Question 1

Which of the following would not change the demand for automobiles?

Accepted Answer

A)  a change in the price of gasoline 
B)  a change in the cost of steel 
C)  a change in the price of motorcycles 
D)  a change in tastes 
A)  a change in the price of gasoline 
B)  a change in the cost of steel 
C)  a change in the price of motorcycles 
D)  a change in tastes B

Question 2

A surplus will cause pressure on the price to fall.

Accepted Answer

A) True 
 B)False  True

Question 3

Use the following to answer questions .
Exhibit: Demand and Supply Shifters  
-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the Surgeon General announces that eating chocolate prevents heart disease. Which panel best describes how this will affect the market for chocolate?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) B

Question 4

Use the following to answer questions.
Exhibit: The Supply of Music Downloads  
-(Exhibit: The Supply of Music Downloads) A decrease in the price of music licenses sold by music companies to online sites would result in a change illustrated by:

Accepted Answer

A)  the move from n to o in Figure (a). 
B)  the move from p to q in Figure (b). 
C)  the move from s to t in Figure (c). 
D)  the move from u to v in Figure (d). 
A)  the move from n to o in Figure (a). 
B)  the move from p to q in Figure (b). 
C)  the move from s to t in Figure (c). 
D)  the move from u to v in Figure (d).

Question 5

Use the following to answer questions .
Exhibit: Demand and Supply-Determinants  
-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating pomegranates causes premature aging. Which panel best describes how this will affect the market for pomegranates?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 6

A decrease in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.

Accepted Answer

A)  an increase; an increase 
B)  an increase; a decrease 
C)  a decrease; an increase 
D)  a decrease; a decrease 
A)  an increase; an increase 
B)  an increase; a decrease 
C)  a decrease; an increase 
D)  a decrease; a decrease

Question 7

If a demand curve shifts to the left, then:

Accepted Answer

A)  the equilibrium price would go up and the equilibrium quantity would go down. 
B)  the equilibrium price would go down and the equilibrium quantity would go up. 
C)  a lower equilibrium price and quantity would result. 
D)  a higher equilibrium price and quantity would result. 
A)  the equilibrium price would go up and the equilibrium quantity would go down. 
B)  the equilibrium price would go down and the equilibrium quantity would go up. 
C)  a lower equilibrium price and quantity would result. 
D)  a higher equilibrium price and quantity would result.

Question 8

Use the following to answer questions .
Exhibit: The Determinants of Demand and Supply  
-(Exhibit: The Determinants of Demand and Supply) The exhibit shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's orange crop. Which panel best describes how this will affect the market for oranges?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 9

A market is a set of arrangements where:

Accepted Answer

A)  buyers and sellers can get together and buy and sell. 
B)  buyers compete with sellers. 
C)  sellers compete with buyers. 
D)  A and C are true, but B is not true. 
A)  buyers and sellers can get together and buy and sell. 
B)  buyers compete with sellers. 
C)  sellers compete with buyers. 
D)  A and C are true, but B is not true.

Question 10

The primary difference between a change in demand and a change in the quantity demanded is:

Accepted Answer

A)  a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve. 
B)  a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. 
C)  both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions. 
D)  both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions. 
A)  a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve. 
B)  a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. 
C)  both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions. 
D)  both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.

Question 11

In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:

Accepted Answer

A)  demand shifters. 
B)  supply prices. 
C)  market realities. 
D)  supply shifters. 
A)  demand shifters. 
B)  supply prices. 
C)  market realities. 
D)  supply shifters.

Question 12

Use the following to answer questions 
Exhibit: The Demand for Music Downloads  
-(Exhibit: The Demand for music downloads) A decrease in the price of CDs (a substitute) would result in a change illustrated by:

Accepted Answer

A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d). 
A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d).

Question 13

A decrease in the price of a good will, all other things unchanged, result in:

Accepted Answer

A)  an increase in demand. 
B)  an increase in supply. 
C)  an increase in the quantity demanded. 
D)  more being supplied. 
A)  an increase in demand. 
B)  an increase in supply. 
C)  an increase in the quantity demanded. 
D)  more being supplied.

Question 14

An increase in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.

Accepted Answer

A)  decrease; decrease 
B)  indeterminate change; increase 
C)  indeterminate change; decrease 
D)  increase; indeterminate change 
A)  decrease; decrease 
B)  indeterminate change; increase 
C)  indeterminate change; decrease 
D)  increase; indeterminate change

Question 15

A decrease in the demand for eggs caused by concerns over cholesterol is most likely attributable to which demand shifter?

Accepted Answer

A)  income 
B)  prices 
C)  consumer preferences 
D)  prices of other goods 
A)  income 
B)  prices 
C)  consumer preferences 
D)  prices of other goods

Question 16

Use the following to answer questions .
Exhibit: Demand and Supply of Gasoline  
-(Exhibit: Demand and Supply of Gasoline) When the supply curve shifted from the initial equilibrium to the new intersection of supply and demand at a price of ________ and quantity of 400, this could have resulted from ________ .

Accepted Answer

A)  $1.50; an increase in consumers' income 
B)  $1.50; an improvement in refining technology 
C)  $2.00; an increase in the number of buyers 
D)  A and B are true 
A)  $1.50; an increase in consumers' income 
B)  $1.50; an improvement in refining technology 
C)  $2.00; an increase in the number of buyers 
D)  A and B are true

Question 17

Use the following to answer questions .
Exhibit: Demand and Supply Shifters  
-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose consumer incomes increase. Which panel best describes how this will affect the market for dress ties, a normal good?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 18

Use the following to answer questions .
Exhibit: Demand and Supply of Gasoline  
-(Exhibit: Demand and Supply of Gasoline) What might cause the supply curve to shift from S2 back to the initial supply curve S1?

Accepted Answer

A)  The Organization of Petroleum Exporting Countries (OPE
C)  restricts the production of crude oil. 
B)  The Organization of Petroleum Exporting Countries (OPE
C)  increases the production of crude oil. 
C)  Americans want to buy more gas. 
D)  Technology in the refinement of gasoline greatly improves. 
A)  The Organization of Petroleum Exporting Countries (OPE
C)  restricts the production of crude oil. 
B)  The Organization of Petroleum Exporting Countries (OPE
C)  increases the production of crude oil. 
C)  Americans want to buy more gas. 
D)  Technology in the refinement of gasoline greatly improves.

Question 19

According to the textbook, demand and supply determine prices, and prices allocate scarce resources in the economy.

Accepted Answer

A) True 
 B)False

Question 20

Use the following to answer questions .
Exhibit: Demand and Supply Curves  
-(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward ________ and ________ units, respectively.

Accepted Answer

A)  $25; 50 
B)  $25; 250 
C)  $15; 150 
D)  $10; 50 
A)  $25; 50 
B)  $25; 250 
C)  $15; 150 
D)  $10; 50

Which of the following would not change the demand for automobiles?

A surplus will cause pressure on the price to fall.

Use the following to answer questions. Exhibit: The Supply of Music Downloads -(Exhibit: The Supply of Music Downloads) A decrease in the price of music licenses sold by music companies to online sites would result in a change illustrated by:

A decrease in demand, with no change in supply, will lead to in equilibrium quantity and in equilibrium price.

If a demand curve shifts to the left, then:

A market is a set of arrangements where:

The primary difference between a change in demand and a change in the quantity demanded is:

In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:

Use the following to answer questions Exhibit: The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the price of CDs (a substitute) would result in a change illustrated by:

A decrease in the price of a good will, all other things unchanged, result in:

An increase in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.

A decrease in the demand for eggs caused by concerns over cholesterol is most likely attributable to which demand shifter?

Use the following to answer questions . Exhibit: Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) When the supply curve shifted from the initial equilibrium to the new intersection of supply and demand at a price of and quantity of 400, this could have resulted from .

Use the following to answer questions . Exhibit: Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) What might cause the supply curve to shift from S₂ back to the initial supply curve S₁?

According to the textbook, demand and supply determine prices, and prices allocate scarce resources in the economy.

Use the following to answer questions . Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward and units, respectively.

Economics: the Study of Choice

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

Exam 3: Demand and Supply

Which of the following would not change the demand for automobiles?

A surplus will cause pressure on the price to fall.

Use the following to answer questions. Exhibit: The Supply of Music Downloads -(Exhibit: The Supply of Music Downloads) A decrease in the price of music licenses sold by music companies to online sites would result in a change illustrated by:

A decrease in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.

If a demand curve shifts to the left, then:

A market is a set of arrangements where:

The primary difference between a change in demand and a change in the quantity demanded is:

In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:

Use the following to answer questions Exhibit: The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the price of CDs (a substitute) would result in a change illustrated by:

A decrease in the price of a good will, all other things unchanged, result in:

An increase in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.

A decrease in the demand for eggs caused by concerns over cholesterol is most likely attributable to which demand shifter?

Use the following to answer questions . Exhibit: Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) What might cause the supply curve to shift from S2 back to the initial supply curve S1?

According to the textbook, demand and supply determine prices, and prices allocate scarce resources in the economy.

Use the following to answer questions . Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward ________ and ________ units, respectively.

Economics: the Study of Choice

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

A decrease in demand, with no change in supply, will lead to in equilibrium quantity and in equilibrium price.

An increase in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.

Use the following to answer questions . Exhibit: Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) What might cause the supply curve to shift from S₂ back to the initial supply curve S₁?

Use the following to answer questions . Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward and units, respectively.