Question 1

Figure 4-7  
-Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by an)

Accepted Answer

A)  decrease in the price of potato chips. 
B)  decrease in income, assuming that potato chips are a normal good. 
C)  announcement by the FDA that potato chips cause cancer. 
D)  increase in the price of a pretzels. 
A)  decrease in the price of potato chips. 
B)  decrease in income, assuming that potato chips are a normal good. 
C)  announcement by the FDA that potato chips cause cancer. 
D)  increase in the price of a pretzels.

Question 2

Figure 4-29  
-Refer to Figure 4-29. The movement from S1 to S2 is a

Accepted Answer

The answer of Figure 4-29  
-Refer to Figure 4-29....

Question 3

The unique point at which the supply and demand curves intersect is called

Accepted Answer

A)  market harmony. 
B)  coincidence. 
C)  equivalence. 
D)  equilibrium. 
A)  market harmony. 
B)  coincidence. 
C)  equivalence. 
D)  equilibrium.

Question 4

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

Accepted Answer

A)  the market for U.S. Treasury bonds 
B)  the market for corn 
C)  the market for soybeans 
D)  the market for ice cream 
A)  the market for U.S. Treasury bonds 
B)  the market for corn 
C)  the market for soybeans 
D)  the market for ice cream

Question 5

If the demand for a product decreases, then we would expect equilibrium price

Accepted Answer

A)  to increase and equilibrium quantity to decrease. 
B)  to decrease and equilibrium quantity to increase. 
C)  and equilibrium quantity to both increase. 
D)  and equilibrium quantity to both decrease. 
A)  to increase and equilibrium quantity to decrease. 
B)  to decrease and equilibrium quantity to increase. 
C)  and equilibrium quantity to both increase. 
D)  and equilibrium quantity to both decrease.

Question 6

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 7

Figure 4-18  
-Refer to Figure 4-18. At the equilibrium price,

Accepted Answer

A)  200 units would be supplied and demanded. 
B)  400 units would be supplied and demanded. 
C)  600 units would be supplied and demanded. 
D)  600 units would be supplied, but only 200 would be demanded. 
A)  200 units would be supplied and demanded. 
B)  400 units would be supplied and demanded. 
C)  600 units would be supplied and demanded. 
D)  600 units would be supplied, but only 200 would be demanded.

Question 8

Figure 4-5  
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

Accepted Answer

A)  a freeze in Florida 
B)  a technological advance that allows oranges to ripen faster 
C)  a decrease in the price of apples 
D)  an announcement by the FDA that oranges prevent heart disease 
A)  a freeze in Florida 
B)  a technological advance that allows oranges to ripen faster 
C)  a decrease in the price of apples 
D)  an announcement by the FDA that oranges prevent heart disease

Question 9

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Accepted Answer

A)  Students would purchase fewer than 750 cups per day. 
B)  Student would continue to purchase 750 cups per day. 
C)  Students would purchase more than 750 cups per day. 
D)  We do not have enough information to answer this question. 
A)  Students would purchase fewer than 750 cups per day. 
B)  Student would continue to purchase 750 cups per day. 
C)  Students would purchase more than 750 cups per day. 
D)  We do not have enough information to answer this question.

Question 10

Suppose the income of buyers in a market for an inferior good decreases 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 quantity would increase, but the impact on equilibrium price would be ambiguous. 
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D)  None of the above is correct. 
A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. 
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D)  None of the above is correct.

Question 11

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Accepted Answer

A)  encourage marijuana use, and the evidence supports this argument. 
B)  encourage marijuana use, but the evidence does not support this argument. 
C)  discourage marijuana use, and the evidence supports this argument. 
D)  discourage marijuana use, but the evidence does not support this argument. 
A)  encourage marijuana use, and the evidence supports this argument. 
B)  encourage marijuana use, but the evidence does not support this argument. 
C)  discourage marijuana use, and the evidence supports this argument. 
D)  discourage marijuana use, but the evidence does not support this argument.

Question 12

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 13

Figure 4-27

-Refer to Figure 4-27. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Accepted Answer

A)  Panel a) 
B)  Panel b) 
C)  Panel c) 
D)  Panel d) 
A)  Panel a) 
B)  Panel b) 
C)  Panel c) 
D)  Panel d)

Question 14

Which of the following demonstrates the law of supply?

Accepted Answer

A)  When leather became more expensive, belt producers decreased their supply of belts. 
B)  When car production technology improved, car producers increased their supply of cars. 
C)  When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. 
D)  When ketchup prices rose, ketchup sellers increased their quantity supplied of ketchup. 
A)  When leather became more expensive, belt producers decreased their supply of belts. 
B)  When car production technology improved, car producers increased their supply of cars. 
C)  When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. 
D)  When ketchup prices rose, ketchup sellers increased their quantity supplied of ketchup.

Question 15

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. Assuming these are the only four suppliers in this market and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is the price, what is the equilibrium price?

Accepted Answer

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

Question 16

Price will rise to eliminate a shortage.

Accepted Answer

A) True 
 B)False

Question 17

A very hot summer in Atlanta will cause

Accepted Answer

A)  the demand curve for lemonade to shift to the left. 
B)  the demand for air conditioners to decrease. 
C)  the demand for jackets to decrease. 
D)  a movement downward and to the right along the demand curve for tank tops. 
A)  the demand curve for lemonade to shift to the left. 
B)  the demand for air conditioners to decrease. 
C)  the demand for jackets to decrease. 
D)  a movement downward and to the right along the demand curve for tank tops.

Question 18

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Accepted Answer

A)  a smaller quantity of labor to be used. 
B)  the supply of cars to increase. 
C)  the firms' costs to fall. 
D)  individual car manufacturers to move up and to the right along their individual supply curves. 
A)  a smaller quantity of labor to be used. 
B)  the supply of cars to increase. 
C)  the firms' costs to fall. 
D)  individual car manufacturers to move up and to the right along their individual supply curves.

Question 19

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
  
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches and that the market demand violates the law of demand. Then, in the table, the value of x must be

Accepted Answer

A)  less than or equal to 5. 
B)  greater than or equal to 5. 
C)  greater than or equal to 7. 
D)  greater than or equal to 10. 
A)  less than or equal to 5. 
B)  greater than or equal to 5. 
C)  greater than or equal to 7. 
D)  greater than or equal to 10.

Question 20

Figure 4-17  
-Refer to Figure 4-17. At a price of

Accepted Answer

A)  $8, there is a surplus of 6 units. 
B)  $5, there is neither a shortage nor a surplus. 
C)  $2, there is a shortage of 6 units. 
D)  All of the above are correct. 
A)  $8, there is a surplus of 6 units. 
B)  $5, there is neither a shortage nor a surplus. 
C)  $2, there is a shortage of 6 units. 
D)  All of the above are correct.

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by an)

Figure 4-29 -Refer to Figure 4-29. The movement from S1 to S2 is a

The unique point at which the supply and demand curves intersect is called

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

If the demand for a product decreases, then we would expect equilibrium price

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

Figure 4-18 -Refer to Figure 4-18. At the equilibrium price,

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect to happen in the market?

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

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

Figure 4-27 -Refer to Figure 4-27. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Which of the following demonstrates the law of supply?

Price will rise to eliminate a shortage.

A very hot summer in Atlanta will cause

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches and that the market demand violates the law of demand. Then, in the table, the value of x must be

Figure 4-17 -Refer to Figure 4-17. At a price of

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

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by an)

Figure 4-29 -Refer to Figure 4-29. The movement from S1 to S2 is a

The unique point at which the supply and demand curves intersect is called

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

If the demand for a product decreases, then we would expect equilibrium price

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

Figure 4-18 -Refer to Figure 4-18. At the equilibrium price,

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect to happen in the market?

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

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

Figure 4-27 -Refer to Figure 4-27. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Which of the following demonstrates the law of supply?

Price will rise to eliminate a shortage.

A very hot summer in Atlanta will cause

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches and that the market demand violates the law of demand. Then, in the table, the value of x must be

Figure 4-17 -Refer to Figure 4-17. At a price of

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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