Question 1

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

Accepted Answer

A)  90 
B)  30 
C)  80 
D)  60 
E)  230 
A)  90 
B)  30 
C)  80 
D)  60 
E)  230

Question 2

-Using the data in the table above,if the price of a stapler is $8,then there is ________ of staplers,and the quantity of staplers demanded ________ the quantity of staplers supplied.

Accepted Answer

A)  a surplus; is greater than 
B)  a surplus; is less than 
C)  a shortage; is greater than 
D)  a shortage; is less than 
E)  neither a surplus nor a shortage; equals 
A)  a surplus; is greater than 
B)  a surplus; is less than 
C)  a shortage; is greater than 
D)  a shortage; is less than 
E)  neither a surplus nor a shortage; equals

Question 3

The quantity supplied of a good or service is the

Accepted Answer

A)  list of all quantities at different prices, as illustrated by a supply schedule and a supply curve. 
B)  list of all quantities at different prices, as illustrated by a demand schedule and a demand curve. 
C)  one quantity produced at a variety of prices. 
D)  quantity produced at one price. 
A)  list of all quantities at different prices, as illustrated by a supply schedule and a supply curve. 
B)  list of all quantities at different prices, as illustrated by a demand schedule and a demand curve. 
C)  one quantity produced at a variety of prices. 
D)  quantity produced at one price.

Question 4

A surplus of cardboard boxes means that

Accepted Answer

A)  at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied. 
B)  at the current price of a cardboard box, the quantity demanded is less than the quantity supplied. 
C)  the current price of a cardboard box is less than the equilibrium price. 
D)  at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium. 
E)  More information is needed to determine if the price of cardboard boxes is higher than, lower than, or equal to the equilibrium price. 
A)  at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied. 
B)  at the current price of a cardboard box, the quantity demanded is less than the quantity supplied. 
C)  the current price of a cardboard box is less than the equilibrium price. 
D)  at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium. 
E)  More information is needed to determine if the price of cardboard boxes is higher than, lower than, or equal to the equilibrium price.

Question 5

Car insurance and cars are complements.If the price of car insurance increases,the

Accepted Answer

A)  demand for cars decreases. 
B)  demand for cars increases. 
C)  quantity of cars demanded decreases. 
D)  quantity of cars demanded increases. 
E)  More information is needed to determine if the demand increases or decreases. 
A)  demand for cars decreases. 
B)  demand for cars increases. 
C)  quantity of cars demanded decreases. 
D)  quantity of cars demanded increases. 
E)  More information is needed to determine if the demand increases or decreases.

Question 6

The market demand curve

Accepted Answer

A)  cannot show how quantity demanded changes in response to a change in price. 
B)  cannot show a change in demand for a good. 
C)  is the horizontal sum of individual demand curves. 
D)  is the vertical sum of individual demand curves. 
E)  is upward sloping. 
A)  cannot show how quantity demanded changes in response to a change in price. 
B)  cannot show a change in demand for a good. 
C)  is the horizontal sum of individual demand curves. 
D)  is the vertical sum of individual demand curves. 
E)  is upward sloping.

Question 7

Consider the market for bread.If the price of wheat rises,then the

Accepted Answer

A)  demand curve for bread shifts leftward. 
B)  supply curve of bread shifts leftward. 
C)  price of bread falls. 
D)  equilibrium quantity of bread increases. 
E)  demand curve for bread shifts rightward. 
A)  demand curve for bread shifts leftward. 
B)  supply curve of bread shifts leftward. 
C)  price of bread falls. 
D)  equilibrium quantity of bread increases. 
E)  demand curve for bread shifts rightward.

Question 8

Which of the following increases the supply of a product?

Accepted Answer

A)  lower prices for the resources used to produce the product 
B)  some producers going bankrupt and leaving the industry 
C)  a higher price for the product 
D)  an increase in the expected future price of the product 
E)  a decrease in productivity 
A)  lower prices for the resources used to produce the product 
B)  some producers going bankrupt and leaving the industry 
C)  a higher price for the product 
D)  an increase in the expected future price of the product 
E)  a decrease in productivity

Question 9

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

Accepted Answer

A)  Both the supply and the demand for new houses increased, and the supply increased by more than the demand. 
B)  The demand for new houses increased, and the supply did not change. 
C)  Both the supply and demand for new houses decreased. 
D)  The supply of new houses decreased, and the demand for new houses did not change. 
E)  The supply of new houses increased, and the demand for new houses did not change. 
A)  Both the supply and the demand for new houses increased, and the supply increased by more than the demand. 
B)  The demand for new houses increased, and the supply did not change. 
C)  Both the supply and demand for new houses decreased. 
D)  The supply of new houses decreased, and the demand for new houses did not change. 
E)  The supply of new houses increased, and the demand for new houses did not change.

Question 10

A demand curve

Accepted Answer

A)  has an upward slope. 
B)  has a downward slope. 
C)  is a graph of the relationship between quantity demanded of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  has an upward slope. 
B)  has a downward slope. 
C)  is a graph of the relationship between quantity demanded of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 11

If the demand for a good increases when people's incomes increase,

Accepted Answer

A)  the good is an inferior good. 
B)  the law of demand is violated. 
C)  the good's demand curve must be slope upward. 
D)  the good is a normal good. 
E)  the good is a substitute good for an inferior good. 
A)  the good is an inferior good. 
B)  the law of demand is violated. 
C)  the good's demand curve must be slope upward. 
D)  the good is a normal good. 
E)  the good is a substitute good for an inferior good.

Question 12

Suppose that the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward.Which of the following could have caused these shifts?

Accepted Answer

A)  Desktop computers are a normal good and incomes increased, while more firms entered the market. 
B)  The price of a laptop computer, a substitute for desktop computers, fell, and the cost of producing desktop computers decreased. 
C)  Consumers purchased more computers because of the Christmas season, and the labor costs of producing desktop computers decreased. 
D)  Desktop computers are a normal good and incomes increased, while the labor costs of producing personal computers increased. 
E)  Desktop computers are a normal good and incomes decreased, while the labor costs of producing personal computers increased. 
A)  Desktop computers are a normal good and incomes increased, while more firms entered the market. 
B)  The price of a laptop computer, a substitute for desktop computers, fell, and the cost of producing desktop computers decreased. 
C)  Consumers purchased more computers because of the Christmas season, and the labor costs of producing desktop computers decreased. 
D)  Desktop computers are a normal good and incomes increased, while the labor costs of producing personal computers increased. 
E)  Desktop computers are a normal good and incomes decreased, while the labor costs of producing personal computers increased.

Question 13

Which of the following statements is true about a competitive market? A competitive market

Accepted Answer

A)  must have a physical location. 
B)  includes markets for goods and services but not for inputs. 
C)  has so many buyers and sellers that no one can influence the price. 
D)  has one seller competing to sell his or her product. 
E)  has a handful of sellers but always has many buyers. 
A)  must have a physical location. 
B)  includes markets for goods and services but not for inputs. 
C)  has so many buyers and sellers that no one can influence the price. 
D)  has one seller competing to sell his or her product. 
E)  has a handful of sellers but always has many buyers.

Question 14

-The above table gives the demand and supply schedules for cat food.If the price is $1.00 per pound of cat food,will there be a shortage,a surplus,or is this price the equilibrium price? If there is a shortage,how much is the shortage? If there is a surplus,how much is the surplus? If $3.00 is the equilibrium price,what is the equilibrium quantity?

Accepted Answer

At a price of $1.00 per pound

Question 15

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve.

Question 16

Suppose that over the next few years the demand for dancing to country and western music decreases.Hence,at country and western dance clubs the equilibrium price of admission ________ and the equilibrium quantity of dancing ________.

Accepted Answer

A)  rises; increases 
B)  rises; decreases 
C)  falls; increases 
D)  falls; decreases 
E)  does not change; decreases 
A)  rises; increases 
B)  rises; decreases 
C)  falls; increases 
D)  falls; decreases 
E)  does not change; decreases

Question 17

In the above figure,the shift in the demand curve from D to D? can be the result of

Accepted Answer

A)  a decrease in income if pizza is a normal good. 
B)  a decrease in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  an increase in the number of teenagers, all of whom demand more pizza than do other age groups. 
E)  new technology that increases the profit from producing pizza. 
A)  a decrease in income if pizza is a normal good. 
B)  a decrease in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  an increase in the number of teenagers, all of whom demand more pizza than do other age groups. 
E)  new technology that increases the profit from producing pizza.

Question 18

EBay

Accepted Answer

A)  will be considered a market when the Internet firms are profitable. 
B)  is a market because buyers and sellers are brought together to buy and sell. 
C)  would be a market if there was only one physical location. 
D)  cannot function as a market. 
E)  is not a market because buyers can buy from only one seller at any point in time. 
A)  will be considered a market when the Internet firms are profitable. 
B)  is a market because buyers and sellers are brought together to buy and sell. 
C)  would be a market if there was only one physical location. 
D)  cannot function as a market. 
E)  is not a market because buyers can buy from only one seller at any point in time.

Question 19

-The above figures show the market for HD televisions.If the technology used to produce these televisions advances so that productivity increases,which figure shows the effect of this change?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the figures represent this change. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the figures represent this change.

Question 20

Which of the following increases the supply of gasoline?

Accepted Answer

A)  a situation where the quantity of gasoline demanded exceeds the quantity supplied 
B)  an increase in the price of gasoline 
C)  a decrease in the price of a resource used to produce gasoline, such as crude oil 
D)  a decrease in the demand for gas-guzzling, sport utility vehicles 
E)  an increase in income if gas-guzzling, sport utility vehicles are a normal good 
A)  a situation where the quantity of gasoline demanded exceeds the quantity supplied 
B)  an increase in the price of gasoline 
C)  a decrease in the price of a resource used to produce gasoline, such as crude oil 
D)  a decrease in the demand for gas-guzzling, sport utility vehicles 
E)  an increase in income if gas-guzzling, sport utility vehicles are a normal good

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

-Using the data in the table above,if the price of a stapler is $8,then there is of staplers,and the quantity of staplers demanded the quantity of staplers supplied.

The quantity supplied of a good or service is the

A surplus of cardboard boxes means that

Car insurance and cars are complements.If the price of car insurance increases,the

The market demand curve

Consider the market for bread.If the price of wheat rises,then the

Which of the following increases the supply of a product?

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

A demand curve

If the demand for a good increases when people's incomes increase,

Suppose that the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward.Which of the following could have caused these shifts?

Which of the following statements is true about a competitive market? A competitive market

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Suppose that over the next few years the demand for dancing to country and western music decreases.Hence,at country and western dance clubs the equilibrium price of admission and the equilibrium quantity of dancing .

In the above figure,the shift in the demand curve from D to D? can be the result of

EBay

-The above figures show the market for HD televisions.If the technology used to produce these televisions advances so that productivity increases,which figure shows the effect of this change?

Which of the following increases the supply of gasoline?

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 4: Demand and Supply

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

-Using the data in the table above,if the price of a stapler is $8,then there is ________ of staplers,and the quantity of staplers demanded ________ the quantity of staplers supplied.

The quantity supplied of a good or service is the

A surplus of cardboard boxes means that

Car insurance and cars are complements.If the price of car insurance increases,the

The market demand curve

Consider the market for bread.If the price of wheat rises,then the

Which of the following increases the supply of a product?

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

A demand curve

If the demand for a good increases when people's incomes increase,

Suppose that the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward.Which of the following could have caused these shifts?

Which of the following statements is true about a competitive market? A competitive market

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Suppose that over the next few years the demand for dancing to country and western music decreases.Hence,at country and western dance clubs the equilibrium price of admission ________ and the equilibrium quantity of dancing ________.

In the above figure,the shift in the demand curve from D to D? can be the result of

EBay

-The above figures show the market for HD televisions.If the technology used to produce these televisions advances so that productivity increases,which figure shows the effect of this change?

Which of the following increases the supply of gasoline?

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

-Using the data in the table above,if the price of a stapler is $8,then there is of staplers,and the quantity of staplers demanded the quantity of staplers supplied.

Suppose that over the next few years the demand for dancing to country and western music decreases.Hence,at country and western dance clubs the equilibrium price of admission and the equilibrium quantity of dancing .