Question 1

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

Accepted Answer

A)  a change in production technology 
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 input prices 
A)  a change in production technology 
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 input prices

Question 2

Figure 4-21  
-Refer to Figure 4-21. At a price of $16, there is a

Accepted Answer

A)  surplus of 1 unit. 
B)  surplus of 3 units. 
C)  shortage of 1 unit. 
D)  shortage of 3 units. 
A)  surplus of 1 unit. 
B)  surplus of 3 units. 
C)  shortage of 1 unit. 
D)  shortage of 3 units.

Question 3

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

Accepted Answer

A)  crystal to be unaffected. 
B)  crystal to decrease. 
C)  crystal to increase. 
D)  lead to increase. 
A)  crystal to be unaffected. 
B)  crystal to decrease. 
C)  crystal to increase. 
D)  lead to increase.

Question 4

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.   If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)  40. 
B)  35. 
C)  30. 
D)  All of the above could be correct. 
A)  40. 
B)  35. 
C)  30. 
D)  All of the above could be correct.

Question 5

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Accepted Answer

The demand

Question 6

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Accepted Answer

A) True 
 B)False

Question 7

Baseballs and baseball bats are substitute goods.

Accepted Answer

A) True 
 B)False

Question 8

A decrease in the price of a complement will shift the demand curve for a good to the left.

Accepted Answer

A) True 
 B)False

Question 9

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are an)

Accepted Answer

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

Question 10

In a market economy, prices are the signals that guide the allocation of scarce resources.

Accepted Answer

A) True 
 B)False

Question 11

A rightward 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

If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the

Accepted Answer

A)  law of supply. 
B)  law of demand. 
C)  difference between normal and inferior goods. 
D)  difference between substitute and complement goods. 
A)  law of supply. 
B)  law of demand. 
C)  difference between normal and inferior goods. 
D)  difference between substitute and complement goods.

Question 13

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)  willing to purchase. 
B)  willing and able to purchase. 
C)  willing, able, and need to purchase. 
D)  able to purchase. 
A)  willing to purchase. 
B)  willing and able to purchase. 
C)  willing, able, and need to purchase. 
D)  able to purchase.

Question 14

The belief that tobacco is a "gateway drug" is consistent with

Accepted Answer

A)  the idea that tobacco and marijuana are substitutes. 
B)  the idea that an increase in income causes a decrease in the demand for tobacco and an increase in the demand for marijuana. 
C)  the idea that lower cigarette prices are associated with less use of marijuana. 
D)  most of the available evidence. 
A)  the idea that tobacco and marijuana are substitutes. 
B)  the idea that an increase in income causes a decrease in the demand for tobacco and an increase in the demand for marijuana. 
C)  the idea that lower cigarette prices are associated with less use of marijuana. 
D)  most of the available evidence.

Question 15

Table 4-12
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows:
  
-Refer to Table 4-12. If only members are allowed to purchase tickets to this year's celebrity golf tournament, then what will be the equilibrium price?

Accepted Answer

A)  $10 
B)  $15 
C)  $20 
D)  $25 
A)  $10 
B)  $15 
C)  $20 
D)  $25

Question 16

Assume Diana buys computers in a competitive market. It follows that

Accepted Answer

A)  Diana has a limited number of sellers to turn to when she buys a computer. 
B)  Diana will find herself negotiating with sellers whenever she buys a computer. 
C)  if Diana buys a large number of computers, the price of computers will rise noticeably. 
D)  None of the above is correct. 
A)  Diana has a limited number of sellers to turn to when she buys a computer. 
B)  Diana will find herself negotiating with sellers whenever she buys a computer. 
C)  if Diana buys a large number of computers, the price of computers will rise noticeably. 
D)  None of the above is correct.

Question 17

Table 4-16
The following table shows the supply and demand schedules in a market.
  
-Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Accepted Answer

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

Question 18

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 19

Equilibrium quantity must decrease when demand

Accepted Answer

A)  increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
B)  increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
C)  decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
D)  decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
A)  increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
B)  increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
C)  decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
D)  decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.

Question 20

Table 4-5
The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices.
  
-Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

Accepted Answer

A)  market quantity demanded decreases by 10. 
B)  market quantity demanded increases by 10. 
C)  Adams family increases its quantity demanded by more than the Smith family. 
D)  Jones family increases its quantity demanded by more than the Williams family. 
A)  market quantity demanded decreases by 10. 
B)  market quantity demanded increases by 10. 
C)  Adams family increases its quantity demanded by more than the Smith family. 
D)  Jones family increases its quantity demanded by more than the Williams family.

Exam 4: The Market Forces of Supply and Demand

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

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Baseballs and baseball bats are substitute goods.

A decrease in the price of a complement will shift the demand curve for a good to the left.

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are an)

In a market economy, prices are the signals that guide the allocation of scarce resources.

A rightward shift of a demand curve is called an)

The quantity demanded of a good is the amount that buyers are

The belief that tobacco is a "gateway drug" is consistent with

Assume Diana buys computers in a competitive market. It follows that

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Equilibrium quantity must decrease when demand

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

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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