Question 1

Which of the following could cause the supply of carrots to decrease?

Accepted Answer

A)  Consumers' incomes decrease. 
B)  There is a technological advance in carrot production. 
C)  Fertiliser costs increase. 
D)  The number of farmers growing carrots increases. 
E)  The price of carrots decreases. 
A)  Consumers' incomes decrease. 
B)  There is a technological advance in carrot production. 
C)  Fertiliser costs increase. 
D)  The number of farmers growing carrots increases. 
E)  The price of carrots decreases. C

Question 2

If the price is lower that the equilibrium price, which of the following will occur?

Accepted Answer

A)  The price will remain low. 
B)  The price will reduce even more. 
C)  The price will raise to the equilibrium price. 
D)  Demand will shift. 
A)  The price will remain low. 
B)  The price will reduce even more. 
C)  The price will raise to the equilibrium price. 
D)  Demand will shift. C

Question 3

Narrbegin Exhibit 3.2 Demand curves
 
-Which of the graphs in Exhibit 3.2 depicts the effect of a reduction in the price of iPhones on the demand for the iPhones?

Accepted Answer

A)  Graph A. 
B)  Graph B. 
C)  Graph C. 
D)  Graph D. 
A)  Graph A. 
B)  Graph B. 
C)  Graph C. 
D)  Graph D. A

Question 4

When the price of a good is above its equilibrium price, a:

Accepted Answer

A)  surplus puts upward pressure on the price. 
B)  surplus puts downward pressure on the price. 
C)  shortage puts upward pressure on the price. 
D)  shortage puts downward pressure on the price. 
A)  surplus puts upward pressure on the price. 
B)  surplus puts downward pressure on the price. 
C)  shortage puts upward pressure on the price. 
D)  shortage puts downward pressure on the price.

Question 5

Which of the following will cause a downward movement along a supply curve?

Accepted Answer

A)  Decreases in raw-material costs. 
B)  Decreases in labour costs. 
C)  Decreases in the cost of machinery. 
D)  Decreases in the market price of a good, other things being equal. 
A)  Decreases in raw-material costs. 
B)  Decreases in labour costs. 
C)  Decreases in the cost of machinery. 
D)  Decreases in the market price of a good, other things being equal.

Question 6

According to the law of demand:

Accepted Answer

A)  as the price of a good increases, less units are demanded and everything else remains the same. 
B)  as the price of a good increases, the same number of units is demanded. 
C)  as the price of a good declines, less units are demanded. 
D)  the price of a good does not correspond to the quantity demanded. 
A)  as the price of a good increases, less units are demanded and everything else remains the same. 
B)  as the price of a good increases, the same number of units is demanded. 
C)  as the price of a good declines, less units are demanded. 
D)  the price of a good does not correspond to the quantity demanded.

Question 7

The supply curve reflects the:

Accepted Answer

A)  inverse relationship between price and quantity offered. 
B)  positive relationship between demand and supply. 
C)  negative relationship between price and quantity bought. 
D)  positive relationship between price and quantity supplied. 
A)  inverse relationship between price and quantity offered. 
B)  positive relationship between demand and supply. 
C)  negative relationship between price and quantity bought. 
D)  positive relationship between price and quantity supplied.

Question 8

Equilibrium occurs:

Accepted Answer

A)  at any price for which quantity demanded is less than the quantity supplied. 
B)  at the highest possible price the seller can offer the product. 
C)  at the lowest price consumers are willing to pay. 
D)  at any price for which quantity demand is equal to quantity supply. 
A)  at any price for which quantity demanded is less than the quantity supplied. 
B)  at the highest possible price the seller can offer the product. 
C)  at the lowest price consumers are willing to pay. 
D)  at any price for which quantity demand is equal to quantity supply.

Question 9

When firms advertise their products, they are attempting to:

Accepted Answer

A)  shift the supply curve of the product to the right. 
B)  shift the supply curve of the product to the left. 
C)  create a surplus of the product. 
D)  shift the demand for the product to the right. 
A)  shift the supply curve of the product to the right. 
B)  shift the supply curve of the product to the left. 
C)  create a surplus of the product. 
D)  shift the demand for the product to the right.

Question 10

If people expect the price of bread to increase in the next month:

Accepted Answer

A)  demand for bread will decrease. 
B)  quantity of bread demanded will decrease. 
C)  quantity of bread demanded will increase. 
D)  demand for bread will increase right now! 
E)  quantity of bread demanded will not change. 
A)  demand for bread will decrease. 
B)  quantity of bread demanded will decrease. 
C)  quantity of bread demanded will increase. 
D)  demand for bread will increase right now! 
E)  quantity of bread demanded will not change.

Question 11

If the market price is below the equilibrium price, then:

Accepted Answer

A)  a surplus of product will result. 
B)  the quantity supplied will exceed the quantity demanded. 
C)  the market supply curve will shift to the right. 
D)  the quantity demanded will exceed the quantity supplied. 
A)  a surplus of product will result. 
B)  the quantity supplied will exceed the quantity demanded. 
C)  the market supply curve will shift to the right. 
D)  the quantity demanded will exceed the quantity supplied.

Question 12

At a price of $5, Sam buys 10 units of a product. When the price increases to $6, Sam buys eight units. Martha says Sam's demand has decreased. Is Martha correct?

Accepted Answer

A)  Yes, Martha is correct. Sam's demand has decreased. 
B)  No, Martha is incorrect. Sam's demand has increased. 
C)  No, Martha is incorrect. Sam's quantity demanded has decreased, and his demand has not changed. 
D)  No, Martha is incorrect. Sam's quantity demanded has increased, and his demand has increased. 
A)  Yes, Martha is correct. Sam's demand has decreased. 
B)  No, Martha is incorrect. Sam's demand has increased. 
C)  No, Martha is incorrect. Sam's quantity demanded has decreased, and his demand has not changed. 
D)  No, Martha is incorrect. Sam's quantity demanded has increased, and his demand has increased.

Question 13

A demand curve for The Steel Porcupines' concert tickets would show the:

Accepted Answer

A)  number of tickets the box office is willing to sell at various prices. 
B)  number of people who need tickets. 
C)  quality of people who want to buy these concert tickets. 
D)  number of tickets that will be purchased at various prices. 
A)  number of tickets the box office is willing to sell at various prices. 
B)  number of people who need tickets. 
C)  quality of people who want to buy these concert tickets. 
D)  number of tickets that will be purchased at various prices.

Question 14

If apple growers expect the price of apples to increase, they would:

Accepted Answer

A)  increase the current supply. 
B)  supply regardless of future prices. 
C)  respond to the expected price of apples. 
D)  start growing tomatoes. 
A)  increase the current supply. 
B)  supply regardless of future prices. 
C)  respond to the expected price of apples. 
D)  start growing tomatoes.

Question 15

What happens when a cyclone destroys the banana plantation?

Accepted Answer

A)  The damaging effect of the cyclone means that farmers are only able to supply fewer bananas at each possible price and supply decreases. 
B)  There is no effect of a cyclone on market prices. 
C)  The damaging effect of the cyclone means that farmers are able to produce apples instead of bananas with no effect on the supply of bananas. 
D)  The prices for bananas will increase permanently. 
A)  The damaging effect of the cyclone means that farmers are only able to supply fewer bananas at each possible price and supply decreases. 
B)  There is no effect of a cyclone on market prices. 
C)  The damaging effect of the cyclone means that farmers are able to produce apples instead of bananas with no effect on the supply of bananas. 
D)  The prices for bananas will increase permanently.

Question 16

The law of supply states that everything remains the same when:

Accepted Answer

A)  there is a negative relationship between the price of a good and the quantity of it purchased by suppliers. 
B)  there is a positive relationship between the price of a good and the quantity that buyers choose to purchase. 
C)  there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers. 
D)  at a lower price, a greater quantity will be supplied. 
A)  there is a negative relationship between the price of a good and the quantity of it purchased by suppliers. 
B)  there is a positive relationship between the price of a good and the quantity that buyers choose to purchase. 
C)  there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers. 
D)  at a lower price, a greater quantity will be supplied.

Question 17

If consumers are anticipating a wet summer, then:

Accepted Answer

A)  the demand for hotdogs will increase. 
B)  the demand for raincoats will shift to the right. 
C)  the demand for umbrellas will not be affected. 
D)  the demand for umbrellas will shift to the left. 
A)  the demand for hotdogs will increase. 
B)  the demand for raincoats will shift to the right. 
C)  the demand for umbrellas will not be affected. 
D)  the demand for umbrellas will shift to the left.

Question 18

Narrbegin Exhibit 3.6 Demand and supply curves   
-In Exhibit 3.6, Panel A, the movement from A to B describes a/an:

Accepted Answer

A)  increase in demand and an increase in the quantity supplied. 
B)  increase in the quantity demanded and an increase in supply. 
C)  decrease in demand and a decrease in the quantity supplied. 
D)  decrease in the quantity demanded and a decrease in supply. 
A)  increase in demand and an increase in the quantity supplied. 
B)  increase in the quantity demanded and an increase in supply. 
C)  decrease in demand and a decrease in the quantity supplied. 
D)  decrease in the quantity demanded and a decrease in supply.

Question 19

Which of the following must be true if good X is a normal good and income increases?

Accepted Answer

A)  The demand for X will increase, and thus the price and quantity sold and bought will
Decrease. 
B)  The demand for X will decrease, and thus the price and quantity sold and bought will decrease. 
C)  The demand for X will increase, and thus the price and quantity sold and bought may increase. 
D)  The demand for X will decrease, and thus the price and quantity sold and bought will increase. 
A)  The demand for X will increase, and thus the price and quantity sold and bought will
Decrease. 
B)  The demand for X will decrease, and thus the price and quantity sold and bought will decrease. 
C)  The demand for X will increase, and thus the price and quantity sold and bought may increase. 
D)  The demand for X will decrease, and thus the price and quantity sold and bought will increase.

Question 20

A shortage of a product means a/an:

Accepted Answer

A)  excess supply of the product. 
B)  excess demand of the product. 
C)  situation where the quantity demanded is less than the quantity supplied. 
D)  situation where the quantity supplied exceeds the quantity demanded. 
A)  excess supply of the product. 
B)  excess demand of the product. 
C)  situation where the quantity demanded is less than the quantity supplied. 
D)  situation where the quantity supplied exceeds the quantity demanded.

Which of the following could cause the supply of carrots to decrease?

If the price is lower that the equilibrium price, which of the following will occur?

Narrbegin Exhibit 3.2 Demand curves -Which of the graphs in Exhibit 3.2 depicts the effect of a reduction in the price of iPhones on the demand for the iPhones?

When the price of a good is above its equilibrium price, a:

Which of the following will cause a downward movement along a supply curve?

According to the law of demand:

The supply curve reflects the:

Equilibrium occurs:

When firms advertise their products, they are attempting to:

If people expect the price of bread to increase in the next month:

If the market price is below the equilibrium price, then:

At a price of $5, Sam buys 10 units of a product. When the price increases to $6, Sam buys eight units. Martha says Sam's demand has decreased. Is Martha correct?

A demand curve for The Steel Porcupines' concert tickets would show the:

If apple growers expect the price of apples to increase, they would:

What happens when a cyclone destroys the banana plantation?

The law of supply states that everything remains the same when:

If consumers are anticipating a wet summer, then:

Narrbegin Exhibit 3.6 Demand and supply curves -In Exhibit 3.6, Panel A, the movement from A to B describes a/an:

Which of the following must be true if good X is a normal good and income increases?

A shortage of a product means a/an:

Thinking Like an Economist

Applying Graphs to Economics

Production Possibilities and Opportunity Cost

Markets in Action

Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Policy Issues: Housing Affordability and Climate Change

Measuring the Size of the Economy

Business Cycles and Economic Growth

Inflation and Unemployment

A Simple Model of the Macro Economy

The Monetary and Financial System

Macroeconomic Policy I: Monetary Policy

Macroeconomic Policy II: Fiscal Policy

International Trade and Finance

Filters

Exam 4: Market Demand and Supply

Which of the following could cause the supply of carrots to decrease?

If the price is lower that the equilibrium price, which of the following will occur?

Narrbegin Exhibit 3.2 Demand curves -Which of the graphs in Exhibit 3.2 depicts the effect of a reduction in the price of iPhones on the demand for the iPhones?

When the price of a good is above its equilibrium price, a:

Which of the following will cause a downward movement along a supply curve?

According to the law of demand:

The supply curve reflects the:

Equilibrium occurs:

When firms advertise their products, they are attempting to:

If people expect the price of bread to increase in the next month:

If the market price is below the equilibrium price, then:

At a price of $5, Sam buys 10 units of a product. When the price increases to $6, Sam buys eight units. Martha says Sam's demand has decreased. Is Martha correct?

A demand curve for The Steel Porcupines' concert tickets would show the:

If apple growers expect the price of apples to increase, they would:

What happens when a cyclone destroys the banana plantation?

The law of supply states that everything remains the same when:

If consumers are anticipating a wet summer, then:

Narrbegin Exhibit 3.6 Demand and supply curves -In Exhibit 3.6, Panel A, the movement from A to B describes a/an:

Which of the following must be true if good X is a normal good and income increases?

A shortage of a product means a/an:

Thinking Like an Economist

Applying Graphs to Economics

Production Possibilities and Opportunity Cost

Markets in Action

Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Policy Issues: Housing Affordability and Climate Change

Measuring the Size of the Economy

Business Cycles and Economic Growth

Inflation and Unemployment

A Simple Model of the Macro Economy

The Monetary and Financial System

Macroeconomic Policy I: Monetary Policy

Macroeconomic Policy II: Fiscal Policy

International Trade and Finance

Filters