Question 1

Ceteris paribus,which of the following will cause the demand for pizza to increase in a college town?

Accepted Answer

A)  A new pizza restaurant opens near campus. 
B)  A decrease in the costs associated with pizza production. 
C)  A decrease in the price of tacos. 
D)  An increase in the number of students who eat pizza. 
A)  A new pizza restaurant opens near campus. 
B)  A decrease in the costs associated with pizza production. 
C)  A decrease in the price of tacos. 
D)  An increase in the number of students who eat pizza.

Question 2

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 laptop computers.There is a decrease in the price of computer microchips.

Accepted Answer

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

Question 3

Table 3.2 - Demand and supply for trucks (millions of trucks per year)    
-In Table 3.2,if the worldwide price of trucks is $30,000,the truck market:

Accepted Answer

A)  Is in equilibrium. 
B)  Experiences a shortage of 170 million trucks per year. 
C)  Experiences a surplus of 100 million trucks per year. 
D)  Experiences a surplus of 160 million trucks per year. 
A)  Is in equilibrium. 
B)  Experiences a shortage of 170 million trucks per year. 
C)  Experiences a surplus of 100 million trucks per year. 
D)  Experiences a surplus of 160 million trucks per year.

Question 4

Rent controls are an example of:

Accepted Answer

A)  A price floor. 
B)  A price ceiling. 
C)  An externality. 
D)  Barter. 
A)  A price floor. 
B)  A price ceiling. 
C)  An externality. 
D)  Barter.

Question 5

Which of the following provides the best example of the law of supply?

Accepted Answer

A)  Falling labor costs cause an increase in supply. 
B)  Improved technology shifts the supply curve to the right. 
C)  Some producers leave the industry,and the supply curve shifts to the left. 
D)  An increase in price entices suppliers to produce more. 
A)  Falling labor costs cause an increase in supply. 
B)  Improved technology shifts the supply curve to the right. 
C)  Some producers leave the industry,and the supply curve shifts to the left. 
D)  An increase in price entices suppliers to produce more.

Question 6

Discuss the differences between the factor market and the product market.

Accepted Answer

In the factor market,factors of producti

Question 7

Land,labor,capital and entrepreneurship are bought and sold in the product market.

Accepted Answer

A) True 
 B)False

Question 8

When a price floor is established above the equilibrium price,the market will adjust by way of:

Accepted Answer

A)  A higher equilibrium quantity 
B)  A lower equilibrium quantity 
C)  A greater quantity demanded 
D)  A greater quantity supplied 
A)  A higher equilibrium quantity 
B)  A lower equilibrium quantity 
C)  A greater quantity demanded 
D)  A greater quantity supplied

Question 9

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 desktop computers.Consumers decide they like laptop computers better than desktops.

Accepted Answer

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

Question 10

A market surplus occurs when:

Accepted Answer

A)  People cannot buy the amount of goods and services that they are willing and able to buy. 
B)  The price is less than the equilibrium price. 
C)  The quantity supplied exceeds the quantity demanded at a given price. 
D)  There is a price ceiling. 
A)  People cannot buy the amount of goods and services that they are willing and able to buy. 
B)  The price is less than the equilibrium price. 
C)  The quantity supplied exceeds the quantity demanded at a given price. 
D)  There is a price ceiling.

Question 11

If a market shortage exists:

Accepted Answer

A)  The invisible hand will work to reduce the price. 
B)  The only solution is for the government to raise the price. 
C)  Producers will compete for customers by reducing prices. 
D)  Consumers will compete for the product by offering to pay more. 
A)  The invisible hand will work to reduce the price. 
B)  The only solution is for the government to raise the price. 
C)  Producers will compete for customers by reducing prices. 
D)  Consumers will compete for the product by offering to pay more.

Question 12

A market is said to be in equilibrium when:

Accepted Answer

A)  Demand is fully satisfied at all alternative prices. 
B)  The buying intentions of all consumers are realized. 
C)  The supply intentions of all sellers are realized. 
D)  The quantity demanded equals the quantity supplieD. 
A)  Demand is fully satisfied at all alternative prices. 
B)  The buying intentions of all consumers are realized. 
C)  The supply intentions of all sellers are realized. 
D)  The quantity demanded equals the quantity supplieD.

Question 13

Which of the following is a determinant of supply?

Accepted Answer

A)  Consumer tastes or preferences. 
B)  Consumer income. 
C)  Prices of the factors of production. 
D)  Number of buyers. 
A)  Consumer tastes or preferences. 
B)  Consumer income. 
C)  Prices of the factors of production. 
D)  Number of buyers.

Question 14

If a market surplus exists:

Accepted Answer

A)  The only resolution is for the government to set the price. 
B)  Consumers will compete for the product buy offering to pay more. 
C)  Producers will compete for customers by reducing prices. 
D)  The equilibrium price is equal to the price ceiling. 
A)  The only resolution is for the government to set the price. 
B)  Consumers will compete for the product buy offering to pay more. 
C)  Producers will compete for customers by reducing prices. 
D)  The equilibrium price is equal to the price ceiling.

Question 15

An increase in the supply of frozen yogurt will take place when:

Accepted Answer

A)  The price of frozen yogurt decreases. 
B)  The cost of producing frozen yogurt decreases. 
C)  The taxes on frozen yogurt increase. 
D)  Consumer incomes increase. 
A)  The price of frozen yogurt decreases. 
B)  The cost of producing frozen yogurt decreases. 
C)  The taxes on frozen yogurt increase. 
D)  Consumer incomes increase.

Question 16

Ceteris paribus,according to the law of supply,if the price of product Z increases from $6 to $8,then the:

Accepted Answer

A)  Quantity supplied will not be affected. 
B)  Supply curve for Z will shift to the left. 
C)  Quantity supplied of Z will increase. 
D)  Quantity supplied of Z will decrease. 
A)  Quantity supplied will not be affected. 
B)  Supply curve for Z will shift to the left. 
C)  Quantity supplied of Z will increase. 
D)  Quantity supplied of Z will decrease.

Question 17

Which of the following would cause a decrease in the price of automobiles?

Accepted Answer

A)  A technological advance in automobile manufacturing. 
B)  An increase in the wages paid to automobile assembly line workers. 
C)  A decrease in the cost of gasoline. 
D)  An increase in the number of buyers. 
A)  A technological advance in automobile manufacturing. 
B)  An increase in the wages paid to automobile assembly line workers. 
C)  A decrease in the cost of gasoline. 
D)  An increase in the number of buyers.

Question 18

Any place where factors of production are bought and sold is a:

Accepted Answer

A)  Private-goods market. 
B)  Stock market. 
C)  Product market. 
D)  Factor market. 
A)  Private-goods market. 
B)  Stock market. 
C)  Product market. 
D)  Factor market.

Question 19

A market:

Accepted Answer

A)  Is any place where goods are bought and sold. 
B)  Must have a physical location so buyers and sellers can meet. 
C)  Does not exist for the exchange of illegal goods and services. 
D)  Must be approved by the government before it can exist. 
A)  Is any place where goods are bought and sold. 
B)  Must have a physical location so buyers and sellers can meet. 
C)  Does not exist for the exchange of illegal goods and services. 
D)  Must be approved by the government before it can exist.

Question 20

A price ceiling is:

Accepted Answer

A)  A lower limit on the price of a good. 
B)  Above the equilibrium price. 
C)  An upper limit on the price of a good. 
D)  A limit on the price of goods sold abroaD. 
A)  A lower limit on the price of a good. 
B)  Above the equilibrium price. 
C)  An upper limit on the price of a good. 
D)  A limit on the price of goods sold abroaD.

Ceteris paribus,which of the following will cause the demand for pizza to increase in a college town?

Table 3.2 - Demand and supply for trucks (millions of trucks per year) -In Table 3.2,if the worldwide price of trucks is $30,000,the truck market:

Rent controls are an example of:

Which of the following provides the best example of the law of supply?

Discuss the differences between the factor market and the product market.

Land,labor,capital and entrepreneurship are bought and sold in the product market.

When a price floor is established above the equilibrium price,the market will adjust by way of:

A market surplus occurs when:

If a market shortage exists:

A market is said to be in equilibrium when:

Which of the following is a determinant of supply?

If a market surplus exists:

An increase in the supply of frozen yogurt will take place when:

Ceteris paribus,according to the law of supply,if the price of product Z increases from $6 to $8,then the:

Which of the following would cause a decrease in the price of automobiles?

Any place where factors of production are bought and sold is a:

A market:

A price ceiling is:

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

Ceteris paribus,which of the following will cause the demand for pizza to increase in a college town?

Table 3.2 - Demand and supply for trucks (millions of trucks per year) -In Table 3.2,if the worldwide price of trucks is $30,000,the truck market:

Rent controls are an example of:

Which of the following provides the best example of the law of supply?

Discuss the differences between the factor market and the product market.

Land,labor,capital and entrepreneurship are bought and sold in the product market.

When a price floor is established above the equilibrium price,the market will adjust by way of:

A market surplus occurs when:

If a market shortage exists:

A market is said to be in equilibrium when:

Which of the following is a determinant of supply?

If a market surplus exists:

An increase in the supply of frozen yogurt will take place when:

Ceteris paribus,according to the law of supply,if the price of product Z increases from $6 to $8,then the:

Which of the following would cause a decrease in the price of automobiles?

Any place where factors of production are bought and sold is a:

A market:

A price ceiling is:

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