Question 1

A market is defined as

Accepted Answer

A)  a physical place where people buy only goods. 
B)  a physical place where people buy both goods and services. 
C)  a store where people buy physical goods. 
D)  any arrangement that brings buyers and sellers together. 
E)  a place where one good is bartered for another. 
A)  a physical place where people buy only goods. 
B)  a physical place where people buy both goods and services. 
C)  a store where people buy physical goods. 
D)  any arrangement that brings buyers and sellers together. 
E)  a place where one good is bartered for another.

Question 2

Which of the following brings only an increase in the quantity demanded of a good?

Accepted Answer

A)  a decrease in income, assuming the good is an inferior good 
B)  a rise in the price of a substitute good 
C)  a fall in the price of the good itself 
D)  an expectation that the good's price will rise in the future 
E)  a decrease in income, assuming the good is a normal good 
A)  a decrease in income, assuming the good is an inferior good 
B)  a rise in the price of a substitute good 
C)  a fall in the price of the good itself 
D)  an expectation that the good's price will rise in the future 
E)  a decrease in income, assuming the good is a normal good

Question 3

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

Accepted Answer

A)  a rise in the price of a sweater 
B)  a rise in the wage rate paid to the workers who make sweaters 
C)  a rise in the expected future price of a sweater 
D)  an increase in the number of sellers of sweaters 
E)  an increase in income if sweaters are a normal good 
A)  a rise in the price of a sweater 
B)  a rise in the wage rate paid to the workers who make sweaters 
C)  a rise in the expected future price of a sweater 
D)  an increase in the number of sellers of sweaters 
E)  an increase in income if sweaters are a normal good

Question 4

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve.

Question 5

Which of the following statements is true about a competitive market? A competitive market

Accepted Answer

A)  must have a physical location. 
B)  includes markets for goods and services but not for inputs. 
C)  has so many buyers and sellers that no one can influence the price. 
D)  has one seller competing to sell his or her product. 
E)  has a handful of sellers but always has many buyers. 
A)  must have a physical location. 
B)  includes markets for goods and services but not for inputs. 
C)  has so many buyers and sellers that no one can influence the price. 
D)  has one seller competing to sell his or her product. 
E)  has a handful of sellers but always has many buyers.

Question 6

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

Accepted Answer

A)  a decrease in the supply of kayaks. 
B)  a decrease in the quantity of kayaks supplied. 
C)  an increase in the supply of kayaks. 
D)  an increase in the quantity of kayaks supplied. 
E)  an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied. 
A)  a decrease in the supply of kayaks. 
B)  a decrease in the quantity of kayaks supplied. 
C)  an increase in the supply of kayaks. 
D)  an increase in the quantity of kayaks supplied. 
E)  an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.

Question 7

The market supply curve is the ________ of the ________.

Accepted Answer

A)  horizontal sum; individual supply curves 
B)  vertical sum; individual supply curves 
C)  horizontal sum; individual supply curves minus the market demand 
D)  vertical sum; individual supply curves minus the market demand 
E)  vertical average; of the individual supply curves 
A)  horizontal sum; individual supply curves 
B)  vertical sum; individual supply curves 
C)  horizontal sum; individual supply curves minus the market demand 
D)  vertical sum; individual supply curves minus the market demand 
E)  vertical average; of the individual supply curves

Question 8

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________,and the equilibrium quantity ________.

Accepted Answer

A)  rises; increases 
B)  perhaps changes but we can't say if it rises, falls, or stays the same; does not change 
C)  falls; increases 
D)  perhaps changes but we can't say if it rises, falls, or stays the same; increases 
E)  falls; perhaps changes but we can't say if it increases, decreases, or stays the same 
A)  rises; increases 
B)  perhaps changes but we can't say if it rises, falls, or stays the same; does not change 
C)  falls; increases 
D)  perhaps changes but we can't say if it rises, falls, or stays the same; increases 
E)  falls; perhaps changes but we can't say if it increases, decreases, or stays the same

Question 9

The number of people looking to buy ceiling fan buyers increases,so there is an increase in the

Accepted Answer

A)  quantity of ceiling fans demanded and a surplus of ceiling fans. 
B)  demand for ceiling fans and a rise in the price of a ceiling fan. 
C)  demand for ceiling fans and a surplus of ceiling fans. 
D)  supply of ceiling fans and no change in the price of a ceiling fan. 
E)  demand for ceiling fans and in the supply of ceiling fans. 
A)  quantity of ceiling fans demanded and a surplus of ceiling fans. 
B)  demand for ceiling fans and a rise in the price of a ceiling fan. 
C)  demand for ceiling fans and a surplus of ceiling fans. 
D)  supply of ceiling fans and no change in the price of a ceiling fan. 
E)  demand for ceiling fans and in the supply of ceiling fans.

Question 10

When the demand for blue jeans increases,what happens next?

Accepted Answer

If the demand for blue jeans increases,t

Question 11

If there is a surplus of tacos,then the

Accepted Answer

A)  quantity of tacos demanded equals the quantity of tacos supplied. 
B)  quantity of tacos demanded is greater than the quantity of tacos supplied. 
C)  quantity of tacos demanded is less than the quantity of tacos supplied. 
D)  market is at equilibrium. 
E)  supply curve of tacos will shift leftward to eliminate the surplus. 
A)  quantity of tacos demanded equals the quantity of tacos supplied. 
B)  quantity of tacos demanded is greater than the quantity of tacos supplied. 
C)  quantity of tacos demanded is less than the quantity of tacos supplied. 
D)  market is at equilibrium. 
E)  supply curve of tacos will shift leftward to eliminate the surplus.

Question 12

The impact of an increase in the price of a particular good is illustrated as a

Accepted Answer

A)  leftward shift in its demand curve. 
B)  rightward shift in its demand curve. 
C)  movement upward and to the left along its demand curve. 
D)  movement downward and to the right along its demand curve. 
E)  rightward shift in its demand curve and a movement upward and to the left along its demand curve. 
A)  leftward shift in its demand curve. 
B)  rightward shift in its demand curve. 
C)  movement upward and to the left along its demand curve. 
D)  movement downward and to the right along its demand curve. 
E)  rightward shift in its demand curve and a movement upward and to the left along its demand curve.

Question 13

-Over the next few years more and more people prefer to ride on scooters.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above answers is correct because the change in tastes will affect the supply curve not the demand curve. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above answers is correct because the change in tastes will affect the supply curve not the demand curve.

Question 14

-According to the figure above,which of the following events will increase the quantity demanded of bottled water?

Accepted Answer

A)  a fall in the price of soda 
B)  a rise in the price of a fitness club membership 
C)  an increase in the number of buyers of bottled water 
D)  a fall in the price of bottled water 
E)  a rise in the price of bottled water 
A)  a fall in the price of soda 
B)  a rise in the price of a fitness club membership 
C)  an increase in the number of buyers of bottled water 
D)  a fall in the price of bottled water 
E)  a rise in the price of bottled water

Question 15

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Accepted Answer

A)  the demand for personal computers decreased. 
B)  the initial price was too high and nobody bought personal computers. 
C)  there were technological advances in the production of personal computers. 
D)  people's incomes increased and personal computers are an inferior good. 
E)  None of the above answers is correct. 
A)  the demand for personal computers decreased. 
B)  the initial price was too high and nobody bought personal computers. 
C)  there were technological advances in the production of personal computers. 
D)  people's incomes increased and personal computers are an inferior good. 
E)  None of the above answers is correct.

Question 16

Why does an increase in supply lead to lower prices?

Accepted Answer

When the supply of a good,such as comput

Question 17

If the price is below the equilibrium price,

Accepted Answer

A)  there is a surplus. 
B)  there is a shortage. 
C)  the supply curve will shift rightward. 
D)  the supply curve will shift leftward. 
E)  the demand curve will shift leftward. 
A)  there is a surplus. 
B)  there is a shortage. 
C)  the supply curve will shift rightward. 
D)  the supply curve will shift leftward. 
E)  the demand curve will shift leftward.

Question 18

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips ________ so that the price of a computer chip ________.

Accepted Answer

A)  increases; rises 
B)  increases; falls 
C)  decreases; rises 
D)  decreases; falls 
E)  decreases; does not change 
A)  increases; rises 
B)  increases; falls 
C)  decreases; rises 
D)  decreases; falls 
E)  decreases; does not change

Question 19

Which of the following increases the supply of a good and shifts its supply curve rightward?

Accepted Answer

A)  a smaller number of producers 
B)  a higher wage paid to workers in the industry 
C)  a technological advance in how the good is produced 
D)  an increase in the cost of the resources used to produce the good 
E)  an increase in the price of the good 
A)  a smaller number of producers 
B)  a higher wage paid to workers in the industry 
C)  a technological advance in how the good is produced 
D)  an increase in the cost of the resources used to produce the good 
E)  an increase in the price of the good

Question 20

If both producers and consumers believe that a product's price will rise in the future,then at the present,demand ________ and supply ________.

Accepted Answer

A)  increases; increases 
B)  decreases; decreases 
C)  increases; decreases 
D)  decreases; increases 
E)  does not change; does not change 
A)  increases; increases 
B)  decreases; decreases 
C)  increases; decreases 
D)  decreases; increases 
E)  does not change; does not change

A market is defined as

Which of the following brings only an increase in the quantity demanded of a good?

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Which of the following statements is true about a competitive market? A competitive market

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

The market supply curve is the of the .

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ,and the equilibrium quantity .

The number of people looking to buy ceiling fan buyers increases,so there is an increase in the

When the demand for blue jeans increases,what happens next?

If there is a surplus of tacos,then the

The impact of an increase in the price of a particular good is illustrated as a

-Over the next few years more and more people prefer to ride on scooters.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-According to the figure above,which of the following events will increase the quantity demanded of bottled water?

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Why does an increase in supply lead to lower prices?

If the price is below the equilibrium price,

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips so that the price of a computer chip .

Which of the following increases the supply of a good and shifts its supply curve rightward?

If both producers and consumers believe that a product's price will rise in the future,then at the present,demand and supply .

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 4: Demand and Supply

A market is defined as

Which of the following brings only an increase in the quantity demanded of a good?

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Which of the following statements is true about a competitive market? A competitive market

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

The market supply curve is the ________ of the ________.

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________,and the equilibrium quantity ________.

The number of people looking to buy ceiling fan buyers increases,so there is an increase in the

When the demand for blue jeans increases,what happens next?

If there is a surplus of tacos,then the

The impact of an increase in the price of a particular good is illustrated as a

-Over the next few years more and more people prefer to ride on scooters.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-According to the figure above,which of the following events will increase the quantity demanded of bottled water?

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Why does an increase in supply lead to lower prices?

If the price is below the equilibrium price,

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips ________ so that the price of a computer chip ________.

Which of the following increases the supply of a good and shifts its supply curve rightward?

If both producers and consumers believe that a product's price will rise in the future,then at the present,demand ________ and supply ________.

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

The market supply curve is the of the .

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ,and the equilibrium quantity .

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips so that the price of a computer chip .

If both producers and consumers believe that a product's price will rise in the future,then at the present,demand and supply .