Question 1

At equilibrium, quantity demanded equals quantity supplied.

Accepted Answer

A) True 
 B)False

Question 2

The wage rate.is the price of a unit of labor.What happens to the supply of labor if the wage rate increases?

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 3

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 these responses 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 these responses are correct.

Question 4

Enacting a law controlling rents near a major university will increase the affordable housing for college students.

Accepted Answer

A) True 
 B)False

Question 5

When price is above the equilibrium level, competitive price cutting will continue as long as quantity supplied exceeds quantity demanded.

Accepted Answer

A) True 
 B)False

Question 6

The development of new technology reduces the cost of producing calculators.In addition, assume that consumers have cut back on their scheduled purchases in anticipation of further cost-saving developments.As a result, we can expect

Accepted Answer

A) a decrease in price but no predictable change in output. 
B) a decrease in output but no predictable change in price. 
C) an increase in output but no predictable change in price. 
D) a predictable decrease in both output and price. 
A) a decrease in price but no predictable change in output. 
B) a decrease in output but no predictable change in price. 
C) an increase in output but no predictable change in price. 
D) a predictable decrease in both output and price.

Question 7

The change in the amount of a good purchased after a shift of the supply curve depends on

Accepted Answer

A) the size of the shift. 
B) the slope of the demand curve. 
C) whether the market is subject to price controls. 
D) All of these responses are correct. 
A) the size of the shift. 
B) the slope of the demand curve. 
C) whether the market is subject to price controls. 
D) All of these responses are correct.

Question 8

Figure 4-4  
-All other factors held constant, if the price of game consoles rise, the demand for gaming titles will

Accepted Answer

A) shift to the left, because they are normally used together. 
B) remain constant. 
C) shift to the right, because they are normally used together. 
D) shift to the right, because they are substitutes. 
A) shift to the left, because they are normally used together. 
B) remain constant. 
C) shift to the right, because they are normally used together. 
D) shift to the right, because they are substitutes.

Question 9

A shift in the demand curve will occur when

Accepted Answer

A) suppliers place more goods on the market. 
B) the price of a good rises. 
C) consumers want to buy more or less than before at a given price. 
D) the price of the good falls. 
A) suppliers place more goods on the market. 
B) the price of a good rises. 
C) consumers want to buy more or less than before at a given price. 
D) the price of the good falls.

Question 10

Rent controls are most often designed to protect the investment made by apartment building owners.

Accepted Answer

A) True 
 B)False

Question 11

Shortages normally accompany an effective price floor.

Accepted Answer

A) True 
 B)False

Question 12

​   ​
-Refer to Table 4-1.At $4, what is the shortage?

Accepted Answer

A) 0 
B) 1,500 
C) 3,000 
D) 4,500 
E) 6,000 
A) 0 
B) 1,500 
C) 3,000 
D) 4,500 
E) 6,000

Question 13

During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

Accepted Answer

A) a large increase in the availability of those items, ending shortages. 
B) a severe shortage of those essential commodities. 
C) an increase in the price of those items, thus alleviating shortages. 
D) new efforts to increase production of those commodities. 
E) a minor inconvenience as persons adjusted to the new law. 
A) a large increase in the availability of those items, ending shortages. 
B) a severe shortage of those essential commodities. 
C) an increase in the price of those items, thus alleviating shortages. 
D) new efforts to increase production of those commodities. 
E) a minor inconvenience as persons adjusted to the new law.

Question 14

If the U.S.government starts to sell off its stockpile of cheese,

Accepted Answer

A) consumers will be less willing to purchase cheese. 
B) the equilibrium quantity demanded will rise. 
C) farmers will hoard the cheese they produce. 
D) the quantity of cheese that spoils before sale will rise. 
A) consumers will be less willing to purchase cheese. 
B) the equilibrium quantity demanded will rise. 
C) farmers will hoard the cheese they produce. 
D) the quantity of cheese that spoils before sale will rise.

Question 15

How will a decrease in price tend to affect supply?

Accepted Answer

A) Supply will increase. 
B) Supply will decrease. 
C) Supply will not change. 
D) Uncertain. 
A) Supply will increase. 
B) Supply will decrease. 
C) Supply will not change. 
D) Uncertain.

Question 16

Changes in the size of an industry may cause supply to shift.

Accepted Answer

A) True 
 B)False

Question 17

Change in the price of a good causes the demand schedule for that good to shift.

Accepted Answer

A) True 
 B)False

Question 18

Sugar price supports primarily benefit consumers.

Accepted Answer

A) True 
 B)False

Question 19

The wage rate is the price of a unit of labor.What happens to the quantity of labor supplied if the wage rate increases?

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 20

The demand curve is constructed with a

Accepted Answer

A) positive slope, because as more is purchased of a good, the cost of producing it rises. 
B) positive slope, because as buyers have more money, the more of a particular good will be purchased. 
C) negative slope, because when people purchase more of a good, the cost to produce that good falls. 
D) negative slope, because with everything else equal, buyers will purchase more of a good when its price is lower. 
E) positive slope, because as the price rises, people want to sell more of the good. 
A) positive slope, because as more is purchased of a good, the cost of producing it rises. 
B) positive slope, because as buyers have more money, the more of a particular good will be purchased. 
C) negative slope, because when people purchase more of a good, the cost to produce that good falls. 
D) negative slope, because with everything else equal, buyers will purchase more of a good when its price is lower. 
E) positive slope, because as the price rises, people want to sell more of the good.

Exam 4: Supply and Demand: an Initial Look

At equilibrium, quantity demanded equals quantity supplied.

The wage rate.is the price of a unit of labor.What happens to the supply of labor if the wage rate increases?

A supply schedule shows

Enacting a law controlling rents near a major university will increase the affordable housing for college students.

When price is above the equilibrium level, competitive price cutting will continue as long as quantity supplied exceeds quantity demanded.

The development of new technology reduces the cost of producing calculators.In addition, assume that consumers have cut back on their scheduled purchases in anticipation of further cost-saving developments.As a result, we can expect

The change in the amount of a good purchased after a shift of the supply curve depends on

Figure 4-4 -All other factors held constant, if the price of game consoles rise, the demand for gaming titles will

A shift in the demand curve will occur when

Rent controls are most often designed to protect the investment made by apartment building owners.

Shortages normally accompany an effective price floor.

​ ​ -Refer to Table 4-1.At $4, what is the shortage?

During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

If the U.S.government starts to sell off its stockpile of cheese,

How will a decrease in price tend to affect supply?

Changes in the size of an industry may cause supply to shift.

Change in the price of a good causes the demand schedule for that good to shift.

Sugar price supports primarily benefit consumers.

The wage rate is the price of a unit of labor.What happens to the quantity of labor supplied if the wage rate increases?

The demand curve is constructed with a

What Is Economics

The Economony: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

The Economics of the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

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

Contemporary Issues in the Useconomy

Filters

-Refer to Table 4-1.At $4, what is the shortage?