Question 1

Which one of the following will shift the supply curve of good X leftward?

Accepted Answer

A) a decrease in the wages of workers employed to produce X 
B) an increase in the cost of machinery used to produce X 
C) a technological improvement in the production of X 
D) a situation where quantity demanded exceeds quantity supplied 
E) a decrease in the cost of capital used to produce X 
A) a decrease in the wages of workers employed to produce X 
B) an increase in the cost of machinery used to produce X 
C) a technological improvement in the production of X 
D) a situation where quantity demanded exceeds quantity supplied 
E) a decrease in the cost of capital used to produce X B

Question 2

Figure 3.5.1
Use the figure below to answer the following questions.
  
-Initially, the demand curve for good A is D₂ in Figure 3.5.1. If income increases and A is a normal good, we would expect to see a movement from point A to point

Accepted Answer

A) B. 
B) C. 
C) D. 
D) E. 
E) C and back to point A. 
A) B. 
B) C. 
C) D. 
D) E. 
E) C and back to point A. B

Question 3

French fries and baked potatoes are

Accepted Answer

A) complements for consumers and complements in production for producers. 
B) substitutes for consumers and substitutes in production for producers. 
C) complements for consumers and substitutes in production for producers. 
D) substitutes in production for consumers and inferior goods for producers. 
E) normal goods for consumers and complements for producers. 
A) complements for consumers and complements in production for producers. 
B) substitutes for consumers and substitutes in production for producers. 
C) complements for consumers and substitutes in production for producers. 
D) substitutes in production for consumers and inferior goods for producers. 
E) normal goods for consumers and complements for producers. B

Question 4

Table 3.4.1
   
Use the table below to answer the following questions.
-Refer to Table 3.4.1. A shortage occurs if

Accepted Answer

A) the price is $7 a unit. 
B) the price is $4 a unit. 
C) the price is $5 a unit. 
D) the price is below $4 a unit. 
E) the price is $6 a unit. 
A) the price is $7 a unit. 
B) the price is $4 a unit. 
C) the price is $5 a unit. 
D) the price is below $4 a unit. 
E) the price is $6 a unit.

Question 5

Figure 3.5.2
Original equilibrium at 1.
Use the figure below to answer the following questions.
  
-Refer to Figure 3.5.2, which represents the market for tacos. A new scientific study reveals that tacos cause bad breath. Simultaneously, the cost of producing tacos increases. What is the new equilibrium, ceteris paribus?

Accepted Answer

A) 2 
B) 3 
C) 9 
D) 4 
E) 7 
A) 2 
B) 3 
C) 9 
D) 4 
E) 7

Question 6

If demand decreases and supply increases, then the

Accepted Answer

A) equilibrium quantity increases, but the effect on the equilibrium price is unknown. 
B) equilibrium quantity decreases, but the effect on the equilibrium price is unknown. 
C) equilibrium price falls, but the effect on the equilibrium quantity is unknown. 
D) equilibrium price rises, but the effect on the equilibrium quantity is unknown. 
E) effect on both equilibrium price and quantity is unknown. 
A) equilibrium quantity increases, but the effect on the equilibrium price is unknown. 
B) equilibrium quantity decreases, but the effect on the equilibrium price is unknown. 
C) equilibrium price falls, but the effect on the equilibrium quantity is unknown. 
D) equilibrium price rises, but the effect on the equilibrium quantity is unknown. 
E) effect on both equilibrium price and quantity is unknown.

Question 7

When a shortage occurs, there is a tendency for the

Accepted Answer

A) price to fall. 
B) price to remain unchanged. 
C) price to rise. 
D) quantity demanded to increase. 
E) quantity supplied to decrease. 
A) price to fall. 
B) price to remain unchanged. 
C) price to rise. 
D) quantity demanded to increase. 
E) quantity supplied to decrease.

Question 8

Table 3.4.1
   
Use the table below to answer the following questions.
-Refer to Table 3.4.1. If the price is $3, then the shortage is

Accepted Answer

A) zero units. 
B) 1,050 units. 
C) 180 units. 
D) 600 units. 
E) 160 units. 
A) zero units. 
B) 1,050 units. 
C) 180 units. 
D) 600 units. 
E) 160 units.

Question 9

Table 3.4.1
   
Use the table below to answer the following questions.
-Refer to Table 3.4.1. A surplus occurs if

Accepted Answer

A) the price is $2 a unit. 
B) the price is $3 a unit. 
C) the price is above $4 a unit. 
D) the price is $1 a unit. 
E) the price is $4 a unit. 
A) the price is $2 a unit. 
B) the price is $3 a unit. 
C) the price is above $4 a unit. 
D) the price is $1 a unit. 
E) the price is $4 a unit.

Question 10

A turnip is an inferior good if

Accepted Answer

A) an increase in the price of a turnip decreases the quantity of turnips that consumers want to buy. 
B) an increase in income decreases the demand for turnips. 
C) an increase in income increases the demand for turnips. 
D) turnips violate the law of demand. 
E) turnips are a low quality good. 
A) an increase in the price of a turnip decreases the quantity of turnips that consumers want to buy. 
B) an increase in income decreases the demand for turnips. 
C) an increase in income increases the demand for turnips. 
D) turnips violate the law of demand. 
E) turnips are a low quality good.

Question 11

The law of demand states that, other things remaining the same,

Accepted Answer

A) the higher the price of a good, the smaller is the quantity demanded. 
B) the higher the price of a good, the smaller is the quantity supplied. 
C) price and quantity supplied are positively related. 
D) as income increases, willingness to pay for the last unit increases. 
E) the higher the price of a good, the greater is the quantity demanded. 
A) the higher the price of a good, the smaller is the quantity demanded. 
B) the higher the price of a good, the smaller is the quantity supplied. 
C) price and quantity supplied are positively related. 
D) as income increases, willingness to pay for the last unit increases. 
E) the higher the price of a good, the greater is the quantity demanded.

Question 12

Which of the following shifts the supply curve for good X leftward?

Accepted Answer

A) a situation in which the quantity demanded of X exceeds the quantity supplied of X 
B) an increase in the cost of the machinery used to produce X 
C) a technological advance in the production of X 
D) a decrease in the wages of workers employed to produce X 
E) a situation in which the quantity supplied of X exceeds the quantity demanded of X 
A) a situation in which the quantity demanded of X exceeds the quantity supplied of X 
B) an increase in the cost of the machinery used to produce X 
C) a technological advance in the production of X 
D) a decrease in the wages of workers employed to produce X 
E) a situation in which the quantity supplied of X exceeds the quantity demanded of X

Question 13

If we observe an increase in the equilibrium quantity of good A, we know that

Accepted Answer

A) either the demand for A has increased or the supply of A has decreased or both. 
B) either the demand for A has increased or the supply of A has increased or both. 
C) either the demand for A has decreased or the supply of A has increased or both. 
D) either the demand for A has decreased or the supply of A has decreased or both. 
E) the price of A has risen. 
A) either the demand for A has increased or the supply of A has decreased or both. 
B) either the demand for A has increased or the supply of A has increased or both. 
C) either the demand for A has decreased or the supply of A has increased or both. 
D) either the demand for A has decreased or the supply of A has decreased or both. 
E) the price of A has risen.

Question 14

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

Accepted Answer

A) relative price; 2 basketballs per football 
B) relative price; 1/2 basketball per football 
C) opportunity cost; $15.00 
D) opportunity cost; $10.00 
E) relative price; $10 
A) relative price; 2 basketballs per football 
B) relative price; 1/2 basketball per football 
C) opportunity cost; $15.00 
D) opportunity cost; $10.00 
E) relative price; $10

Question 15

The substitution effect influences food purchases because when the price of a certain food rises, other things remaining the same, ________. Consumers ________.

Accepted Answer

A) the relative price of all food rises; purchase less of the food that has experienced the price increase and more of all other foods 
B) its relative price does not change because most likely the prices of all other foods will also rise; continue to purchase all foods, but in smaller quantities 
C) its relative price rises; purchase more of a different food that is less expensive 
D) the relative price of all food rises; continue to purchase all foods, but in smaller quantities 
E) its relative price rises; purchase less of all foods 
A) the relative price of all food rises; purchase less of the food that has experienced the price increase and more of all other foods 
B) its relative price does not change because most likely the prices of all other foods will also rise; continue to purchase all foods, but in smaller quantities 
C) its relative price rises; purchase more of a different food that is less expensive 
D) the relative price of all food rises; continue to purchase all foods, but in smaller quantities 
E) its relative price rises; purchase less of all foods

Question 16

Bottled water and health club memberships are

Accepted Answer

A) substitutes. 
B) complements. 
C) substitutes in production. 
D) complements in production. 
E) inferior goods. 
A) substitutes. 
B) complements. 
C) substitutes in production. 
D) complements in production. 
E) inferior goods.

Question 17

Table 3.1.1
  
-Refer to Table 3.1.1. In 2014, the relative price of coffee in terms of cola is

Accepted Answer

A) 1.25. 
B) 1.00. 
C) 0.67. 
D) 1.56. 
E) unknown without more information. 
A) 1.25. 
B) 1.00. 
C) 0.67. 
D) 1.56. 
E) unknown without more information.

Question 18

Figure 3.2.2
Use the figure below to answer the following questions.
  
-Which one of the following would result in the demand curve shifting from D₁ to D₂ in Figure 3.2.2?

Accepted Answer

A) an increase in the supply of pizza 
B) a rise in the price of hamburgers, a substitute for pizza 
C) a rise in the price of pizza 
D) a fall in the price of pizza 
E) a rise in the price of Coke, a complement of pizza 
A) an increase in the supply of pizza 
B) a rise in the price of hamburgers, a substitute for pizza 
C) a rise in the price of pizza 
D) a fall in the price of pizza 
E) a rise in the price of Coke, a complement of pizza

Question 19

If we observe a rise in the equilibrium price of good A, we know that the demand for A has

Accepted Answer

A) increased or the supply of A has decreased or both. 
B) increased or the supply of A has increased or both. 
C) decreased or the supply of A has increased or both. 
D) decreased or the supply of A has decreased or both. 
E) not changed. 
A) increased or the supply of A has decreased or both. 
B) increased or the supply of A has increased or both. 
C) decreased or the supply of A has increased or both. 
D) decreased or the supply of A has decreased or both. 
E) not changed.

Question 20

Which of the following will shift the supply curve of good X rightward?

Accepted Answer

A) a decrease in the wages of workers employed to produce good X 
B) an increase in the cost of capital used to produce good X 
C) an increase in the price of energy 
D) a decrease in the number of suppliers of good X 
E) the price of Y, a substitute in production for good X, rises 
A) a decrease in the wages of workers employed to produce good X 
B) an increase in the cost of capital used to produce good X 
C) an increase in the price of energy 
D) a decrease in the number of suppliers of good X 
E) the price of Y, a substitute in production for good X, rises

Which one of the following will shift the supply curve of good X leftward?

Figure 3.5.1 Use the figure below to answer the following questions. -Initially, the demand curve for good A is D₂ in Figure 3.5.1. If income increases and A is a normal good, we would expect to see a movement from point A to point

French fries and baked potatoes are

Table 3.4.1 Use the table below to answer the following questions. -Refer to Table 3.4.1. A shortage occurs if

If demand decreases and supply increases, then the

When a shortage occurs, there is a tendency for the

Table 3.4.1 Use the table below to answer the following questions. -Refer to Table 3.4.1. If the price is $3, then the shortage is

Table 3.4.1 Use the table below to answer the following questions. -Refer to Table 3.4.1. A surplus occurs if

A turnip is an inferior good if

The law of demand states that, other things remaining the same,

Which of the following shifts the supply curve for good X leftward?

If we observe an increase in the equilibrium quantity of good A, we know that

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The of a football is .

The substitution effect influences food purchases because when the price of a certain food rises, other things remaining the same, . Consumers .

Bottled water and health club memberships are

Table 3.1.1 -Refer to Table 3.1.1. In 2014, the relative price of coffee in terms of cola is

Figure 3.2.2 Use the figure below to answer the following questions. -Which one of the following would result in the demand curve shifting from D₁ to D₂ in Figure 3.2.2?

If we observe a rise in the equilibrium price of good A, we know that the demand for A has

Which of the following will shift the supply curve of good X rightward?

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

Which one of the following will shift the supply curve of good X leftward?

Figure 3.5.1 Use the figure below to answer the following questions. -Initially, the demand curve for good A is D₂ in Figure 3.5.1. If income increases and A is a normal good, we would expect to see a movement from point A to point

French fries and baked potatoes are

Table 3.4.1 Use the table below to answer the following questions. -Refer to Table 3.4.1. A shortage occurs if

If demand decreases and supply increases, then the

When a shortage occurs, there is a tendency for the

Table 3.4.1 Use the table below to answer the following questions. -Refer to Table 3.4.1. If the price is $3, then the shortage is

Table 3.4.1 Use the table below to answer the following questions. -Refer to Table 3.4.1. A surplus occurs if

A turnip is an inferior good if

The law of demand states that, other things remaining the same,

Which of the following shifts the supply curve for good X leftward?

If we observe an increase in the equilibrium quantity of good A, we know that

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

The substitution effect influences food purchases because when the price of a certain food rises, other things remaining the same, ________. Consumers ________.

Bottled water and health club memberships are

Table 3.1.1 -Refer to Table 3.1.1. In 2014, the relative price of coffee in terms of cola is

Figure 3.2.2 Use the figure below to answer the following questions. -Which one of the following would result in the demand curve shifting from D₁ to D₂ in Figure 3.2.2?

If we observe a rise in the equilibrium price of good A, we know that the demand for A has

Which of the following will shift the supply curve of good X rightward?

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The of a football is .

The substitution effect influences food purchases because when the price of a certain food rises, other things remaining the same, . Consumers .