Question 1

If economists say, "the price is too high," they mean that:

Accepted Answer

A)  quantity demanded is greater than quantity supplied. 
B)  quantity supplied is greater than quantity demanded. 
C)  the equilibrium price exceeds the current price. 
D)  the price of a good will tend to increase. 
A)  quantity demanded is greater than quantity supplied. 
B)  quantity supplied is greater than quantity demanded. 
C)  the equilibrium price exceeds the current price. 
D)  the price of a good will tend to increase.

Question 2

Use the following to answer questions.
Exhibit: The Market for Chocolate-Covered Peanuts
  
-(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are ________ bags and ________ cents.

Accepted Answer

A)  140; 40 
B)  175; 60 
C)  175; 80 
D)  210; 50 
A)  140; 40 
B)  175; 60 
C)  175; 80 
D)  210; 50

Question 3

When the market price is established where demand and supply curves intersect:

Accepted Answer

A)  consumer buying tends to exceed the quantity producers supply. 
B)  the quantity consumers demand generally fall short of the quantity producers supply. 
C)  the quantity demanded and the quantity supplied are equal. 
D)  all of the above will result. 
A)  consumer buying tends to exceed the quantity producers supply. 
B)  the quantity consumers demand generally fall short of the quantity producers supply. 
C)  the quantity demanded and the quantity supplied are equal. 
D)  all of the above will result.

Question 4

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 scientists discover that eating a tomato a day prevents aging. Which panel best describes how this will affect the market for tomatoes?

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 5

Use the following to answer questions 
Exhibit: The Demand for Music Downloads  
-(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices 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 6

There can be no shortages or surpluses at the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 7

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 oil becomes more expensive. Which panel best describes how this will affect the market for gasoline, which is made from oil?

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 8

All other things unchanged, a tax on a product that leads to an increase in the cost of production would:

Accepted Answer

A)  lead to an increase in supply. 
B)  lead to a decrease in demand. 
C)  result in an increased price. 
D)  lead to a decrease in supply. 
A)  lead to an increase in supply. 
B)  lead to a decrease in demand. 
C)  result in an increased price. 
D)  lead to a decrease in supply.

Question 9

Use the following to answer questions .
Exhibit: Demand and Supply  
-(Exhibit: Demand and Supply) What is the equilibrium price?

Accepted Answer

A)  $2 
B)  $4 
C)  $6 
D)  $8 
A)  $2 
B)  $4 
C)  $6 
D)  $8

Question 10

Technology is a demand shifter.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true?

Accepted Answer

A)  If demand decreases, equilibrium price increases. 
B)  If demand increases, equilibrium price decreases. 
C)  If demand decreases, the demand curve shifts to the left. 
D)  If demand decreases, the demand curve shifts to the right. 
A)  If demand decreases, equilibrium price increases. 
B)  If demand increases, equilibrium price decreases. 
C)  If demand decreases, the demand curve shifts to the left. 
D)  If demand decreases, the demand curve shifts to the right.

Question 12

For most consumers, blu-ray players and blu-ray discs are likely to be:

Accepted Answer

A)  substitute goods. 
B)  complementary goods. 
C)  inferior goods. 
D)  independent goods. 
A)  substitute goods. 
B)  complementary goods. 
C)  inferior goods. 
D)  independent goods.

Question 13

If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.

Accepted Answer

A)  decrease; increase 
B)  decrease; decrease 
C)  decrease; remain constant 
D)  increase; either increase, decrease, or remain constant 
A)  decrease; increase 
B)  decrease; decrease 
C)  decrease; remain constant 
D)  increase; either increase, decrease, or remain constant

Question 14

An increase in supply, with no change in demand, 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 15

Use the following to answer questions.
Exhibit: The Supply of Music Downloads  
-(Exhibit: The Supply of Music downloads) A decrease in the number of websites supplying music downloads 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 16

When economists study the behavior of sellers, they are studying:

Accepted Answer

A)  supply. 
B)  the role of government. 
C)  demand. 
D)  accounting. 
A)  supply. 
B)  the role of government. 
C)  demand. 
D)  accounting.

Question 17

The demand for a product is the quantity of it that people buy.

Accepted Answer

A) True 
 B)False

Question 18

An announcement that smoking will harm your ability to think clearly will most likely result in:

Accepted Answer

A)  an increase in the quantity of cigarettes demanded. 
B)  a decrease in the demand for cigarettes. 
C)  no change in smoking habits. 
D)  an increase in the equilibrium price of cigarettes. 
A)  an increase in the quantity of cigarettes demanded. 
B)  a decrease in the demand for cigarettes. 
C)  no change in smoking habits. 
D)  an increase in the equilibrium price of cigarettes.

Question 19

The primary difference between a change in supply and a change in the quantity supplied is:

Accepted Answer

A)  a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve. 
B)  both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. 
C)  a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve. 
D)  a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve. 
A)  a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve. 
B)  both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. 
C)  a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve. 
D)  a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve.

Question 20

A market shortage occurs if the:

Accepted Answer

A)  price is above the equilibrium price. 
B)  price is equal to the equilibrium price. 
C)  equilibrium price is above the current price. 
D)  equilibrium price is below the current price. 
A)  price is above the equilibrium price. 
B)  price is equal to the equilibrium price. 
C)  equilibrium price is above the current price. 
D)  equilibrium price is below the current price.

If economists say, "the price is too high," they mean that:

Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are bags and cents.

When the market price is established where demand and supply curves intersect:

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

There can be no shortages or surpluses at the equilibrium price.

All other things unchanged, a tax on a product that leads to an increase in the cost of production would:

Use the following to answer questions . Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium price?

Technology is a demand shifter.

Which of the following is true?

For most consumers, blu-ray players and blu-ray discs are likely to be:

If both the demand for a product and the supply of it increase, then the equilibrium quantity will and the equilibrium price will .

An increase in supply, with no change in demand, will lead to ______ _ in equilibrium quantity and ________ in equilibrium price.

Use the following to answer questions. Exhibit: The Supply of Music Downloads -(Exhibit: The Supply of Music downloads) A decrease in the number of websites supplying music downloads would result in a change illustrated by:

When economists study the behavior of sellers, they are studying:

The demand for a product is the quantity of it that people buy.

An announcement that smoking will harm your ability to think clearly will most likely result in:

The primary difference between a change in supply and a change in the quantity supplied is:

A market shortage occurs if the:

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

If economists say, "the price is too high," they mean that:

Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are ________ bags and ________ cents.

When the market price is established where demand and supply curves intersect:

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

There can be no shortages or surpluses at the equilibrium price.

All other things unchanged, a tax on a product that leads to an increase in the cost of production would:

Use the following to answer questions . Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium price?

Technology is a demand shifter.

Which of the following is true?

For most consumers, blu-ray players and blu-ray discs are likely to be:

If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.

An increase in supply, with no change in demand, will lead to ______ _ in equilibrium quantity and ________ in equilibrium price.

Use the following to answer questions. Exhibit: The Supply of Music Downloads -(Exhibit: The Supply of Music downloads) A decrease in the number of websites supplying music downloads would result in a change illustrated by:

When economists study the behavior of sellers, they are studying:

The demand for a product is the quantity of it that people buy.

An announcement that smoking will harm your ability to think clearly will most likely result in:

The primary difference between a change in supply and a change in the quantity supplied is:

A market shortage occurs if the:

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

Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are bags and cents.

If both the demand for a product and the supply of it increase, then the equilibrium quantity will and the equilibrium price will .