Question 1

Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer.The likely result will be that the

Accepted Answer

A)  quantity of fibre supplements demanded will fall. 
B)  demand for fibre supplements will decrease. 
C)  supply of fibre supplements will increase. 
D)  price of fibre supplements will rise. 
E)  market for fibre supplements will be unaffected. 
A)  quantity of fibre supplements demanded will fall. 
B)  demand for fibre supplements will decrease. 
C)  supply of fibre supplements will increase. 
D)  price of fibre supplements will rise. 
E)  market for fibre supplements will be unaffected. B

Question 2

Which of the following is NOT a determinant of demand for gasoline?

Accepted Answer

A)  The price of gasoline. 
B)  The price of diesel. 
C)  The price of automobiles. 
D)  The quantity of gasoline supplied. 
E)  Consumers' incomes. 
A)  The price of gasoline. 
B)  The price of diesel. 
C)  The price of automobiles. 
D)  The quantity of gasoline supplied. 
E)  Consumers' incomes. D

Question 3

Without the aid of a graph,one can say definitively that,if both supply and demand increase simultaneously,the new equilibrium price is ___________ and the new equilibrium quantity is _________________.

Accepted Answer

A)  lower;lower 
B)  lower;indeterminate 
C)  indeterminate;higher 
D)  indeterminate;lower 
E)  higher;indeterminate 
A)  lower;lower 
B)  lower;indeterminate 
C)  indeterminate;higher 
D)  indeterminate;lower 
E)  higher;indeterminate C

Question 4

Assume demand remains unchanged at D1.If supply shifts from S1 to S2,then the equilibrium price will ________ and the equilibrium quantity will __________.

Accepted Answer

A)  rise;fall 
B)  rise;rise 
C)  fall;fall 
D)  fall;rise 
E)  rise;be indeterminate 
A)  rise;fall 
B)  rise;rise 
C)  fall;fall 
D)  fall;rise 
E)  rise;be indeterminate

Question 5

-Moving from demand curve D1 to demand curve D2 illustrates a(n)

Accepted Answer

A)  increase in quantity demanded. 
B)  increase in demand. 
C)  decrease in demand. 
D)  increase in quantity supplied. 
E)  decrease in quantity demanded. 
A)  increase in quantity demanded. 
B)  increase in demand. 
C)  decrease in demand. 
D)  increase in quantity supplied. 
E)  decrease in quantity demanded.

Question 6

Assume demand remains unchanged at D1.If supply shifts from S2 to S1,then the equilibrium price will ________ and the equilibrium quantity will __________.

Accepted Answer

A)  rise;fall 
B)  rise;rise 
C)  fall;fall 
D)  fall;rise 
E)  rise;be indeterminate 
A)  rise;fall 
B)  rise;rise 
C)  fall;fall 
D)  fall;rise 
E)  rise;be indeterminate

Question 7

If the demand for a good increases as consumers' incomes rise,the good is termed a(n)

Accepted Answer

A)  inferior good. 
B)  complement good. 
C)  normal good. 
D)  substitute good. 
E)  typical good. 
A)  inferior good. 
B)  complement good. 
C)  normal good. 
D)  substitute good. 
E)  typical good.

Question 8

If the price in a market is below the equilibrium price,then a supplier can produce an additional unit at a cost that is lower than the price buyers are willing to pay.This is referred to as

Accepted Answer

A)  leaving "cash on the table." 
B)  market equilibrium. 
C)  exploiting all opportunities. 
D)  maximizing economic surplus. 
E)  achieving economic efficiency. 
A)  leaving "cash on the table." 
B)  market equilibrium. 
C)  exploiting all opportunities. 
D)  maximizing economic surplus. 
E)  achieving economic efficiency.

Question 9

Suppose that both the supply of beer and the demand for beer decrease.One can predict that the

Accepted Answer

A)  equilibrium price will rise but the equilibrium quantity can increase or decrease. 
B)  equilibrium price and quantity will decrease. 
C)  equilibrium price and quantity will rise. 
D)  equilibrium quantity will fall but the equilibrium price can rise or fall. 
E)  change in price and quantity are both unknown. 
A)  equilibrium price will rise but the equilibrium quantity can increase or decrease. 
B)  equilibrium price and quantity will decrease. 
C)  equilibrium price and quantity will rise. 
D)  equilibrium quantity will fall but the equilibrium price can rise or fall. 
E)  change in price and quantity are both unknown.

Question 10

One of the assumptions of the supply and demand model is that

Accepted Answer

A)  there are many sellers and few buyers. 
B)  there are few sellers and many buyers. 
C)  there are few sellers and few buyers. 
D)  suppliers provide identical products. 
E)  sellers have more information than buyers about the product. 
A)  there are many sellers and few buyers. 
B)  there are few sellers and many buyers. 
C)  there are few sellers and few buyers. 
D)  suppliers provide identical products. 
E)  sellers have more information than buyers about the product.

Question 11

If the market for coffee has excess supply,then one can say that

Accepted Answer

A)  supply is greater than demand. 
B)  quantity supplied is greater than quantity demanded. 
C)  demand is greater than supply. 
D)  supply is greater than quantity demanded. 
E)  quantity demanded is greater than quantity supplied. 
A)  supply is greater than demand. 
B)  quantity supplied is greater than quantity demanded. 
C)  demand is greater than supply. 
D)  supply is greater than quantity demanded. 
E)  quantity demanded is greater than quantity supplied.

Question 12

In 1996,"mad cow" disease caused the European Union to ban imported British beef and the British government to ban the sale of older cattle.The effect on the market for British beef was for

Accepted Answer

A)  demand to fall and supply to rise. 
B)  demand to rise and supply to fall. 
C)  demand to rise and supply to rise. 
D)  demand to fall and supply to fall. 
E)  demand to fall and supply to remain unchanged. 
A)  demand to fall and supply to rise. 
B)  demand to rise and supply to fall. 
C)  demand to rise and supply to rise. 
D)  demand to fall and supply to fall. 
E)  demand to fall and supply to remain unchanged.

Question 13

Which of the following statements is an example of the equilibrium principle?

Accepted Answer

A)  If the price in a market is higher than the equilibrium price,excess supply will put pressure on the price to rise. 
B)  If the price in a market is lower than the equilibrium price,excess demand will put pressure on the price to fall. 
C)  If the price in a market is higher than the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales. 
D)  If the price in a market is lower than the equilibrium price,consumers have an incentive to reduce the price in order to obtain the good. 
E)  If the price in a market is equal to the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales. 
A)  If the price in a market is higher than the equilibrium price,excess supply will put pressure on the price to rise. 
B)  If the price in a market is lower than the equilibrium price,excess demand will put pressure on the price to fall. 
C)  If the price in a market is higher than the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales. 
D)  If the price in a market is lower than the equilibrium price,consumers have an incentive to reduce the price in order to obtain the good. 
E)  If the price in a market is equal to the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.

Question 14

The statement that a market in equilibrium leaves no unexploited opportunities for individuals is the

Accepted Answer

A)  Cost-Benefit Principle. 
B)  Scarcity Problem. 
C)  Efficiency Principle. 
D)  Equilibrium Principle. 
E)  Principle of Comparative Advantage. 
A)  Cost-Benefit Principle. 
B)  Scarcity Problem. 
C)  Efficiency Principle. 
D)  Equilibrium Principle. 
E)  Principle of Comparative Advantage.

Question 15

The demand curve illustrates that consumers purchase

Accepted Answer

A)  more of a good as its price rises. 
B)  name brand products more frequently than generic products. 
C)  more of a good as its price falls. 
D)  more of a good as their incomes fall. 
E)  more of a good as their incomes rise. 
A)  more of a good as its price rises. 
B)  name brand products more frequently than generic products. 
C)  more of a good as its price falls. 
D)  more of a good as their incomes fall. 
E)  more of a good as their incomes rise.

Question 16

Which of the following would NOT shift the supply curve for Intel processors?

Accepted Answer

A)  A decrease in the price of silicon wafers. 
B)  An increase in the demand for Intel processors. 
C)  An improvement in the technology used to make processors. 
D)  An increase in the wage rate paid to high-tech workers. 
E)  An earthquake centred in Silicon Valley. 
A)  A decrease in the price of silicon wafers. 
B)  An increase in the demand for Intel processors. 
C)  An improvement in the technology used to make processors. 
D)  An increase in the wage rate paid to high-tech workers. 
E)  An earthquake centred in Silicon Valley.

Question 17

The equilibrium price and quantity for this market are

Accepted Answer

A)  $10 and 0 units. 
B)  $8 and 6 units. 
C)  $6 and 4 units. 
D)  $4 and 6 units. 
E)  $2 and 8 units. 
A)  $10 and 0 units. 
B)  $8 and 6 units. 
C)  $6 and 4 units. 
D)  $4 and 6 units. 
E)  $2 and 8 units.

Question 18

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that

Accepted Answer

A)  the demand curve for bungalows must have shifted to the right,but the supply curve has not shifted. 
B)  the supply curve for bungalows must have shifted to the right,but the demand curve has not shifted. 
C)  there is a movement upward along the 1971 demand curve. 
D)  there is a movement upward along the 1971 supply curve. 
E)  both the demand curve and the supply curve of 1971 have shifted to the left. 
A)  the demand curve for bungalows must have shifted to the right,but the supply curve has not shifted. 
B)  the supply curve for bungalows must have shifted to the right,but the demand curve has not shifted. 
C)  there is a movement upward along the 1971 demand curve. 
D)  there is a movement upward along the 1971 supply curve. 
E)  both the demand curve and the supply curve of 1971 have shifted to the left.

Question 19

Which of the following will NOT cause a shift in the supply curve for Athlon processors?

Accepted Answer

A)  An increase in the price of memory. 
B)  A decrease in the price of Intel processors. 
C)  A decrease in the price of motherboards. 
D)  A decrease in the price of Athlon processors. 
E)  An increase in the wages paid to high-tech workers. 
A)  An increase in the price of memory. 
B)  A decrease in the price of Intel processors. 
C)  A decrease in the price of motherboards. 
D)  A decrease in the price of Athlon processors. 
E)  An increase in the wages paid to high-tech workers.

Question 20

Suppose that the demand curve for a good is given by QD = 60 - 0.5PD,while the supply curve for the good is given by QS = 20 + 0.5PS.If the price in this market is currently equal to 30,then the quantity demanded is ______ and the quantity supplied is _____.

Accepted Answer

A)  60;20 
B)  35;45 
C)  45;35 
D)  20;60 
E)  40;40 
A)  60;20 
B)  35;45 
C)  45;35 
D)  20;60 
E)  40;40

Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer.The likely result will be that the

Which of the following is NOT a determinant of demand for gasoline?

Without the aid of a graph,one can say definitively that,if both supply and demand increase simultaneously,the new equilibrium price is _ and the new equilibrium quantity is _______.

Assume demand remains unchanged at D1.If supply shifts from S1 to S2,then the equilibrium price will and the equilibrium quantity will __.

-Moving from demand curve D1 to demand curve D2 illustrates a(n)

Assume demand remains unchanged at D1.If supply shifts from S2 to S1,then the equilibrium price will and the equilibrium quantity will __.

If the demand for a good increases as consumers' incomes rise,the good is termed a(n)

If the price in a market is below the equilibrium price,then a supplier can produce an additional unit at a cost that is lower than the price buyers are willing to pay.This is referred to as

Suppose that both the supply of beer and the demand for beer decrease.One can predict that the

One of the assumptions of the supply and demand model is that

If the market for coffee has excess supply,then one can say that

In 1996,"mad cow" disease caused the European Union to ban imported British beef and the British government to ban the sale of older cattle.The effect on the market for British beef was for

Which of the following statements is an example of the equilibrium principle?

The statement that a market in equilibrium leaves no unexploited opportunities for individuals is the

The demand curve illustrates that consumers purchase

Which of the following would NOT shift the supply curve for Intel processors?

The equilibrium price and quantity for this market are

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that

Which of the following will NOT cause a shift in the supply curve for Athlon processors?

Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then the quantity demanded is __ and the quantity supplied is _.

Thinking Like an Economist

Comparative Advantage: the Basis for Exchange

Demand: the Benefit Side of the Market

Perfectly Competitive Supply: the Cost Side of the Market

Efficiency and Exchange

The Quest for Profit and the Invisible Hand

Monopoly and Other Forms of Imperfect Competition

Thinking Strategically

Externalities and Property Rights

The Economics of Information

Labour Markets

The Economics of Public Policy

Public Goods and Taxation

Income Distribution

Filters

Exam 3: Supply and Demand: an Introduction

Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer.The likely result will be that the

Which of the following is NOT a determinant of demand for gasoline?

Without the aid of a graph,one can say definitively that,if both supply and demand increase simultaneously,the new equilibrium price is ___________ and the new equilibrium quantity is _________________.

Assume demand remains unchanged at D1.If supply shifts from S1 to S2,then the equilibrium price will ________ and the equilibrium quantity will __________.

-Moving from demand curve D1 to demand curve D2 illustrates a(n)

Assume demand remains unchanged at D1.If supply shifts from S2 to S1,then the equilibrium price will ________ and the equilibrium quantity will __________.

If the demand for a good increases as consumers' incomes rise,the good is termed a(n)

If the price in a market is below the equilibrium price,then a supplier can produce an additional unit at a cost that is lower than the price buyers are willing to pay.This is referred to as

Suppose that both the supply of beer and the demand for beer decrease.One can predict that the

One of the assumptions of the supply and demand model is that

If the market for coffee has excess supply,then one can say that

In 1996,"mad cow" disease caused the European Union to ban imported British beef and the British government to ban the sale of older cattle.The effect on the market for British beef was for

Which of the following statements is an example of the equilibrium principle?

The statement that a market in equilibrium leaves no unexploited opportunities for individuals is the

The demand curve illustrates that consumers purchase

Which of the following would NOT shift the supply curve for Intel processors?

The equilibrium price and quantity for this market are

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that

Which of the following will NOT cause a shift in the supply curve for Athlon processors?

Suppose that the demand curve for a good is given by QD = 60 - 0.5PD,while the supply curve for the good is given by QS = 20 + 0.5PS.If the price in this market is currently equal to 30,then the quantity demanded is ______ and the quantity supplied is _____.

Thinking Like an Economist

Comparative Advantage: the Basis for Exchange

Demand: the Benefit Side of the Market

Perfectly Competitive Supply: the Cost Side of the Market

Efficiency and Exchange

The Quest for Profit and the Invisible Hand

Monopoly and Other Forms of Imperfect Competition

Thinking Strategically

Externalities and Property Rights

The Economics of Information

Labour Markets

The Economics of Public Policy

Public Goods and Taxation

Income Distribution

Filters

Without the aid of a graph,one can say definitively that,if both supply and demand increase simultaneously,the new equilibrium price is _ and the new equilibrium quantity is _______.

Assume demand remains unchanged at D1.If supply shifts from S1 to S2,then the equilibrium price will and the equilibrium quantity will __.

Assume demand remains unchanged at D1.If supply shifts from S2 to S1,then the equilibrium price will and the equilibrium quantity will __.

Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then the quantity demanded is __ and the quantity supplied is _.