Question 1

According to the text, the constantly rising standards of living can be attributed to the

Accepted Answer

A)  Unfettered market 
B)  "Sputnik moment" 
C)  War on Terrorism 
D)  Efficient American farmers 
E)  Growth in the IT sector 
A)  Unfettered market 
B)  "Sputnik moment" 
C)  War on Terrorism 
D)  Efficient American farmers 
E)  Growth in the IT sector

Question 2

Figure 3.2
  
-In Figure 3.2, assume that we have labor market demand and supply curves of D1 and S2, respectively. What is the equilibrium wage and employment level?

Accepted Answer

A)  $5; 30 workers 
B)  $10; 20 workers 
C)  $10; 40 workers 
D)  $15; 30 workers 
E)  $5; 20 workers 
A)  $5; 30 workers 
B)  $10; 20 workers 
C)  $10; 40 workers 
D)  $15; 30 workers 
E)  $5; 20 workers

Question 3

Looking at last year's sweaters piled up on sale racks, or waiting over an hour for a table at a restaurant is best described as a situation

Accepted Answer

A)  where equilibrium can never occur. 
B)  that always exists. 
C)  where the market is on its way to equilibrium. 
D)  where there is no market. 
E)  where there is no demand. 
A)  where equilibrium can never occur. 
B)  that always exists. 
C)  where the market is on its way to equilibrium. 
D)  where there is no market. 
E)  where there is no demand.

Question 4

The more restrictive the quota, the lower the impact on price in the market.

Accepted Answer

A) True 
 B)False

Question 5

Figure 3.4
  
-Assume that Figure 3.4 represents the markets for comparably skilled and educated economists and coal miners. If there are more coal miners, identify which market represents each profession. What is the economists' wage? What is the coal miners' wage?

Accepted Answer

A)  $12; $12 
B)  $18; $12 
C)  $12; $18 
D)  $18; $18 
E)  $15; $15 
A)  $12; $12 
B)  $18; $12 
C)  $12; $18 
D)  $18; $18 
E)  $15; $15

Question 6

A change in consumer tastes is typically followed by a change in the willingness of consumers to buy a good or service.

Accepted Answer

A) True 
 B)False

Question 7

As shown in the text, in the market for the Mazda Miata,

Accepted Answer

A)  consumers acted irrationally. 
B)  producers dictated market tastes through advertising. 
C)  Mazda misread the market for the Miata. 
D)  the government intervened in the automobile market. 
E)  changing demand caused the shortage in Los Angeles. 
A)  consumers acted irrationally. 
B)  producers dictated market tastes through advertising. 
C)  Mazda misread the market for the Miata. 
D)  the government intervened in the automobile market. 
E)  changing demand caused the shortage in Los Angeles.

Question 8

In a market system, ____ decide what will be produced.

Accepted Answer

A)  producers 
B)  consumers 
C)  politicians 
D)  government authorities 
E)  central planning agencies 
A)  producers 
B)  consumers 
C)  politicians 
D)  government authorities 
E)  central planning agencies

Question 9

An increase in demand for healthy foods causes producers to decrease supply in order to increase prices.

Accepted Answer

A) True 
 B)False

Question 10

A brand name is a form of monopoly.

Accepted Answer

A) True 
 B)False

Question 11

One of the guiding principles of economics is that people try to make themselves as well off as possible.

Accepted Answer

A) True 
 B)False

Question 12

An effective price ceiling on gasoline means that

Accepted Answer

A)  long lines occur at gas stations. 
B)  the lines at gas stations will disappear. 
C)  people will quit driving. 
D)  people will be able to drive more. 
E)  a shortage of cars will result. 
A)  long lines occur at gas stations. 
B)  the lines at gas stations will disappear. 
C)  people will quit driving. 
D)  people will be able to drive more. 
E)  a shortage of cars will result.

Question 13

Wage differentials exist because not all workers and not all jobs are alike.

Accepted Answer

A) True 
 B)False

Question 14

To be profitable in a free market, one must

Accepted Answer

A)  be able to creatively destruct its competition 
B)  develop a brand name 
C)  earn an A in economics 
D)  obtain government approval 
E)  limit competition 
A)  be able to creatively destruct its competition 
B)  develop a brand name 
C)  earn an A in economics 
D)  obtain government approval 
E)  limit competition

Question 15

As the wage rate increases, the quantity supplied of labor in a market will

Accepted Answer

A)  increase. 
B)  decrease. 
C)  first increase and then decrease. 
D)  first decrease and then increase. 
E)  remain constant. 
A)  increase. 
B)  decrease. 
C)  first increase and then decrease. 
D)  first decrease and then increase. 
E)  remain constant.

Question 16

-In Table 3.3, if the price is $1, a ____ of ____ units will occur.

Accepted Answer

A)  shortage; 15 
B)  shortage; 12 
C)  surplus; 15 
D)  surplus; 12 
E)  shortage; 45 
A)  shortage; 15 
B)  shortage; 12 
C)  surplus; 15 
D)  surplus; 12 
E)  shortage; 45

Question 17

A price floor is a situation where the

Accepted Answer

A)  price is not allowed to rise above a certain level. 
B)  price is not allowed to fall below a certain level. 
C)  price is not allowed to change. 
D)  quantity is not allowed to fall below a certain level. 
E)  quantity is not allowed to rise above a certain level. 
A)  price is not allowed to rise above a certain level. 
B)  price is not allowed to fall below a certain level. 
C)  price is not allowed to change. 
D)  quantity is not allowed to fall below a certain level. 
E)  quantity is not allowed to rise above a certain level.

According to the text, the constantly rising standards of living can be attributed to the

Figure 3.2 -In Figure 3.2, assume that we have labor market demand and supply curves of D₁ and S₂, respectively. What is the equilibrium wage and employment level?

Looking at last year's sweaters piled up on sale racks, or waiting over an hour for a table at a restaurant is best described as a situation

The more restrictive the quota, the lower the impact on price in the market.

Figure 3.4 -Assume that Figure 3.4 represents the markets for comparably skilled and educated economists and coal miners. If there are more coal miners, identify which market represents each profession. What is the economists' wage? What is the coal miners' wage?

A change in consumer tastes is typically followed by a change in the willingness of consumers to buy a good or service.

As shown in the text, in the market for the Mazda Miata,

In a market system, ____ decide what will be produced.

An increase in demand for healthy foods causes producers to decrease supply in order to increase prices.

A brand name is a form of monopoly.

One of the guiding principles of economics is that people try to make themselves as well off as possible.

An effective price ceiling on gasoline means that

Wage differentials exist because not all workers and not all jobs are alike.

To be profitable in a free market, one must

As the wage rate increases, the quantity supplied of labor in a market will

-In Table 3.3, if the price is $1, a of units will occur.

A price floor is a situation where the

Economics and the World Around You

Markets and the Market Process

The Firm and the Consumer

Costs and Profit Maximization

Competition

Business, Society, and the Government

Government Intervention Versus Free Markets

An Overview of the National and International Economies

Macroeconomic Measures

Unemployment, Inflation, and Business Cycles

Macroeconomic Equilibrium: Aggregate Demand and Supply

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy, Business Cycles, and Growth

Issues in International Trade and Finance

Globalization

Filters

Exam 3: Applications of Demand and Supply

According to the text, the constantly rising standards of living can be attributed to the

Figure 3.2 -In Figure 3.2, assume that we have labor market demand and supply curves of D1 and S2, respectively. What is the equilibrium wage and employment level?

Looking at last year's sweaters piled up on sale racks, or waiting over an hour for a table at a restaurant is best described as a situation

The more restrictive the quota, the lower the impact on price in the market.

Figure 3.4 -Assume that Figure 3.4 represents the markets for comparably skilled and educated economists and coal miners. If there are more coal miners, identify which market represents each profession. What is the economists' wage? What is the coal miners' wage?

A change in consumer tastes is typically followed by a change in the willingness of consumers to buy a good or service.

As shown in the text, in the market for the Mazda Miata,

In a market system, ____ decide what will be produced.

An increase in demand for healthy foods causes producers to decrease supply in order to increase prices.

A brand name is a form of monopoly.

One of the guiding principles of economics is that people try to make themselves as well off as possible.

An effective price ceiling on gasoline means that

Wage differentials exist because not all workers and not all jobs are alike.

To be profitable in a free market, one must

As the wage rate increases, the quantity supplied of labor in a market will

-In Table 3.3, if the price is $1, a ____ of ____ units will occur.

A price floor is a situation where the

Economics and the World Around You

Markets and the Market Process

The Firm and the Consumer

Costs and Profit Maximization

Competition

Business, Society, and the Government

Government Intervention Versus Free Markets

An Overview of the National and International Economies

Macroeconomic Measures

Unemployment, Inflation, and Business Cycles

Macroeconomic Equilibrium: Aggregate Demand and Supply

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy, Business Cycles, and Growth

Issues in International Trade and Finance

Globalization

Filters

Figure 3.2 -In Figure 3.2, assume that we have labor market demand and supply curves of D₁ and S₂, respectively. What is the equilibrium wage and employment level?

-In Table 3.3, if the price is $1, a of units will occur.