Question 1

An increase in quantity supplied

Accepted Answer

A) results in a movement downward and to the left along a fixed supply curve. 
B) results in a movement upward and to the right along a fixed supply curve. 
C) shifts the supply curve to the left. 
D) shifts the supply curve to the right. 
A) results in a movement downward and to the left along a fixed supply curve. 
B) results in a movement upward and to the right along a fixed supply curve. 
C) shifts the supply curve to the left. 
D) shifts the supply curve to the right.

Question 2

Figure 4-14  
-Refer to Figure 4-14.Which of the following best describes the movement from E1 to E2?

Accepted Answer

A) a decrease in supply 
B) an increase in supply 
C) a movement along the supply curve 
D) a decrease in demand 
A) a decrease in supply 
B) an increase in supply 
C) a movement along the supply curve 
D) a decrease in demand

Question 3

Today's supply curve for gasoline could shift in response to a change in

Accepted Answer

A) today's price of gasoline. 
B) the expected future price of gasoline. 
C) the number of buyers of gasoline. 
D) All of the above are correct. 
A) today's price of gasoline. 
B) the expected future price of gasoline. 
C) the number of buyers of gasoline. 
D) All of the above are correct.

Question 4

Which of these statements best represents the law of supply?

Accepted Answer

A) When input prices increase,sellers produce less of the good. 
B) When production technology improves,sellers produce less of the good. 
C) When the price of a good decreases,sellers produce less of the good. 
D) When sellers' supplies of a good increase,the price of the good increases. 
A) When input prices increase,sellers produce less of the good. 
B) When production technology improves,sellers produce less of the good. 
C) When the price of a good decreases,sellers produce less of the good. 
D) When sellers' supplies of a good increase,the price of the good increases.

Question 5

Funsters,Inc. ,the largest toy company in the country,sells its most popular doll for $15.It has just learned that its leading competitor,Toysorama,is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks.Funsters should

Accepted Answer

A) "fight fire with fire" by decreasing supply of its doll for six weeks and then increasing the supply. 
B) increase the supply of its doll now before the other doll hits the market. 
C) increase the price of its doll now. 
D) discontinue its doll. 
A) "fight fire with fire" by decreasing supply of its doll for six weeks and then increasing the supply. 
B) increase the supply of its doll now before the other doll hits the market. 
C) increase the price of its doll now. 
D) discontinue its doll.

Question 6

A decrease in the price of a good will

Accepted Answer

A) increase supply. 
B) decrease supply. 
C) increase quantity supplied. 
D) decrease quantity supplied. 
A) increase supply. 
B) decrease supply. 
C) increase quantity supplied. 
D) decrease quantity supplied.

Question 7

Figure 4-13    
-Refer to Figure 4-13.If Producer A and Producer B are the only producers in the market,then the market quantity supplied when the price is $8 is

Accepted Answer

A) 8 units. 
B) 16 units. 
C) 24 units. 
D) 32 units. 
A) 8 units. 
B) 16 units. 
C) 24 units. 
D) 32 units.

Question 8

Today,producers changed their expectations about the future.This change

Accepted Answer

A) can cause a movement along a supply curve. 
B) can affect future supply,but not today's supply. 
C) can affect today's supply. 
D) cannot affect either today's supply or future supply. 
A) can cause a movement along a supply curve. 
B) can affect future supply,but not today's supply. 
C) can affect today's supply. 
D) cannot affect either today's supply or future supply.

Question 9

The supply curve for portable charcoal grills shifts

Accepted Answer

A) only when production technology changes. 
B) when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes. 
C) when any determinant of the supply of portable charcoal grills changes. 
D) only when the number of sellers of portable charcoal grills changes. 
A) only when production technology changes. 
B) when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes. 
C) when any determinant of the supply of portable charcoal grills changes. 
D) only when the number of sellers of portable charcoal grills changes.

Question 10

Figure 4-13    
-Refer to Figure 4-13.If Producer A and Producer B are the only producers in the market,then the market quantity supplied when the price is $6 is

Accepted Answer

A) 4 units. 
B) 6 units. 
C) 12 units. 
D) 18 units. 
A) 4 units. 
B) 6 units. 
C) 12 units. 
D) 18 units.

Question 11

When we move along a given supply curve,

Accepted Answer

A) only price is held constant. 
B) technology and price are held constant. 
C) all nonprice determinants of supply are held constant. 
D) all determinants of quantity supplied are held constant. 
A) only price is held constant. 
B) technology and price are held constant. 
C) all nonprice determinants of supply are held constant. 
D) all determinants of quantity supplied are held constant.

Question 12

In a market,to find the total amount supplied at a particular price,we must

Accepted Answer

A) sum the quantities that individual firms are willing and able to supply at that price. 
B) calculate the average of the quantities that individual firms are willing and able to supply at that price. 
C) sum the costs that individual firms incur to supply the product at that price. 
D) account for all determinants of demand. 
A) sum the quantities that individual firms are willing and able to supply at that price. 
B) calculate the average of the quantities that individual firms are willing and able to supply at that price. 
C) sum the costs that individual firms incur to supply the product at that price. 
D) account for all determinants of demand.

Question 13

A decrease in supply is represented by a

Accepted Answer

A) movement downward and to the left along a supply curve. 
B) movement upward and to the right along a supply curve. 
C) rightward shift of a supply curve. 
D) leftward shift of a supply curve. 
A) movement downward and to the left along a supply curve. 
B) movement upward and to the right along a supply curve. 
C) rightward shift of a supply curve. 
D) leftward shift of a supply curve.

Question 14

The law of supply states that,other things equal,when the price of a good

Accepted Answer

A) falls,the supply of the good rises. 
B) rises,the quantity supplied of the good rises. 
C) rises,the supply of the good falls. 
D) falls,the quantity supplied of the good rises. 
A) falls,the supply of the good rises. 
B) rises,the quantity supplied of the good rises. 
C) rises,the supply of the good falls. 
D) falls,the quantity supplied of the good rises.

Question 15

A supply curve slopes upward because

Accepted Answer

A) as more is produced,total cost of production falls. 
B) an increase in input prices increases supply. 
C) the quantity supplied of most goods and services increases over time. 
D) an increase in price gives producers an incentive to supply a larger quantity. 
A) as more is produced,total cost of production falls. 
B) an increase in input prices increases supply. 
C) the quantity supplied of most goods and services increases over time. 
D) an increase in price gives producers an incentive to supply a larger quantity.

Question 16

The sum of all the individual supply curves for a product is called

Accepted Answer

A) total supply. 
B) market supply. 
C) aggregate supply. 
D) total output. 
A) total supply. 
B) market supply. 
C) aggregate supply. 
D) total output.

Exam 4: The Market Forces of Supply and Demand: Supply

An increase in quantity supplied

Figure 4-14 -Refer to Figure 4-14.Which of the following best describes the movement from E1 to E2?

Today's supply curve for gasoline could shift in response to a change in

Which of these statements best represents the law of supply?

Funsters,Inc. ,the largest toy company in the country,sells its most popular doll for $15.It has just learned that its leading competitor,Toysorama,is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks.Funsters should

A decrease in the price of a good will

Figure 4-13 -Refer to Figure 4-13.If Producer A and Producer B are the only producers in the market,then the market quantity supplied when the price is $8 is

Today,producers changed their expectations about the future.This change

The supply curve for portable charcoal grills shifts

Figure 4-13 -Refer to Figure 4-13.If Producer A and Producer B are the only producers in the market,then the market quantity supplied when the price is $6 is

When we move along a given supply curve,

In a market,to find the total amount supplied at a particular price,we must

A decrease in supply is represented by a

The law of supply states that,other things equal,when the price of a good

A supply curve slopes upward because

The sum of all the individual supply curves for a product is called

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Measuring a Nations Income

Measuring a Nations Income: The Economy's Income and Expenditure

Measuring a Nations Income: The Measurement of GDP