Question 1

For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:

Accepted Answer

A)  inferior goods. 
B)  direct goods. 
C)  normal goods. 
D)  luxury goods. 
A)  inferior goods. 
B)  direct goods. 
C)  normal goods. 
D)  luxury goods.

Question 2

The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:

Accepted Answer

A)  supply. 
B)  demand. 
C)  scarcity. 
D)  increasing opportunity costs. 
A)  supply. 
B)  demand. 
C)  scarcity. 
D)  increasing opportunity costs.

Question 3

Use the following to answer question(s): The Supply of Music Downloads
  
-(Exhibit: The Supply of Music Downloads) A decrease in the fee charged for music downloads would result in a change illustrated by the move from:

Accepted Answer

A)  n to o in Figure (a). 
B)  p to q in Figure (b). 
C)  s to t in Figure (c). 
D)  u to v in Figure (d). 
A)  n to o in Figure (a). 
B)  p to q in Figure (b). 
C)  s to t in Figure (c). 
D)  u to v in Figure (d).

Question 4

A decrease in the price of eggs, all other things unchanged, will result in a(n):

Accepted Answer

A)  increase in the demand for eggs. 
B)  increase in the supply of eggs. 
C)  greater quantity of eggs supplied. 
D)  greater quantity of eggs demanded. 
A)  increase in the demand for eggs. 
B)  increase in the supply of eggs. 
C)  greater quantity of eggs supplied. 
D)  greater quantity of eggs demanded.

Question 5

A curve that shows the relationship between the price and quantity supplied during a particular period, all other things unchanged, is the:

Accepted Answer

A)  price curve. 
B)  supply curve. 
C)  quantity function. 
D)  production possibilities curve. 
A)  price curve. 
B)  supply curve. 
C)  quantity function. 
D)  production possibilities curve.

Question 6

Use the following to answer question(s): The Demand for Music Downloads
  
-(Exhibit: The Demand for music downloads) A decrease in the fee charged for music downloads would result in a change illustrated by:

Accepted Answer

A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d). 
A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d).

Question 7

Factor prices, returns from alternative activities, technology, number of firms, producer expectations, and natural events are often termed:

Accepted Answer

A)  demand determinants. 
B)  demand quantities. 
C)  supply prices. 
D)  supply shifters. 
A)  demand determinants. 
B)  demand quantities. 
C)  supply prices. 
D)  supply shifters.

Question 8

A shortage results from a current price being below the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 9

Use the following to answer question(s): Simultaneous Shifts in Demand and Supply
  
-(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves.In this market for a normal good:

Accepted Answer

A)  supply has increased and price has increased. 
B)  demand has increased and price has increased. 
C)  demand has decreased and price has fallen. 
D)  demand has increased and price has fallen. 
A)  supply has increased and price has increased. 
B)  demand has increased and price has increased. 
C)  demand has decreased and price has fallen. 
D)  demand has increased and price has fallen.

Question 10

Use the following to answer question(s): Demand and Supply Schedules for a Good
  
-(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

Accepted Answer

A)  $2.00; 100 
B)  $3.00; 140 
C)  $3.50; 175 
D)  $4.00; 160 
A)  $2.00; 100 
B)  $3.00; 140 
C)  $3.50; 175 
D)  $4.00; 160

Question 11

Use the following to answer question(s): The Demand for Chocolate-Covered Peanuts
Quantity Demanded
(bags per month)
  
-(Exhibit: The Demand for Chocolate-Covered Peanuts) If Barbara is only able to purchase 20 bags of chocolate-covered peanuts, the maximum price she is willing and able to pay for each bag is ________ cents.

Accepted Answer

A)  90 
B)  80 
C)  70 
D)  60 
A)  90 
B)  80 
C)  70 
D)  60

Question 12

If the current price is above the equilibrium price, we would expect:

Accepted Answer

A)  quantity demanded to exceed quantity supplied. 
B)  upward pressure on price. 
C)  quantity supplied to exceed quantity demanded. 
D)  no change in the market price. 
A)  quantity demanded to exceed quantity supplied. 
B)  upward pressure on price. 
C)  quantity supplied to exceed quantity demanded. 
D)  no change in the market price.

Question 13

The same factors that lead to a change in quantity demanded also cause a change in demand.

Accepted Answer

A) True 
 B)False

Question 14

The Case in Point on campus parking suggested that giving students lower fares for taking public transportation was what kind of factor in the demand for parking spaces?

Accepted Answer

A)  supply shifter 
B)  demand shifter 
C)  false prophet 
D)  spoiler 
A)  supply shifter 
B)  demand shifter 
C)  false prophet 
D)  spoiler

Question 15

Use the following to answer question(s): Demand and Supply Curves
  
-(Exhibit: Demand and Supply Curves) A price of $10 per unit will result in:

Accepted Answer

A)  a shortage of 50 units. 
B)  a shortage of 200 units. 
C)  a shortage of 250 units. 
D)  quantity supplied exceeding quantity demanded. 
A)  a shortage of 50 units. 
B)  a shortage of 200 units. 
C)  a shortage of 250 units. 
D)  quantity supplied exceeding quantity demanded.

Question 16

A competitive market with flexible prices and many buyers and sellers will:

Accepted Answer

A)  tend to create surpluses. 
B)  tend to create shortages. 
C)  reach an equilibrium where the market clears. 
D)  reach and equilibrium only if a government agency sets the price. 
A)  tend to create surpluses. 
B)  tend to create shortages. 
C)  reach an equilibrium where the market clears. 
D)  reach and equilibrium only if a government agency sets the price.

Question 17

A market is a set of arrangements where:

Accepted Answer

A)  buyers and sellers can get together and buy and sell. 
B)  buyers compete with sellers. 
C)  sellers compete with buyers. 
D)  A and C are true, but B is not true. 
A)  buyers and sellers can get together and buy and sell. 
B)  buyers compete with sellers. 
C)  sellers compete with buyers. 
D)  A and C are true, but B is not true.

Question 18

Use the following to answer question(s): Demand and Supply of Wheat
  
-(Exhibit: Demand and Supply of Wheat) A temporary price of $2 in this market would result in:

Accepted Answer

A)  a surplus of 8,000 bushels. 
B)  a shortage of 8,000 bushels. 
C)  a shortage of 10,000 bushels. 
D)  a surplus of 10,000 bushels. 
A)  a surplus of 8,000 bushels. 
B)  a shortage of 8,000 bushels. 
C)  a shortage of 10,000 bushels. 
D)  a surplus of 10,000 bushels.

Question 19

Differentiate between a change in supply and a change in quantity supplied.

Accepted Answer

A change in supply and a change in quant

Question 20

A decrease in the price of milk (and ingredient of ice cream) will result in a(n):

Accepted Answer

A)  shift of the supply curve of ice cream to the left. 
B)  shift of the supply curve of ice cream to the right. 
C)  lower price of ice cream, and thus an increase in the demand for ice cream. 
D)  increase in the demand for ice cream and a decrease in the supply of milk. 
A)  shift of the supply curve of ice cream to the left. 
B)  shift of the supply curve of ice cream to the right. 
C)  lower price of ice cream, and thus an increase in the demand for ice cream. 
D)  increase in the demand for ice cream and a decrease in the supply of milk.

For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:

The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:

Use the following to answer question(s): The Supply of Music Downloads -(Exhibit: The Supply of Music Downloads) A decrease in the fee charged for music downloads would result in a change illustrated by the move from:

A decrease in the price of eggs, all other things unchanged, will result in a(n):

A curve that shows the relationship between the price and quantity supplied during a particular period, all other things unchanged, is the:

Use the following to answer question(s): The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the fee charged for music downloads would result in a change illustrated by:

Factor prices, returns from alternative activities, technology, number of firms, producer expectations, and natural events are often termed:

A shortage results from a current price being below the equilibrium price.

Use the following to answer question(s): Simultaneous Shifts in Demand and Supply -(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves.In this market for a normal good:

Use the following to answer question(s): Demand and Supply Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be and units, respectively.

If the current price is above the equilibrium price, we would expect:

The same factors that lead to a change in quantity demanded also cause a change in demand.

The Case in Point on campus parking suggested that giving students lower fares for taking public transportation was what kind of factor in the demand for parking spaces?

Use the following to answer question(s): Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A price of $10 per unit will result in:

A competitive market with flexible prices and many buyers and sellers will:

A market is a set of arrangements where:

Use the following to answer question(s): Demand and Supply of Wheat -(Exhibit: Demand and Supply of Wheat) A temporary price of $2 in this market would result in:

Differentiate between a change in supply and a change in quantity supplied.

A decrease in the price of milk (and ingredient of ice cream) will result in a(n):

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 3: Demand and Supply

For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:

The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:

Use the following to answer question(s): The Supply of Music Downloads -(Exhibit: The Supply of Music Downloads) A decrease in the fee charged for music downloads would result in a change illustrated by the move from:

A decrease in the price of eggs, all other things unchanged, will result in a(n):

A curve that shows the relationship between the price and quantity supplied during a particular period, all other things unchanged, is the:

Use the following to answer question(s): The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the fee charged for music downloads would result in a change illustrated by:

Factor prices, returns from alternative activities, technology, number of firms, producer expectations, and natural events are often termed:

A shortage results from a current price being below the equilibrium price.

Use the following to answer question(s): Simultaneous Shifts in Demand and Supply -(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves.In this market for a normal good:

Use the following to answer question(s): Demand and Supply Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

If the current price is above the equilibrium price, we would expect:

The same factors that lead to a change in quantity demanded also cause a change in demand.

The Case in Point on campus parking suggested that giving students lower fares for taking public transportation was what kind of factor in the demand for parking spaces?

Use the following to answer question(s): Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A price of $10 per unit will result in:

A competitive market with flexible prices and many buyers and sellers will:

A market is a set of arrangements where:

Use the following to answer question(s): Demand and Supply of Wheat -(Exhibit: Demand and Supply of Wheat) A temporary price of $2 in this market would result in:

Differentiate between a change in supply and a change in quantity supplied.

A decrease in the price of milk (and ingredient of ice cream) will result in a(n):

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Use the following to answer question(s): Demand and Supply Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be and units, respectively.