Question 1

Table 3.3
  
-What is the equilibrium quantity in Table 3.3?

Accepted Answer

A)  2500 
B)  3000 
C)  3500 
D)  4000 
A)  2500 
B)  3000 
C)  3500 
D)  4000

Question 2

If the price of a product increases, we would expect

Accepted Answer

A)  quantity supplied to increase. 
B)  the supply curve to shift left. 
C)  the supply curve to shift right. 
D)  an increase in quantity demanded. 
A)  quantity supplied to increase. 
B)  the supply curve to shift left. 
C)  the supply curve to shift right. 
D)  an increase in quantity demanded.

Question 3

A _________ in demand occurs when the demand curve shifts left.

Accepted Answer

The answer of A _________ in demand occurs when the...

Question 4

An _________ in demand occurs when the demand curve shifts right.

Accepted Answer

The answer of An _________ in demand occurs when the...

Question 5

The real income effect helps to explain why the supply curve slopes up.

Accepted Answer

A) True 
 B)False

Question 6

As you move from point to point down to the right along a demand curve, the price of the good _________ and the quantity demanded _________.

Accepted Answer

decreases,

Question 7

The equilibrium price of a good is a price at which quantity supplied and quantity demanded are equal.

Accepted Answer

A) True 
 B)False

Question 8

All of the following will affect the position of the demand curve EXCEPT

Accepted Answer

A)  income. 
B)  tastes and preference. 
C)  prices of substitute goods. 
D)  prices of resources used to produce the product. 
A)  income. 
B)  tastes and preference. 
C)  prices of substitute goods. 
D)  prices of resources used to produce the product.

Question 9

Changes in consumer preferences will shift the demand curves of the goods affected.

Accepted Answer

A) True 
 B)False

Question 10

How can you determine the amount of a shortage that exists at a particular price?

Accepted Answer

A)  By finding out how many firms want to produce at that price 
B)  By finding out how many consumers want to buy at that price 
C)  By knowing what the equilibrium price is 
D)  By measuring the difference between quantity demanded and quantity supplied at that price. 
A)  By finding out how many firms want to produce at that price 
B)  By finding out how many consumers want to buy at that price 
C)  By knowing what the equilibrium price is 
D)  By measuring the difference between quantity demanded and quantity supplied at that price.

Question 11

Which price will eliminate any shortages or surpluses from the market for a particular good?

Accepted Answer

The equili

Question 12

Which of the following will cause an increase in the supply of new homes?

Accepted Answer

A)  Lower wages for construction workers 
B)  Lower interest rates for home buyers 
C)  Higher land prices 
D)  An influx of new home buyers in the area 
A)  Lower wages for construction workers 
B)  Lower interest rates for home buyers 
C)  Higher land prices 
D)  An influx of new home buyers in the area

Question 13

If two goods are substitutes, then

Accepted Answer

A)  an increase in the price of one causes a decrease in demand for the other. 
B)  an increase in the price of one causes a decrease in supply of the other. 
C)  a decrease in the price of one causes a decrease in demand for the other. 
D)  a decrease in the supply of one increases demand for the other. 
A)  an increase in the price of one causes a decrease in demand for the other. 
B)  an increase in the price of one causes a decrease in supply of the other. 
C)  a decrease in the price of one causes a decrease in demand for the other. 
D)  a decrease in the supply of one increases demand for the other.

Question 14

The market demand curve is the _________ _________ of the demand curves of all the individuals in the market.

Accepted Answer

horizontal

Question 15

Scarcity can be eliminated by increasing the price of a good.

Accepted Answer

A) True 
 B)False

Question 16

What will happen when the price of a good is held above its equilibrium price?

Accepted Answer

A)  A surplus results. 
B)  A shortage results. 
C)  Demand for the good decreases. 
D)  Supply of the good increases. 
A)  A surplus results. 
B)  A shortage results. 
C)  Demand for the good decreases. 
D)  Supply of the good increases.

Question 17

Which one of the following would cause a rightward shift of the supply curve?

Accepted Answer

A)  A new tax is imposed on production of the good. 
B)  Some firms that have been producing the good go out of business. 
C)  There is an increase in demand for the good. 
D)  Firms producing the good find ways of lowering their production costs. 
A)  A new tax is imposed on production of the good. 
B)  Some firms that have been producing the good go out of business. 
C)  There is an increase in demand for the good. 
D)  Firms producing the good find ways of lowering their production costs.

Question 18

What condition characterizes a shortage?

Accepted Answer

A)  Quantity supplied exceeds quantity demanded. 
B)  Quantity demanded exceeds quantity supplied. 
C)  Producers are unhappy with the price. 
D)  Consumers are unhappy with the price. 
A)  Quantity supplied exceeds quantity demanded. 
B)  Quantity demanded exceeds quantity supplied. 
C)  Producers are unhappy with the price. 
D)  Consumers are unhappy with the price.

Question 19

In deciding how much of a good to purchase, a consumer will consider the market price of the good.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is FALSE?

Accepted Answer

A)  If there is an increase in the demand for a product, consumers want to buy more of the product at each and every possible price. 
B)  A decrease in demand shifts the demand curve leftward toward the origin, while a decrease in quantity demanded involves a movement upward along a particular demand curve. 
C)  If the price of a good rises, the quantity demanded of the good decreases and the demand curve shifts toward the origin. 
D)  A change in the demand for a product is caused by factors other than changes in the product's price. 
A)  If there is an increase in the demand for a product, consumers want to buy more of the product at each and every possible price. 
B)  A decrease in demand shifts the demand curve leftward toward the origin, while a decrease in quantity demanded involves a movement upward along a particular demand curve. 
C)  If the price of a good rises, the quantity demanded of the good decreases and the demand curve shifts toward the origin. 
D)  A change in the demand for a product is caused by factors other than changes in the product's price.

Table 3.3 -What is the equilibrium quantity in Table 3.3?

If the price of a product increases, we would expect

A _________ in demand occurs when the demand curve shifts left.

An _________ in demand occurs when the demand curve shifts right.

The real income effect helps to explain why the supply curve slopes up.

As you move from point to point down to the right along a demand curve, the price of the good _ and the quantity demanded _.

The equilibrium price of a good is a price at which quantity supplied and quantity demanded are equal.

All of the following will affect the position of the demand curve EXCEPT

Changes in consumer preferences will shift the demand curves of the goods affected.

How can you determine the amount of a shortage that exists at a particular price?

Which price will eliminate any shortages or surpluses from the market for a particular good?

Which of the following will cause an increase in the supply of new homes?

If two goods are substitutes, then

The market demand curve is the _ _ of the demand curves of all the individuals in the market.

Scarcity can be eliminated by increasing the price of a good.

What will happen when the price of a good is held above its equilibrium price?

Which one of the following would cause a rightward shift of the supply curve?

What condition characterizes a shortage?

In deciding how much of a good to purchase, a consumer will consider the market price of the good.

Which of the following statements is FALSE?

Economics and the World of Scarcity

The United States Within the World Economy

Consumer Decision Making and Consumer Reaction to Price Changes

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

In Between the Extremes: Imperfect Competition

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Trading With Other Nations

Financing World Trade

Filters

Exam 3: Demand and Supply

Table 3.3 -What is the equilibrium quantity in Table 3.3?

If the price of a product increases, we would expect

A _________ in demand occurs when the demand curve shifts left.

An _________ in demand occurs when the demand curve shifts right.

The real income effect helps to explain why the supply curve slopes up.

As you move from point to point down to the right along a demand curve, the price of the good _________ and the quantity demanded _________.

The equilibrium price of a good is a price at which quantity supplied and quantity demanded are equal.

All of the following will affect the position of the demand curve EXCEPT

Changes in consumer preferences will shift the demand curves of the goods affected.

How can you determine the amount of a shortage that exists at a particular price?

Which price will eliminate any shortages or surpluses from the market for a particular good?

Which of the following will cause an increase in the supply of new homes?

If two goods are substitutes, then

The market demand curve is the _________ _________ of the demand curves of all the individuals in the market.

Scarcity can be eliminated by increasing the price of a good.

What will happen when the price of a good is held above its equilibrium price?

Which one of the following would cause a rightward shift of the supply curve?

What condition characterizes a shortage?

In deciding how much of a good to purchase, a consumer will consider the market price of the good.

Which of the following statements is FALSE?

Economics and the World of Scarcity

The United States Within the World Economy

Consumer Decision Making and Consumer Reaction to Price Changes

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

In Between the Extremes: Imperfect Competition

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Trading With Other Nations

Financing World Trade

Filters

As you move from point to point down to the right along a demand curve, the price of the good _ and the quantity demanded _.

The market demand curve is the _ _ of the demand curves of all the individuals in the market.