve to the right. 
B) move its supply curve to the left. 
C) cause a movement along the supply curve to a (higher price, higher quantity)point. 
D) cause a movement along the supply curve to a (lower price, lower quantity)point.

Question 18

The underlying reason for the upward sloping nature of the supply curve is that

Accepted Answer

A) the production of most goods comes with increasing marginal benefits. 
B) the production of most goods comes with increasing marginal costs. 
C) the consumption of most goods comes with decreasing marginal utility. 
D) the consumption of most goods comes with increasing marginal utility. 
A) the production of most goods comes with increasing marginal benefits. 
B) the production of most goods comes with increasing marginal costs. 
C) the consumption of most goods comes with decreasing marginal utility. 
D) the consumption of most goods comes with increasing marginal utility.

Question 19

Which of the following is the best example of the concept of "complement"?

Accepted Answer

A) SUV's 
B) Coke and Pepsi 
C) Ramen noodles 
D) Hot dogs and hot dog buns 
A) SUV's 
B) Coke and Pepsi 
C) Ramen noodles 
D) Hot dogs and hot dog buns

Question 20

Which of the following goods are likely to be considered complements?

Accepted Answer

A) Right and left shoes 
B) Coke and Pepsi 
C) Peanut butter and jelly 
D) a and c 
A) Right and left shoes 
B) Coke and Pepsi 
C) Peanut butter and jelly 
D) a and c

Exam 2: Supply and Demand

The increase in the price of a good that is used as an input for a second good, would (for the second good)

-From Table 2.1, and under the most likely scenario where columns A and B are assigned to represent quantity demanded and quantity supplied, which is the equilibrium price?

-Of the collection of supply and demand diagrams in Figure 2.2 which one(s)show the result of an increase in the expected future price?

-From Table 2.3, at the price of $5 there is a

The quintessential example of an inferior good would be

If goods A and B are considered complements, a decrease in the price of A would cause

The group of people who are willing to offer money in exchange for goods and services are called

The quintessential example of a normal good would be

Which of the following is the best example of the concept of "normal"?

If the price of a good is expected to rise in the future its

If demand decreases and the price doesn't change, there will be a

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in income if a good is considered inferior?

Which of the following is the best example of the concept of "another potential output"?

Economists argue that markets serve the interests of society primarily because

If the price of a typical good falls, the quantity supplied for that good will

-Of the collection of supply and demand diagrams in Figure 2.2 which one shows the result of an increase in technology in the market for anything?

The decrease in technology used to produce a good would

The underlying reason for the upward sloping nature of the supply curve is that

Which of the following is the best example of the concept of "complement"?

Which of the following goods are likely to be considered complements?

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Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

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Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

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Economic Growth and Development

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Antitrust

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