Question 1

Surplus (of a good) is a situation in which:

Accepted Answer

A)  the quantity supplied is undetermined. 
B)  the quantity supplied is equal to the quantity demanded. 
C)  the quantity supplied is less than the quantity demanded. 
D)  the quantity supplied is greater than the quantity demanded. 
A)  the quantity supplied is undetermined. 
B)  the quantity supplied is equal to the quantity demanded. 
C)  the quantity supplied is less than the quantity demanded. 
D)  the quantity supplied is greater than the quantity demanded.

Question 2

Farmers can choose to produce eggs and/or milk. If there is a successful advertising campaign for people to 'drink milk', then what will be the effect on the egg market?

Accepted Answer

A)  None, since consumers do not see eggs and milk as related goods. 
B)  Egg demand will increase. 
C)  Egg demand will decrease. 
D)  Egg supply will decrease. 
A)  None, since consumers do not see eggs and milk as related goods. 
B)  Egg demand will increase. 
C)  Egg demand will decrease. 
D)  Egg supply will decrease.

Question 3

Which of the following would shift the demand curve for chicken to the right?

Accepted Answer

A)  Lower inputs for chicken producers. 
B)  Higher subsidies to chicken producers. 
C)  Higher price for beef. 
D)  Lower price for lamb. 
A)  Lower inputs for chicken producers. 
B)  Higher subsidies to chicken producers. 
C)  Higher price for beef. 
D)  Lower price for lamb.

Question 4

The relationship between changes in the non-price determinants of supply and the supply curve:

Accepted Answer

A)  is positive and significant. 
B)  depends on the nature of the non-price determinant of supply. 
C)  always results in an increase in supply. 
D)  indicates a rightward shift of the supply curve for all goods and services. 
A)  is positive and significant. 
B)  depends on the nature of the non-price determinant of supply. 
C)  always results in an increase in supply. 
D)  indicates a rightward shift of the supply curve for all goods and services.

Question 5

If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?

Accepted Answer

A)  Demand will increase. 
B)  Quantity demanded will increase. 
C)  Demand will decrease. 
D)  Quantity demanded will decrease. 
A)  Demand will increase. 
B)  Quantity demanded will increase. 
C)  Demand will decrease. 
D)  Quantity demanded will decrease.

Question 6

An increase in the demand for a good quality steak, a normal good, can be caused by a/an:

Accepted Answer

A)  decrease in consumer income. 
B)  increase in the price of steak. 
C)  increase in the price of tomato sauce. 
D)  increase in consumer income. 
A)  decrease in consumer income. 
B)  increase in the price of steak. 
C)  increase in the price of tomato sauce. 
D)  increase in consumer income.

Question 7

A supply schedule shows the relationship between:

Accepted Answer

A)  demand and supply. 
B)  supply and income. 
C)  price and income. 
D)  quantity supplied and price. 
A)  demand and supply. 
B)  supply and income. 
C)  price and income. 
D)  quantity supplied and price.

Question 8

There is news that the price of Tucker's Cider Explosion will increase significantly next week. If the demand for Tucker's Cider Explosion reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:

Accepted Answer

A)  tastes. 
B)  income levels. 
C)  the price of other goods. 
D)  expectations. 
A)  tastes. 
B)  income levels. 
C)  the price of other goods. 
D)  expectations.

Question 9

The demand curve shows how the quantity demanded is related to the price. A change in other variables will:

Accepted Answer

A)  shift the demand curve to the left. 
B)  shift the demand curve to the right. 
C)  not shift the demand curve. 
D)  shift the demand curve. 
A)  shift the demand curve to the left. 
B)  shift the demand curve to the right. 
C)  not shift the demand curve. 
D)  shift the demand curve.

Question 10

A change in the price of a good always results from a change in:

Accepted Answer

A)  income. 
B)  tastes. 
C)  quantity demanded. 
D)  both income and tastes. 
A)  income. 
B)  tastes. 
C)  quantity demanded. 
D)  both income and tastes.

Question 11

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

Accepted Answer

A)  An increase or decrease in the cost of raw materials. 
B)  An increase in labour costs. 
C)  Changes in the cost of the machinery used to make a good. 
D)  Changes in the market price of a good, other things being constant. 
A)  An increase or decrease in the cost of raw materials. 
B)  An increase in labour costs. 
C)  Changes in the cost of the machinery used to make a good. 
D)  Changes in the market price of a good, other things being constant.

Question 12

Complementary goods are goods:

Accepted Answer

A)  that are consumed jointly. 
B)  that are consumed one in place of the other. 
C)  for which demand increases when the price of its complementary goods increases. 
D)  for which demand decreases when the price of its complementary goods decreases. 
A)  that are consumed jointly. 
B)  that are consumed one in place of the other. 
C)  for which demand increases when the price of its complementary goods increases. 
D)  for which demand decreases when the price of its complementary goods decreases.

Question 13

Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause:

Accepted Answer

A)  a downward movement along the demand curve for bus travel. 
B)  no change in the demand curve for bus travel. 
C)  an upward movement along the demand curve for air travel. 
D)  a rightward shift in the demand curve for bus travel. 
A)  a downward movement along the demand curve for bus travel. 
B)  no change in the demand curve for bus travel. 
C)  an upward movement along the demand curve for air travel. 
D)  a rightward shift in the demand curve for bus travel.

Question 14

How do retailers react to a surplus?

Accepted Answer

A)  The surplus has no effect on retailers. 
B)  Competition forces sellers to reduce their prices. 
C)  Competition forces retailers to offer more goods. 
D)  The surplus will force sellers to increase their prices. 
A)  The surplus has no effect on retailers. 
B)  Competition forces sellers to reduce their prices. 
C)  Competition forces retailers to offer more goods. 
D)  The surplus will force sellers to increase their prices.

Question 15

If goods X and Y are complements, then a reduction in the price of good X decreases the demand for good Y.

Accepted Answer

A) True 
 B)False

Question 16

Narrbegin Exhibit 3.3 Supply curves
 
-In Exhibit 3.3, a shift in the supply curve from S1 to S2 is possible because of:

Accepted Answer

A)  subsidies to consumers. 
B)  higher taxes imposed on producers. 
C)  changes in consumer preferences. 
D)  technological innovation. 
A)  subsidies to consumers. 
B)  higher taxes imposed on producers. 
C)  changes in consumer preferences. 
D)  technological innovation.

Question 17

Supply is a relationship between:

Accepted Answer

A)  price of a particular good and quantity of this good that buyers are willing to buy. 
B)  cost of a particular good and quantity of this good that sellers are willing to buy. 
C)  price of a particular good and quantity of this good that sellers are willing to sell. 
D)  cost of a particular good and price that buyers are willing to pay. 
A)  price of a particular good and quantity of this good that buyers are willing to buy. 
B)  cost of a particular good and quantity of this good that sellers are willing to buy. 
C)  price of a particular good and quantity of this good that sellers are willing to sell. 
D)  cost of a particular good and price that buyers are willing to pay.

Question 18

When the price of a good in a market is above equilibrium:

Accepted Answer

A)  the quantity supplied exceeds the quantity demanded. 
B)  a surplus is observed. 
C)  the price will fall in the near future. 
D)  all of these factors apply. 
A)  the quantity supplied exceeds the quantity demanded. 
B)  a surplus is observed. 
C)  the price will fall in the near future. 
D)  all of these factors apply.

Question 19

Assume that brand X is an inferior good and name brand Y is a normal good. An increase in consumer income, other things being equal, will cause a/an:

Accepted Answer

A)  upward movement along the demand curve for name brand Y. 
B)  downward movement along the demand curve for brand X. 
C)  rightward shift in the demand curve for brand X. 
D)  leftward shift in the demand curve for brand X. 
A)  upward movement along the demand curve for name brand Y. 
B)  downward movement along the demand curve for brand X. 
C)  rightward shift in the demand curve for brand X. 
D)  leftward shift in the demand curve for brand X.

Question 20

If consumer incomes go up and laptops are a normal good, the effect on the demand for laptops, ceteris paribus, will be a/an:

Accepted Answer

A)  upward movement along the demand curve for laptops. 
B)  downward movement along the demand curve for laptops. 
C)  rightward shift in the demand curve for laptops. 
D)  leftward shift in the demand curve for laptops. 
A)  upward movement along the demand curve for laptops. 
B)  downward movement along the demand curve for laptops. 
C)  rightward shift in the demand curve for laptops. 
D)  leftward shift in the demand curve for laptops.

Surplus (of a good) is a situation in which:

Farmers can choose to produce eggs and/or milk. If there is a successful advertising campaign for people to 'drink milk', then what will be the effect on the egg market?

Which of the following would shift the demand curve for chicken to the right?

The relationship between changes in the non-price determinants of supply and the supply curve:

If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?

An increase in the demand for a good quality steak, a normal good, can be caused by a/an:

A supply schedule shows the relationship between:

There is news that the price of Tucker's Cider Explosion will increase significantly next week. If the demand for Tucker's Cider Explosion reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:

The demand curve shows how the quantity demanded is related to the price. A change in other variables will:

A change in the price of a good always results from a change in:

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

Complementary goods are goods:

Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause:

How do retailers react to a surplus?

If goods X and Y are complements, then a reduction in the price of good X decreases the demand for good Y.

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, a shift in the supply curve from S₁ to S₂ is possible because of:

Supply is a relationship between:

When the price of a good in a market is above equilibrium:

Assume that brand X is an inferior good and name brand Y is a normal good. An increase in consumer income, other things being equal, will cause a/an:

If consumer incomes go up and laptops are a normal good, the effect on the demand for laptops, ceteris paribus, will be 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

Surplus (of a good) is a situation in which:

Farmers can choose to produce eggs and/or milk. If there is a successful advertising campaign for people to 'drink milk', then what will be the effect on the egg market?

Which of the following would shift the demand curve for chicken to the right?

The relationship between changes in the non-price determinants of supply and the supply curve:

If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?

An increase in the demand for a good quality steak, a normal good, can be caused by a/an:

A supply schedule shows the relationship between:

There is news that the price of Tucker's Cider Explosion will increase significantly next week. If the demand for Tucker's Cider Explosion reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:

The demand curve shows how the quantity demanded is related to the price. A change in other variables will:

A change in the price of a good always results from a change in:

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

Complementary goods are goods:

Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause:

How do retailers react to a surplus?

If goods X and Y are complements, then a reduction in the price of good X decreases the demand for good Y.

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, a shift in the supply curve from S1 to S2 is possible because of:

Supply is a relationship between:

When the price of a good in a market is above equilibrium:

Assume that brand X is an inferior good and name brand Y is a normal good. An increase in consumer income, other things being equal, will cause a/an:

If consumer incomes go up and laptops are a normal good, the effect on the demand for laptops, ceteris paribus, will be 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

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, a shift in the supply curve from S₁ to S₂ is possible because of: