Question 1

Between 2000 and 2008, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?

Accepted Answer

A)  The demand for PCs decreased by more than the supply of PCs increased. 
B)  The supply of PCs increased by more than the demand for PCs increased. 
C)  The demand for PCs increased by more then the supply of PCs increased. 
D)  Both the supply of PCs and the demand for PCs decreased. 
A)  The demand for PCs decreased by more than the supply of PCs increased. 
B)  The supply of PCs increased by more than the demand for PCs increased. 
C)  The demand for PCs increased by more then the supply of PCs increased. 
D)  Both the supply of PCs and the demand for PCs decreased.

Question 2

A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?

Accepted Answer

A)  A 5 percent increase in people's income. 
B)  An increased preference for walking rather than driving. 
C)  A 20 percent increase in the price of a car. 
D)  A 10 percent decrease in the price of car insurance. 
A)  A 5 percent increase in people's income. 
B)  An increased preference for walking rather than driving. 
C)  A 20 percent increase in the price of a car. 
D)  A 10 percent decrease in the price of car insurance.

Question 3

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

Accepted Answer

A)  normal. 
B)  complements. 
C)  inferior. 
D)  substitutes. 
A)  normal. 
B)  complements. 
C)  inferior. 
D)  substitutes.

Question 4

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is

Accepted Answer

A)  is less than the quantity supplied and a surplus results. 
B)  exceeds the quantity supplied and a shortage results. 
C)  is less than the quantity supplied and a shortage results. 
D)  exceeds the quantity supplied and a surplus results. 
A)  is less than the quantity supplied and a surplus results. 
B)  exceeds the quantity supplied and a shortage results. 
C)  is less than the quantity supplied and a shortage results. 
D)  exceeds the quantity supplied and a surplus results.

Question 5

When the quantity demanded equals quantity supplied

Accepted Answer

A)  there is a surplus. 
B)  there is a shortage. 
C)  the government must be intervening in the market. 
D)  none of the above 
A)  there is a surplus. 
B)  there is a shortage. 
C)  the government must be intervening in the market. 
D)  none of the above

Question 6

If the price of a CD is equal to the equilibrium price, there will be of CDs and the price will .

Accepted Answer

A)  surplus; rise 
B)  shortage; fall 
C)  neither a shortage nor surplus; not change 
D)  surplus; fall 
A)  surplus; rise 
B)  shortage; fall 
C)  neither a shortage nor surplus; not change 
D)  surplus; fall

Question 7

During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the

Accepted Answer

A)  supply curve of shoes shifted leftward. 
B)  demand curve for shoes shifted rightward. 
C)  demand curve for shoes shifted leftward. 
D)  supply curve of shoes shifted rightward. 
A)  supply curve of shoes shifted leftward. 
B)  demand curve for shoes shifted rightward. 
C)  demand curve for shoes shifted leftward. 
D)  supply curve of shoes shifted rightward.

Question 8

If workers who make DVDs get a pay raise, the equilibrium price of a DVD and the equilibrium quantity of DVDs .

Accepted Answer

A)  falls; decreases 
B)  falls; increases 
C)  rises; decreases 
D)  rises; increases 
A)  falls; decreases 
B)  falls; increases 
C)  rises; decreases 
D)  rises; increases

Question 9

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

Accepted Answer

A)  $1.50, the opportunity cost of a can of soda. 
B)  $0.75, the opportunity cost of a can of soda. 
C)  1/2 can of soda, the opportunity cost of an ice cream cone. 
D)  2 cans of soda, the opportunity cost of an ice cream cone. 
A)  $1.50, the opportunity cost of a can of soda. 
B)  $0.75, the opportunity cost of a can of soda. 
C)  1/2 can of soda, the opportunity cost of an ice cream cone. 
D)  2 cans of soda, the opportunity cost of an ice cream cone.

Question 10

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

Accepted Answer

A)  movement along the supply curve. 
B)  new supply curve that is to the right of the initial supply curve. 
C)  rotation of the initial supply curve around the initial price. 
D)  new supply curve that is to the left of the initial supply curve. 
A)  movement along the supply curve. 
B)  new supply curve that is to the right of the initial supply curve. 
C)  rotation of the initial supply curve around the initial price. 
D)  new supply curve that is to the left of the initial supply curve.

Question 11

If the price of lumber rises, then, in the market for sawdust,

Accepted Answer

A)  the supply curve of sawdust shifts leftward. 
B)  there is a movement upward along the supply curve for sawdust. 
C)  there is a movement downward along the supply curve for sawdust. 
D)  the supply curve of sawdust shifts rightward. 
A)  the supply curve of sawdust shifts leftward. 
B)  there is a movement upward along the supply curve for sawdust. 
C)  there is a movement downward along the supply curve for sawdust. 
D)  the supply curve of sawdust shifts rightward.

Question 12

If the quantity supplied exceeds the quantity demanded, then there is

Accepted Answer

A)  a shortage and the price is above the equilibrium price. 
B)  a surplus and the price is above the equilibrium price. 
C)  a surplus and the price is below the equilibrium price. 
D)  a shortage and the price is below the equilibrium price. 
A)  a shortage and the price is above the equilibrium price. 
B)  a surplus and the price is above the equilibrium price. 
C)  a surplus and the price is below the equilibrium price. 
D)  a shortage and the price is below the equilibrium price.

Question 13

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2008. As a result of the economic slowdown in 2008 and the effect on people's incomes, we would expect

Accepted Answer

A)  demand for Packers tickets to decrease. 
B)  demand curve for Packers tickets to shift rightward. 
C)  the substitution effect to change the quantity demanded. 
D)  the quantity demanded of Packers tickets to decrease. 
A)  demand for Packers tickets to decrease. 
B)  demand curve for Packers tickets to shift rightward. 
C)  the substitution effect to change the quantity demanded. 
D)  the quantity demanded of Packers tickets to decrease.

Question 14

-Suppose the market for CD- Rs has the demand and supply schedules shown in the table above. Suppose a technological advance increases the quantity of disks supplied at each price by 25 million. What is the new equilibrium price and the new equilibrium quantity of CD- Rs?

Accepted Answer

The initial equilibrium price is $1.50 a

Question 15

If income decreases or the price of a complement rises,

Accepted Answer

A)  there is an upward movement along the demand curve for the good. 
B)  the demand curve for a normal good shifts leftward. 
C)  there is a downward movement along the demand curve for the good. 
D)  the demand curve for a normal good shifts rightward. 
A)  there is an upward movement along the demand curve for the good. 
B)  the demand curve for a normal good shifts leftward. 
C)  there is a downward movement along the demand curve for the good. 
D)  the demand curve for a normal good shifts rightward.

Question 16

At a price of $10 in the above figure, there is

Accepted Answer

A)  a shortage of 200 units. 
B)  a surplus of 400 units. 
C)  a surplus of 200 units. 
D)  a shortage of 400 units. 
A)  a shortage of 200 units. 
B)  a surplus of 400 units. 
C)  a surplus of 200 units. 
D)  a shortage of 400 units.

Question 17

Which of the following shifts the supply curve rightward?

Accepted Answer

A)  a decrease in the price of a factor of production used to produce the good 
B)  a positive change in preferences for the good 
C)  a decrease in the price of the good 
D)  an increase in the population 
A)  a decrease in the price of a factor of production used to produce the good 
B)  a positive change in preferences for the good 
C)  a decrease in the price of the good 
D)  an increase in the population

Question 18

-In the figure above, an increase in the quantity of oil supplied but NOT in the supply of oil is shown by a movement from

Accepted Answer

A)  point a to point d. 
B)  point a to point c. 
C)  point a to point e. 
D)  point a to point b. 
A)  point a to point d. 
B)  point a to point c. 
C)  point a to point e. 
D)  point a to point b.

Question 19

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)  80 thousand and $80. 
B)  40 thousand and $20. 
C)  60 thousand and $50. 
D)  50 thousand and $100. 
A)  80 thousand and $80. 
B)  40 thousand and $20. 
C)  60 thousand and $50. 
D)  50 thousand and $100.

Question 20

The quantity demanded of a good or service is the amount that

Accepted Answer

A)  a consumer would like to buy but might not be able to afford. 
B)  is actually bought during a given time period at a given price. 
C)  firms are willing to sell during a given time period at a given price. 
D)  consumers plan to buy during a given time period at a given price. 
A)  a consumer would like to buy but might not be able to afford. 
B)  is actually bought during a given time period at a given price. 
C)  firms are willing to sell during a given time period at a given price. 
D)  consumers plan to buy during a given time period at a given price.

Between 2000 and 2008, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?

A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is

When the quantity demanded equals quantity supplied

If the price of a CD is equal to the equilibrium price, there will be of CDs and the price will .

During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the

If workers who make DVDs get a pay raise, the equilibrium price of a DVD and the equilibrium quantity of DVDs .

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

If the price of lumber rises, then, in the market for sawdust,

If the quantity supplied exceeds the quantity demanded, then there is

-Suppose the market for CD- Rs has the demand and supply schedules shown in the table above. Suppose a technological advance increases the quantity of disks supplied at each price by 25 million. What is the new equilibrium price and the new equilibrium quantity of CD- Rs?

If income decreases or the price of a complement rises,

At a price of $10 in the above figure, there is

Which of the following shifts the supply curve rightward?

-In the figure above, an increase in the quantity of oil supplied but NOT in the supply of oil is shown by a movement from

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

The quantity demanded of a good or service is the amount that

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

Between 2000 and 2008, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?

A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is

When the quantity demanded equals quantity supplied

If the price of a CD is equal to the equilibrium price, there will be of CDs and the price will .

During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the

If workers who make DVDs get a pay raise, the equilibrium price of a DVD and the equilibrium quantity of DVDs .

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

If the price of lumber rises, then, in the market for sawdust,

If the quantity supplied exceeds the quantity demanded, then there is

-Suppose the market for CD- Rs has the demand and supply schedules shown in the table above. Suppose a technological advance increases the quantity of disks supplied at each price by 25 million. What is the new equilibrium price and the new equilibrium quantity of CD- Rs?

If income decreases or the price of a complement rises,

At a price of $10 in the above figure, there is

Which of the following shifts the supply curve rightward?

-In the figure above, an increase in the quantity of oil supplied but NOT in the supply of oil is shown by a movement from

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

The quantity demanded of a good or service is the amount that

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters