Question 1

Which of the following would not cause the demand curve for college football tickets to shift?

Accepted Answer

A)  an increase in the price of professional football tickets 
B)  a decrease in the price of college basketball tickets 
C)  an increase in the price of college football tickets 
D)  a drop in student incomes 
E)  an increase in student preferences for college football tickets 
A)  an increase in the price of professional football tickets 
B)  a decrease in the price of college basketball tickets 
C)  an increase in the price of college football tickets 
D)  a drop in student incomes 
E)  an increase in student preferences for college football tickets C

Question 2

Betsy graduates from college,where she earned $3,000 a year working part-time,and takes a job as a third grade teacher,where she now earns $30,000 per year.About the same time she received her first paycheck,her bicycle was stolen.With her old income she would have purchased a new bike but with her new income she purchased a new car.Therefore,

Accepted Answer

A)  bicycles are a normal good for Betsy 
B)  automobiles are an inferior good for Betsy 
C)  automobiles are a normal good for Betsy 
D)  Betsy's supply curve for automobiles is upward-sloping 
E)  bicycles and automobiles are complementary goods for Betsy 
A)  bicycles are a normal good for Betsy 
B)  automobiles are an inferior good for Betsy 
C)  automobiles are a normal good for Betsy 
D)  Betsy's supply curve for automobiles is upward-sloping 
E)  bicycles and automobiles are complementary goods for Betsy C

Question 3

If the price of ground beef falls,the demand for hamburger buns will

Accepted Answer

A)  increase because the two goods are substitutes 
B)  decrease because the two goods are complements 
C)  decrease because the two goods are substitutes 
D)  increase because the two goods are complements 
E)  not change unless the price of hamburger buns also changes 
A)  increase because the two goods are substitutes 
B)  decrease because the two goods are complements 
C)  decrease because the two goods are substitutes 
D)  increase because the two goods are complements 
E)  not change unless the price of hamburger buns also changes D

Question 4

Market equilibrium occurs at that price for which

Accepted Answer

A)  quantity supplied equals quantity demanded 
B)  cost equals the wages to labor 
C)  the surplus quantity drives increased demand 
D)  quantity supplied exceeds quantity demanded 
E)  quantity supplied is less than quantity demanded 
A)  quantity supplied equals quantity demanded 
B)  cost equals the wages to labor 
C)  the surplus quantity drives increased demand 
D)  quantity supplied exceeds quantity demanded 
E)  quantity supplied is less than quantity demanded

Question 5

The demand curve for a particular good indicates the various quantities

Accepted Answer

A)  demanded at various prices,other things equal 
B)  demanded at different income levels,other things equal 
C)  actually purchased at various prices,other things equal 
D)  actually purchased at different income levels,other things equal 
E)  demanded at various prices and income levels,other things equal 
A)  demanded at various prices,other things equal 
B)  demanded at different income levels,other things equal 
C)  actually purchased at various prices,other things equal 
D)  actually purchased at different income levels,other things equal 
E)  demanded at various prices and income levels,other things equal

Question 6

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

Accepted Answer

A)  quantity demanded 
B)  demand 
C)  supply 
D)  quantity supplied 
E)  opportunity cost 
A)  quantity demanded 
B)  demand 
C)  supply 
D)  quantity supplied 
E)  opportunity cost

Question 7

The equilibrium price and quantity of a good,once attained,will

Accepted Answer

A)  change only if either supply or demand changes 
B)  change only if both supply and demand change 
C)  change only if supply changes 
D)  change only if demand changes 
E)  never change 
A)  change only if either supply or demand changes 
B)  change only if both supply and demand change 
C)  change only if supply changes 
D)  change only if demand changes 
E)  never change

Question 8

Consider the competitive market for oil.Which of the following would result from the discovery of new oil fields that can be profitably accessed at the current price?

Accepted Answer

A)  both b and d 
B)  an increase in the demand for oil 
C)  an excess demand for oil as oil companies shift resources to developing the new fields 
D)  an excess supply of oil if the price of oil fails to drop sufficiently 
E)  an increase in the expected future price of oil 
A)  both b and d 
B)  an increase in the demand for oil 
C)  an excess demand for oil as oil companies shift resources to developing the new fields 
D)  an excess supply of oil if the price of oil fails to drop sufficiently 
E)  an increase in the expected future price of oil

Question 9

Which of the following is assumed constant along the demand curve for gasoline?

Accepted Answer

A)  the price of gasoline and the prices of related goods 
B)  the price of gasoline,buyers' incomes,and tastes 
C)  all variables affecting demand other than the price of gasoline 
D)  all variables affecting demand other than the supply of gasoline 
E)  buyers' incomes and tastes,but not the prices of related goods 
A)  the price of gasoline and the prices of related goods 
B)  the price of gasoline,buyers' incomes,and tastes 
C)  all variables affecting demand other than the price of gasoline 
D)  all variables affecting demand other than the supply of gasoline 
E)  buyers' incomes and tastes,but not the prices of related goods

Question 10

When there is a change in demand,

Accepted Answer

A)  there is a rightward movement along the demand curve 
B)  there is a leftward movement along the demand curve 
C)  there is a shift of the supply curve 
D)  changes in price lead to different changes in quantity demanded 
E)  there is a shift of the demand curve 
A)  there is a rightward movement along the demand curve 
B)  there is a leftward movement along the demand curve 
C)  there is a shift of the supply curve 
D)  changes in price lead to different changes in quantity demanded 
E)  there is a shift of the demand curve

Question 11

At the market equilibrium

Accepted Answer

A)  quantity exceeds price 
B)  excess demand equals excess supply (and both are zero) 
C)  price and quantity are equal 
D)  each seller produces at full capacity 
E)  everyone who is represented along the demand curve buys the good 
A)  quantity exceeds price 
B)  excess demand equals excess supply (and both are zero) 
C)  price and quantity are equal 
D)  each seller produces at full capacity 
E)  everyone who is represented along the demand curve buys the good

Question 12

The rapid rise in oil prices during 2007-2008 can be explained by noting the fact that

Accepted Answer

A)  the supply of oil increased more rapidly than the demand for oil increased 
B)  the demand for oil increased more rapidly than the supply for oil increased 
C)  the demand for oil decreased at the same time that the supply of oil increased 
D)  the quantity demanded of oil increased more rapidly than the quantity supplied of oil increased 
E)  the quantity supplied of oil increased more rapidly than the quantity demanded of oil increased 
A)  the supply of oil increased more rapidly than the demand for oil increased 
B)  the demand for oil increased more rapidly than the supply for oil increased 
C)  the demand for oil decreased at the same time that the supply of oil increased 
D)  the quantity demanded of oil increased more rapidly than the quantity supplied of oil increased 
E)  the quantity supplied of oil increased more rapidly than the quantity demanded of oil increased

Question 13

Economists view shifts of supply and demand as

Accepted Answer

A)  unusual events that call for government intervention 
B)  unusual events resulting from the failure of the price to fall 
C)  normal and frequent events 
D)  normal and frequents events that do not affect equilibrium prices 
E)  normal and frequent events that result from government intervention 
A)  unusual events that call for government intervention 
B)  unusual events resulting from the failure of the price to fall 
C)  normal and frequent events 
D)  normal and frequents events that do not affect equilibrium prices 
E)  normal and frequent events that result from government intervention

Question 14

Income is to wealth as

Accepted Answer

A)  hours are to minutes 
B)  inches are to feet 
C)  periods are to sentences 
D)  demand is to quantity demanded 
E)  learning is to knowledge 
A)  hours are to minutes 
B)  inches are to feet 
C)  periods are to sentences 
D)  demand is to quantity demanded 
E)  learning is to knowledge

Question 15

The demand curve for dolls shows the quantity of dolls demanded

Accepted Answer

A)  by suppliers of those dolls 
B)  by U.S.consumers 
C)  at the equilibrium price for dolls 
D)  at each level of income 
E)  at each possible price of dolls 
A)  by suppliers of those dolls 
B)  by U.S.consumers 
C)  at the equilibrium price for dolls 
D)  at each level of income 
E)  at each possible price of dolls

Question 16

If sellers decide to sell more calculators by mass producing them and lowering the price so consumers will buy more,the supply and demand curves will both shift to the right.

Accepted Answer

A) True 
 B)False

Question 17

-Which of the following statements about the market represented by Figure 3-9 is correct?

Accepted Answer

A)  At a price of $50.00,there is an excess supply of 11 million units. 
B)  At a price of $50.00,there is an excess demand of 11 million units. 
C)  At a price of $50.00,there is an excess supply of 15 million units. 
D)  At a price of $50.00,there is an excess demand of 15 million units. 
E)  At a price of $50.00,there is an excess demand of 25 million units. 
A)  At a price of $50.00,there is an excess supply of 11 million units. 
B)  At a price of $50.00,there is an excess demand of 11 million units. 
C)  At a price of $50.00,there is an excess supply of 15 million units. 
D)  At a price of $50.00,there is an excess demand of 15 million units. 
E)  At a price of $50.00,there is an excess demand of 25 million units.

Question 18

An increase in the price of a particular good,with all other variables constant,causes

Accepted Answer

A)  a movement along a given supply curve to a lower quantity supplied 
B)  a shift to a different supply curve with lower quantities supplied 
C)  a movement along a given supply curve to a higher quantity supplied 
D)  a shift to a different supply curve with higher quantities supplied 
E)  no movement along a given supply curve unless demand also changes 
A)  a movement along a given supply curve to a lower quantity supplied 
B)  a shift to a different supply curve with lower quantities supplied 
C)  a movement along a given supply curve to a higher quantity supplied 
D)  a shift to a different supply curve with higher quantities supplied 
E)  no movement along a given supply curve unless demand also changes

Question 19

Assuming the most typical shapes of the demand and supply curves,which of the following could lead to an increase in the current equilibrium price for personal computers?

Accepted Answer

A)  a decrease is the price of computer chips 
B)  a decrease in buyers' incomes,assuming that computers are a normal good 
C)  a technological improvement that reduces manufacturing costs 
D)  expectations of a higher future price 
E)  an increase in the price of computer software 
A)  a decrease is the price of computer chips 
B)  a decrease in buyers' incomes,assuming that computers are a normal good 
C)  a technological improvement that reduces manufacturing costs 
D)  expectations of a higher future price 
E)  an increase in the price of computer software

Question 20

"As income rises,the demand for most goods also rises." This statement

Accepted Answer

A)  is inconsistent with the law of demand 
B)  suggests that many goods are inferior goods 
C)  shows that the quantity demanded is inversely related to price 
D)  suggests that most goods are normal goods 
E)  does not apply to goods traded in competitive markets 
A)  is inconsistent with the law of demand 
B)  suggests that many goods are inferior goods 
C)  shows that the quantity demanded is inversely related to price 
D)  suggests that most goods are normal goods 
E)  does not apply to goods traded in competitive markets

Which of the following would not cause the demand curve for college football tickets to shift?

If the price of ground beef falls,the demand for hamburger buns will

Market equilibrium occurs at that price for which

The demand curve for a particular good indicates the various quantities

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

The equilibrium price and quantity of a good,once attained,will

Consider the competitive market for oil.Which of the following would result from the discovery of new oil fields that can be profitably accessed at the current price?

Which of the following is assumed constant along the demand curve for gasoline?

When there is a change in demand,

At the market equilibrium

The rapid rise in oil prices during 2007-2008 can be explained by noting the fact that

Economists view shifts of supply and demand as

Income is to wealth as

The demand curve for dolls shows the quantity of dolls demanded

If sellers decide to sell more calculators by mass producing them and lowering the price so consumers will buy more,the supply and demand curves will both shift to the right.

-Which of the following statements about the market represented by Figure 3-9 is correct?

An increase in the price of a particular good,with all other variables constant,causes

Assuming the most typical shapes of the demand and supply curves,which of the following could lead to an increase in the current equilibrium price for personal computers?

"As income rises,the demand for most goods also rises." This statement

What is Economics?

Scarcity, Choice, and Economic Systems

Working With Supply and Demand

What Macroeconomics Tries to Explain

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters

Exam 3: Supply and Demand

Which of the following would not cause the demand curve for college football tickets to shift?

If the price of ground beef falls,the demand for hamburger buns will

Market equilibrium occurs at that price for which

The demand curve for a particular good indicates the various quantities

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

The equilibrium price and quantity of a good,once attained,will

Consider the competitive market for oil.Which of the following would result from the discovery of new oil fields that can be profitably accessed at the current price?

Which of the following is assumed constant along the demand curve for gasoline?

When there is a change in demand,

At the market equilibrium

The rapid rise in oil prices during 2007-2008 can be explained by noting the fact that

Economists view shifts of supply and demand as

Income is to wealth as

The demand curve for dolls shows the quantity of dolls demanded

If sellers decide to sell more calculators by mass producing them and lowering the price so consumers will buy more,the supply and demand curves will both shift to the right.

-Which of the following statements about the market represented by Figure 3-9 is correct?

An increase in the price of a particular good,with all other variables constant,causes

Assuming the most typical shapes of the demand and supply curves,which of the following could lead to an increase in the current equilibrium price for personal computers?

"As income rises,the demand for most goods also rises." This statement

What is Economics?

Scarcity, Choice, and Economic Systems

Working With Supply and Demand

What Macroeconomics Tries to Explain

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters