Question 1

A market supply curve shows

Accepted Answer

A)  the total quantity supplied at all possible prices. 
B)  the average quantity supplied by producers at all possible prices. 
C)  how quantity supplied changes when consumer income changes. 
D)  suppliers' responses, in terms of the amounts they will supply, to the demands of buyers. 
A)  the total quantity supplied at all possible prices. 
B)  the average quantity supplied by producers at all possible prices. 
C)  how quantity supplied changes when consumer income changes. 
D)  suppliers' responses, in terms of the amounts they will supply, to the demands of buyers.

Question 2

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

Accepted Answer

The equilibrium quan

Question 3

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 4

A movement upward and to the left along a demand curve is called a(n)

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 5

Holding all other things constant, a higher price for ski lift tickets would

Accepted Answer

A)  increase the number of skiers. 
B)  increase the price of skis. 
C)  decrease the number of skis sold. 
D)  decrease the demand for other winter recreational activities. 
A)  increase the number of skiers. 
B)  increase the price of skis. 
C)  decrease the number of skis sold. 
D)  decrease the demand for other winter recreational activities.

Question 6

Table 4-9  
-Refer to Table 4-9. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
A)  A 
B)  B 
C)  C 
D)  D

Question 7

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

Accepted Answer

A)  The number of sellers of mangos decreases. 
B)  There is an advance in technology that reduces the cost of producing mangos. 
C)  The price of mangos falls. 
D)  The price of fertilizer increases, and fertilizer is an input in the production of mangos. 
A)  The number of sellers of mangos decreases. 
B)  There is an advance in technology that reduces the cost of producing mangos. 
C)  The price of mangos falls. 
D)  The price of fertilizer increases, and fertilizer is an input in the production of mangos.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A shortage exists in a market if

Accepted Answer

A)  there is an excess supply of the good. 
B)  quantity supplied exceeds quantity demanded. 
C)  the current price is below its equilibrium price. 
D)  All of the above are correct. 
A)  there is an excess supply of the good. 
B)  quantity supplied exceeds quantity demanded. 
C)  the current price is below its equilibrium price. 
D)  All of the above are correct.

Question 10

For teenagers, a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A)  1 percent reduction in the quantity demanded of cigarettes. 
B)  4 percent reduction in the quantity demanded of cigarettes. 
C)  10 percent reduction in the quantity demanded of cigarettes. 
D)  12 percent reduction in the quantity demanded of cigarettes. 
A)  1 percent reduction in the quantity demanded of cigarettes. 
B)  4 percent reduction in the quantity demanded of cigarettes. 
C)  10 percent reduction in the quantity demanded of cigarettes. 
D)  12 percent reduction in the quantity demanded of cigarettes.

Question 11

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.

Question 12

A group of buyers and sellers of a particular good or service is called a(n)

Accepted Answer

A)  coalition. 
B)  economy. 
C)  market. 
D)  competition. 
A)  coalition. 
B)  economy. 
C)  market. 
D)  competition.

Question 13

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Accepted Answer

The supply

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

A)  substitutes. 
B)  complements. 
C)  unrelated because one good is legal while the other one is illegal. 
D)  inferior goods. 
A)  substitutes. 
B)  complements. 
C)  unrelated because one good is legal while the other one is illegal. 
D)  inferior goods.

Question 16

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Accepted Answer

A)  decreases. 
B)  increases. 
C)  remains constant, but we observe a movement downward and to the right along the demand curve. 
D)  remains constant, but we observe a movement upward and to the left along the demand curve. 
A)  decreases. 
B)  increases. 
C)  remains constant, but we observe a movement downward and to the right along the demand curve. 
D)  remains constant, but we observe a movement upward and to the left along the demand curve.

Question 17

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

Accepted Answer

A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price would decrease, and the equilibrium quantity would increase. 
A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price would decrease, and the equilibrium quantity would increase.

Question 18

Which of the following would increase in response to a increase in the price of ironing boards?

Accepted Answer

A)  the quantity of irons demanded at each possible price of irons 
B)  the equilibrium quantity of irons 
C)  the equilibrium price of irons 
D)  None of the above is correct. 
A)  the quantity of irons demanded at each possible price of irons 
B)  the equilibrium quantity of irons 
C)  the equilibrium price of irons 
D)  None of the above is correct.

Question 19

An increase in the price of pizza will shift the demand curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 20

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce them?

Accepted Answer

A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price would decrease, and the equilibrium quantity would increase. 
A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price would decrease, and the equilibrium quantity would increase.

Exam 4: The Market Forces of Supply and Demand

A market supply curve shows

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

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?

A movement upward and to the left along a demand curve is called a(n)

Holding all other things constant, a higher price for ski lift tickets would

Table 4-9 -Refer to Table 4-9. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

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

A shortage exists in a market if

For teenagers, a 10 percent increase in the price of cigarettes leads to a

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

A group of buyers and sellers of a particular good or service is called a(n)

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

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

Most studies indicate that tobacco and marijuana tend to be

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

Which of the following would increase in response to a increase in the price of ironing boards?

An increase in the price of pizza will shift the demand curve for pizza to the left.

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce them?

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

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