Question 1

-The above figures show the market for oranges. Which figures) shows the effect of a nation -wide consumer boycott of eating oranges?

Accepted Answer

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

Question 2

If macaroni and cheese is an inferior good, an increase in income will

Accepted Answer

A)  not affect the demand for macaroni and cheese. 
B)  create no income effect. 
C)  decrease the demand for macaroni and cheese. 
D)  increase the demand for macaroni and cheese. 
A)  not affect the demand for macaroni and cheese. 
B)  create no income effect. 
C)  decrease the demand for macaroni and cheese. 
D)  increase the demand for macaroni and cheese.

Question 3

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

Accepted Answer

A)  quantity supplied equals the quantity demanded. 
B)  price is the lowest possible. 
C)  price is usually affordable to most people. 
D)  supply and demand curves can never shift again. 
A)  quantity supplied equals the quantity demanded. 
B)  price is the lowest possible. 
C)  price is usually affordable to most people. 
D)  supply and demand curves can never shift again.

Question 4

When the price of a good falls, the income effect for a normal good implies that people buy

Accepted Answer

A)  less of that good because they cannot afford to buy all the things they previously bought. 
B)  more of that good because the relative price of the good has risen. 
C)  more of that good because they can afford to buy more of all the things they previously bought. 
D)  less of that good because the relative price of the good has fallen. 
A)  less of that good because they cannot afford to buy all the things they previously bought. 
B)  more of that good because the relative price of the good has risen. 
C)  more of that good because they can afford to buy more of all the things they previously bought. 
D)  less of that good because the relative price of the good has fallen.

Question 5

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of

Accepted Answer

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

Question 6

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

Accepted Answer

At a price of $8 there is a surplus beca

Question 7

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will

Accepted Answer

A)  not change. 
B)  rise. 
C)  fall. 
D)  Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market. 
A)  not change. 
B)  rise. 
C)  fall. 
D)  Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.

Question 8

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

Accepted Answer

A)  falls. 
B)  does not change. 
C)  rises. 
D)  might change but more information is needed. 
A)  falls. 
B)  does not change. 
C)  rises. 
D)  might change but more information is needed.

Question 9

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

Accepted Answer

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

Question 10

-The diagram above illustrates the market for apartments in Victoria, British Columbia.
a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus?
b) What is the equilibrium rent and quantity of apartments?

Accepted Answer

a) If the rent is $300 per mon

Question 11

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will
And the equilibrium quantity will .

Accepted Answer

A)  fall; increase 
B)  fall; decrease 
C)  rise; decrease 
D)  rise; increase 
A)  fall; increase 
B)  fall; decrease 
C)  rise; decrease 
D)  rise; increase

Question 12

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?

Accepted Answer

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

Question 13

-In the above figure, a price of $15 per dozen roses would result in a_________ so that the price of roses will ________.

Accepted Answer

A)  surplus; rise 
B)  shortage; rise 
C)  surplus; fall 
D)  shortage; fall 
A)  surplus; rise 
B)  shortage; rise 
C)  surplus; fall 
D)  shortage; fall

Question 14

An increase in technology for producing personal computers leads to

Accepted Answer

A)  an increase in the demand for personal computers. 
B)  an increase in the supply of personal computers. 
C)  a decrease in the demand for personal computers. 
D)  a decrease in the supply of personal computers. 
A)  an increase in the demand for personal computers. 
B)  an increase in the supply of personal computers. 
C)  a decrease in the demand for personal computers. 
D)  a decrease in the supply of personal computers.

Question 15

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?

Accepted Answer

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

Question 16

When the price is below the equilibrium price, the quantity demanded

Accepted Answer

A)  is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity. 
B)  is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity. 
C)  exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity. 
D)  exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity. 
A)  is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity. 
B)  is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity. 
C)  exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity. 
D)  exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity.

Question 17

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

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 18

As a result of an increase in the supply of a good, the equilibrium quantity __________and the equilibrium price__________ .

Accepted Answer

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

Question 19

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

Question 20

What is the difference between a normal good and an inferior good? Give an example of each.

Accepted Answer

A good is a normal good if an increase i

-The above figures show the market for oranges. Which figures) shows the effect of a nation -wide consumer boycott of eating oranges?

If macaroni and cheese is an inferior good, an increase in income will

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

When the price of a good falls, the income effect for a normal good implies that people buy

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b) What is the equilibrium rent and quantity of apartments?

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will And the equilibrium quantity will .

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?

-In the above figure, a price of $15 per dozen roses would result in a_ so that the price of roses will .

An increase in technology for producing personal computers leads to

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?

When the price is below the equilibrium price, the quantity demanded

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

As a result of an increase in the supply of a good, the equilibrium quantity and the equilibrium price .

If income decreases or the price of a complement rises,

What is the difference between a normal good and an inferior good? Give an example of each.

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 3: Demand and Supply

-The above figures show the market for oranges. Which figures) shows the effect of a nation -wide consumer boycott of eating oranges?

If macaroni and cheese is an inferior good, an increase in income will

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

When the price of a good falls, the income effect for a normal good implies that people buy

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b) What is the equilibrium rent and quantity of apartments?

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will And the equilibrium quantity will .

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?

-In the above figure, a price of $15 per dozen roses would result in a_________ so that the price of roses will ________.

An increase in technology for producing personal computers leads to

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?

When the price is below the equilibrium price, the quantity demanded

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

As a result of an increase in the supply of a good, the equilibrium quantity __________and the equilibrium price__________ .

If income decreases or the price of a complement rises,

What is the difference between a normal good and an inferior good? Give an example of each.

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

-In the above figure, a price of $15 per dozen roses would result in a_ so that the price of roses will .

As a result of an increase in the supply of a good, the equilibrium quantity and the equilibrium price .