Question 1

-How will the imposition of a sales tax shift the supply curve?

Accepted Answer

A) The supply curve will shift to the left. 
B) The supply curve will shift to the right. 
C) The supply curve might shift to the right or to the left depending on whether the tax was a flat rate tax or a percentage tax. 
D) Imposing a sales tax will have no effect on the supply curve. 
A) The supply curve will shift to the left. 
B) The supply curve will shift to the right. 
C) The supply curve might shift to the right or to the left depending on whether the tax was a flat rate tax or a percentage tax. 
D) Imposing a sales tax will have no effect on the supply curve. A

Question 2

-Refer to the graph above to answer this question.What must be true if the quantity currently being purchased is 25?

Accepted Answer

A) There is a price ceiling of $3. 
B) There is a price floor of $3. 
C) Equilibrium price is $3. 
D) Consumers would like to buy 10 more units at a price of $3. 
A) There is a price ceiling of $3. 
B) There is a price floor of $3. 
C) Equilibrium price is $3. 
D) Consumers would like to buy 10 more units at a price of $3. A

Question 3

Assume a normal good.An increase in income and a decrease in the price of a substitute will increase demand.True,false or uncertain.Explain.

Accepted Answer

Uncertain.An increase in income will increase demand,but a decrease in the price of a substitute good will decrease demand,thus the net effect on demand is ambiguous.

Question 4

-Refer to the graph above to answer this question.Suppose that the government imposes a price floor of $120 and subsequently demand increases by 200.What would be the result?

Accepted Answer

A) Price would increase to $140. 
B) There would be a surplus of 200 units. 
C) There would be a shortage of 100 units. 
D) There would be a shortage of 200 units. 
E) The product would be underpriced. 
A) Price would increase to $140. 
B) There would be a surplus of 200 units. 
C) There would be a shortage of 100 units. 
D) There would be a shortage of 200 units. 
E) The product would be underpriced.

Question 5

-Refer to the above graph to answer this question.If the demand were to decrease by 200 units and the supply were to increase by 100 units,what would be the resulting equilibrium price and quantity?

Accepted Answer

A) $50 and 600. 
B) $55 and 425. 
C) $60 and 500. 
D) $70 and 400. 
E) $70 and 500. 
A) $50 and 600. 
B) $55 and 425. 
C) $60 and 500. 
D) $70 and 400. 
E) $70 and 500.

Question 6

-Refer to the graph above to answer this question.Suppose that the government imposes a price ceiling of $80 and subsequently demand decreases by 100.What would be the result?

Accepted Answer

A) Price would fall to $60. 
B) There would be a surplus of 100 units. 
C) There would be a shortage of 100 units. 
D) There would be neither a surplus nor a shortage. 
E) 250 units would be sold. 
A) Price would fall to $60. 
B) There would be a surplus of 100 units. 
C) There would be a shortage of 100 units. 
D) There would be neither a surplus nor a shortage. 
E) 250 units would be sold.

Question 7

-Refer to Figure 3.15 to answer this question.What would be the result if an effective price floor is set that is $2 different from the equilibrium price?

Accepted Answer

A) The price would be above equilibrium,and a surplus of 60 would be produced. 
B) The price would be below equilibrium,and a shortage of 60 would be produced. 
C) The price would be above equilibrium,and a shortage of 60 would be produced. 
D) The price would be below equilibrium,and a surplus of 60 would be produced. 
A) The price would be above equilibrium,and a surplus of 60 would be produced. 
B) The price would be below equilibrium,and a shortage of 60 would be produced. 
C) The price would be above equilibrium,and a shortage of 60 would be produced. 
D) The price would be below equilibrium,and a surplus of 60 would be produced.

Question 8

-What is the effect of the imposition of a sales tax?

Accepted Answer

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

Question 9

A minimum wage an example of ______.

Accepted Answer

A) an illegal market. 
B) a price ceiling. 
C) rationing. 
D) a price floor. 
A) an illegal market. 
B) a price ceiling. 
C) rationing. 
D) a price floor.

Question 10

The following graph shows the demand and supply for i-Pods.

Accepted Answer

@#IMG-DLM& 
a)What is equilibrium price and quanti

Question 11

Table 3.2 describes the market for day-care workers in the city of Vishna (quantity of workers in hundreds).
  
-Refer to Table 3.2 to answer this question.Suppose that after the imposition of a minimum wage of $6.50,a number of new day-care centres opened up,increasing the demand for workers by 400.In what way would this market be affected?

Accepted Answer

A) The wage would increase to $7,and there would be no unemployment. 
B) The wage would remain at $6.50,but there would now be no unemployment. 
C) The wage would remain at $6.50,and there would now be 200 unemployed day-care workers. 
D) The wage would remain at $6.50,and there would now be 200 job vacancies. 
E) The wage would drop to $5,and there would be no unemployment. 
A) The wage would increase to $7,and there would be no unemployment. 
B) The wage would remain at $6.50,but there would now be no unemployment. 
C) The wage would remain at $6.50,and there would now be 200 unemployed day-care workers. 
D) The wage would remain at $6.50,and there would now be 200 job vacancies. 
E) The wage would drop to $5,and there would be no unemployment.

Question 12

-Refer to the above graph to answer this question.What is true about the possible surpluses and shortages in this market if the price is $1,000 below equilibrium?

Accepted Answer

A) There will be a shortage of 20. 
B) There will be a shortage of 40. 
C) There will be a surplus of 20. 
D) There will be a surplus of 40. 
E) Cannot be determined. 
A) There will be a shortage of 20. 
B) There will be a shortage of 40. 
C) There will be a surplus of 20. 
D) There will be a surplus of 40. 
E) Cannot be determined.

Question 13

All of the following,except one,are examples of price ceilings.Which is the exception?

Accepted Answer

A) Minimum-wage legislation. 
B) Rent controls. 
C) Wartime price controls on the price of consumer necessities. 
D) A freeze on credit card interest rates. 
A) Minimum-wage legislation. 
B) Rent controls. 
C) Wartime price controls on the price of consumer necessities. 
D) A freeze on credit card interest rates.

Question 14

What is 'producers' preference'?

Accepted Answer

It is an allocation system where the sel

Question 15

-Refer to the above graph to answer this question.If the demand were to increase by 500 units and the supply were to increase by 200 units,what would be the resulting equilibrium price and quantity?

Accepted Answer

A) $60 and 1,300. 
B) $70 and 900. 
C) $70 and 1,300. 
D) $80 and 900. 
E) $70 and 1,000. 
A) $60 and 1,300. 
B) $70 and 900. 
C) $70 and 1,300. 
D) $80 and 900. 
E) $70 and 1,000.

Question 16

All of the following,except one,describes a minimum wage.Which is the exception?

Accepted Answer

A) A government regulation stipulating the minimum price must be paid to the factor labour. 
B) A government regulation stipulating the lowest rate of pay per hour for workers. 
C) A type of price floor. 
D) A type of price ceiling. 
A) A government regulation stipulating the minimum price must be paid to the factor labour. 
B) A government regulation stipulating the lowest rate of pay per hour for workers. 
C) A type of price floor. 
D) A type of price ceiling.

Question 17

If the increase in the supply of a product is greater than the increase in the demand,what will be the immediate result?

Accepted Answer

A) A surplus. 
B) A shortage. 
C) The price will increase. 
D) Cannot be determined. 
A) A surplus. 
B) A shortage. 
C) The price will increase. 
D) Cannot be determined.

Question 18

-Use a graph to illustrate what has happened to the price and quantity traded of personal computers now compared to 10 years ago.

Accepted Answer

See the following figure: @#IMG-DLM& As the graph

Question 19

-Refer to the graph above to answer this question.What would be the effect of a price ceiling set $20 below the equilibrium price?

Accepted Answer

A) A surplus of 100 units. 
B) A shortage of 100 units. 
C) 300 units would be sold. 
D) There would be neither a surplus nor a shortage. 
E) The product would be overpriced. 
A) A surplus of 100 units. 
B) A shortage of 100 units. 
C) 300 units would be sold. 
D) There would be neither a surplus nor a shortage. 
E) The product would be overpriced.

Question 20

What is dumping?

Accepted Answer

The sale of a product abroad f

-How will the imposition of a sales tax shift the supply curve?

-Refer to the graph above to answer this question.What must be true if the quantity currently being purchased is 25?

Assume a normal good.An increase in income and a decrease in the price of a substitute will increase demand.True,false or uncertain.Explain.

-Refer to the graph above to answer this question.Suppose that the government imposes a price floor of $120 and subsequently demand increases by 200.What would be the result?

-Refer to the above graph to answer this question.If the demand were to decrease by 200 units and the supply were to increase by 100 units,what would be the resulting equilibrium price and quantity?

-Refer to the graph above to answer this question.Suppose that the government imposes a price ceiling of $80 and subsequently demand decreases by 100.What would be the result?

-Refer to Figure 3.15 to answer this question.What would be the result if an effective price floor is set that is $2 different from the equilibrium price?

-What is the effect of the imposition of a sales tax?

A minimum wage an example of ______.

The following graph shows the demand and supply for i-Pods.

-Refer to the above graph to answer this question.What is true about the possible surpluses and shortages in this market if the price is $1,000 below equilibrium?

All of the following,except one,are examples of price ceilings.Which is the exception?

What is 'producers' preference'?

-Refer to the above graph to answer this question.If the demand were to increase by 500 units and the supply were to increase by 200 units,what would be the resulting equilibrium price and quantity?

All of the following,except one,describes a minimum wage.Which is the exception?

If the increase in the supply of a product is greater than the increase in the demand,what will be the immediate result?

-Use a graph to illustrate what has happened to the price and quantity traded of personal computers now compared to 10 years ago.

-Refer to the graph above to answer this question.What would be the effect of a price ceiling set $20 below the equilibrium price?

What is dumping?

The Economic Problem

Demand and Supply: An Introduction

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 3: Demand and Supply: An Elaboration

-How will the imposition of a sales tax shift the supply curve?

-Refer to the graph above to answer this question.What must be true if the quantity currently being purchased is 25?

Assume a normal good.An increase in income and a decrease in the price of a substitute will increase demand.True,false or uncertain.Explain.

-Refer to the graph above to answer this question.Suppose that the government imposes a price floor of $120 and subsequently demand increases by 200.What would be the result?

-Refer to the above graph to answer this question.If the demand were to decrease by 200 units and the supply were to increase by 100 units,what would be the resulting equilibrium price and quantity?

-Refer to the graph above to answer this question.Suppose that the government imposes a price ceiling of $80 and subsequently demand decreases by 100.What would be the result?

-Refer to Figure 3.15 to answer this question.What would be the result if an effective price floor is set that is $2 different from the equilibrium price?

-What is the effect of the imposition of a sales tax?

A minimum wage an example of ______.

The following graph shows the demand and supply for i-Pods.

-Refer to the above graph to answer this question.What is true about the possible surpluses and shortages in this market if the price is $1,000 below equilibrium?

All of the following,except one,are examples of price ceilings.Which is the exception?

What is 'producers' preference'?

-Refer to the above graph to answer this question.If the demand were to increase by 500 units and the supply were to increase by 200 units,what would be the resulting equilibrium price and quantity?

All of the following,except one,describes a minimum wage.Which is the exception?

If the increase in the supply of a product is greater than the increase in the demand,what will be the immediate result?

-Use a graph to illustrate what has happened to the price and quantity traded of personal computers now compared to 10 years ago.

-Refer to the graph above to answer this question.What would be the effect of a price ceiling set $20 below the equilibrium price?

What is dumping?

The Economic Problem

Demand and Supply: An Introduction

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters