Question 1

If the price of chili increases, there will be ________ of chili cheese fries.

Accepted Answer

A)  an increase in the supply 
B)  a decrease in the supply 
C)  an increase in the quantity supplied 
D)  a decrease in the quantity supplied 
A)  an increase in the supply 
B)  a decrease in the supply 
C)  an increase in the quantity supplied 
D)  a decrease in the quantity supplied

Question 2

A simultaneous increase in both the supply of and the demand for vitamin water would cause an increase in the equilibrium quantity of vitamin water.

Accepted Answer

A) True 
 B)False

Question 3

If the supply and demand for a product both increase at the same time, the equilibrium price and equilibrium quantity of the product will both increase, ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 4

A shift of the supply curve is caused by a change in a good's own price.

Accepted Answer

A) True 
 B)False

Question 5

A movement along the demand curve to the right may be caused by a(n)

Accepted Answer

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

Question 6

Related to the Economics in Practice on p. 65: Increased preference for quinoa would shift the ________ curve for quinoa to the right and lead to a(n) ________ in the price of quinoa, ceteris paribus.

Accepted Answer

A)  demand; increase 
B)  demand; decrease 
C)  supply; increase 
D)  supply; decrease 
A)  demand; increase 
B)  demand; decrease 
C)  supply; increase 
D)  supply; decrease

Question 7

Related to the Economics in Practice on p. 51: It would most likely be ________ if a particular day's weather influenced the purchase of a durable good such as an automobile.

Accepted Answer

A)  expected 
B)  a surprise 
C)  normal behavior 
D)  impossible 
A)  expected 
B)  a surprise 
C)  normal behavior 
D)  impossible

Question 8

Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that

Accepted Answer

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

Question 9

A change in the price of a service leads to a change in quantity demanded of the service.

Accepted Answer

A) True 
 B)False

Question 10

Refer to the information provided in Figure 3.13 below to answer the questions that follow.   Figure 3.13
-Refer to Figure 3.13. Assume hamburgers are a normal good. A decrease in income will cause a movement from

Accepted Answer

A)  Point A to Point B. 
B)  Point G to Point F. 
C)  D2 to D1. 
D)  S2 to S1. 
A)  Point A to Point B. 
B)  Point G to Point F. 
C)  D2 to D1. 
D)  S2 to S1.

Question 11

The quantity demanded of Pepsi has decreased. The best explanation for this is that

Accepted Answer

A)  the price of Coca-Cola has increased. 
B)  Pepsi's advertising is not as effective as in the past. 
C)  the price of Pepsi has increased. 
D)  Pepsi consumers had an increase in income. 
A)  the price of Coca-Cola has increased. 
B)  Pepsi's advertising is not as effective as in the past. 
C)  the price of Pepsi has increased. 
D)  Pepsi consumers had an increase in income.

Question 12

Refer to the information provided in Figure 3.7 below to answer the following questions.   Figure 3.7
-Refer to Figure 3.7. An increase in quantity demanded is represented by the movement

Accepted Answer

A)  from D2 to D1. 
B)  from D2 to D3. 
C)  along D2 from Point B to point A. 
D)  along D2 from Point B to point C. 
A)  from D2 to D1. 
B)  from D2 to D3. 
C)  along D2 from Point B to point A. 
D)  along D2 from Point B to point C.

Question 13

In an output market,

Accepted Answer

A)  consumers purchase products. 
B)  firms purchase resources. 
C)  households earn income. 
D)  land, labor, and capital may be exchanged. 
A)  consumers purchase products. 
B)  firms purchase resources. 
C)  households earn income. 
D)  land, labor, and capital may be exchanged.

Question 14

Capital, labor, and land are

Accepted Answer

A)  factors of production. 
B)  inputs. 
C)  resources. 
D)  all of the above 
A)  factors of production. 
B)  inputs. 
C)  resources. 
D)  all of the above

Question 15

A factor market is

Accepted Answer

A)  where goods are exchanged. 
B)  where resources are exchanged. 
C)  where goods are made. 
D)  organized by government. 
A)  where goods are exchanged. 
B)  where resources are exchanged. 
C)  where goods are made. 
D)  organized by government.

Question 16

If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

Accepted Answer

A)  decrease in the quantity supplied of gasoline-powered lawnmowers, a reduction in the price, and an increase in the quantity demanded. 
B)  decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the quantity demanded. 
C)  decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand. 
D)  increase in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand. 
A)  decrease in the quantity supplied of gasoline-powered lawnmowers, a reduction in the price, and an increase in the quantity demanded. 
B)  decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the quantity demanded. 
C)  decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand. 
D)  increase in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand.

Question 17

Refer to Scenario 3.2 below to answer the questions that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2. The government wants to protect consumers from rising food prices. Therefore, price restrictions are imposed on lettuce growers prohibiting them from raising the price of lettuce. This will cause

Accepted Answer

A)  an excess supply of lettuce. 
B)  an excess demand for lettuce. 
C)  an increase in the demand for lettuce. 
D)  a decrease in the supply of lettuce. 
A)  an excess supply of lettuce. 
B)  an excess demand for lettuce. 
C)  an increase in the demand for lettuce. 
D)  a decrease in the supply of lettuce.

Question 18

Refer to Scenario 3.2 below to answer the questions that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2. As a result of the flooding during the winter, you would expect that

Accepted Answer

A)  the price of lettuce would increase, the supply of lettuce would increase, and the quantity demanded of lettuce would decrease. 
B)  the supply of lettuce would decrease, the price of lettuce would increase, and the quantity demanded of lettuce would decrease. 
C)  the price of lettuce would increase and both the quantity of lettuce supplied and the quantity of lettuce demanded would increase. 
D)  the supply of lettuce would decrease, the price of lettuce would increase, and the demand for lettuce would decrease. 
A)  the price of lettuce would increase, the supply of lettuce would increase, and the quantity demanded of lettuce would decrease. 
B)  the supply of lettuce would decrease, the price of lettuce would increase, and the quantity demanded of lettuce would decrease. 
C)  the price of lettuce would increase and both the quantity of lettuce supplied and the quantity of lettuce demanded would increase. 
D)  the supply of lettuce would decrease, the price of lettuce would increase, and the demand for lettuce would decrease.

Question 19

A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.

Accepted Answer

A) True 
 B)False

Question 20

The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to ________ laptop computers.

Accepted Answer

A)  an increase in the supply of 
B)  a decrease in the supply of 
C)  an increase in the quantity supplied of 
D)  a decrease in the quantity supplied of 
A)  an increase in the supply of 
B)  a decrease in the supply of 
C)  an increase in the quantity supplied of 
D)  a decrease in the quantity supplied of

If the price of chili increases, there will be ________ of chili cheese fries.

A simultaneous increase in both the supply of and the demand for vitamin water would cause an increase in the equilibrium quantity of vitamin water.

If the supply and demand for a product both increase at the same time, the equilibrium price and equilibrium quantity of the product will both increase, ceteris paribus.

A shift of the supply curve is caused by a change in a good's own price.

A movement along the demand curve to the right may be caused by a(n)

Related to the Economics in Practice on p. 65: Increased preference for quinoa would shift the curve for quinoa to the right and lead to a(n) in the price of quinoa, ceteris paribus.

Related to the Economics in Practice on p. 51: It would most likely be ________ if a particular day's weather influenced the purchase of a durable good such as an automobile.

Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that

A change in the price of a service leads to a change in quantity demanded of the service.

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers are a normal good. A decrease in income will cause a movement from

The quantity demanded of Pepsi has decreased. The best explanation for this is that

Refer to the information provided in Figure 3.7 below to answer the following questions. Figure 3.7 -Refer to Figure 3.7. An increase in quantity demanded is represented by the movement

In an output market,

Capital, labor, and land are

A factor market is

If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.

The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to ________ laptop computers.

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

If the price of chili increases, there will be ________ of chili cheese fries.

A simultaneous increase in both the supply of and the demand for vitamin water would cause an increase in the equilibrium quantity of vitamin water.

If the supply and demand for a product both increase at the same time, the equilibrium price and equilibrium quantity of the product will both increase, ceteris paribus.

A shift of the supply curve is caused by a change in a good's own price.

A movement along the demand curve to the right may be caused by a(n)

Related to the Economics in Practice on p. 65: Increased preference for quinoa would shift the ________ curve for quinoa to the right and lead to a(n) ________ in the price of quinoa, ceteris paribus.

Related to the Economics in Practice on p. 51: It would most likely be ________ if a particular day's weather influenced the purchase of a durable good such as an automobile.

Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that

A change in the price of a service leads to a change in quantity demanded of the service.

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers are a normal good. A decrease in income will cause a movement from

The quantity demanded of Pepsi has decreased. The best explanation for this is that

Refer to the information provided in Figure 3.7 below to answer the following questions. Figure 3.7 -Refer to Figure 3.7. An increase in quantity demanded is represented by the movement

In an output market,

Capital, labor, and land are

A factor market is

If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.

The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to ________ laptop computers.

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

Related to the Economics in Practice on p. 65: Increased preference for quinoa would shift the curve for quinoa to the right and lead to a(n) in the price of quinoa, ceteris paribus.