Question 1

A market supply curve shows

Accepted Answer

A)  the total quantity supplied at all possible prices. 
B)  the average quantity supplied by producers at all possible prices. 
C)  how quantity supplied changes when consumer income changes. 
D)  suppliers' responses, in terms of the amounts they will supply, to the demands of buyers. 
A)  the total quantity supplied at all possible prices. 
B)  the average quantity supplied by producers at all possible prices. 
C)  how quantity supplied changes when consumer income changes. 
D)  suppliers' responses, in terms of the amounts they will supply, to the demands of buyers.

Question 2

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities.  
-Refer to Figure 4-25. All else equal, buyers expecting paper to be more expensive in the future would cause a current move from

Accepted Answer

A)  x to y. 
B)  y to x. 
C)  SA to SB. 
D)  SB to SA. 
A)  x to y. 
B)  y to x. 
C)  SA to SB. 
D)  SB to SA.

Question 3

Which of the following events must cause equilibrium price to rise?

Accepted Answer

A)  demand increases and supply decreases 
B)  demand and supply both decrease 
C)  demand decreases and supply increases 
D)  demand and supply both increase 
A)  demand increases and supply decreases 
B)  demand and supply both decrease 
C)  demand decreases and supply increases 
D)  demand and supply both increase

Question 4

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 5

Figure 4-22  
-Refer to Figure 4-22. At a price of $12, there is a

Accepted Answer

A)  surplus of 2 units. 
B)  surplus of 4 units. 
C)  shortage of 2 units. 
D)  shortage of 4 units. 
A)  surplus of 2 units. 
B)  surplus of 4 units. 
C)  shortage of 2 units. 
D)  shortage of 4 units.

Question 6

Table 4-16
The following table shows the supply and demand schedules in a market.
  
-Refer to Table 4-16. What is the equilibrium quantity in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Question 7

Local cable television companies frequently are monopolists.

Accepted Answer

A) True 
 B)False

Question 8

A movement downward and to the left along a supply curve is called an)

Accepted Answer

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

Question 9

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Accepted Answer

The equilibrium quan

Question 10

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Accepted Answer

A)  price-quantity schedule. 
B)  buyer schedule. 
C)  demand schedule. 
D)  demand curve. 
A)  price-quantity schedule. 
B)  buyer schedule. 
C)  demand schedule. 
D)  demand curve.

Question 11

Figure 4-9
Panel a)
  
 Panel b)
 
-Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a), the arrows are consistent with which of the following events?

Accepted Answer

A)  The price of marijuana, a complement to cigarettes, increased. 
B)  Mandatory health warnings were placed on cigarette packages. 
C)  Several foreign countries banned U.S. cigarettes in their countries. 
D)  A tax was placed on cigarettes. 
A)  The price of marijuana, a complement to cigarettes, increased. 
B)  Mandatory health warnings were placed on cigarette packages. 
C)  Several foreign countries banned U.S. cigarettes in their countries. 
D)  A tax was placed on cigarettes.

Question 12

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for convertible automobiles of an increase in the price of steel?

Accepted Answer

A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D 
A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D

Question 13

A movement along the demand curve might be caused by a change in

Accepted Answer

A)  income. 
B)  the prices of substitutes or complements. 
C)  expectations about future prices. 
D)  the price of the good or service that is being demanded. 
A)  income. 
B)  the prices of substitutes or complements. 
C)  expectations about future prices. 
D)  the price of the good or service that is being demanded.

Question 14

Figure 4-9
Panel a)
  
 Panel b)
 
-Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a), the arrows are consistent with which of the following events?

Accepted Answer

A)  Tobacco and marijuana are complements, and the price of marijuana decreased. 
B)  Tobacco is a "gateway drug," and the price of marijuana increased. 
C)  The price of cigarettes increased. 
D)  The arrows are consistent with all of these events. 
A)  Tobacco and marijuana are complements, and the price of marijuana decreased. 
B)  Tobacco is a "gateway drug," and the price of marijuana increased. 
C)  The price of cigarettes increased. 
D)  The arrows are consistent with all of these events.

Question 15

Figure 4-24
The diagram below pertains to the demand for turkey in the United States.  
-Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Accepted Answer

A)  DA to DB. 
B)  DB to DA. 
C)  x to y. 
D)  y to x. 
A)  DA to DB. 
B)  DB to DA. 
C)  x to y. 
D)  y to x.

Question 16

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
  
-Refer to Table 4-15. If all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 17

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Accepted Answer

A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. 
A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

Question 18

An increase in demand is represented by a

Accepted Answer

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

Question 19

Which of the following might cause the supply curve for an inferior good to shift to the right?

Accepted Answer

A)  an increase in input prices 
B)  a decrease in consumer income 
C)  an improvement in production technology that makes production of the good more profitable 
D)  a decrease in the number of sellers in the market 
A)  an increase in input prices 
B)  a decrease in consumer income 
C)  an improvement in production technology that makes production of the good more profitable 
D)  a decrease in the number of sellers in the market

Question 20

Which of the following events must result in a higher price in the market for cigars?

Accepted Answer

A)  Demand for cigars increases, and supply of cigars decreases. 
B)  Demand for cigars and supply of cigars both decrease. 
C)  Demand for cigars decreases, and supply of cigars increases. 
D)  Demand for cigars and supply of cigars both increase 
A)  Demand for cigars increases, and supply of cigars decreases. 
B)  Demand for cigars and supply of cigars both decrease. 
C)  Demand for cigars decreases, and supply of cigars increases. 
D)  Demand for cigars and supply of cigars both increase

A market supply curve shows

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, buyers expecting paper to be more expensive in the future would cause a current move from

Which of the following events must cause equilibrium price to rise?

Most markets in the economy are

Figure 4-22 -Refer to Figure 4-22. At a price of $12, there is a

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium quantity in this market?

Local cable television companies frequently are monopolists.

A movement downward and to the left along a supply curve is called an)

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Figure 4-9 Panel a) Panel b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a), the arrows are consistent with which of the following events?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for convertible automobiles of an increase in the price of steel?

A movement along the demand curve might be caused by a change in

Figure 4-9 Panel a) Panel b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a), the arrows are consistent with which of the following events?

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. If all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

An increase in demand is represented by a

Which of the following might cause the supply curve for an inferior good to shift to the right?

Which of the following events must result in a higher price in the market for cigars?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 4: The Market Forces of Supply and Demand

A market supply curve shows

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, buyers expecting paper to be more expensive in the future would cause a current move from

Which of the following events must cause equilibrium price to rise?

Most markets in the economy are

Figure 4-22 -Refer to Figure 4-22. At a price of $12, there is a

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium quantity in this market?

Local cable television companies frequently are monopolists.

A movement downward and to the left along a supply curve is called an)

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Figure 4-9 Panel a) Panel b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a), the arrows are consistent with which of the following events?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for convertible automobiles of an increase in the price of steel?

A movement along the demand curve might be caused by a change in

Figure 4-9 Panel a) Panel b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel a), the arrows are consistent with which of the following events?

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. If all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

An increase in demand is represented by a

Which of the following might cause the supply curve for an inferior good to shift to the right?

Which of the following events must result in a higher price in the market for cigars?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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