Question 1

Demand and quantity demanded are the same thing.

Accepted Answer

A) True 
 B)False

Question 2

A decrease in demand will have what effect on equilibrium price and quantity?

Accepted Answer

A) Price will increase; quantity will decrease. 
B) Price will decrease; quantity will increase. 
C) Both price and quantity will increase. 
D) Both price and quantity will decrease. 
A) Price will increase; quantity will decrease. 
B) Price will decrease; quantity will increase. 
C) Both price and quantity will increase. 
D) Both price and quantity will decrease.

Question 3

If new firms enter the computer manufacturing industry, then, holding all other things constant,

Accepted Answer

A) each "old" manufacturer must sell fewer computers than before. 
B) some "old" manufacturers must exit the industry. 
C) the equilibrium price of computers will rise. 
D) the equilibrium quantity demanded of computers will rise. 
A) each "old" manufacturer must sell fewer computers than before. 
B) some "old" manufacturers must exit the industry. 
C) the equilibrium price of computers will rise. 
D) the equilibrium quantity demanded of computers will rise.

Question 4

​   ​
-Refer to Table 4-1.What is the equilibrium price in the example above?

Accepted Answer

A) $9 
B) $8 
C) $7 
D) $6 
E) $5 
A) $9 
B) $8 
C) $7 
D) $6 
E) $5

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 demand schedule is a table showing how the ____ of some product during a specified period of time changes as ____ changes, holding all other determinants of quantity demanded constant.

Accepted Answer

A) demand; the price of its complement 
B) demand; the quantity supplied 
C) quantity demanded; the price of its substitute 
D) quantity demanded; the price of that product 
A) demand; the price of its complement 
B) demand; the quantity supplied 
C) quantity demanded; the price of its substitute 
D) quantity demanded; the price of that product

Question 7

When price is above the equilibrium level, suppliers offer more than demanders wish to buy.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Both demand and supply curves usually have positive slopes.

Accepted Answer

A) True 
 B)False

Question 10

If price of a good rises, what happens to quantity demanded for that good?

Accepted Answer

A) It increases. 
B) It decreases. 
C) It does not change. 
D) The answer depends upon the supply of the good. 
A) It increases. 
B) It decreases. 
C) It does not change. 
D) The answer depends upon the supply of the good.

Question 11

While demand shifts have an effect on equilibrium price and quantity, supply shifts have no such effect.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would result in a decrease in demand for BMW automobiles?

Accepted Answer

A) An increase in the price of BMW automobiles 
B) A decrease in the price of BMW automobiles 
C) A decrease in the price of Mercedes Benz automobiles 
D) An increase in the price of Mercedes Benz automobiles 
A) An increase in the price of BMW automobiles 
B) A decrease in the price of BMW automobiles 
C) A decrease in the price of Mercedes Benz automobiles 
D) An increase in the price of Mercedes Benz automobiles

Question 13

A change in the price of important inputs will change the quantity supplied but will not shift the supply curve.

Accepted Answer

A) True 
 B)False

Question 14

The price of one good produced by a multiproduct industry rises.The effect on a second good produced by that industry will be

Accepted Answer

A) a shift left in the supply curve for the second good. 
B) no change in the supply curve for the second good. 
C) a shift right of the supply curve for the second good. 
D) a shift right of the demand curve for the second good. 
A) a shift left in the supply curve for the second good. 
B) no change in the supply curve for the second good. 
C) a shift right of the supply curve for the second good. 
D) a shift right of the demand curve for the second good.

Question 15

Price supports are a form of price ceiling for agricultural products that lowers prices for consumers and enhances market efficiency.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following factors are held constant for a given demand curve for a good?

Accepted Answer

A) The price of the good 
B) The technology used to produce the good 
C) The supply of the good 
D) Consumer incomes and the prices of other goods 
A) The price of the good 
B) The technology used to produce the good 
C) The supply of the good 
D) Consumer incomes and the prices of other goods

Question 17

The following price-quantity coordinates for gold used by U.S.dentists were observed: P = $875/ounce, Q = 342,000; P = $200/ounce, Q = 706,000.These points most likely lie along the

Accepted Answer

A) supply curve for gold for dental use. 
B) demand curve for dental use. 
C) equilibrium curve for dental use. 
D) production possibilities curve for dental use. 
A) supply curve for gold for dental use. 
B) demand curve for dental use. 
C) equilibrium curve for dental use. 
D) production possibilities curve for dental use.

Question 18

Price ceilings set a legal maximum price on a product or commodity.

Accepted Answer

A) True 
 B)False

Question 19

Assuming that the demand curve for cookies is downward sloping, if the price of cookies falls from $1.50 to $1.25 per dozen,

Accepted Answer

A) then the demand for cookies will fall. 
B) then the demand for cookies will rise. 
C) then a larger quantity of cookies will be demanded. 
D) then a smaller quantity of cookies will be demanded. 
A) then the demand for cookies will fall. 
B) then the demand for cookies will rise. 
C) then a larger quantity of cookies will be demanded. 
D) then a smaller quantity of cookies will be demanded.

Question 20

Suppose that in a free market, 2,000 patients purchase an operation to receive an artificial heart at a price of $500,000 per operation.Without the heart, each patient will die.The government decides this price is too high and imposes a maximum price of $200,000.Everything else equal,

Accepted Answer

A) more patients will now die. 
B) fewer patients will now die. 
C) more patients will now die only if the demand curve is vertical. 
D) more patients will now die only if the demand curve is horizontal. 
A) more patients will now die. 
B) fewer patients will now die. 
C) more patients will now die only if the demand curve is vertical. 
D) more patients will now die only if the demand curve is horizontal.

Exam 4: Supply and Demand: an Initial Look

Demand and quantity demanded are the same thing.

A decrease in demand will have what effect on equilibrium price and quantity?

If new firms enter the computer manufacturing industry, then, holding all other things constant,

​ ​ -Refer to Table 4-1.What is the equilibrium price in the example above?

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

A demand schedule is a table showing how the ____ of some product during a specified period of time changes as ____ changes, holding all other determinants of quantity demanded constant.

When price is above the equilibrium level, suppliers offer more than demanders wish to buy.

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

Both demand and supply curves usually have positive slopes.

If price of a good rises, what happens to quantity demanded for that good?

While demand shifts have an effect on equilibrium price and quantity, supply shifts have no such effect.

Which of the following would result in a decrease in demand for BMW automobiles?

A change in the price of important inputs will change the quantity supplied but will not shift the supply curve.

The price of one good produced by a multiproduct industry rises.The effect on a second good produced by that industry will be

Price supports are a form of price ceiling for agricultural products that lowers prices for consumers and enhances market efficiency.

Which of the following factors are held constant for a given demand curve for a good?

The following price-quantity coordinates for gold used by U.S.dentists were observed: P = $875/ounce, Q = 342,000; P = $200/ounce, Q = 706,000.These points most likely lie along the

Price ceilings set a legal maximum price on a product or commodity.

Assuming that the demand curve for cookies is downward sloping, if the price of cookies falls from $1.50 to $1.25 per dozen,

Suppose that in a free market, 2,000 patients purchase an operation to receive an artificial heart at a price of $500,000 per operation.Without the heart, each patient will die.The government decides this price is too high and imposes a maximum price of $200,000.Everything else equal,

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.What is the equilibrium price in the example above?

A demand schedule is a table showing how the of some product during a specified period of time changes as changes, holding all other determinants of quantity demanded constant.