Question 1

Figure 4-4  
 
In Figure 4-4, an increase in population will change demand from

Accepted Answer

A)  D  1  to D  2  . 
B)  D  2  to D  1  . 
C)  D  3  to D  2  . 
D)  D  3  to D  1  . 
A)  D  1  to D  2  . 
B)  D  2  to D  1  . 
C)  D  3  to D  2  . 
D)  D  3  to D  1  .

Question 2

A decrease in price of a certain good most likely will lead to

Accepted Answer

A)  an increase in quantity demanded and an increase in the demand for that good. 
B)  an increase in quantity demanded but no change in the demand for that good. 
C)  an increase in demand but no change in quantity demanded. 
D)  no change in demand and no change in quantity demanded. 
A)  an increase in quantity demanded and an increase in the demand for that good. 
B)  an increase in quantity demanded but no change in the demand for that good. 
C)  an increase in demand but no change in quantity demanded. 
D)  no change in demand and no change in quantity demanded.

Question 3

The demand by sterile couples for babies to adopt has grown rapidly, while the supply has dwindled because of improved contraception, liberal abortion laws, and an increase in the probability that unwed mothers will keep their children. It violates the law to sell human beings at any age, but for every 20 legal adoptions, there seemingly is one baby sale at a price up to $50,000. The generic term economists apply to the market produced by this type of shortage is

Accepted Answer

A)  "black market." 
B)  "white slave market." 
C)  "the adoption market." 
D)  "baby market." 
A)  "black market." 
B)  "white slave market." 
C)  "the adoption market." 
D)  "baby market."

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Falling oil prices meant that consumers in Libya could afford fewer imported goods. The Libyan government imposed controls to limit imports of cigarettes. At one point, the market price of a carton of cigarettes rose to $70. Which graph in Figure 4-22 best depicts this situation?

Accepted Answer

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

If both the supply and demand curves shift to the right, then we can conclude that there will be

Accepted Answer

A)  an increase in the equilibrium quantity sold and an increase in the equilibrium price. 
B)  a decrease in the equilibrium quantity sold and a decrease in the equilibrium price. 
C)  an increase in the equilibrium quantity sold and a decrease in the equilibrium price. 
D)  an increase in the equilibrium quantity sold and an uncertain effect on the equilibrium price. 
A)  an increase in the equilibrium quantity sold and an increase in the equilibrium price. 
B)  a decrease in the equilibrium quantity sold and a decrease in the equilibrium price. 
C)  an increase in the equilibrium quantity sold and a decrease in the equilibrium price. 
D)  an increase in the equilibrium quantity sold and an uncertain effect on the equilibrium price.

Question 8

A decrease in supply 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 9

Scalpers (people selling tickets at a price above the stated price, P*) were spotted at this year's Super Bowl game.  This suggest that

Accepted Answer

A)  P* is less than the equilibrium price. 
B)  P* is greater than the equilibrium price. 
C)  P* is the equilibrium price. 
D)  it's not possible to determine anything about the equilibrium price with this information. 
A)  P* is less than the equilibrium price. 
B)  P* is greater than the equilibrium price. 
C)  P* is the equilibrium price. 
D)  it's not possible to determine anything about the equilibrium price with this information.

Question 10

The U.S. government restricts the production of peanuts by limiting production licenses. By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted. This program has the same effect as a

Accepted Answer

A)  price ceiling. 
B)  price floor. 
C)  opportunity cost. 
D)  shortage. 
E)  efficiency move. 
A)  price ceiling. 
B)  price floor. 
C)  opportunity cost. 
D)  shortage. 
E)  efficiency move.

Question 11

As more firms are attracted to an industry, the supply curve can be expected to shift to the right.

Accepted Answer

A) True 
 B)False

Question 12

A market will experience a ____ when the price is above equilibrium and a ____ when the price is below equilibrium.

Accepted Answer

A)  shortage, shortage 
B)  surplus, surplus 
C)  shortage, surplus 
D)  surplus, shortage 
A)  shortage, shortage 
B)  surplus, surplus 
C)  shortage, surplus 
D)  surplus, shortage

Question 13

Professional baseball teams in the United States use only wooden bats. If aluminum bats were permitted, the likely result would be a

Accepted Answer

A)  shift in the supply curve for aluminum bats. 
B)  shift in the supply curve for wooden bats. 
C)  change in the quantity supplied of aluminum bats. 
D)  persistent shortage of aluminum bats. 
A)  shift in the supply curve for aluminum bats. 
B)  shift in the supply curve for wooden bats. 
C)  change in the quantity supplied of aluminum bats. 
D)  persistent shortage of aluminum bats.

Question 14

Since rent controls have been in effect in New York City, apartments have been more plentiful.

Accepted Answer

A) True 
 B)False

Question 15

Rent controls are designed to protect consumers from high rents.

Accepted Answer

A) True 
 B)False

Question 16

The demand for a textbook written by Schwarz and Mobley is Q = 20,000 − 50P; supply is Q = 2,000 + 100P. Students complain about the high price of textbooks, so a price ceiling is imposed, which unfortunately leads to a shortage of texts. Below what price will shortages occur?

Accepted Answer

A shortage will occur if the price ceili

Question 17

Assume that Figure 4-4 shows demand for skirt steak, which is used to make fajitas. A decrease in the price of tortillas will change demand from

Accepted Answer

A)  D  1  to D  2  . 
B)  D  2  to D  1  
C)  D  3  to D  2  . 
D)  D  3  to D  1  . 
A)  D  1  to D  2  . 
B)  D  2  to D  1  
C)  D  3  to D  2  . 
D)  D  3  to D  1  .

Question 18

The more firms that are attracted to an industry, the greater will be the quantity of product supplied at any given price.

Accepted Answer

A) True 
 B)False

Question 19

"Demand" is a series of quantities demanded, one for each person in the market.

Accepted Answer

A) True 
 B)False

Question 20

The government of Economica announces that it will purchase its farmers' surplus of milk. From this announcement, you can infer that Economica has a

Accepted Answer

A)  free market for milk. 
B)  price ceiling above the equilibrium price for milk. 
C)  price floor above the equilibrium price for milk. 
D)  price floor below the equilibrium price for milk. 
A)  free market for milk. 
B)  price ceiling above the equilibrium price for milk. 
C)  price floor above the equilibrium price for milk. 
D)  price floor below the equilibrium price for milk.

Figure 4-4 In Figure 4-4, an increase in population will change demand from

A decrease in price of a certain good most likely will lead to

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

Falling oil prices meant that consumers in Libya could afford fewer imported goods. The Libyan government imposed controls to limit imports of cigarettes. At one point, the market price of a carton of cigarettes rose to $70. Which graph in Figure 4-22 best depicts this situation?

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

If both the supply and demand curves shift to the right, then we can conclude that there will be

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

Scalpers (people selling tickets at a price above the stated price, P*) were spotted at this year's Super Bowl game. This suggest that

The U.S. government restricts the production of peanuts by limiting production licenses. By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted. This program has the same effect as a

As more firms are attracted to an industry, the supply curve can be expected to shift to the right.

A market will experience a when the price is above equilibrium and a when the price is below equilibrium.

Professional baseball teams in the United States use only wooden bats. If aluminum bats were permitted, the likely result would be a

Since rent controls have been in effect in New York City, apartments have been more plentiful.

Rent controls are designed to protect consumers from high rents.

The demand for a textbook written by Schwarz and Mobley is Q = 20,000 − 50P; supply is Q = 2,000 + 100P. Students complain about the high price of textbooks, so a price ceiling is imposed, which unfortunately leads to a shortage of texts. Below what price will shortages occur?

Assume that Figure 4-4 shows demand for skirt steak, which is used to make fajitas. A decrease in the price of tortillas will change demand from

The more firms that are attracted to an industry, the greater will be the quantity of product supplied at any given price.

"Demand" is a series of quantities demanded, one for each person in the market.

The government of Economica announces that it will purchase its farmers' surplus of milk. From this announcement, you can infer that Economica has a

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

Contemporary Issues in the Us Economy

Filters

Exam 4: Supply and Demand: an Initial Look

Figure 4-4 In Figure 4-4, an increase in population will change demand from

A decrease in price of a certain good most likely will lead to

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

Falling oil prices meant that consumers in Libya could afford fewer imported goods. The Libyan government imposed controls to limit imports of cigarettes. At one point, the market price of a carton of cigarettes rose to $70. Which graph in Figure 4-22 best depicts this situation?

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

If both the supply and demand curves shift to the right, then we can conclude that there will be

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

Scalpers (people selling tickets at a price above the stated price, P*) were spotted at this year's Super Bowl game. This suggest that

The U.S. government restricts the production of peanuts by limiting production licenses. By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted. This program has the same effect as a

As more firms are attracted to an industry, the supply curve can be expected to shift to the right.

A market will experience a ____ when the price is above equilibrium and a ____ when the price is below equilibrium.

Professional baseball teams in the United States use only wooden bats. If aluminum bats were permitted, the likely result would be a

Since rent controls have been in effect in New York City, apartments have been more plentiful.

Rent controls are designed to protect consumers from high rents.

The demand for a textbook written by Schwarz and Mobley is Q = 20,000 − 50P; supply is Q = 2,000 + 100P. Students complain about the high price of textbooks, so a price ceiling is imposed, which unfortunately leads to a shortage of texts. Below what price will shortages occur?

Assume that Figure 4-4 shows demand for skirt steak, which is used to make fajitas. A decrease in the price of tortillas will change demand from

The more firms that are attracted to an industry, the greater will be the quantity of product supplied at any given price.

"Demand" is a series of quantities demanded, one for each person in the market.

The government of Economica announces that it will purchase its farmers' surplus of milk. From this announcement, you can infer that Economica has a

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

Contemporary Issues in the Us Economy

Filters

A market will experience a when the price is above equilibrium and a when the price is below equilibrium.