Question 1

Once the demand curve for a product or service is drawn, it

Accepted Answer

A)  remains stable over time. 
B)  can shift either rightward or leftward. 
C)  is possible to move along the curve, but the curve will not shift. 
D)  tends to become steeper over time. 
A)  remains stable over time. 
B)  can shift either rightward or leftward. 
C)  is possible to move along the curve, but the curve will not shift. 
D)  tends to become steeper over time.

Question 2

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 increases from $12 to $15, 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 3

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 4

A decrease in the price of a good would

Accepted Answer

A)  increase the supply of the good. 
B)  increase the quantity demanded of the good. 
C)  give producers an incentive to produce more to keep profits from falling. 
D)  shift the supply curve for the good to the left. 
A)  increase the supply of the good. 
B)  increase the quantity demanded of the good. 
C)  give producers an incentive to produce more to keep profits from falling. 
D)  shift the supply curve for the good to the left.

Question 5

If there is a shortage of farm laborers, we would expect

Accepted Answer

A)  the wage of farm laborers to increase. 
B)  the wage of farm laborers to decrease. 
C)  the price of farm commodities to decrease. 
D)  a decrease in the demand for substitutes for farm labor. 
A)  the wage of farm laborers to increase. 
B)  the wage of farm laborers to decrease. 
C)  the price of farm commodities to decrease. 
D)  a decrease in the demand for substitutes for farm labor.

Question 6

Figure 4-27
Panel a) Panel b)
     Panel c) Panel d)
    
-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 7

Figure 4-2  
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

Accepted Answer

A)  0 units. 
B)  2 units. 
C)  4 units. 
D)  6 units. 
A)  0 units. 
B)  2 units. 
C)  4 units. 
D)  6 units.

Question 8

Today's supply curve for gasoline could shift in response to a change in

Accepted Answer

A)  today's price of gasoline. 
B)  the expected future price of gasoline. 
C)  the number of buyers of gasoline. 
D)  All of the above are correct. 
A)  today's price of gasoline. 
B)  the expected future price of gasoline. 
C)  the number of buyers of gasoline. 
D)  All of the above are correct.

Question 9

Once the supply curve for a product or service is drawn, it

Accepted Answer

A)  remains stable over time. 
B)  can shift either rightward or leftward. 
C)  is possible to move along the curve, but the curve will not shift. 
D)  tends to become steeper over time. 
A)  remains stable over time. 
B)  can shift either rightward or leftward. 
C)  is possible to move along the curve, but the curve will not shift. 
D)  tends to become steeper over time.

Question 10

An increase in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 11

A leftward shift of a demand curve is called an)

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 12

Today's demand curve for gasoline could shift in response to a change in

Accepted Answer

A)  today's price of gasoline. 
B)  the expected future price of gasoline. 
C)  the number of sellers of gasoline. 
D)  All of the above are correct. 
A)  today's price of gasoline. 
B)  the expected future price of gasoline. 
C)  the number of sellers of gasoline. 
D)  All of the above are correct.

Question 13

Which of the following events must cause equilibrium quantity 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 14

If a increase in income decreases the demand for a good, then the good is an)

Accepted Answer

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

Question 15

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 16

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. Also suppose x = 2. Then

Accepted Answer

A)  the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­5/2. 
B)  the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­2/5. 
C)  the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­5/2. 
D)  the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­2/5. 
A)  the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­5/2. 
B)  the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­2/5. 
C)  the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­5/2. 
D)  the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­2/5.

Question 17

Table 4-8
  
-Refer to Table 4-8. If these are the only three sellers in the market, then an increase in the market price from $6 to $12 will increase quantity supplied by

Accepted Answer

A)  12 units. 
B)  24 units. 
C)  36 units. 
D)  48 units. 
A)  12 units. 
B)  24 units. 
C)  36 units. 
D)  48 units.

Question 18

Which of the following is not a characteristic of a perfectly competitive market?

Accepted Answer

A)  Sellers set the price of the product. 
B)  There are many sellers. 
C)  Buyers must accept the price the market determines. 
D)  All of the above are characteristics of a perfectly competitive market. 
A)  Sellers set the price of the product. 
B)  There are many sellers. 
C)  Buyers must accept the price the market determines. 
D)  All of the above are characteristics of a perfectly competitive market.

Question 19

If a good is normal, then an increase in income will result in an)

Accepted Answer

A)  increase in the demand for the good. 
B)  decrease in the demand for the good. 
C)  movement down and to the right along the demand curve for the good. 
D)  movement up and to the left along the demand curve for the good. 
A)  increase in the demand for the good. 
B)  decrease in the demand for the good. 
C)  movement down and to the right along the demand curve for the good. 
D)  movement up and to the left along the demand curve for the good.

Question 20

"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

A)  is referred to as the law of supply. 
B)  applies only to a few goods in the economy. 
C)  is represented by a downward-sloping supply curve. 
D)  All of the above are correct. 
A)  is referred to as the law of supply. 
B)  applies only to a few goods in the economy. 
C)  is represented by a downward-sloping supply curve. 
D)  All of the above are correct.

Exam 4: The Market Forces of Supply and Demand

Once the demand curve for a product or service is drawn, it

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 increases from $12 to $15, quantity supplied will

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.

A decrease in the price of a good would

If there is a shortage of farm laborers, we would expect

Figure 4-27 Panel a) Panel b) Panel c) Panel d) -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?

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

Today's supply curve for gasoline could shift in response to a change in

Once the supply curve for a product or service is drawn, it

An increase in demand shifts the demand curve to the left.

A leftward shift of a demand curve is called an)

Today's demand curve for gasoline could shift in response to a change in

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

If a increase in income decreases the demand for a good, then the good is an)

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

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. Also suppose x = 2. Then

Table 4-8 -Refer to Table 4-8. If these are the only three sellers in the market, then an increase in the market price from $6 to $12 will increase quantity supplied by

Which of the following is not a characteristic of a perfectly competitive market?

If a good is normal, then an increase in income will result in an)

"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International 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

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 Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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