Question 1

George Washington's troops at Valley Forge were almost destroyed by price controls.

Accepted Answer

A) True 
 B)False

Question 2

Both demand and supply curves usually have positive slopes.

Accepted Answer

A) True 
 B)False

Question 3

Lines,ration coupons,and black markets are symptoms of a

Accepted Answer

A)  price floor. 
B)  price ceiling. 
C)  free market. 
D)  barter economy. 
A)  price floor. 
B)  price ceiling. 
C)  free market. 
D)  barter economy.

Question 4

The most basic investigative tool of economics is the

Accepted Answer

A)  concept of scarcity. 
B)  mechanism of supply and demand. 
C)  coordination and trade syndrome. 
D)  inflation-unemployment trade-off. 
E)  regulation of business. 
A)  concept of scarcity. 
B)  mechanism of supply and demand. 
C)  coordination and trade syndrome. 
D)  inflation-unemployment trade-off. 
E)  regulation of business.

Question 5

Price floors set a legal minimum price on a product or commodity.

Accepted Answer

A) True 
 B)False

Question 6

A supply schedule can be plotted on a graph to yield a supply curve.

Accepted Answer

A) True 
 B)False

Question 7

"The market has failed to provide enough rental housing in New York City.This demonstrates another failure of free markets-they may lead to shortages of necessities." Explain why you agree or disagree.

Accepted Answer

An economist would disagree.The free mar

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Exhibit 4-1
The following are the equations for the supply and demand curves in the market for weezils:
   
where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-Refer to Exhibit 4-1.If the government imposes a price floor of $4 a weezil,how many weezils will be sold?

Accepted Answer

A)  5 
B)  10 
C)  12 
D)  14 
A)  5 
B)  10 
C)  12 
D)  14

Question 10

Sugar price supports primarily benefit consumers.

Accepted Answer

A) True 
 B)False

Question 11

A price above equilibrium always yields a surplus.

Accepted Answer

A) True 
 B)False

Question 12

At an equilibrium price for gasoline,

Accepted Answer

A)  everyone with the desire and the income to buy gasoline at that price can do so. 
B)  surpluses are inevitable. 
C)  inherent market forces will eventually change the quantities demanded and supplied. 
D)  suppliers must be using the most efficient oil-drilling equipment available. 
A)  everyone with the desire and the income to buy gasoline at that price can do so. 
B)  surpluses are inevitable. 
C)  inherent market forces will eventually change the quantities demanded and supplied. 
D)  suppliers must be using the most efficient oil-drilling equipment available.

Question 13

As price increases,additional suppliers are willing to produce a commodity.

Accepted Answer

A) True 
 B)False

Question 14

Normally,to the extent that a governmental control mechanism succeeds in affecting price,it can be expected to lead to a corresponding

Accepted Answer

A)  reduction in the volume of sales only if the price is forced down. 
B)  reduction in the volume of sales if the price is forced down and an increase in the volume of sales if the price is forced up. 
C)  decrease in the volume of sales whether the price is forced up or down. 
D)  increase in the volume of sales whether the price is forced up or down. 
A)  reduction in the volume of sales only if the price is forced down. 
B)  reduction in the volume of sales if the price is forced down and an increase in the volume of sales if the price is forced up. 
C)  decrease in the volume of sales whether the price is forced up or down. 
D)  increase in the volume of sales whether the price is forced up or down.

Question 15

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 16

A black market develops only when quantity demanded exceeds quantity supplied.

Accepted Answer

A) True 
 B)False

Question 17

Price supports increase the supply of affordable milk for U.S.families.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

List some of the problems that may arise when prices are controlled.

Accepted Answer

Apart from the standard set of issues as

Question 20

Suppose the numbers in parentheses represent two points on a line: (59 billion quarts; $4)and (78 billion quarts; $6).The line is most likely a

Accepted Answer

A)  production possibilities frontier for milk. 
B)  supply curve for milk. 
C)  demand curve for milk. 
D)  ray through the origin. 
E)  time series line. 
A)  production possibilities frontier for milk. 
B)  supply curve for milk. 
C)  demand curve for milk. 
D)  ray through the origin. 
E)  time series line.

George Washington's troops at Valley Forge were almost destroyed by price controls.

Both demand and supply curves usually have positive slopes.

Lines,ration coupons,and black markets are symptoms of a

The most basic investigative tool of economics is the

Price floors set a legal minimum price on a product or commodity.

A supply schedule can be plotted on a graph to yield a supply curve.

"The market has failed to provide enough rental housing in New York City.This demonstrates another failure of free markets-they may lead to shortages of necessities." Explain why you agree or disagree.

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

Sugar price supports primarily benefit consumers.

A price above equilibrium always yields a surplus.

At an equilibrium price for gasoline,

As price increases,additional suppliers are willing to produce a commodity.

Normally,to the extent that a governmental control mechanism succeeds in affecting price,it can be expected to lead to a corresponding

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

A black market develops only when quantity demanded exceeds quantity supplied.

Price supports increase the supply of affordable milk for U.S.families.

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

List some of the problems that may arise when prices are controlled.

Suppose the numbers in parentheses represent two points on a line: (59 billion quarts; $4)and (78 billion quarts; $6).The line is most likely 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

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Exam 4: Supply and Demand: An Initial Look

George Washington's troops at Valley Forge were almost destroyed by price controls.

Both demand and supply curves usually have positive slopes.

Lines,ration coupons,and black markets are symptoms of a

The most basic investigative tool of economics is the

Price floors set a legal minimum price on a product or commodity.

A supply schedule can be plotted on a graph to yield a supply curve.

"The market has failed to provide enough rental housing in New York City.This demonstrates another failure of free markets-they may lead to shortages of necessities." Explain why you agree or disagree.

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

Sugar price supports primarily benefit consumers.

A price above equilibrium always yields a surplus.

At an equilibrium price for gasoline,

As price increases,additional suppliers are willing to produce a commodity.

Normally,to the extent that a governmental control mechanism succeeds in affecting price,it can be expected to lead to a corresponding

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

A black market develops only when quantity demanded exceeds quantity supplied.

Price supports increase the supply of affordable milk for U.S.families.

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

List some of the problems that may arise when prices are controlled.

Suppose the numbers in parentheses represent two points on a line: (59 billion quarts; $4)and (78 billion quarts; $6).The line is most likely 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

Filters