Question 1

When quantity demanded increases at every possible price, the demand curve has

Accepted Answer

A)  shifted to the left. 
B)  shifted to the right. 
C)  not shifted; rather, we have moved along the demand curve to a new point on the same curve. 
D)  not shifted; rather, the demand curve has become steeper. 
A)  shifted to the left. 
B)  shifted to the right. 
C)  not shifted; rather, we have moved along the demand curve to a new point on the same curve. 
D)  not shifted; rather, the demand curve has become steeper.

Question 2

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

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 3

Suppose you make jewelry. If the price of gold falls, then we would expect you to

Accepted Answer

A)  be willing and able to produce less jewelry than before at each possible price. 
B)  be willing and able to produce more jewelry than before at each possible price. 
C)  face a greater demand for your jewelry. 
D)  face a weaker demand for your jewelry. 
A)  be willing and able to produce less jewelry than before at each possible price. 
B)  be willing and able to produce more jewelry than before at each possible price. 
C)  face a greater demand for your jewelry. 
D)  face a weaker demand for your jewelry.

Question 4

Figure 4-7  
-Refer to Figure 4-7. The shift from Da to Db is called

Accepted Answer

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

Question 5

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be an)

Accepted Answer

A)  luxury good. 
B)  inferior good. 
C)  normal good. 
D)  complementary good. 
A)  luxury good. 
B)  inferior good. 
C)  normal good. 
D)  complementary good.

Question 6

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Accepted Answer

A) True 
 B)False

Question 7

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

Accepted Answer

A)  rise. 
B)  fall. 
C)  stay the same. 
D)  could rise, fall, or remain unchanged. 
A)  rise. 
B)  fall. 
C)  stay the same. 
D)  could rise, fall, or remain unchanged.

Question 8

Figure 4-28  
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

Accepted Answer

The answer of Figure 4-28  
-Refer to Figure 4-28....

Question 9

If macaroni and cheese is an inferior good, then an increase in

Accepted Answer

A)  the price will cause the demand curve for macaroni and cheese to shift to the left. 
B)  the price will cause the demand curve for macaroni and cheese to shift to the right. 
C)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the left. 
D)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the right. 
A)  the price will cause the demand curve for macaroni and cheese to shift to the left. 
B)  the price will cause the demand curve for macaroni and cheese to shift to the right. 
C)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the left. 
D)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the right.

Question 10

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Accepted Answer

A)  prices at and above the equilibrium price. 
B)  prices at and below the equilibrium price. 
C)  prices above and below the equilibrium price, but not at the equilibrium price. 
D)  the equilibrium price but not above or below the equilibrium price. 
A)  prices at and above the equilibrium price. 
B)  prices at and below the equilibrium price. 
C)  prices above and below the equilibrium price, but not at the equilibrium price. 
D)  the equilibrium price but not above or below the equilibrium price.

Question 11

Table 4-14
The table below shows the quantities demanded of milk per month by four families at various prices.
  
-Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Accepted Answer

The answer of Table 4-14
The table below shows the quantities...

Question 12

Figure 4-16  
-Refer to Figure 4-16. The shift from S to S' could be caused by an

Accepted Answer

A)  increase in the price of the good. 
B)  improvement in production technology. 
C)  increase in income. 
D)  increase in input prices. 
A)  increase in the price of the good. 
B)  improvement in production technology. 
C)  increase in income. 
D)  increase in input prices.

Question 13

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Accepted Answer

A)  the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price. 
B)  the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price. 
C)  there is a surplus of blue jeans at the $30 price. 
D)  All of the above are correct. 
A)  the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price. 
B)  the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price. 
C)  there is a surplus of blue jeans at the $30 price. 
D)  All of the above are correct.

Question 14

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A)  decreases, and the supply of tires increases. 
B)  is unaffected, and the supply of tires decreases. 
C)  is unaffected, and the supply of tires increases. 
D)  None of the above is necessarily correct. 
A)  decreases, and the supply of tires increases. 
B)  is unaffected, and the supply of tires decreases. 
C)  is unaffected, and the supply of tires increases. 
D)  None of the above is necessarily correct.

Question 15

Table 4-8
  
-Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

Accepted Answer

A)  decrease by 6 units. 
B)  decrease by 12 units. 
C)  increase by 6 units. 
D)  increase by 12 units. 
A)  decrease by 6 units. 
B)  decrease by 12 units. 
C)  increase by 6 units. 
D)  increase by 12 units.

Question 16

The two words most often used by economists are

Accepted Answer

A)  prices and quantities. 
B)  resources and allocation. 
C)  supply and demand. 
D)  efficiency and equity. 
A)  prices and quantities. 
B)  resources and allocation. 
C)  supply and demand. 
D)  efficiency and equity.

Question 17

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.

When quantity demanded increases at every possible price, the demand curve has

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Suppose you make jewelry. If the price of gold falls, then we would expect you to

Figure 4-7 -Refer to Figure 4-7. The shift from Da to Db is called

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be an)

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

If macaroni and cheese is an inferior good, then an increase in

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Table 4-14 The table below shows the quantities demanded of milk per month by four families at various prices. -Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

The two words most often used by economists are

The term price takers refers to buyers and sellers in

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

When quantity demanded increases at every possible price, the demand curve has

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Suppose you make jewelry. If the price of gold falls, then we would expect you to

Figure 4-7 -Refer to Figure 4-7. The shift from Da to Db is called

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be an)

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

If macaroni and cheese is an inferior good, then an increase in

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Table 4-14 The table below shows the quantities demanded of milk per month by four families at various prices. -Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

The two words most often used by economists are

The term price takers refers to buyers and sellers in

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

Filters