Question 1

The alternative quantities demanded for a given time period at different possible prices is known as

Accepted Answer

A)  absolute demand. 
B)  a demand schedule. 
C)  real demand. 
D)  constant demand. 
A)  absolute demand. 
B)  a demand schedule. 
C)  real demand. 
D)  constant demand.

Question 2

Graphically, a market demand curve is found by

Accepted Answer

A)  taking the average of all prices that people are willing to pay. 
B)  summing the quantities demanded by all individuals at each price. 
C)  summing the prices each consumer would pay for each quantity. 
D)  taking the average of the individual demand curves. 
A)  taking the average of all prices that people are willing to pay. 
B)  summing the quantities demanded by all individuals at each price. 
C)  summing the prices each consumer would pay for each quantity. 
D)  taking the average of the individual demand curves.

Question 3

A subsidy to wheat farmers will

Accepted Answer

A)  increase the quantity of wheat demanded. 
B)  decrease the quantity of wheat supplied. 
C)  increase the supply of wheat. 
D)  leave both the supply and demand of wheat unchanged. 
A)  increase the quantity of wheat demanded. 
B)  decrease the quantity of wheat supplied. 
C)  increase the supply of wheat. 
D)  leave both the supply and demand of wheat unchanged.

Question 4

-Refer to the above figure. The rightward shift of the curve indicates

Accepted Answer

A)  an increase in demand. 
B)  a decrease in demand. 
C)  an increase in quantity demanded. 
D)  a decrease in quantity demanded. 
A)  an increase in demand. 
B)  a decrease in demand. 
C)  an increase in quantity demanded. 
D)  a decrease in quantity demanded.

Question 5

Which of the following is an example of the law of supply?

Accepted Answer

A)  The price of gum has increased so producers are making more gum. 
B)  The price of labor has increased and producers decrease supply. 
C)  The amount of a good purchased increases when the price decreases. 
D)  Producers provide less of a good when the price increases. 
A)  The price of gum has increased so producers are making more gum. 
B)  The price of labor has increased and producers decrease supply. 
C)  The amount of a good purchased increases when the price decreases. 
D)  Producers provide less of a good when the price increases.

Question 6

When the price of a good rises, there is

Accepted Answer

A)  an increase in supply. 
B)  a decrease in supply. 
C)  a decrease in quantity supplied. 
D)  an increase in quantity supplied. 
A)  an increase in supply. 
B)  a decrease in supply. 
C)  a decrease in quantity supplied. 
D)  an increase in quantity supplied.

Question 7

The price that we observe in the market is

Accepted Answer

A)  the law of demand. 
B)  a substitute. 
C)  the money price. 
D)  the relative price. 
A)  the law of demand. 
B)  a substitute. 
C)  the money price. 
D)  the relative price.

Question 8

-Refer to the above figure. At a price of four cents, the quantity of bubble gum supplied will be

Accepted Answer

A)  3. 
B)  2. 
C)  4. 
D)  5. 
A)  3. 
B)  2. 
C)  4. 
D)  5.

Question 9

Assuming that turkey, chicken, pork, and beef are substitutes, suppose that the price of turkey has fallen. This will, other things being equal

Accepted Answer

A)  reduce demand for chicken, pork, and beef. 
B)  leave demand for chicken, pork, and beef unchanged. 
C)  increase demand for chicken, pork, and beef. 
D)  increase quantity demanded of beef. 
A)  reduce demand for chicken, pork, and beef. 
B)  leave demand for chicken, pork, and beef unchanged. 
C)  increase demand for chicken, pork, and beef. 
D)  increase quantity demanded of beef.

Question 10

-Refer to the above table. What is the market quantity demanded of DVDs at a price of $12?

Accepted Answer

A)  6 
B)  9 
C)  12 
D)  24 
A)  6 
B)  9 
C)  12 
D)  24

Question 11

Which of the following best represents the law of demand?

Accepted Answer

A)  As the price of a good decreases, the quantity demanded of that good decreases. 
B)  As the price of a good decreases, the quantity demanded of that good increases. 
C)  As the demand for a good increases, the price of that good increases. 
D)  As the price of a good decreases, the demand curve for that good shifts to the right. 
A)  As the price of a good decreases, the quantity demanded of that good decreases. 
B)  As the price of a good decreases, the quantity demanded of that good increases. 
C)  As the demand for a good increases, the price of that good increases. 
D)  As the price of a good decreases, the demand curve for that good shifts to the right.

Question 12

An increase in demand is shown graphically by

Accepted Answer

A)  a shift of the demand curve to the left. 
B)  a movement up along the existing curve. 
C)  a shift of the demand curve to the right. 
D)  a movement down the existing curve. 
A)  a shift of the demand curve to the left. 
B)  a movement up along the existing curve. 
C)  a shift of the demand curve to the right. 
D)  a movement down the existing curve.

Question 13

-Suppose that, at an official ticket price of $480, there are 6,000 Justin Timberlake fans wanting to attend his concert, but only 4,000 ticketed seats are available. Which one of the following statements is then TRUE?

Accepted Answer

A)  There will be scalpers outside the arena selling tickets for $480. 
B)  There will be a surplus of tickets. 
C)  The market clearing price of the tickets is less than $480. 
D)  The market clearing price of the tickets is more than $480. 
A)  There will be scalpers outside the arena selling tickets for $480. 
B)  There will be a surplus of tickets. 
C)  The market clearing price of the tickets is less than $480. 
D)  The market clearing price of the tickets is more than $480.

Question 14

-Refer to the above figure. At a price of two cents, the quantity of bubble gum demanded will be

Accepted Answer

A)  3. 
B)  2. 
C)  4. 
D)  5. 
A)  3. 
B)  2. 
C)  4. 
D)  5.

Question 15

Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause

Accepted Answer

A)  an increase in the demand for coffee. 
B)  a decrease in the demand for coffee. 
C)  a leftward shift of the demand curve for tea. 
D)  a leftward shift in the demand for coffee. 
A)  an increase in the demand for coffee. 
B)  a decrease in the demand for coffee. 
C)  a leftward shift of the demand curve for tea. 
D)  a leftward shift in the demand for coffee.

Question 16

Demand applies to which of the following?

Accepted Answer

A)  fast food 
B)  criminal activity 
C)  labor market 
D)  all of the above 
A)  fast food 
B)  criminal activity 
C)  labor market 
D)  all of the above

Question 17

A demand curve represents a(n)

Accepted Answer

A)  direct relationship between price and quantity demanded. 
B)  direct relationship between price and demand. 
C)  indirect or inverse relationship between price and quantity demanded. 
D)  indirect or inverse relationship between price and supply. 
A)  direct relationship between price and quantity demanded. 
B)  direct relationship between price and demand. 
C)  indirect or inverse relationship between price and quantity demanded. 
D)  indirect or inverse relationship between price and supply.

Question 18

Which of the following would likely cause an increase in the supply of single-serve coffee makers?

Accepted Answer

A)  a decrease in the number of consumers demanding single-serve coffee makers 
B)  an increase in the price of single-serve coffee makers 
C)  a decrease in the cost of manufacturing single-serve coffee makers 
D)  a widespread expectation that the price of single-serve coffee makers will rise in the future 
A)  a decrease in the number of consumers demanding single-serve coffee makers 
B)  an increase in the price of single-serve coffee makers 
C)  a decrease in the cost of manufacturing single-serve coffee makers 
D)  a widespread expectation that the price of single-serve coffee makers will rise in the future

Question 19

In any given market, prices are determined by

Accepted Answer

A)  specialization of labor. 
B)  transactions costs. 
C)  supply and demand. 
D)  comparative advantage. 
A)  specialization of labor. 
B)  transactions costs. 
C)  supply and demand. 
D)  comparative advantage.

Question 20

If the price of portable power banks increases, then there will be ________ of portable power banks.

Accepted Answer

A)  a decrease in the supply 
B)  an increase in the supply 
C)  an increase in the quantity supplied 
D)  a decrease in the quantity supplied 
A)  a decrease in the supply 
B)  an increase in the supply 
C)  an increase in the quantity supplied 
D)  a decrease in the quantity supplied

Exam 3: Demand and Supply

The alternative quantities demanded for a given time period at different possible prices is known as

Graphically, a market demand curve is found by

A subsidy to wheat farmers will

-Refer to the above figure. The rightward shift of the curve indicates

Which of the following is an example of the law of supply?

When the price of a good rises, there is

The price that we observe in the market is

-Refer to the above figure. At a price of four cents, the quantity of bubble gum supplied will be

Assuming that turkey, chicken, pork, and beef are substitutes, suppose that the price of turkey has fallen. This will, other things being equal

-Refer to the above table. What is the market quantity demanded of DVDs at a price of $12?

Which of the following best represents the law of demand?

An increase in demand is shown graphically by

-Suppose that, at an official ticket price of $480, there are 6,000 Justin Timberlake fans wanting to attend his concert, but only 4,000 ticketed seats are available. Which one of the following statements is then TRUE?

-Refer to the above figure. At a price of two cents, the quantity of bubble gum demanded will be

Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause

Demand applies to which of the following?

A demand curve represents a(n)

Which of the following would likely cause an increase in the supply of single-serve coffee makers?

In any given market, prices are determined by

If the price of portable power banks increases, then there will be ________ of portable power banks.

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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