Question 1

Supply can shift due to changes in price.

Accepted Answer

A) True 
 B)False

Question 2

How does rent control tend to cause persistent imbalances in the market for housing?

Accepted Answer

A)  Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. 
B)  Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. 
C)  Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. 
D)  Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus. 
A)  Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. 
B)  Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. 
C)  Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. 
D)  Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

Question 3

If price rises,what happens to demand for a product?

Accepted Answer

A)  It increases. 
B)  It decreases. 
C)  It does not change. 
D)  Uncertain-economic theory has no answer to this question. 
A)  It increases. 
B)  It decreases. 
C)  It does not change. 
D)  Uncertain-economic theory has no answer to this question.

Question 4

Sugarcane can be used for producing both sugar and ethanol.New regulations in certain countries now allow a higher level of ethanol in gasoline.An economist would expect sugarcane prices to ____,and quantity sold to ____.

Accepted Answer

A)  rise; rise. 
B)  fall; fall. 
C)  rise; fall. 
D)  fall; remain the same. 
A)  rise; rise. 
B)  fall; fall. 
C)  rise; fall. 
D)  fall; remain the same.

Question 5

When price is below the equilibrium level,there is a shortage of the commodity being sold.

Accepted Answer

A) True 
 B)False

Question 6

A minimum wage law may cause unemployment among low-skill workers.

Accepted Answer

A) True 
 B)False

Question 7

In an attempt to reduce poaching of elephant tusks for ivory,officials in Kenya burned illegally gathered ivory.Economists tend to point out that

Accepted Answer

A)  poaching can be reduced with price supports for ivory. 
B)  the supply of ivory has fallen,leading to an increase in price and reward for poaching. 
C)  burning ivory decreases demand,leading to lower prices and reward for poaching. 
D)  the demand for ivory is higher,leading to an increase in price and reward for poaching. 
E)  burning ivory raises demand,and controlled prices will lead to even greater poaching. 
A)  poaching can be reduced with price supports for ivory. 
B)  the supply of ivory has fallen,leading to an increase in price and reward for poaching. 
C)  burning ivory decreases demand,leading to lower prices and reward for poaching. 
D)  the demand for ivory is higher,leading to an increase in price and reward for poaching. 
E)  burning ivory raises demand,and controlled prices will lead to even greater poaching.

Question 8

A supply schedule shows

Accepted Answer

A)  the "market potential" for a product. 
B)  how much producers are willing and able to sell at different prices. 
C)  possible combinations of output under different conditions. 
D)  how much consumers would like to buy at different prices. 
E)  All of the above are correct. 
A)  the "market potential" for a product. 
B)  how much producers are willing and able to sell at different prices. 
C)  possible combinations of output under different conditions. 
D)  how much consumers would like to buy at different prices. 
E)  All of the above are correct.

Question 9

Price ceilings lead to market surpluses.

Accepted Answer

A) True 
 B)False

Question 10

Figure 4-16  
-Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from

Accepted Answer

A)  S1 to S2. 
B)  S2 to S1. 
C)  S3 to S2. 
D)  S3 to S1. 
A)  S1 to S2. 
B)  S2 to S1. 
C)  S3 to S2. 
D)  S3 to S1.

Question 11

A severe freeze has once again damaged the Florida orange crop.The impact on the market for oranges will be a leftward shift in

Accepted Answer

A)  demand as consumers try to economize because of the shortage. 
B)  both the supply and demand curves. 
C)  the supply curve. 
D)  the supply curve and a rightward shift in the demand curve,which will result in a higher price. 
A)  demand as consumers try to economize because of the shortage. 
B)  both the supply and demand curves. 
C)  the supply curve. 
D)  the supply curve and a rightward shift in the demand curve,which will result in a higher price.

Question 12

Along a supply curve,

Accepted Answer

A)  supply changes as price changes. 
B)  quantity supplied changes as price changes. 
C)  supply changes as technology changes. 
D)  quantity supplied changes as technology changes. 
A)  supply changes as price changes. 
B)  quantity supplied changes as price changes. 
C)  supply changes as technology changes. 
D)  quantity supplied changes as technology changes.

Question 13

Equilibrium is reached where there is no inherent force causing quantity supplied or quantity demanded to change.

Accepted Answer

A) True 
 B)False

Question 14

Very few societies have used price controls.

Accepted Answer

A) True 
 B)False

Question 15

As price increases,additional suppliers are willing to produce a commodity.

Accepted Answer

A) True 
 B)False

Question 16

Figure 4-19  
-After a strike against the Financial News in London began,the number of copies of the competing Broad Street Journal sold in England increased dramatically,yet there was no increase in price.Which supply and demand graph in Figure 4-19 represents the situation for the Broad Street Journal before the strike started?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 17

Some medical authorities announced in the late 1980s that an acne medicine named Retin-A also had previously unknown wrinkle-reducing properties.An economist would expect to find that,after this announcement,the price of Retin-A ____ and the quantity sold ____.

Accepted Answer

A)  rose; fell 
B)  rose; rose 
C)  fell; fell 
D)  fell; rose 
A)  rose; fell 
B)  rose; rose 
C)  fell; fell 
D)  fell; rose

Question 18

From 2007 to 2008,the Federal Reserve System reduced interest rates,the price which borrowers pay.As a result,economists expected the quantity of money demanded to

Accepted Answer

A)  increase. 
B)  decrease. 
C)  not change. 
D)  not change,although the demand schedule itself will shift outward. 
A)  increase. 
B)  decrease. 
C)  not change. 
D)  not change,although the demand schedule itself will shift outward.

Supply can shift due to changes in price.

How does rent control tend to cause persistent imbalances in the market for housing?

If price rises,what happens to demand for a product?

Sugarcane can be used for producing both sugar and ethanol.New regulations in certain countries now allow a higher level of ethanol in gasoline.An economist would expect sugarcane prices to ,and quantity sold to .

When price is below the equilibrium level,there is a shortage of the commodity being sold.

A minimum wage law may cause unemployment among low-skill workers.

In an attempt to reduce poaching of elephant tusks for ivory,officials in Kenya burned illegally gathered ivory.Economists tend to point out that

A supply schedule shows

Price ceilings lead to market surpluses.

Figure 4-16 -Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from

A severe freeze has once again damaged the Florida orange crop.The impact on the market for oranges will be a leftward shift in

Along a supply curve,

Equilibrium is reached where there is no inherent force causing quantity supplied or quantity demanded to change.

Very few societies have used price controls.

As price increases,additional suppliers are willing to produce a commodity.

Some medical authorities announced in the late 1980s that an acne medicine named Retin-A also had previously unknown wrinkle-reducing properties.An economist would expect to find that,after this announcement,the price of Retin-A and the quantity sold .

From 2007 to 2008,the Federal Reserve System reduced interest rates,the price which borrowers pay.As a result,economists expected the quantity of money demanded to

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 4: Supply and Demand An Initial Look

Supply can shift due to changes in price.

How does rent control tend to cause persistent imbalances in the market for housing?

If price rises,what happens to demand for a product?

Sugarcane can be used for producing both sugar and ethanol.New regulations in certain countries now allow a higher level of ethanol in gasoline.An economist would expect sugarcane prices to ____,and quantity sold to ____.

When price is below the equilibrium level,there is a shortage of the commodity being sold.

A minimum wage law may cause unemployment among low-skill workers.

In an attempt to reduce poaching of elephant tusks for ivory,officials in Kenya burned illegally gathered ivory.Economists tend to point out that

A supply schedule shows

Price ceilings lead to market surpluses.

Figure 4-16 -Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from

A severe freeze has once again damaged the Florida orange crop.The impact on the market for oranges will be a leftward shift in

Along a supply curve,

Equilibrium is reached where there is no inherent force causing quantity supplied or quantity demanded to change.

Very few societies have used price controls.

As price increases,additional suppliers are willing to produce a commodity.

Some medical authorities announced in the late 1980s that an acne medicine named Retin-A also had previously unknown wrinkle-reducing properties.An economist would expect to find that,after this announcement,the price of Retin-A ____ and the quantity sold ____.

From 2007 to 2008,the Federal Reserve System reduced interest rates,the price which borrowers pay.As a result,economists expected the quantity of money demanded to

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Sugarcane can be used for producing both sugar and ethanol.New regulations in certain countries now allow a higher level of ethanol in gasoline.An economist would expect sugarcane prices to ,and quantity sold to .

Some medical authorities announced in the late 1980s that an acne medicine named Retin-A also had previously unknown wrinkle-reducing properties.An economist would expect to find that,after this announcement,the price of Retin-A and the quantity sold .