Question 1

The price of mozzarella cheese, which is used in making pizza, increases. In the market for pizza you would expect that

Accepted Answer

A)  the demand for pizza would increase and the price of pizza would increase. 
B)  the demand for pizza would decrease and the price of pizza would fall. 
C)  the supply of pizza would decrease and the price of pizza would increase. 
D)  the supply of pizza would increase and the price of pizza would decrease. 
A)  the demand for pizza would increase and the price of pizza would increase. 
B)  the demand for pizza would decrease and the price of pizza would fall. 
C)  the supply of pizza would decrease and the price of pizza would increase. 
D)  the supply of pizza would increase and the price of pizza would decrease.

Question 2

The "law of demand" implies that

Accepted Answer

A)  as prices fall, demand increases. 
B)  as prices rise, demand increases. 
C)  as prices fall, quantity demanded increases. 
D)  as prices rise, quantity demanded increases. 
A)  as prices fall, demand increases. 
B)  as prices rise, demand increases. 
C)  as prices fall, quantity demanded increases. 
D)  as prices rise, quantity demanded increases.

Question 3

Refer to the information provided in Figure 3.4 below to answer the questions that follow.   Figure 3.4
-Refer to Figure 3.4. If consumer income falls, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)

Accepted Answer

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

Question 4

Refer to the information provided in Table 3.1 below to answer the questions that follow.
Table 3.1
  
-Refer to Table 3.1. If the price per pizza is $15, there is a(n)

Accepted Answer

A)  market equilibrium. 
B)  excess demand of 400 units. 
C)  excess demand of 900 units. 
D)  excess supply of 600 units. 
A)  market equilibrium. 
B)  excess demand of 400 units. 
C)  excess demand of 900 units. 
D)  excess supply of 600 units.

Question 5

Refer to the information provided in Figure 3.4 below to answer the questions that follow.   Figure 3.4
-Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)

Accepted Answer

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

Question 6

In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)

Accepted Answer

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

Question 7

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus

Accepted Answer

A)  the demand for peaches decreased and the price of peaches decreased. 
B)  the supply of peaches increased and the price of peaches decreased. 
C)  the supply of peaches decreased and the price of peaches increased. 
D)  the demand for peaches increased and the price of peaches increased. 
A)  the demand for peaches decreased and the price of peaches decreased. 
B)  the supply of peaches increased and the price of peaches decreased. 
C)  the supply of peaches decreased and the price of peaches increased. 
D)  the demand for peaches increased and the price of peaches increased.

Question 8

A movement along the demand curve to the left may be caused by a

Accepted Answer

A)  rise in income. 
B)  decrease in supply. 
C)  fall in the number of substitute goods. 
D)  fall in the price of inputs. 
A)  rise in income. 
B)  decrease in supply. 
C)  fall in the number of substitute goods. 
D)  fall in the price of inputs.

Question 9

Related to the Economics in Practice on p. 50: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard-copy textbooks are substitute products. If the price of the Kindle decreases,

Accepted Answer

A)  demand for the Kindle increases and demand for traditional, hard-copy textbooks decreases. 
B)  the quantity of Kindles demanded increases and demand for electronic textbooks increases. 
C)  demand for the Kindle increases and the quantity of electronic textbooks demanded increases. 
D)  the quantity of Kindles demanded increases and the quantity of electronic textbooks demanded increases. 
A)  demand for the Kindle increases and demand for traditional, hard-copy textbooks decreases. 
B)  the quantity of Kindles demanded increases and demand for electronic textbooks increases. 
C)  demand for the Kindle increases and the quantity of electronic textbooks demanded increases. 
D)  the quantity of Kindles demanded increases and the quantity of electronic textbooks demanded increases.

Question 10

Consumers purchase products in ________ markets.

Accepted Answer

A)  output 
B)  factor 
C)  resource 
D)  input 
A)  output 
B)  factor 
C)  resource 
D)  input

Question 11

Refer to Scenario 3.1 below to answer the questions that follow.
SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.
-Related to the Economics in Practice on page 50: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard copy textbooks are substitute products. If the price of traditional, hard-copy textbooks increases,

Accepted Answer

A)  demand for traditional, hard-copy textbooks decreases and demand for electronic textbooks increases. 
B)  the quantity of traditional, hard-copy textbooks demanded decreases and demand for electronic textbooks increases. 
C)  the quantity of electronic textbooks demanded increases and demand for the Kindle increases. 
D)  the quantity of electronic textbooks demanded increases and demand for traditional, hard-copy textbooks decreases. 
A)  demand for traditional, hard-copy textbooks decreases and demand for electronic textbooks increases. 
B)  the quantity of traditional, hard-copy textbooks demanded decreases and demand for electronic textbooks increases. 
C)  the quantity of electronic textbooks demanded increases and demand for the Kindle increases. 
D)  the quantity of electronic textbooks demanded increases and demand for traditional, hard-copy textbooks decreases.

Question 12

When there is an excess supply of a product in an unregulated market, the tendency is for

Accepted Answer

A)  price to rise. 
B)  price to decrease. 
C)  quantity supplied to increase. 
D)  quantity demanded to decrease. 
A)  price to rise. 
B)  price to decrease. 
C)  quantity supplied to increase. 
D)  quantity demanded to decrease.

Question 13

Refer to the information provided in Figure 3.9 below to answer the following questions.   Figure 3.9
-Refer to Figure 3.9. Assume there are only two people in the market for coconuts: Sasha and Kyle. Along the market demand curve for coconuts, at a price of ________, quantity demanded would be ________.

Accepted Answer

A)  $10; 9 
B)  $10; 10 
C)  $14; 9 
D)  $14; 8 
A)  $10; 9 
B)  $10; 10 
C)  $14; 9 
D)  $14; 8

Question 14

Refer to the information provided in Figure 3.6 below to answer the questions that follow.   Figure 3.6
-Refer to Figure 3.6. The number of DVDs Isabel rents per week increases from 4 to 7. This is caused by

Accepted Answer

A)  an increase in income if DVDs are a normal good. 
B)  a decrease in the price of popcorn, which is a complement to DVDs. 
C)  a decrease in the rental price of DVDs. 
D)  either A or B. 
A)  an increase in income if DVDs are a normal good. 
B)  a decrease in the price of popcorn, which is a complement to DVDs. 
C)  a decrease in the rental price of DVDs. 
D)  either A or B.

Question 15

Refer to the information provided in Table 3.2 below to answer the questions that follow.
Table 3.2
  
-Refer to Table 3.2. If the price per cheeseburger is $8, the price will

Accepted Answer

A)  remain constant because the market is in equilibrium. 
B)  decrease because there is an excess demand in the market. 
C)  increase because there is an excess supply in the market. 
D)  decrease because there is an excess supply in the market. 
A)  remain constant because the market is in equilibrium. 
B)  decrease because there is an excess demand in the market. 
C)  increase because there is an excess supply in the market. 
D)  decrease because there is an excess supply in the market.

Question 16

When there is an excess demand of a product in an unregulated market, the tendency is for

Accepted Answer

A)  price to rise. 
B)  price to decrease. 
C)  quantity supplied to decrease. 
D)  quantity demanded to increase. 
A)  price to rise. 
B)  price to decrease. 
C)  quantity supplied to decrease. 
D)  quantity demanded to increase.

Question 17

Related to the Economics in Practice on p. 51: Economist Meghan Busse found after examining more than 40 million car transactions that car purchasers are ________ influenced in their choice of cars by temporary weather fluctuations at the time of purchase.

Accepted Answer

A)  not at all 
B)  heavily 
C)  slightly 
D)  always 
A)  not at all 
B)  heavily 
C)  slightly 
D)  always

Question 18

Payment in the capital market is called investment.

Accepted Answer

A) True 
 B)False

Question 19

Refer to Scenario 3.1 below to answer the questions that follow.
SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.
-Refer to Scenario 3.1. To raise additional revenues, the government imposes an entertainment tax on movie tickets, but there are no new additional taxes levied on rented DVDs. This would lead to

Accepted Answer

A)  an increase in the price of movie tickets, but no change in the rental price of DVDs. 
B)  an increase in the price of movie tickets and the rental price of DVDs. 
C)  an increase in the price of a movie ticket and a decrease in the rental price of DVDs. 
D)  no change in the price of a movie ticket and an increase in the rental price of DVDs. 
A)  an increase in the price of movie tickets, but no change in the rental price of DVDs. 
B)  an increase in the price of movie tickets and the rental price of DVDs. 
C)  an increase in the price of a movie ticket and a decrease in the rental price of DVDs. 
D)  no change in the price of a movie ticket and an increase in the rental price of DVDs.

Question 20

Factors of production are traded in the product market.

Accepted Answer

A) True 
 B)False

The price of mozzarella cheese, which is used in making pizza, increases. In the market for pizza you would expect that

The "law of demand" implies that

Refer to the information provided in Figure 3.4 below to answer the questions that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income falls, the demand for tuna fish sandwiches shifts from D₀ to D₁. This implies that tuna fish sandwiches are a(n)

Refer to the information provided in Table 3.1 below to answer the questions that follow. Table 3.1 -Refer to Table 3.1. If the price per pizza is $15, there is a(n)

Refer to the information provided in Figure 3.4 below to answer the questions that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D₀ to D₁. This implies that tuna fish sandwiches are a(n)

In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus

A movement along the demand curve to the left may be caused by a

Related to the Economics in Practice on p. 50: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard-copy textbooks are substitute products. If the price of the Kindle decreases,

Consumers purchase products in ________ markets.

When there is an excess supply of a product in an unregulated market, the tendency is for

Refer to the information provided in Figure 3.9 below to answer the following questions. Figure 3.9 -Refer to Figure 3.9. Assume there are only two people in the market for coconuts: Sasha and Kyle. Along the market demand curve for coconuts, at a price of , quantity demanded would be .

Refer to the information provided in Figure 3.6 below to answer the questions that follow. Figure 3.6 -Refer to Figure 3.6. The number of DVDs Isabel rents per week increases from 4 to 7. This is caused by

Refer to the information provided in Table 3.2 below to answer the questions that follow. Table 3.2 -Refer to Table 3.2. If the price per cheeseburger is $8, the price will

When there is an excess demand of a product in an unregulated market, the tendency is for

Related to the Economics in Practice on p. 51: Economist Meghan Busse found after examining more than 40 million car transactions that car purchasers are ________ influenced in their choice of cars by temporary weather fluctuations at the time of purchase.

Payment in the capital market is called investment.

Factors of production are traded in the product market.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 3: Demand, Supply, and Market Equilibrium

The price of mozzarella cheese, which is used in making pizza, increases. In the market for pizza you would expect that

The "law of demand" implies that

Refer to the information provided in Figure 3.4 below to answer the questions that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income falls, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)

Refer to the information provided in Table 3.1 below to answer the questions that follow. Table 3.1 -Refer to Table 3.1. If the price per pizza is $15, there is a(n)

Refer to the information provided in Figure 3.4 below to answer the questions that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)

In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus

A movement along the demand curve to the left may be caused by a

Related to the Economics in Practice on p. 50: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard-copy textbooks are substitute products. If the price of the Kindle decreases,

Consumers purchase products in ________ markets.

When there is an excess supply of a product in an unregulated market, the tendency is for

Refer to the information provided in Figure 3.6 below to answer the questions that follow. Figure 3.6 -Refer to Figure 3.6. The number of DVDs Isabel rents per week increases from 4 to 7. This is caused by

Refer to the information provided in Table 3.2 below to answer the questions that follow. Table 3.2 -Refer to Table 3.2. If the price per cheeseburger is $8, the price will

When there is an excess demand of a product in an unregulated market, the tendency is for

Related to the Economics in Practice on p. 51: Economist Meghan Busse found after examining more than 40 million car transactions that car purchasers are ________ influenced in their choice of cars by temporary weather fluctuations at the time of purchase.

Payment in the capital market is called investment.

Factors of production are traded in the product market.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Refer to the information provided in Figure 3.4 below to answer the questions that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income falls, the demand for tuna fish sandwiches shifts from D₀ to D₁. This implies that tuna fish sandwiches are a(n)

Refer to the information provided in Figure 3.4 below to answer the questions that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D₀ to D₁. This implies that tuna fish sandwiches are a(n)