Question 1

An increase in the income of consumers will cause the

Accepted Answer

A) supply of all goods to rise. 
B) demand for all goods to rise. 
C) supply of all goods to fall. 
D) the demand for some goods to rise and for others to fall. 
A) supply of all goods to rise. 
B) demand for all goods to rise. 
C) supply of all goods to fall. 
D) the demand for some goods to rise and for others to fall.

Question 2

-From Table 2.2, which column is the one for surplus?

Accepted Answer

A) column A 
B) neither A nor B 
C) column B 
D) either A or B are equally likely 
A) column A 
B) neither A nor B 
C) column B 
D) either A or B are equally likely

Question 3

-Of the collection of supply and demand diagrams in Figure 2.2 which one shows the result of a decrease 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 4

Improvements in technology tend to

Accepted Answer

A) increase supply. 
B) lower the cost of producing a given output. 
C) increase the output produced for a given cost. 
D) all of the above. 
A) increase supply. 
B) lower the cost of producing a given output. 
C) increase the output produced for a given cost. 
D) all of the above.

Question 5

-From Table 2.3, at the price of $3 there is a

Accepted Answer

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

Question 6

If you heard overheard a farmer discussing his planting plans for the upcoming season and he said "The price of corn has gone way up. I know I'll have to put some money into fertilizer on that field on the hill that's been idle all these years, but it will be worth it this year." This would be consistent with which justification for an upward sloping supply curve

Accepted Answer

A) increasing marginal cost. 
B) the need for higher prices in one good to motivate a shift in production from another. 
C) the real-balance effect. 
D) diminishing marginal utility. 
A) increasing marginal cost. 
B) the need for higher prices in one good to motivate a shift in production from another. 
C) the real-balance effect. 
D) diminishing marginal utility.

Question 7

If two goods are considered complements and the price of one increases, the other good's

Accepted Answer

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

Question 8

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in the population of the group of people likely to buy a good?

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 9

If the price of inputs decreases, the

Accepted Answer

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

Question 10

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in the population of the group of people likely to buy a good?

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 11

The notion that the second unit of a good consumed improves the happiness of the consumer by less than the first unit improved the happiness of the consumer is summarized as

Accepted Answer

A) the substitution effect. 
B) the real-balances effect. 
C) diminishing marginal utility. 
A) the substitution effect. 
B) the real-balances effect. 
C) diminishing marginal utility.

Question 12

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in the price of a substitute for a good?

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

If the supply and demand curves cross at a price of $2, at any price above that there will be

Accepted Answer

A) an equilibrium. 
B) a surplus. 
C) a shortage. 
D) a crisis. 
A) an equilibrium. 
B) a surplus. 
C) a shortage. 
D) a crisis.

Question 14

The increase in the price of 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 15

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

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

When an economics students draws a supply and demand diagram to model an increase in the income, she is assuming this change happens

Accepted Answer

A) semper fidelis. 
B) ceteris paribus. 
C) ipso facto. 
D) de facto. 
A) semper fidelis. 
B) ceteris paribus. 
C) ipso facto. 
D) de facto.

Question 18

The condition where firms want to sell more than consumers want to buy is called

Accepted Answer

A) a shortage. 
B) a surplus. 
C) an equilibrium. 
D) a market collapse. 
A) a shortage. 
B) a surplus. 
C) an equilibrium. 
D) a market collapse.

Question 19

The Latin phrase "ceteris paribus" is used by economists to mean

Accepted Answer

A) "all other things being equal" or "all other things held constant". 
B) all is lost. 
C) freedom is better than regulation. 
D) the only constant is change. 
A) "all other things being equal" or "all other things held constant". 
B) all is lost. 
C) freedom is better than regulation. 
D) the only constant is change.

Question 20

-Of the collection of supply and demand diagrams in Figure 2.2, which one(s)could show the result of an increase in income?

Accepted Answer

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

Exam 2: Supply and Demand

An increase in the income of consumers will cause the

-From Table 2.2, which column is the one for surplus?

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

Improvements in technology tend to

-From Table 2.3, at the price of $3 there is a

If two goods are considered complements and the price of one increases, the other good's

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in the population of the group of people likely to buy a good?

If the price of inputs decreases, the

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in the population of the group of people likely to buy a good?

The notion that the second unit of a good consumed improves the happiness of the consumer by less than the first unit improved the happiness of the consumer is summarized as

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in the price of a substitute for a good?

If the supply and demand curves cross at a price of $2, at any price above that there will be

The increase in the price of a good would

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

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

When an economics students draws a supply and demand diagram to model an increase in the income, she is assuming this change happens

The condition where firms want to sell more than consumers want to buy is called

The Latin phrase "ceteris paribus" is used by economists to mean

-Of the collection of supply and demand diagrams in Figure 2.2, which one(s)could show the result of an increase in income?

Economics: the Study of Opportunity Cost

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

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

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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