Question 1

Which of the following will cause a leftward shift of the supply curve for houses?

Accepted Answer

A)  A decrease in consumer incomes. 
B)  An improvement in the technology used to build houses. 
C)  Consumer expectations that the price of houses will increase next year. 
D)  An increase in the cost of construction materials. 
A)  A decrease in consumer incomes. 
B)  An improvement in the technology used to build houses. 
C)  Consumer expectations that the price of houses will increase next year. 
D)  An increase in the cost of construction materials. D

Question 2

Which of the following would not cause the market supply of cell phones to change?

Accepted Answer

A)  Telecommunications are deregulated,and anyone can produce and sell cell phones. 
B)  A cheaper technology for producing cell phones is developed. 
C)  A reduction in the demand for cell phones causes the price to fall. 
D)  Taxes levied on cell phone production are reduceD. 
A)  Telecommunications are deregulated,and anyone can produce and sell cell phones. 
B)  A cheaper technology for producing cell phones is developed. 
C)  A reduction in the demand for cell phones causes the price to fall. 
D)  Taxes levied on cell phone production are reduceD. C

Question 3

A market shortage is:

Accepted Answer

A)  Equal to the quantity supplied. 
B)  Caused by a price ceiling. 
C)  Caused by scarce resources. 
D)  Caused by a price floor. 
A)  Equal to the quantity supplied. 
B)  Caused by a price ceiling. 
C)  Caused by scarce resources. 
D)  Caused by a price floor. B

Question 4

Which of the following is a constraint that motivates economic interactions?

Accepted Answer

A)  The outsourcing of jobs. 
B)  The limited resources that individuals have. 
C)  The limited profit margin for individuals. 
D)  The inability of individuals to take on risk. 
A)  The outsourcing of jobs. 
B)  The limited resources that individuals have. 
C)  The limited profit margin for individuals. 
D)  The inability of individuals to take on risk.

Question 5

Figure 3.4:  
-Which panel of Figure 3.4 represents the changes in the market for parking spaces when the student population increases on a college campus and one parking lot has been destroyed to build a new building?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
A)  A 
B)  B 
C)  C 
D)  D

Question 6

A market exists for the sale and purchase of:

Accepted Answer

A)  Computer services but not nuclear warheads. 
B)  Nuclear warheads but not illegal drugs. 
C)  Illegal drugs but not medical services. 
D)  Illegal drugs,computer services,and nuclear warheads. 
A)  Computer services but not nuclear warheads. 
B)  Nuclear warheads but not illegal drugs. 
C)  Illegal drugs but not medical services. 
D)  Illegal drugs,computer services,and nuclear warheads.

Question 7

If demand is constant,a leftward shift in the supply curve will result in:

Accepted Answer

A)  A decrease in equilibrium quantity and a lower equilibrium price. 
B)  An increase in equilibrium quantity and a lower equilibrium price. 
C)  A decrease in equilibrium quantity and a higher equilibrium price. 
D)  An increase in equilibrium quantity and a higher equilibrium price. 
A)  A decrease in equilibrium quantity and a lower equilibrium price. 
B)  An increase in equilibrium quantity and a lower equilibrium price. 
C)  A decrease in equilibrium quantity and a higher equilibrium price. 
D)  An increase in equilibrium quantity and a higher equilibrium price.

Question 8

One HEADLINE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.What will happen to the equilibrium quantity of used cars if the supply decreases?

Accepted Answer

A)  Increase. 
B)  Decrease. 
C)  Remain unchanged. 
D)  Either increase or decrease based on the slope of the supply curve. 
A)  Increase. 
B)  Decrease. 
C)  Remain unchanged. 
D)  Either increase or decrease based on the slope of the supply curve.

Question 9

A decrease in price leads to a decrease in quantity supplied.

Accepted Answer

A) True 
 B)False

Question 10

If supply is unchanged,a rightward shift in the demand curve for gourmet ice cream will result in:

Accepted Answer

A)  A decrease in equilibrium quantity and a higher equilibrium price. 
B)  An increase in equilibrium quantity and a higher equilibrium price. 
C)  A decrease in equilibrium quantity and a lower equilibrium price. 
D)  An increase in equilibrium quantity and a lower equilibrium price. 
A)  A decrease in equilibrium quantity and a higher equilibrium price. 
B)  An increase in equilibrium quantity and a higher equilibrium price. 
C)  A decrease in equilibrium quantity and a lower equilibrium price. 
D)  An increase in equilibrium quantity and a lower equilibrium price.

Question 11

The market demand for a particular good indicates:

Accepted Answer

A)  That consumers will purchase more of the good at higher prices,ceteris paribus. 
B)  That sellers will offer more of the good only at higher prices,ceteris paribus. 
C)  The total quantities buyers are willing and able to purchase at alternative prices,ceteris paribus. 
D)  How much of the good is actually purchased in a given period of time. 
A)  That consumers will purchase more of the good at higher prices,ceteris paribus. 
B)  That sellers will offer more of the good only at higher prices,ceteris paribus. 
C)  The total quantities buyers are willing and able to purchase at alternative prices,ceteris paribus. 
D)  How much of the good is actually purchased in a given period of time.

Question 12

Figure 3.1
Answer the indicated question(s)by selecting the letter of the following diagrams showing supply and demand shifts that best represent the effect of each event on the relevant market,ceteris paribus.  
-Refer to Figure 3.1.Consider the market for DVD players.People prefer watching movies on DVDs at home instead of going to the movie theater.

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
A)  A 
B)  B 
C)  C 
D)  D

Question 13

Which of the following participates in the product market?

Accepted Answer

A)  Consumers only. 
B)  Consumers,governments and foreigners. 
C)  Governments and consumers only. 
D)  Foreigners only. 
A)  Consumers only. 
B)  Consumers,governments and foreigners. 
C)  Governments and consumers only. 
D)  Foreigners only.

Question 14

If supply is constant,a decrease in the demand for potato chips will cause:

Accepted Answer

A)  A decrease in equilibrium price and a decrease in equilibrium quantity. 
B)  An increase in equilibrium price and an increase in equilibrium quantity. 
C)  A decrease in equilibrium price and an increase in equilibrium quantity. 
D)  An increase in equilibrium price and a decrease in equilibrium quantity. 
A)  A decrease in equilibrium price and a decrease in equilibrium quantity. 
B)  An increase in equilibrium price and an increase in equilibrium quantity. 
C)  A decrease in equilibrium price and an increase in equilibrium quantity. 
D)  An increase in equilibrium price and a decrease in equilibrium quantity.

Question 15

One NEWSWIRE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.This is an example of:

Accepted Answer

A)  An increase in supply. 
B)  A decrease in supply. 
C)  An increase in demand. 
D)  A decrease in demanD. 
A)  An increase in supply. 
B)  A decrease in supply. 
C)  An increase in demand. 
D)  A decrease in demanD.

Question 16

Market participants include:

Accepted Answer

A)  Business firms and consumers but not foreigners. 
B)  Consumers only. 
C)  Consumers,business firms,governments and foreigners. 
D)  Foreigners but not business firms. 
A)  Business firms and consumers but not foreigners. 
B)  Consumers only. 
C)  Consumers,business firms,governments and foreigners. 
D)  Foreigners but not business firms.

Question 17

In a market,the equilibrium price is determined by:

Accepted Answer

A)  Only what buyers are willing and able to purchase. 
B)  Only what sellers are willing and able to offer for sale. 
C)  The interaction of both demand and supply. 
D)  The government. 
A)  Only what buyers are willing and able to purchase. 
B)  Only what sellers are willing and able to offer for sale. 
C)  The interaction of both demand and supply. 
D)  The government.

Question 18

Consumers _______ factors of production in the _______ market.

Accepted Answer

A)  Sell;product 
B)  Sell;factor 
C)  Buy;product 
D)  Buy;factor 
A)  Sell;product 
B)  Sell;factor 
C)  Buy;product 
D)  Buy;factor

Question 19

In a market economy prices are determined by the interactions of buyers and sellers,this is referred to as the market mechanism.

Accepted Answer

A) True 
 B)False

Question 20

Barter is the direct exchange of one good for another.

Accepted Answer

A) True 
 B)False

Which of the following will cause a leftward shift of the supply curve for houses?

Which of the following would not cause the market supply of cell phones to change?

A market shortage is:

Which of the following is a constraint that motivates economic interactions?

Figure 3.4: -Which panel of Figure 3.4 represents the changes in the market for parking spaces when the student population increases on a college campus and one parking lot has been destroyed to build a new building?

A market exists for the sale and purchase of:

If demand is constant,a leftward shift in the supply curve will result in:

One HEADLINE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.What will happen to the equilibrium quantity of used cars if the supply decreases?

A decrease in price leads to a decrease in quantity supplied.

If supply is unchanged,a rightward shift in the demand curve for gourmet ice cream will result in:

The market demand for a particular good indicates:

Which of the following participates in the product market?

If supply is constant,a decrease in the demand for potato chips will cause:

One NEWSWIRE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.This is an example of:

Market participants include:

In a market,the equilibrium price is determined by:

Consumers _ factors of production in the _ market.

In a market economy prices are determined by the interactions of buyers and sellers,this is referred to as the market mechanism.

Barter is the direct exchange of one good for another.

The Challenge of Economics

The US Economy

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Exam 3: Supply and Demand

Which of the following will cause a leftward shift of the supply curve for houses?

Which of the following would not cause the market supply of cell phones to change?

A market shortage is:

Which of the following is a constraint that motivates economic interactions?

Figure 3.4: -Which panel of Figure 3.4 represents the changes in the market for parking spaces when the student population increases on a college campus and one parking lot has been destroyed to build a new building?

A market exists for the sale and purchase of:

If demand is constant,a leftward shift in the supply curve will result in:

One HEADLINE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.What will happen to the equilibrium quantity of used cars if the supply decreases?

A decrease in price leads to a decrease in quantity supplied.

If supply is unchanged,a rightward shift in the demand curve for gourmet ice cream will result in:

The market demand for a particular good indicates:

Which of the following participates in the product market?

If supply is constant,a decrease in the demand for potato chips will cause:

One NEWSWIRE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.This is an example of:

Market participants include:

In a market,the equilibrium price is determined by:

Consumers _______ factors of production in the _______ market.

In a market economy prices are determined by the interactions of buyers and sellers,this is referred to as the market mechanism.

Barter is the direct exchange of one good for another.

The Challenge of Economics

The US Economy

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Consumers _ factors of production in the _ market.