Question 1

The law of demand is true for most goods in the economy.

Accepted Answer

A) True 
 B)False

Question 2

The market demand curve

Accepted Answer

A)  is the sum of all individual demand curves. 
B)  is the demand curve for every product in an industry. 
C)  shows the average quantity demanded by individual demanders at each price. 
D)  is always flatter than an individual demand curve. 
A)  is the sum of all individual demand curves. 
B)  is the demand curve for every product in an industry. 
C)  shows the average quantity demanded by individual demanders at each price. 
D)  is always flatter than an individual demand curve.

Question 3

Pizza is a normal good if the demand

Accepted Answer

A)  for pizza rises when income rises. 
B)  for pizza rises when the price of pizza falls. 
C)  curve for pizza slopes upward. 
D)  curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes. 
A)  for pizza rises when income rises. 
B)  for pizza rises when the price of pizza falls. 
C)  curve for pizza slopes upward. 
D)  curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.

Question 4

Which of the following would shift the supply of Packers football jerseys to the right?

Accepted Answer

A)  The Packers make it to the Super Bowl. 
B)  The price of the jerseys increases by $15. 
C)  The cost to distribute the jerseys increases. 
D)  The cost of the fabric used to make the jerseys decreases. 
A)  The Packers make it to the Super Bowl. 
B)  The price of the jerseys increases by $15. 
C)  The cost to distribute the jerseys increases. 
D)  The cost of the fabric used to make the jerseys decreases.

Question 5

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 6

If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more to the market this month.

Accepted Answer

A) True 
 B)False

Question 7

At the equilibrium price, quantity demanded is equal to quantity supplied.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  $2, there is a surplus of 6 units. 
B)  $5, there is a surplus of 25 units. 
C)  $5, there is a shortage of $25. 
D)  $7, there is a surplus of 4 units. 
A)  $2, there is a surplus of 6 units. 
B)  $5, there is a surplus of 25 units. 
C)  $5, there is a shortage of $25. 
D)  $7, there is a surplus of 4 units.

Question 9

Today, producers changed their expectations about the future. This change

Accepted Answer

A)  can cause a movement along a supply curve. 
B)  can affect future supply, but not today's supply. 
C)  can affect today's supply. 
D)  cannot affect either today's supply or future supply. 
A)  can cause a movement along a supply curve. 
B)  can affect future supply, but not today's supply. 
C)  can affect today's supply. 
D)  cannot affect either today's supply or future supply.

Question 10

An decrease in the price of oranges would lead to a(n)

Accepted Answer

A)  increased supply of oranges. 
B)  increase in the prices of inputs used in orange production. 
C)  a movement down and to the left along the supply curve for oranges. 
D)  a movement up and to the right along the supply curve for oranges. 
A)  increased supply of oranges. 
B)  increase in the prices of inputs used in orange production. 
C)  a movement down and to the left along the supply curve for oranges. 
D)  a movement up and to the right along the supply curve for oranges.

Question 11

Table 4-1  
-Refer to Table 4-1. If the market consists of Michelle and Hillary only and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A)  2 units. 
B)  3 units. 
C)  4 units. 
D)  5 units. 
A)  2 units. 
B)  3 units. 
C)  4 units. 
D)  5 units.

Question 12

Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this case, we know doctor's visits are

Accepted Answer

A)  inferior goods. 
B)  normal goods. 
C)  perfectly competitive goods. 
D)  durable goods. 
A)  inferior goods. 
B)  normal goods. 
C)  perfectly competitive goods. 
D)  durable goods.

Question 13

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 14

In a competitive market, the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)  buyers. 
B)  sellers. 
C)  both buyers and sellers. 
D)  None of the above is correct. 
A)  buyers. 
B)  sellers. 
C)  both buyers and sellers. 
D)  None of the above is correct.

Question 15

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

Accepted Answer

A)  Beef producers, concerned about the health of their customers, decided to produce relatively less beef. 
B)  Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef. 
C)  Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce. 
D)  Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace. 
A)  Beef producers, concerned about the health of their customers, decided to produce relatively less beef. 
B)  Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef. 
C)  Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce. 
D)  Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace.

Question 16

Baseballs and baseball bats are substitute goods.

Accepted Answer

A) True 
 B)False

Question 17

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous.

Accepted Answer

A) True 
 B)False

Question 18

If toast and butter are complements, then which of the following would increase the demand for toast?

Accepted Answer

A)  a decrease in the price of toast 
B)  a decrease in the price of butter 
C)  an increase in the price of butter 
D)  Both a and b are correct. 
A)  a decrease in the price of toast 
B)  a decrease in the price of butter 
C)  an increase in the price of butter 
D)  Both a and b are correct.

Question 19

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities.  
-Refer to Figure 4-25. All else equal, an increase in the use of laptop computers for note-taking would cause a 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 20

In a given market, how are the equilibrium price and the market-clearing price related?

Accepted Answer

A)  There is no relationship. 
B)  They are the same price. 
C)  The market-clearing price exceeds the equilibrium price. 
D)  The equilibrium price exceeds the market-clearing price. 
A)  There is no relationship. 
B)  They are the same price. 
C)  The market-clearing price exceeds the equilibrium price. 
D)  The equilibrium price exceeds the market-clearing price.

Exam 4: The Market Forces of Supply and Demand

The law of demand is true for most goods in the economy.

The market demand curve

Pizza is a normal good if the demand

Which of the following would shift the supply of Packers football jerseys to the right?

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?

If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more to the market this month.

At the equilibrium price, quantity demanded is equal to quantity supplied.

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

Today, producers changed their expectations about the future. This change

An decrease in the price of oranges would lead to a(n)

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle and Hillary only and the price falls by $1, the quantity demanded in the market increases by

Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this case, we know doctor's visits are

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

In a competitive market, the quantity of a product produced and the price of the product are determined by

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

Baseballs and baseball bats are substitute goods.

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous.

If toast and butter are complements, then which of the following would increase the demand for toast?

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, an increase in the use of laptop computers for note-taking would cause a move from

In a given market, how are the equilibrium price and the market-clearing price related?

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

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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

Filters