Question 1

Which of the following will decrease the amount of a good that is traded in the market?

Accepted Answer

A) price floors and price ceilings 
B) excise taxes,price floors,and subsidies 
C) excise taxes 
D) subsidies 
E) price floors,price ceilings,and excise taxes 
A) price floors and price ceilings 
B) excise taxes,price floors,and subsidies 
C) excise taxes 
D) subsidies 
E) price floors,price ceilings,and excise taxes

Question 2

When analyzing the housing market,the supply curve

Accepted Answer

A) will be upward sloping because the higher the price of a house the more that will exist 
B) will be horizontal to illustrate that the supply of housing is a stock variable 
C) will be downward sloping;that is what went wrong with the housing market 
D) will be vertical to illustrate that the supply of housing is a stock variable 
E) could be horizontal,vertical or upward sloping depending upon the housing market in question 
A) will be upward sloping because the higher the price of a house the more that will exist 
B) will be horizontal to illustrate that the supply of housing is a stock variable 
C) will be downward sloping;that is what went wrong with the housing market 
D) will be vertical to illustrate that the supply of housing is a stock variable 
E) could be horizontal,vertical or upward sloping depending upon the housing market in question

Question 3

-Figure 4-1 shows the supply and demand for socks.If a price floor of $10 per pair is imposed by the government,the number of pairs actually purchased will be

Accepted Answer

A) 2 pairs 
B) 8 pairs 
C) 5 pairs 
D) 1 pair 
E) 6 pairs 
A) 2 pairs 
B) 8 pairs 
C) 5 pairs 
D) 1 pair 
E) 6 pairs

Question 4

-Figure 4-1 shows the supply and demand for socks.If a price ceiling of $10 per pair is imposed by the government,the number of pairs actually purchased will be

Accepted Answer

A) 2 pairs 
B) 8 pairs 
C) 5 pairs 
D) 1 pair 
E) 6 pairs 
A) 2 pairs 
B) 8 pairs 
C) 5 pairs 
D) 1 pair 
E) 6 pairs

Question 5

-Figure 4-3 shows the supply and demand for socks.If a price floor of $6 is imposed,the quantity of socks actually purchased will be

Accepted Answer

A) 10 pairs 
B) 5 pairs 
C) 6 pairs 
D) 15 pairs 
E) 13 pairs 
A) 10 pairs 
B) 5 pairs 
C) 6 pairs 
D) 15 pairs 
E) 13 pairs

Question 6

-Figure 4-3 shows the supply and demand for socks.If a price floor of $10 is imposed,the quantity of socks actually purchased will be

Accepted Answer

A) 6 pairs 
B) 10 pairs 
C) 2 pairs 
D) 8 pairs 
E) 1 pair 
A) 6 pairs 
B) 10 pairs 
C) 2 pairs 
D) 8 pairs 
E) 1 pair

Question 7

In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price floor?

Accepted Answer

A) The amount that consumers pay for the good will be less than they previously paid 
B) The amount of the good that will be traded in the market will be greater than previously traded 
C) both price floors and excise taxes create excess demand 
D) The amount that consumers pay for the good will be greater than they previously paid 
E) Both price floors and excise taxes create excess supply 
A) The amount that consumers pay for the good will be less than they previously paid 
B) The amount of the good that will be traded in the market will be greater than previously traded 
C) both price floors and excise taxes create excess demand 
D) The amount that consumers pay for the good will be greater than they previously paid 
E) Both price floors and excise taxes create excess supply

Question 8

In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price ceiling?

Accepted Answer

A) The amount that consumers pay for the good will be less than they previously paid 
B) The amount of the good that will be traded in the market will be less than previously traded 
C) both price ceilings and excise taxes create excess demand 
D) The amount that consumers pay for the good will be greater than they previously paid 
E) both price floors and excise taxes create excess supply 
A) The amount that consumers pay for the good will be less than they previously paid 
B) The amount of the good that will be traded in the market will be less than previously traded 
C) both price ceilings and excise taxes create excess demand 
D) The amount that consumers pay for the good will be greater than they previously paid 
E) both price floors and excise taxes create excess supply

Question 9

-Figure 4-1 shows the supply and demand for socks.If a price ceiling of $4 per pair is imposed by the government,the number of pairs actually purchased will be

Accepted Answer

A) 4 pairs 
B) 8 pairs 
C) 5 pairs 
D) 1 pair 
E) 6 pairs 
A) 4 pairs 
B) 8 pairs 
C) 5 pairs 
D) 1 pair 
E) 6 pairs

Question 10

Whether a subsidy for a certain good is given to a demander or supplier is irrelevant because

Accepted Answer

A) in either case,the price that the demander has to pay will decrease;while the price the supplier receives will increase 
B) in either case,the price that the demander has to pay will increase;while the price the supplier receives will decrease 
C) either situation will create excess demand 
D) either situation will create excess supply 
E) none of these are correct 
A) in either case,the price that the demander has to pay will decrease;while the price the supplier receives will increase 
B) in either case,the price that the demander has to pay will increase;while the price the supplier receives will decrease 
C) either situation will create excess demand 
D) either situation will create excess supply 
E) none of these are correct

Question 11

A $10,000 federal subsidy per student in higher education would benefit

Accepted Answer

A) a student by exactly $10,000 
B) a university by exactly 
C) the student and the university in such a way that they would split the $10,000. 
D) the student and the university in such a way that they would each get $10,000. 
A) a student by exactly $10,000 
B) a university by exactly 
C) the student and the university in such a way that they would split the $10,000. 
D) the student and the university in such a way that they would each get $10,000.

Question 12

To say that the housing market is in equilibrium means that

Accepted Answer

A) there are no vacant houses 
B) the number of houses that are being constructed is equal to the housing stock 
C) the number of houses that are currently empty is equal to the number of households currently looking to buy a house 
D) the quantity demanded of houses is equal to the number of houses currently under construction 
E) the number of houses that people want to own is equal to the housing stock 
A) there are no vacant houses 
B) the number of houses that are being constructed is equal to the housing stock 
C) the number of houses that are currently empty is equal to the number of households currently looking to buy a house 
D) the quantity demanded of houses is equal to the number of houses currently under construction 
E) the number of houses that people want to own is equal to the housing stock

Question 13

Federal subsidies to higher education benefit

Accepted Answer

A) only the student 
B) only universities 
C) both universities and students 
D) neither universities nor students 
A) only the student 
B) only universities 
C) both universities and students 
D) neither universities nor students

Question 14

Suppose that a market is initially in equilibrium.Then the government imposes a price floor above the equilibrium price.Which of the following will occur in the absence of a black market?

Accepted Answer

A) The market will remain in equilibrium. 
B) The quantity sold will drop. 
C) The quantity demanded will increase. 
D) The quantity supplied will decrease. 
E) An excess demand will develop. 
A) The market will remain in equilibrium. 
B) The quantity sold will drop. 
C) The quantity demanded will increase. 
D) The quantity supplied will decrease. 
E) An excess demand will develop.

Question 15

-Figure 4-1 shows the supply and demand for socks.If a price floor of $10 per pair is imposed by the government

Accepted Answer

A) there will be a shortage of 14 pairs of socks 
B) there will be a shortage of 10 pairs of socks 
C) there will be neither a shortage nor a surplus of socks 
D) there will be a surplus of 6 pairs of socks 
E) there will be a surplus of 14 pairs of socks 
A) there will be a shortage of 14 pairs of socks 
B) there will be a shortage of 10 pairs of socks 
C) there will be neither a shortage nor a surplus of socks 
D) there will be a surplus of 6 pairs of socks 
E) there will be a surplus of 14 pairs of socks

Question 16

All of the following are examples of stock variables except one.Which one?

Accepted Answer

A) The amount of currency in circulation 
B) The amount of money earned each week 
C) The amount of money needed to construct a new building 
D) The amount of money in a person's savings account 
E) The amount of money at the Fed 
A) The amount of currency in circulation 
B) The amount of money earned each week 
C) The amount of money needed to construct a new building 
D) The amount of money in a person's savings account 
E) The amount of money at the Fed

Question 17

-In Figure 4-5,at a temporary price of $4,

Accepted Answer

A) all of the following occur 
B) a surplus occurs 
C) the supply curve will shift leftward 
D) the demand curve will shift rightward 
E) equilibrium will eventually occur at approximately $3.50 
A) all of the following occur 
B) a surplus occurs 
C) the supply curve will shift leftward 
D) the demand curve will shift rightward 
E) equilibrium will eventually occur at approximately $3.50

Question 18

-Figure 4-4 depicts a market in which the government has imposed a price floor of $5.00 per unit.To maintain the price floor,the government should

Accepted Answer

A) buy 200 units of the good 
B) sell 200 units of the good 
C) buy 700 units of the good 
D) sell 700 units of the good 
E) buy 500 units of the good 
A) buy 200 units of the good 
B) sell 200 units of the good 
C) buy 700 units of the good 
D) sell 700 units of the good 
E) buy 500 units of the good

Which of the following will decrease the amount of a good that is traded in the market?

When analyzing the housing market,the supply curve

-Figure 4-1 shows the supply and demand for socks.If a price floor of $10 per pair is imposed by the government,the number of pairs actually purchased will be

-Figure 4-1 shows the supply and demand for socks.If a price ceiling of $10 per pair is imposed by the government,the number of pairs actually purchased will be

-Figure 4-3 shows the supply and demand for socks.If a price floor of $6 is imposed,the quantity of socks actually purchased will be

-Figure 4-3 shows the supply and demand for socks.If a price floor of $10 is imposed,the quantity of socks actually purchased will be

In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price floor?

In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price ceiling?

-Figure 4-1 shows the supply and demand for socks.If a price ceiling of $4 per pair is imposed by the government,the number of pairs actually purchased will be

Whether a subsidy for a certain good is given to a demander or supplier is irrelevant because

A $10,000 federal subsidy per student in higher education would benefit

To say that the housing market is in equilibrium means that

Federal subsidies to higher education benefit

Suppose that a market is initially in equilibrium.Then the government imposes a price floor above the equilibrium price.Which of the following will occur in the absence of a black market?

-Figure 4-1 shows the supply and demand for socks.If a price floor of $10 per pair is imposed by the government

All of the following are examples of stock variables except one.Which one?

-In Figure 4-5,at a temporary price of $4,

-Figure 4-4 depicts a market in which the government has imposed a price floor of $5.00 per unit.To maintain the price floor,the government should

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 4: Working With Supply and Demand

Which of the following will decrease the amount of a good that is traded in the market?

When analyzing the housing market,the supply curve

-Figure 4-1 shows the supply and demand for socks.If a price floor of $10 per pair is imposed by the government,the number of pairs actually purchased will be

-Figure 4-1 shows the supply and demand for socks.If a price ceiling of $10 per pair is imposed by the government,the number of pairs actually purchased will be

-Figure 4-3 shows the supply and demand for socks.If a price floor of $6 is imposed,the quantity of socks actually purchased will be

-Figure 4-3 shows the supply and demand for socks.If a price floor of $10 is imposed,the quantity of socks actually purchased will be

In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price floor?

In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price ceiling?

-Figure 4-1 shows the supply and demand for socks.If a price ceiling of $4 per pair is imposed by the government,the number of pairs actually purchased will be

Whether a subsidy for a certain good is given to a demander or supplier is irrelevant because

A $10,000 federal subsidy per student in higher education would benefit

To say that the housing market is in equilibrium means that

Federal subsidies to higher education benefit

Suppose that a market is initially in equilibrium.Then the government imposes a price floor above the equilibrium price.Which of the following will occur in the absence of a black market?

-Figure 4-1 shows the supply and demand for socks.If a price floor of $10 per pair is imposed by the government

All of the following are examples of stock variables except one.Which one?

-In Figure 4-5,at a temporary price of $4,

-Figure 4-4 depicts a market in which the government has imposed a price floor of $5.00 per unit.To maintain the price floor,the government should

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters