Question 1

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

Accepted Answer

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

Question 2

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

Accepted Answer

A)  leftward and the equilibrium price of leather shoes will rise. 
B)  leftward and the equilibrium price of leather shoes will fall. 
C)  rightward and the equilibrium price of leather shoes will fall. 
D)  rightward and the equilibrium price of leather shoes will rise. 
A)  leftward and the equilibrium price of leather shoes will rise. 
B)  leftward and the equilibrium price of leather shoes will fall. 
C)  rightward and the equilibrium price of leather shoes will fall. 
D)  rightward and the equilibrium price of leather shoes will rise.

Question 3

The quantity supplied of a good or service is the quantity that a producer _______ at a particular price during a given time period.

Accepted Answer

A)  is willing to sell 
B)  needs to sell 
C)  actually sells 
D)  should sell 
A)  is willing to sell 
B)  needs to sell 
C)  actually sells 
D)  should sell

Question 4

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

Accepted Answer

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

Question 5

Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A

Accepted Answer

A)  increases the demand for good B. 
B)  increases the supply of good B. 
C)  decreases the demand for good B. 
D)  decreases the supply of good B. 
A)  increases the demand for good B. 
B)  increases the supply of good B. 
C)  decreases the demand for good B. 
D)  decreases the supply of good B.

Question 6

Which of the following shifts the supply curve of broccoli?

Accepted Answer

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

Question 7

When supply decreases and demand does not change, the equilibrium quantity _______ and the equilibrium price _______.

Accepted Answer

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

Question 8

Every spring, motorists do more driving than during the winter months. Every spring, the price of petrol increases and the motorists buy more petrol. This experience suggests that the

Accepted Answer

A)  laws of supply and demand are both contradicted for petrol, though only during the spring driving season. 
B)  "law of demand" does not always hold for necessities like petrol. 
C)  "law of supply" does not always hold for necessities like petrol. 
D)  None of the above answers is correct. 
A)  laws of supply and demand are both contradicted for petrol, though only during the spring driving season. 
B)  "law of demand" does not always hold for necessities like petrol. 
C)  "law of supply" does not always hold for necessities like petrol. 
D)  None of the above answers is correct.

Question 9

Which of the following is consistent with the law of demand?

Accepted Answer

A)  An increase in the price of a cola causes a decrease in the quantity of cola demanded. 
B)  A decrease in the price of juice causes no change in the quantity of juice demanded. 
C)  A decrease in the price of a litre of milk causes a decrease in the quantity of milk demanded. 
D)  An increase in the price of a DVD causes a decrease in the demand for DVDs. 
A)  An increase in the price of a cola causes a decrease in the quantity of cola demanded. 
B)  A decrease in the price of juice causes no change in the quantity of juice demanded. 
C)  A decrease in the price of a litre of milk causes a decrease in the quantity of milk demanded. 
D)  An increase in the price of a DVD causes a decrease in the demand for DVDs.

Question 10

If the price of a chocolate bar is $1 and the price of a fast food meal is $5, then the

Accepted Answer

A)  money price of a chocolate bar is 1/5 of a fast food meal per chocolate bar. 
B)  money price of a fast food meal is 1/5 of a chocolate bar per fast food meal. 
C)  relative price of a fast food meal is 5 chocolate bars per fast food meal. 
D)  relative price of a chocolate bar is 5 fast food meals per chocolate bar. 
A)  money price of a chocolate bar is 1/5 of a fast food meal per chocolate bar. 
B)  money price of a fast food meal is 1/5 of a chocolate bar per fast food meal. 
C)  relative price of a fast food meal is 5 chocolate bars per fast food meal. 
D)  relative price of a chocolate bar is 5 fast food meals per chocolate bar.

Question 11

As the relative price of a good falls, the substitution effect implies that people buy

Accepted Answer

A)  more of that good and less of its substitutes. 
B)  less of that good and more of its substitutes. 
C)  more of that good and more of its substitutes. 
D)  less of that good and less of its substitutes. 
A)  more of that good and less of its substitutes. 
B)  less of that good and more of its substitutes. 
C)  more of that good and more of its substitutes. 
D)  less of that good and less of its substitutes.

Question 12

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

Accepted Answer

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

Question 13

Wants, as opposed to demands,

Accepted Answer

A)  are the goods the consumer plans to acquire. 
B)  are the unlimited desires of the consumer. 
C)  depend on the price. 
D)  are the goods the consumer has acquired. 
A)  are the goods the consumer plans to acquire. 
B)  are the unlimited desires of the consumer. 
C)  depend on the price. 
D)  are the goods the consumer has acquired.

Question 14

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a _______ in the market and the price will _______.

Accepted Answer

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

Question 15

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

Accepted Answer

A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d. 
A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d.

Question 16

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behaviour is an example of

Accepted Answer

A)  a decrease in the quantity demanded of cereal because of the substitution effect. 
B)  a decrease in the quantity supplied of cereal because of the substitution effect. 
C)  an increase in the quantity demanded of eggs because of the income effect. 
D)  an increase in the quantity supplied of eggs because of the income effect. 
A)  a decrease in the quantity demanded of cereal because of the substitution effect. 
B)  a decrease in the quantity supplied of cereal because of the substitution effect. 
C)  an increase in the quantity demanded of eggs because of the income effect. 
D)  an increase in the quantity supplied of eggs because of the income effect.

Question 17

The equilibrium price is the price at which the quantity

Accepted Answer

A)  supplied equals the quantity bought. 
B)  sold equals the quantity produced. 
C)  demanded equals the quantity bought. 
D)  demanded equals the quantity supplied. 
A)  supplied equals the quantity bought. 
B)  sold equals the quantity produced. 
C)  demanded equals the quantity bought. 
D)  demanded equals the quantity supplied.

Question 18

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

Accepted Answer

A)  60,000 and $50. 
B)  50,000 and $100. 
C)  40,000 and $20. 
D)  80,000 and $80. 
A)  60,000 and $50. 
B)  50,000 and $100. 
C)  40,000 and $20. 
D)  80,000 and $80.

Question 19

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Accepted Answer

A)  demand curve does not shift, and the supply curve shifts from S1 to S2. 
B)  demand curve does not shift, and the supply curve shifts from S2 to S1. 
C)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
D)  demand curve shifts from D1 to D2 and the supply curve does not shift. 
A)  demand curve does not shift, and the supply curve shifts from S1 to S2. 
B)  demand curve does not shift, and the supply curve shifts from S2 to S1. 
C)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
D)  demand curve shifts from D1 to D2 and the supply curve does not shift.

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

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

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

The quantity supplied of a good or service is the quantity that a producer _______ at a particular price during a given time period.

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

Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A

Which of the following shifts the supply curve of broccoli?

When supply decreases and demand does not change, the equilibrium quantity _ and the equilibrium price _.

Every spring, motorists do more driving than during the winter months. Every spring, the price of petrol increases and the motorists buy more petrol. This experience suggests that the

Which of the following is consistent with the law of demand?

If the price of a chocolate bar is $1 and the price of a fast food meal is $5, then the

As the relative price of a good falls, the substitution effect implies that people buy

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

Wants, as opposed to demands,

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a _ in the market and the price will _.

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behaviour is an example of

The equilibrium price is the price at which the quantity

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

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

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

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Public Choices and Public Goods

Economics of the Environment

Monopoly and Its Regulation

Economic Inequality

Consumer Choices and Constraints

Producer Choices and Constraints

Perfect Competition

Monopolistic Competition

Oligopoly Games and Strategy

Decisions in Factor Markets

Filters

Exam 3: Demand and Supply

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

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

The quantity supplied of a good or service is the quantity that a producer _______ at a particular price during a given time period.

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

Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A

Which of the following shifts the supply curve of broccoli?

When supply decreases and demand does not change, the equilibrium quantity _______ and the equilibrium price _______.

Every spring, motorists do more driving than during the winter months. Every spring, the price of petrol increases and the motorists buy more petrol. This experience suggests that the

Which of the following is consistent with the law of demand?

If the price of a chocolate bar is $1 and the price of a fast food meal is $5, then the

As the relative price of a good falls, the substitution effect implies that people buy

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

Wants, as opposed to demands,

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a _______ in the market and the price will _______.

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behaviour is an example of

The equilibrium price is the price at which the quantity

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

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

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

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Public Choices and Public Goods

Economics of the Environment

Monopoly and Its Regulation

Economic Inequality

Consumer Choices and Constraints

Producer Choices and Constraints

Perfect Competition

Monopolistic Competition

Oligopoly Games and Strategy

Decisions in Factor Markets

Filters

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

When supply decreases and demand does not change, the equilibrium quantity _ and the equilibrium price _.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a _ in the market and the price will _.