Question 1

A consumer might consider in-line skates and elbow-pads to be

Accepted Answer

A)  complements. 
B)  unrelated goods. 
C)  substitutes. 
D)  products with upward sloping demand curves. 
A)  complements. 
B)  unrelated goods. 
C)  substitutes. 
D)  products with upward sloping demand curves.

Question 2

If the price of crude oil falls, the equilibrium price of gasoline__________ and the equilibrium quantity __________.

Accepted Answer

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

Question 3

-The above figures show the market for gasoline. Which figure shows the effect of a nation-wide strike by municipal bus drivers, which causes more people to drive their cars to work?

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

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

Accepted Answer

A)  Workers who make cameras received a pay raise. 
B)  Technological advances in film camera production. 
C)  Consumersʹ preferences changed in favor of digital cameras. 
D)  The price of digital cameras increased. 
A)  Workers who make cameras received a pay raise. 
B)  Technological advances in film camera production. 
C)  Consumersʹ preferences changed in favor of digital cameras. 
D)  The price of digital cameras increased.

Question 5

If a decrease in the price of gasoline increases the demand for large cars, then

Accepted Answer

A)  gasoline and large cars are complements in consumption. 
B)  large cars are an inferior good. 
C)  gasoline is an inferior good. 
D)  gasoline and large cars are substitutes in consumption. 
A)  gasoline and large cars are complements in consumption. 
B)  large cars are an inferior good. 
C)  gasoline is an inferior good. 
D)  gasoline and large cars are substitutes in consumption.

Question 6

People buy more of good 1 when the price of good 2 rises. These goods are

Accepted Answer

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

Question 7

If a producer can use resources to produce either good A or good B, then A and B are

Accepted Answer

A)  complements in consumption. 
B)  substitutes in production. 
C)  substitutes in consumption. 
D)  complements in production. 
A)  complements in consumption. 
B)  substitutes in production. 
C)  substitutes in consumption. 
D)  complements in production.

Question 8

If there is surplus of a good, then the quantity demanded __________the quantity supplied and the price will__________ .

Accepted Answer

A)  is less than; fall 
B)  is greater than; rise 
C)  is greater than; fall 
D)  is less than; rise 
A)  is less than; fall 
B)  is greater than; rise 
C)  is greater than; fall 
D)  is less than; rise

Question 9

-The above figures show the market for hamburger meat. Which figure shows the effect when more farmers decide to raise cows that are processed into hamburger meat?

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 10

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.

Accepted Answer

A) True 
 B)False

Question 11

$$\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Price } \
\text { (dollars per } \
\text { pound) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { supplied } \
\text { (pounds) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { demanded } \
\text { (pounds) }
\end{array} \
\hline 3 & 1 & 7 \
\hline 4 & 2 & 5 \
\hline 5 & 4 & 4 \
\hline 6 & 5 & 2 \
\hline 7 & 6 & 1 \
\hline
\end{array}$$
-The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

Accepted Answer

A)  4 pounds, $5.00 per pound 
B)  2 pounds, $6.00 per pound 
C)  2 pounds, $3.00 per pound 
D)  7 pounds, $3.00 per pound 
A)  4 pounds, $5.00 per pound 
B)  2 pounds, $6.00 per pound 
C)  2 pounds, $3.00 per pound 
D)  7 pounds, $3.00 per pound

Question 12

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 13

Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

Accepted Answer

A)  leftward, and the price rises. 
B)  rightward, and the price is constant. 
C)  leftward, and the price is constant. 
D)  rightward, and the price falls. 
A)  leftward, and the price rises. 
B)  rightward, and the price is constant. 
C)  leftward, and the price is constant. 
D)  rightward, and the price falls.

Question 14

When supply and demand both increase, the

Accepted Answer

A)  quantity definitely increases. 
B)  price definitely increases. 
C)  quantity definitely decreases. 
D)  price definitely decreases. 
A)  quantity definitely increases. 
B)  price definitely increases. 
C)  quantity definitely decreases. 
D)  price definitely decreases.

Question 15

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

Accepted Answer

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

Question 16

-In the above figure, an increase in the quantity demanded is represented by a movement from point d to

Accepted Answer

A)  point c only. 
B)  point a. 
C)  point b only. 
D)  both points b and c. 
A)  point c only. 
B)  point a. 
C)  point b only. 
D)  both points b and c.

Question 17

-The above figures show the market for hamburger meat. Which figures) shows the effect of an increase in the price of a substitute like hot dogs?

Accepted Answer

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

Question 18

-In the above figure, a price of $15 per dozen for roses would result in

Accepted Answer

A)  a surplus. 
B)  equilibrium. 
C)  downward pressure on prices. 
D)  a shortage. 
A)  a surplus. 
B)  equilibrium. 
C)  downward pressure on prices. 
D)  a shortage.

Question 19

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. What of the following could result in a movement to point b?

Accepted Answer

A)  a decrease in the relative price of a soft drink 
B)  a decrease in the price of bottled water 
C)  an increase in the price of bottled water 
D)  an increase in the opportunity cost of soft drinks 
A)  a decrease in the relative price of a soft drink 
B)  a decrease in the price of bottled water 
C)  an increase in the price of bottled water 
D)  an increase in the opportunity cost of soft drinks

Question 20

Flights to Paris are a normal good and peopleʹs incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris __________and the equilibrium quantity of flights to Paris __________.

Accepted Answer

A)  rises; increases 
B)  might rise, fall, or not change; increases 
C)  falls; decreases. 
D)  rises; might increase, decrease, or not change 
A)  rises; increases 
B)  might rise, fall, or not change; increases 
C)  falls; decreases. 
D)  rises; might increase, decrease, or not change

A consumer might consider in-line skates and elbow-pads to be

If the price of crude oil falls, the equilibrium price of gasoline and the equilibrium quantity .

-The above figures show the market for gasoline. Which figure shows the effect of a nation-wide strike by municipal bus drivers, which causes more people to drive their cars to work?

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

If a decrease in the price of gasoline increases the demand for large cars, then

People buy more of good 1 when the price of good 2 rises. These goods are

If a producer can use resources to produce either good A or good B, then A and B are

If there is surplus of a good, then the quantity demanded the quantity supplied and the price will .

-The above figures show the market for hamburger meat. Which figure shows the effect when more farmers decide to raise cows that are processed into hamburger meat?

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.

Price (dollars per pound) Quantity supplied (pounds) Quantity demanded (pounds) 3 1 7 4 2 5 5 4 4 6 5 2 7 6 1 -The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

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

Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

When supply and demand both increase, the

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

-In the above figure, an increase in the quantity demanded is represented by a movement from point d to

-The above figures show the market for hamburger meat. Which figures) shows the effect of an increase in the price of a substitute like hot dogs?

-In the above figure, a price of $15 per dozen for roses would result in

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. What of the following could result in a movement to point b?

Flights to Paris are a normal good and peopleʹs incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris and the equilibrium quantity of flights to Paris .

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

A consumer might consider in-line skates and elbow-pads to be

If the price of crude oil falls, the equilibrium price of gasoline__________ and the equilibrium quantity __________.

-The above figures show the market for gasoline. Which figure shows the effect of a nation-wide strike by municipal bus drivers, which causes more people to drive their cars to work?

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

If a decrease in the price of gasoline increases the demand for large cars, then

People buy more of good 1 when the price of good 2 rises. These goods are

If a producer can use resources to produce either good A or good B, then A and B are

If there is surplus of a good, then the quantity demanded __________the quantity supplied and the price will__________ .

-The above figures show the market for hamburger meat. Which figure shows the effect when more farmers decide to raise cows that are processed into hamburger meat?

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.

Price (dollars per pound) Quantity supplied (pounds) Quantity demanded (pounds) 3 1 7 4 2 5 5 4 4 6 5 2 7 6 1 -The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

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

Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

When supply and demand both increase, the

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

-In the above figure, an increase in the quantity demanded is represented by a movement from point d to

-The above figures show the market for hamburger meat. Which figures) shows the effect of an increase in the price of a substitute like hot dogs?

-In the above figure, a price of $15 per dozen for roses would result in

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. What of the following could result in a movement to point b?

Flights to Paris are a normal good and peopleʹs incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris __________and the equilibrium quantity of flights to Paris __________.

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

If the price of crude oil falls, the equilibrium price of gasoline and the equilibrium quantity .

If there is surplus of a good, then the quantity demanded the quantity supplied and the price will .

Flights to Paris are a normal good and peopleʹs incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris and the equilibrium quantity of flights to Paris .