Question 1

Which of the following is an example of a highly organized market?

Accepted Answer

A) the market for textbooks 
B) the market for spa services 
C) the market for soybeans 
D) the market for ice cream 
A) the market for textbooks 
B) the market for spa services 
C) the market for soybeans 
D) the market for ice cream C

Question 2

The term price takers refers to buyers and sellers in

Accepted Answer

A) perfectly competitive markets. 
B) monopolistic markets. 
C) markets that are regulated by the government. 
D) markets in which buyers cannot buy all they want and/or sellers cannot sell all they want. 
A) perfectly competitive markets. 
B) monopolistic markets. 
C) markets that are regulated by the government. 
D) markets in which buyers cannot buy all they want and/or sellers cannot sell all they want. D

Question 3

An example of a perfectly competitive market would be the market for

Accepted Answer

A) electricity. 
B) soybeans. 
C) coffee shops. 
D) restaurants. 
A) electricity. 
B) soybeans. 
C) coffee shops. 
D) restaurants. C

Question 4

Assume Diana buys computers in a competitive market.It follows that

Accepted Answer

A) Diana has a limited number of sellers to turn to when she buys a computer. 
B) Diana will find herself negotiating with sellers whenever she buys a computer. 
C) if Diana buys a large number of computers,the price of computers will rise noticeably. 
D) None of the above is correct. 
A) Diana has a limited number of sellers to turn to when she buys a computer. 
B) Diana will find herself negotiating with sellers whenever she buys a computer. 
C) if Diana buys a large number of computers,the price of computers will rise noticeably. 
D) None of the above is correct.

Question 5

Assume the market for pork is perfectly competitive.When one pork buyer exits the market,

Accepted Answer

A) the price of pork increases. 
B) the price of pork decreases. 
C) the price of pork does not change. 
D) there is no longer a market for pork. 
A) the price of pork increases. 
B) the price of pork decreases. 
C) the price of pork does not change. 
D) there is no longer a market for pork.

Question 6

For a market for a good or service to exist,there must be a

Accepted Answer

A) group of buyers and sellers. 
B) specific time and place at which the good or service is traded. 
C) high degree of organization present. 
D) All of the above are correct. 
A) group of buyers and sellers. 
B) specific time and place at which the good or service is traded. 
C) high degree of organization present. 
D) All of the above are correct.

Question 7

Which of the following statements is correct?

Accepted Answer

A) Buyers determine supply,and sellers determine demand. 
B) Buyers determine demand,and sellers determine supply. 
C) Buyers determine both demand and supply. 
D) Sellers determine both demand and supply. 
A) Buyers determine supply,and sellers determine demand. 
B) Buyers determine demand,and sellers determine supply. 
C) Buyers determine both demand and supply. 
D) Sellers determine both demand and supply.

Question 8

The demand for a good or service is determined by

Accepted Answer

A) those who buy the good or service. 
B) the government. 
C) those who sell the good or service. 
D) both those who buy and those who sell the good or service. 
A) those who buy the good or service. 
B) the government. 
C) those who sell the good or service. 
D) both those who buy and those who sell the good or service.

Question 9

A market includes

Accepted Answer

A) buyers only. 
B) sellers only. 
C) both buyers and sellers. 
D) the place where transactions occur but not the people involved. 
A) buyers only. 
B) sellers only. 
C) both buyers and sellers. 
D) the place where transactions occur but not the people involved.

Question 10

The supply of a good or service is determined by

Accepted Answer

A) those who buy the good or service. 
B) the government. 
C) those who sell the good or service. 
D) both those who buy and those who sell the good or service. 
A) those who buy the good or service. 
B) the government. 
C) those who sell the good or service. 
D) both those who buy and those who sell the good or service.

Question 11

Which of the following is the least likely to be a competitive market?

Accepted Answer

A) ice cream 
B) soybeans 
C) cable television 
D) new houses 
A) ice cream 
B) soybeans 
C) cable television 
D) new houses

Question 12

In a perfectly competitive market,at the market price,buyers

Accepted Answer

A) cannot buy all they want,and sellers cannot sell all they want. 
B) cannot buy all they want,but sellers can sell all they want. 
C) can buy all they want,but sellers cannot sell all they want. 
D) can buy all they want,and sellers can sell all they want. 
A) cannot buy all they want,and sellers cannot sell all they want. 
B) cannot buy all they want,but sellers can sell all they want. 
C) can buy all they want,but sellers cannot sell all they want. 
D) can buy all they want,and sellers can sell all they want.

Question 13

In a competitive market,each seller has limited control over the price of his product because

Accepted Answer

A) other sellers are offering similar products. 
B) buyers exert more control over the price than do sellers. 
C) these markets are highly regulated by the government. 
D) sellers usually agree to set a common price that will allow each seller to earn a comfortable profit. 
A) other sellers are offering similar products. 
B) buyers exert more control over the price than do sellers. 
C) these markets are highly regulated by the government. 
D) sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.

Question 14

In competitive markets,

Accepted Answer

A) firms produce identical products. 
B) no individual buyer can influence the market price. 
C) no individual seller can influence the market price. 
D) All of the above are correct. 
A) firms produce identical products. 
B) no individual buyer can influence the market price. 
C) no individual seller can influence the market price. 
D) All of the above are correct.

Question 15

Which of the following is not an example of a market?

Accepted Answer

A) A small town has only one seller of electricity. 
B) In the United States,a sick person cannot legally purchase a kidney. 
C) In Florida,there are many buyers and sellers of key lime pie. 
D) The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities. 
A) A small town has only one seller of electricity. 
B) In the United States,a sick person cannot legally purchase a kidney. 
C) In Florida,there are many buyers and sellers of key lime pie. 
D) The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.

Question 16

Assume Leo buys coffee beans in a competitive market.It follows that

Accepted Answer

A) Leo has a limited number of sellers from which to buy coffee beans. 
B) Leo will negotiate with sellers whenever he buys coffee beans. 
C) Leo cannot influence the price of coffee beans even if he buys a large quantity of them. 
D) None of the above is correct. 
A) Leo has a limited number of sellers from which to buy coffee beans. 
B) Leo will negotiate with sellers whenever he buys coffee beans. 
C) Leo cannot influence the price of coffee beans even if he buys a large quantity of them. 
D) None of the above is correct.

Question 17

Which of the following would most likely serve as an example of a monopoly?

Accepted Answer

A) a bakery in a large city 
B) a bank in a large city 
C) a local cable television company 
D) a small group of corn farmers 
A) a bakery in a large city 
B) a bank in a large city 
C) a local cable television company 
D) a small group of corn farmers

Question 18

Most markets in the economy are

Accepted Answer

A) markets in which sellers,rather than buyers,control the price of the product. 
B) markets in which buyers,rather than sellers,control the price of the product. 
C) perfectly competitive. 
D) highly competitive. 
A) markets in which sellers,rather than buyers,control the price of the product. 
B) markets in which buyers,rather than sellers,control the price of the product. 
C) perfectly competitive. 
D) highly competitive.

Question 19

A competitive market is a market in which

Accepted Answer

A) an auctioneer helps set prices and arrange sales. 
B) there are only a few sellers. 
C) the forces of supply and demand do not apply. 
D) no individual buyer or seller has any significant impact on the market price. 
A) an auctioneer helps set prices and arrange sales. 
B) there are only a few sellers. 
C) the forces of supply and demand do not apply. 
D) no individual buyer or seller has any significant impact on the market price.

Question 20

The highest form of competition is called

Accepted Answer

A) arbitrage. 
B) monopolistic competition. 
C) equilibrium. 
D) perfect competition. 
A) arbitrage. 
B) monopolistic competition. 
C) equilibrium. 
D) perfect competition.

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

Which of the following is an example of a highly organized market?

The term price takers refers to buyers and sellers in

An example of a perfectly competitive market would be the market for

Assume Diana buys computers in a competitive market.It follows that

Assume the market for pork is perfectly competitive.When one pork buyer exits the market,

For a market for a good or service to exist,there must be a

Which of the following statements is correct?

The demand for a good or service is determined by

A market includes

The supply of a good or service is determined by

Which of the following is the least likely to be a competitive market?

In a perfectly competitive market,at the market price,buyers

In a competitive market,each seller has limited control over the price of his product because

In competitive markets,

Which of the following is not an example of a market?

Assume Leo buys coffee beans in a competitive market.It follows that

Which of the following would most likely serve as an example of a monopoly?

Most markets in the economy are

A competitive market is a market in which

The highest form of competition 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: Demand

The Market Forces of Supply and Demand: Supply

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