Question 1

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Accepted Answer

A)  6 tacos per pizza. 
B)  $24 per pizza. 
C)  1/6 pizza. 
D)  $12 per pizza. 
A)  6 tacos per pizza. 
B)  $24 per pizza. 
C)  1/6 pizza. 
D)  $12 per pizza.

Question 2

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair
$40 and the quantity .

Accepted Answer

A)  will fall below; demanded will decrease 
B)  will rise above; demanded will decrease 
C)  will rise above; supplied will increase 
D)  will fall below; demanded will increase 
A)  will fall below; demanded will decrease 
B)  will rise above; demanded will decrease 
C)  will rise above; supplied will increase 
D)  will fall below; demanded will increase

Question 3

-The above figure shows the market for hamburger. Which figure shows the effect of an announcement by the U.S. Food and Drug Administration (FDA)that eating hamburger causes early death?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 4

A decrease in the expected future price of cars

Accepted Answer

A)  increases the current quantity demanded of cars, that is, there is a movement downward along the demand curve for cars. 
B)  decreases the current quantity demanded of cars, that is, there is a movement upward along the demand curve for cars. 
C)  decreases the current demand for cars, that is, there is a leftward shift of the demand curve for cars. 
D)  increases the current demand for cars, that is, there is a rightward shift of the demand curve for cars. 
A)  increases the current quantity demanded of cars, that is, there is a movement downward along the demand curve for cars. 
B)  decreases the current quantity demanded of cars, that is, there is a movement upward along the demand curve for cars. 
C)  decreases the current demand for cars, that is, there is a leftward shift of the demand curve for cars. 
D)  increases the current demand for cars, that is, there is a rightward shift of the demand curve for cars.

Question 5

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

Accepted Answer

A)  its demand decreases and supply increases. 
B)  its demand and supply both increase. 
C)  its demand and supply both decrease. 
D)  its demand increases and supply decreases. 
A)  its demand decreases and supply increases. 
B)  its demand and supply both increase. 
C)  its demand and supply both decrease. 
D)  its demand increases and supply decreases.

Question 6

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip and the quantity of memory chips .

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 7

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

Accepted Answer

A)  the law of supply. 
B)  the nature of an inferior good. 
C)  the law of demand. 
D)  a change in supply. 
A)  the law of supply. 
B)  the nature of an inferior good. 
C)  the law of demand. 
D)  a change in supply.

Question 8

-The equilibrium quantity in the above figure is

Accepted Answer

A)  300 units. 
B)  400 units. 
C)  600 units. 
D)  200 units. 
A)  300 units. 
B)  400 units. 
C)  600 units. 
D)  200 units.

Question 9

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

Accepted Answer

The equilibrium price is $1.50 per pound

Question 10

In a supply and demand figure, the equilibrium price and quantity are found at the

Accepted Answer

A)  horizontal intercept of the supply and the demand curves. 
B)  vertical intercept of the supply curve. 
C)  point where quantity supplied equals quantity demanded. 
D)  horizontal intercept of the demand curve. 
A)  horizontal intercept of the supply and the demand curves. 
B)  vertical intercept of the supply curve. 
C)  point where quantity supplied equals quantity demanded. 
D)  horizontal intercept of the demand curve.

Question 11

Which of the following shifts the supply curve for gasoline rightward?

Accepted Answer

A)  an increase in the price of gasoline 
B)  a decrease in the price of a resource used to produce gasoline, such as crude oil 
C)  an increase in the demand for gas- guzzling, sport utility vehicles 
D)  a situation in which the quantity demanded exceeds the quantity supplied 
A)  an increase in the price of gasoline 
B)  a decrease in the price of a resource used to produce gasoline, such as crude oil 
C)  an increase in the demand for gas- guzzling, sport utility vehicles 
D)  a situation in which the quantity demanded exceeds the quantity supplied

Question 12

Which of the following shifts only the supply curve of broccoli?

Accepted Answer

A)  an increase in income 
B)  the destruction of much of this year's broccoli crop by hurricanes 
C)  a newly discovered increase in the nutritional value of broccoli 
D)  a newly discovered link between broccoli consumption and tooth decay 
A)  an increase in income 
B)  the destruction of much of this year's broccoli crop by hurricanes 
C)  a newly discovered increase in the nutritional value of broccoli 
D)  a newly discovered link between broccoli consumption and tooth decay

Question 13

Which of the following increases the demand for a product?

Accepted Answer

A)  a fall in the price of the product 
B)  an increase in the price of a substitute product 
C)  a smaller number of consumers wanting to buy the product 
D)  an increase in the price of the product 
A)  a fall in the price of the product 
B)  an increase in the price of a substitute product 
C)  a smaller number of consumers wanting to buy the product 
D)  an increase in the price of the product

Question 14

When the demand and supply curves both shift rightward, which of the following happens?

Accepted Answer

A)  The equilibrium quantity increases and any change in the equilibrium price cannot be determined. 
B)  The equilibrium price falls and the equilibrium quantity increases. 
C)  The equilibrium price falls and any change in the equilibrium quantity cannot be determined. 
D)  The equilibrium price rises and the equilibrium quantity decreases. 
A)  The equilibrium quantity increases and any change in the equilibrium price cannot be determined. 
B)  The equilibrium price falls and the equilibrium quantity increases. 
C)  The equilibrium price falls and any change in the equilibrium quantity cannot be determined. 
D)  The equilibrium price rises and the equilibrium quantity decreases.

Question 15

-In the above figure, what is the minimum supply price for the fourth gallon of ice cream?

Accepted Answer

A)  $5.00 
B)  $2.00 
C)  $3.00 
D)  $4.00 
A)  $5.00 
B)  $2.00 
C)  $3.00 
D)  $4.00

Question 16

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure D 
D)  Figure A and B 
A)  Figure A 
B)  Figure B 
C)  Figure D 
D)  Figure A and B

Question 17

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

Accepted Answer

A)  supply curve will shift rightward. 
B)  supply curve will shift leftward. 
C)  price will rise. 
D)  quantity supplied will decrease. 
A)  supply curve will shift rightward. 
B)  supply curve will shift leftward. 
C)  price will rise. 
D)  quantity supplied will decrease.

Question 18

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

Accepted Answer

A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C 
A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C

Question 19

-Consider the figure above showing supply curves for soft drinks. Suppose the economy is at point
A.A movement to point d would be the result of

Accepted Answer

A)  an increase in the number of soft drink suppliers. 
B)  an increase in technology. 
C)  a decrease in the relative price of a soft drink. 
D)  an increase in the relative price of a soft drink. 
A)  an increase in the number of soft drink suppliers. 
B)  an increase in technology. 
C)  a decrease in the relative price of a soft drink. 
D)  an increase in the relative price of a soft drink.

Question 20

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

Accepted Answer

A)  technological advances in digital camera production 
B)  workers who make digital cameras received a pay raise 
C)  the price of film cameras fell 
D)  consumers' preferences changed in favor of digital cameras 
A)  technological advances in digital camera production 
B)  workers who make digital cameras received a pay raise 
C)  the price of film cameras fell 
D)  consumers' preferences changed in favor of digital cameras

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair $40 and the quantity .

-The above figure shows the market for hamburger. Which figure shows the effect of an announcement by the U.S. Food and Drug Administration (FDA)that eating hamburger causes early death?

A decrease in the expected future price of cars

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip and the quantity of memory chips .

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

-The equilibrium quantity in the above figure is

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

In a supply and demand figure, the equilibrium price and quantity are found at the

Which of the following shifts the supply curve for gasoline rightward?

Which of the following shifts only the supply curve of broccoli?

Which of the following increases the demand for a product?

When the demand and supply curves both shift rightward, which of the following happens?

-In the above figure, what is the minimum supply price for the fourth gallon of ice cream?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

-Consider the figure above showing supply curves for soft drinks. Suppose the economy is at point A.A movement to point d would be the result of

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

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

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair $40 and the quantity .

-The above figure shows the market for hamburger. Which figure shows the effect of an announcement by the U.S. Food and Drug Administration (FDA)that eating hamburger causes early death?

A decrease in the expected future price of cars

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip and the quantity of memory chips .

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

-The equilibrium quantity in the above figure is

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

In a supply and demand figure, the equilibrium price and quantity are found at the

Which of the following shifts the supply curve for gasoline rightward?

Which of the following shifts only the supply curve of broccoli?

Which of the following increases the demand for a product?

When the demand and supply curves both shift rightward, which of the following happens?

-In the above figure, what is the minimum supply price for the fourth gallon of ice cream?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

-Consider the figure above showing supply curves for soft drinks. Suppose the economy is at point A.A movement to point d would be the result of

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

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