Question 1

If watermelons are normal goods, the demand for them will rise as the income of consumers rises.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A) ​an increase in the demand for gasoline. 
B) ​an increase in the price of gasoline. 
C) ​an increase in the number of producers of gasoline. 
D) ​an increase in the price of oil, an input into the production of gasoline. 
A) ​an increase in the demand for gasoline. 
B) ​an increase in the price of gasoline. 
C) ​an increase in the number of producers of gasoline. 
D) ​an increase in the price of oil, an input into the production of gasoline.

Question 3

Which of the following events would cause an upward movement along the demand curve for olives?

Accepted Answer

A) ​The number of people who purchase olives decreases. 
B) ​Consumer income decreases, and olives are a normal good. 
C) ​The price of pickles decreases, and pickles are a substitute for olives. 
D) ​The price of olives rises. 
A) ​The number of people who purchase olives decreases. 
B) ​Consumer income decreases, and olives are a normal good. 
C) ​The price of pickles decreases, and pickles are a substitute for olives. 
D) ​The price of olives rises.

Question 4

An upward-sloping supply curve shows that:

Accepted Answer

A) ​buyers are willing to pay more for particularly scarce products. 
B) ​suppliers expand production as the product price falls. 
C) ​suppliers are willing to increase production of their goods if they receive higher prices for them. 
D) ​buyers are willing to buy more as the product price falls. 
E) ​buyers are not affected either directly or indirectly by the sellers' costs of production. 
A) ​buyers are willing to pay more for particularly scarce products. 
B) ​suppliers expand production as the product price falls. 
C) ​suppliers are willing to increase production of their goods if they receive higher prices for them. 
D) ​buyers are willing to buy more as the product price falls. 
E) ​buyers are not affected either directly or indirectly by the sellers' costs of production.

Question 5

Which of the following would most likely cause a decrease in the current demand for a normal good?

Accepted Answer

A) ​An increase in the price of the good. 
B) ​An increase in the expected future price of the good. 
C) ​A decrease in the price of a complement for the good. 
D) ​None of the above would be likely to cause a decrease in current demand for a normal good. 
A) ​An increase in the price of the good. 
B) ​An increase in the expected future price of the good. 
C) ​A decrease in the price of a complement for the good. 
D) ​None of the above would be likely to cause a decrease in current demand for a normal good.

Question 6

Which of the following best represents the effects of a decrease in the price of tea?

Accepted Answer

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

Question 7

A supply curve illustrates a(n) ____ relationship between ____ and ____.

Accepted Answer

A) ​direct; price; supply 
B) ​direct; price; quantity demanded 
C) ​direct; price; quantity supplied 
D) ​inverse; price; quantity demanded 
A) ​direct; price; supply 
B) ​direct; price; quantity demanded 
C) ​direct; price; quantity supplied 
D) ​inverse; price; quantity demanded

Question 8

​Exhibit 4-4  
-Refer to Exhibit 4-4. A change from Point A to Point D represents a(n):

Accepted Answer

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

Question 9

When the price of a good or service changes

Accepted Answer

A) ​the supply curve shifts in the opposite direction. 
B) ​the demand curve shifts in the opposite direction. 
C) ​the demand curve shifts in the same direction. 
D) ​there is a movement along a given demand curve. 
A) ​the supply curve shifts in the opposite direction. 
B) ​the demand curve shifts in the opposite direction. 
C) ​the demand curve shifts in the same direction. 
D) ​there is a movement along a given demand curve.

Question 10

The price of peanut butter falls and as a result the demand for jelly increases. We can conclude that:

Accepted Answer

A) ​peanut butter and jelly are substitutes. 
B) ​peanut butter and jelly are complements. 
C) ​peanut butter and jelly are inferior goods. 
D) ​the marginal value of jelly is greater than the marginal value of peanut butter. 
A) ​peanut butter and jelly are substitutes. 
B) ​peanut butter and jelly are complements. 
C) ​peanut butter and jelly are inferior goods. 
D) ​the marginal value of jelly is greater than the marginal value of peanut butter.

Question 11

The difference between a change in quantity demanded and a change in demand is that a change in:

Accepted Answer

A) ​quantity demanded is caused by a change in a good's own current price, while a change in demand is caused by a change in some other variable, such as income, tastes, or expectations. 
B) ​demand is caused by a change in a good's own current price, while a change in quantity demanded is caused by a change in some other variable, such as income, tastes, or expectations. 
C) ​quantity demanded is a change in the amount people actually buy, while a change in demand is a change in the amount they want to buy. 
D) ​A change in demand and a change in quantity demanded are the same thing. 
A) ​quantity demanded is caused by a change in a good's own current price, while a change in demand is caused by a change in some other variable, such as income, tastes, or expectations. 
B) ​demand is caused by a change in a good's own current price, while a change in quantity demanded is caused by a change in some other variable, such as income, tastes, or expectations. 
C) ​quantity demanded is a change in the amount people actually buy, while a change in demand is a change in the amount they want to buy. 
D) ​A change in demand and a change in quantity demanded are the same thing.

Question 12

Which of the following would not cause a change in the demand for cheese?

Accepted Answer

A) ​an increase in the price of crackers, which are consumed with cheese 
B) ​an increase in the income of cheese consumers 
C) ​an increase in the population of cheese lovers 
D) ​an increase in the price of cheese 
A) ​an increase in the price of crackers, which are consumed with cheese 
B) ​an increase in the income of cheese consumers 
C) ​an increase in the population of cheese lovers 
D) ​an increase in the price of cheese

Question 13

Which of the following changes would not shift the demand curve for a good or service?

Accepted Answer

A) ​a change in income 
B) ​a change in the price of the good or service 
C) ​a change in expectations about the future price of the good or service 
D) ​a change in the price of a related good or service 
A) ​a change in income 
B) ​a change in the price of the good or service 
C) ​a change in expectations about the future price of the good or service 
D) ​a change in the price of a related good or service

Question 14

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

Accepted Answer

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

Question 15

Which of the following would not cause an increase in demand for tennis balls?

Accepted Answer

A) ​a reduction in the price of tennis racquets 
B) ​a decrease in the price of tennis balls 
C) ​an unusually sunny fall and winter 
D) ​an increase in the popularity of tennis 
A) ​a reduction in the price of tennis racquets 
B) ​a decrease in the price of tennis balls 
C) ​an unusually sunny fall and winter 
D) ​an increase in the popularity of tennis

Question 16

When the price of automobile insurance increases sharply, the likely impact on the market for automobiles is:

Accepted Answer

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

Question 17

A decrease in the price of a good will

Accepted Answer

A) ​increase demand. 
B) ​decrease demand. 
C) ​increase quantity demanded. 
D) ​decrease quantity demanded. 
A) ​increase demand. 
B) ​decrease demand. 
C) ​increase quantity demanded. 
D) ​decrease quantity demanded.

Question 18

An increase in quantity demanded

Accepted Answer

A) ​illustrated by a movement downward and to the right along a demand curve. 
B) ​illustrated by a movement upward and to the left along a demand curve. 
C) ​shifts the demand curve to the left. 
D) ​shifts the demand curve to the right. 
A) ​illustrated by a movement downward and to the right along a demand curve. 
B) ​illustrated by a movement upward and to the left along a demand curve. 
C) ​shifts the demand curve to the left. 
D) ​shifts the demand curve to the right.

Question 19

The quantity of newspapers sold will decline if:

Accepted Answer

A) ​newsprint becomes more expensive. 
B) ​the printers' union makes wage concessions. 
C) ​newspaper prices are reduced. 
D) ​magazine prices rise. 
A) ​newsprint becomes more expensive. 
B) ​the printers' union makes wage concessions. 
C) ​newspaper prices are reduced. 
D) ​magazine prices rise.

Question 20

If there is a decrease in demand

Accepted Answer

A) ​firms would be willing to supply less of the good than before at each possible price. 
B) ​buyers are willing to purchase less of the good than before at each possible price. 
C) ​buyer's taste for the good has increased. 
D) ​the price of the product has increased, causing consumers to buy less of the product. 
A) ​firms would be willing to supply less of the good than before at each possible price. 
B) ​buyers are willing to purchase less of the good than before at each possible price. 
C) ​buyer's taste for the good has increased. 
D) ​the price of the product has increased, causing consumers to buy less of the product.

Exam 4: Demand, Supply, and Market Equilibrium

If watermelons are normal goods, the demand for them will rise as the income of consumers rises.

Which of the following would shift the supply curve for gasoline to the right?

Which of the following events would cause an upward movement along the demand curve for olives?

An upward-sloping supply curve shows that:

Which of the following would most likely cause a decrease in the current demand for a normal good?

Which of the following best represents the effects of a decrease in the price of tea?

A supply curve illustrates a(n) ____ relationship between ____ and ____.

​Exhibit 4-4 -Refer to Exhibit 4-4. A change from Point A to Point D represents a(n):

When the price of a good or service changes

The price of peanut butter falls and as a result the demand for jelly increases. We can conclude that:

The difference between a change in quantity demanded and a change in demand is that a change in:

Which of the following would not cause a change in the demand for cheese?

Which of the following changes would not shift the demand curve for a good or service?

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

Which of the following would not cause an increase in demand for tennis balls?

When the price of automobile insurance increases sharply, the likely impact on the market for automobiles is:

A decrease in the price of a good will

An increase in quantity demanded

The quantity of newspapers sold will decline if:

If there is a decrease in demand

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Filters

A supply curve illustrates a(n) relationship between and .

Exhibit 4-4 -Refer to Exhibit 4-4. A change from Point A to Point D represents a(n):