Question 1

Which of the following is a determinant of supply?

Accepted Answer

A) tastes and preferences of consumers 
B) technology 
C) consumer income 
D) number of consumers 
A) tastes and preferences of consumers 
B) technology 
C) consumer income 
D) number of consumers

Question 2

If the price of a product increases

Accepted Answer

A) there is an increase in quantity supplied and a decrease in demand. 
B) there is an increase in supply and a decrease in quantity demanded. 
C) there is an increase in supply and a decrease in demand. 
D) there is an increase in quantity supplied and a decrease in quantity demanded. 
A) there is an increase in quantity supplied and a decrease in demand. 
B) there is an increase in supply and a decrease in quantity demanded. 
C) there is an increase in supply and a decrease in demand. 
D) there is an increase in quantity supplied and a decrease in quantity demanded.

Question 3

A shift in the demand curve will occur when

Accepted Answer

A) supply shifts. 
B) the price of an input used to produce the good changes. 
C) consumers' income changes. 
D) the price of the product changes. 
A) supply shifts. 
B) the price of an input used to produce the good changes. 
C) consumers' income changes. 
D) the price of the product changes.

Question 4

How is the market supply curve found?
 In what ways is the process similar to the way the market demand curve is determined?
 In what ways are they different?

Accepted Answer

The market supply curve is obtained by h

Question 5

If the price of hot dogs increases, the demand for hot dog buns will

Accepted Answer

A) increase. 
B) decrease. 
C) remain constant. 
D) shift to the right. 
A) increase. 
B) decrease. 
C) remain constant. 
D) shift to the right.

Question 6

The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor market experiences a

Accepted Answer

A) shortage. 
B) quality decrease. 
C) surplus. 
D) excess demand. 
A) shortage. 
B) quality decrease. 
C) surplus. 
D) excess demand.

Question 7

If we are comparing the price of regular gasoline with the price of super gasoline, then an increase in the relative price of regular gasoline implies that

Accepted Answer

A) the nominal price of regular gasoline increased. 
B) the nominal price of super gasoline decreased. 
C) the relative price of super gasoline decreased. 
D) the relative price of regular gasoline increased. 
A) the nominal price of regular gasoline increased. 
B) the nominal price of super gasoline decreased. 
C) the relative price of super gasoline decreased. 
D) the relative price of regular gasoline increased.

Question 8

A schedule of amounts of a good that people will purchase at various prices during a specific time period holding other factors constant is

Accepted Answer

A) a market. 
B) supply. 
C) demand. 
D) the market clearing price. 
A) a market. 
B) supply. 
C) demand. 
D) the market clearing price.

Question 9

Which of the following will NOT cause a rightward shift in the supply curve?

Accepted Answer

A) an improvement in technology 
B) a reduction in resource costs 
C) a reduction in the expected future price 
D) none of the above 
A) an improvement in technology 
B) a reduction in resource costs 
C) a reduction in the expected future price 
D) none of the above

Question 10

A supply schedule

Accepted Answer

A) can be used to generate a supply curve. 
B) is a table reflecting the inverse relationship between price and quantity supplied. 
C) shows what happens to quantity supplied when price is held constant. 
D) all of the above. 
A) can be used to generate a supply curve. 
B) is a table reflecting the inverse relationship between price and quantity supplied. 
C) shows what happens to quantity supplied when price is held constant. 
D) all of the above.

Question 11

-Refer to the above table. The market quantity supplied when the price is $6 is

Accepted Answer

A) 0. 
B) 5. 
C) 10. 
D) 20. 
A) 0. 
B) 5. 
C) 10. 
D) 20.

Question 12

A change in the price of a good causes

Accepted Answer

A) an increase in supply. 
B) a decrease in supply. 
C) an increase in demand and a decrease in supply. 
D) a change in quantity supplied. 
A) an increase in supply. 
B) a decrease in supply. 
C) an increase in demand and a decrease in supply. 
D) a change in quantity supplied.

Question 13

At a market clearing price

Accepted Answer

A) the quantity demanded will just equal the quantity supplied. 
B) there will be an excess quantity demanded. 
C) there will be a tendency for price to rise over time. 
D) the demand function will shift outward. 
A) the quantity demanded will just equal the quantity supplied. 
B) there will be an excess quantity demanded. 
C) there will be a tendency for price to rise over time. 
D) the demand function will shift outward.

Question 14

-Refer to the above figure. A shortage will exist when

Accepted Answer

A) the price is between $0 and $6. 
B) the price equals $6. 
C) the price equals $10. 
D) quantity demanded equals 3. 
A) the price is between $0 and $6. 
B) the price equals $6. 
C) the price equals $10. 
D) quantity demanded equals 3.

Question 15

If Apple's iTunes Music Store increases its "fee" for its music downloads, the law of demand predicts that

Accepted Answer

A) the number of iTunes music downloads would increase. 
B) there would be no change in the demand for iTunes music downloads. 
C) the number of iTunes music downloads would decrease. 
D) iTunes music supply would change but demand would not. 
A) the number of iTunes music downloads would increase. 
B) there would be no change in the demand for iTunes music downloads. 
C) the number of iTunes music downloads would decrease. 
D) iTunes music supply would change but demand would not.

Question 16

If the price of a product increases, we would expect

Accepted Answer

A) the level of demand to decrease. 
B) quantity supplied to increase. 
C) the level of supply to increase. 
D) an increase in quantity demanded. 
A) the level of demand to decrease. 
B) quantity supplied to increase. 
C) the level of supply to increase. 
D) an increase in quantity demanded.

Question 17

Which of the following will NOT cause market supply to increase?

Accepted Answer

A) an increase in the number of firms supplying the product in the market 
B) a change in technology which allows a larger level of production at every price 
C) an increase in the costs of resources used to produce the product 
D) a decrease in labor costs 
A) an increase in the number of firms supplying the product in the market 
B) a change in technology which allows a larger level of production at every price 
C) an increase in the costs of resources used to produce the product 
D) a decrease in labor costs

Question 18

The price of a new car is $40,000 while the price of a five-year old car of the same brand is $16,000. The next year the price of the new car increases to $44,000 and the price of a five-year old car of the same brand is $17,600. The relative price of the used car

Accepted Answer

A) decreased by $2,400. 
B) decreased by 10 percent. 
C) increased by 10 percent. 
D) remained constant at 0.4. 
A) decreased by $2,400. 
B) decreased by 10 percent. 
C) increased by 10 percent. 
D) remained constant at 0.4.

Question 19

Which factor would cause a movement along the demand curve for pizza?

Accepted Answer

A) an increase in the number of students in town 
B) a renewed preference for Italian food 
C) a drop in the price of pizza 
D) an increase in average income 
A) an increase in the number of students in town 
B) a renewed preference for Italian food 
C) a drop in the price of pizza 
D) an increase in average income

Question 20

According to the law of demand

Accepted Answer

A) people buy more of a good when the price rises. 
B) people buy more of a good when their income rises. 
C) people buy more of a good when the relative price rises. 
D) people buy more of a good when the price falls. 
A) people buy more of a good when the price rises. 
B) people buy more of a good when their income rises. 
C) people buy more of a good when the relative price rises. 
D) people buy more of a good when the price falls.

Which of the following is a determinant of supply?

If the price of a product increases

A shift in the demand curve will occur when

How is the market supply curve found? In what ways is the process similar to the way the market demand curve is determined? In what ways are they different?

If the price of hot dogs increases, the demand for hot dog buns will

The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor market experiences a

If we are comparing the price of regular gasoline with the price of super gasoline, then an increase in the relative price of regular gasoline implies that

A schedule of amounts of a good that people will purchase at various prices during a specific time period holding other factors constant is

Which of the following will NOT cause a rightward shift in the supply curve?

A supply schedule

-Refer to the above table. The market quantity supplied when the price is $6 is

A change in the price of a good causes

At a market clearing price

-Refer to the above figure. A shortage will exist when

If Apple's iTunes Music Store increases its "fee" for its music downloads, the law of demand predicts that

If the price of a product increases, we would expect

Which of the following will NOT cause market supply to increase?

The price of a new car is $40,000 while the price of a five-year old car of the same brand is $16,000. The next year the price of the new car increases to $44,000 and the price of a five-year old car of the same brand is $17,600. The relative price of the used car

Which factor would cause a movement along the demand curve for pizza?

According to the law of demand

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 3: Demand and Supply

Which of the following is a determinant of supply?

If the price of a product increases

A shift in the demand curve will occur when

How is the market supply curve found? In what ways is the process similar to the way the market demand curve is determined? In what ways are they different?

If the price of hot dogs increases, the demand for hot dog buns will

The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor market experiences a

If we are comparing the price of regular gasoline with the price of super gasoline, then an increase in the relative price of regular gasoline implies that

A schedule of amounts of a good that people will purchase at various prices during a specific time period holding other factors constant is

Which of the following will NOT cause a rightward shift in the supply curve?

A supply schedule

-Refer to the above table. The market quantity supplied when the price is $6 is

A change in the price of a good causes

At a market clearing price

-Refer to the above figure. A shortage will exist when

If Apple's iTunes Music Store increases its "fee" for its music downloads, the law of demand predicts that

If the price of a product increases, we would expect

Which of the following will NOT cause market supply to increase?

The price of a new car is $40,000 while the price of a five-year old car of the same brand is $16,000. The next year the price of the new car increases to $44,000 and the price of a five-year old car of the same brand is $17,600. The relative price of the used car

Which factor would cause a movement along the demand curve for pizza?

According to the law of demand

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters