Question 1

The alternative quantities demanded for a given time period at different possible prices is known as

Accepted Answer

A) absolute demand. 
B) a demand schedule. 
C) real demand. 
D) constant demand. 
A) absolute demand. 
B) a demand schedule. 
C) real demand. 
D) constant demand.

Question 2

If the price of flash memory cards increases, then there will be ________ of flash memory cards.

Accepted Answer

A) a decrease in the supply 
B) an increase in the supply 
C) an increase in the quantity supplied 
D) a decrease in the quantity supplied 
A) a decrease in the supply 
B) an increase in the supply 
C) an increase in the quantity supplied 
D) a decrease in the quantity supplied

Question 3

-Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of

Accepted Answer

A) $450. 
B) $500. 
C) $600. 
D) $700. 
A) $450. 
B) $500. 
C) $600. 
D) $700.

Question 4

When income falls

Accepted Answer

A) the demand for a normal goods rises. 
B) the demand for an inferior goods rises. 
C) there is a movement downward along the demand curve for a normal good. 
D) there is a movement downward along the demand curve for an inferior good. 
A) the demand for a normal goods rises. 
B) the demand for an inferior goods rises. 
C) there is a movement downward along the demand curve for a normal good. 
D) there is a movement downward along the demand curve for an inferior good.

Question 5

In general, any ceteris paribus determinant of supply that is favorable to production will

Accepted Answer

A) cause a movement along the supply curve. 
B) shift the supply curve to the right. 
C) shift the demand curve to the left. 
D) shift the supply curve to the left. 
A) cause a movement along the supply curve. 
B) shift the supply curve to the right. 
C) shift the demand curve to the left. 
D) shift the supply curve to the left.

Question 6

-In the above figure, what would result if the price was $40?

Accepted Answer

A) a surplus 
B) a shortage 
C) equilibrium 
D) excess demand 
A) a surplus 
B) a shortage 
C) equilibrium 
D) excess demand

Question 7

Last year there were 6 pizza shops in town. This year there are only 4. Other things being equal, the decrease in the number of suppliers will

Accepted Answer

A) cause the market supply curve to shift to the right. 
B) increase the market demand for pizza. 
C) cause a decrease in the quantity supplied at each price. 
D) have no impact on market supply as long as the demand for pizza remains strong. 
A) cause the market supply curve to shift to the right. 
B) increase the market demand for pizza. 
C) cause a decrease in the quantity supplied at each price. 
D) have no impact on market supply as long as the demand for pizza remains strong.

Question 8

A per-unit government subsidy to producers of a good tends to

Accepted Answer

A) reduce the supply of the good. 
B) increase the supply of the good. 
C) shift the supply curve to the left. 
D) not have any effect on the good's supply. 
A) reduce the supply of the good. 
B) increase the supply of the good. 
C) shift the supply curve to the left. 
D) not have any effect on the good's supply.

Question 9

Which one of the following statements is FALSE?

Accepted Answer

A) Generally, what matters most to consumers is what a good costs in dollars. 
B) The relative price of a good is its price measured relative to the price of other goods. 
C) The nominal price of a good is its price measured in current dollars. 
D) When the price of beer goes up by the same proportion as the prices of all other goods, the relative price of beer does not change. 
A) Generally, what matters most to consumers is what a good costs in dollars. 
B) The relative price of a good is its price measured relative to the price of other goods. 
C) The nominal price of a good is its price measured in current dollars. 
D) When the price of beer goes up by the same proportion as the prices of all other goods, the relative price of beer does not change.

Question 10

The effects of a per-unit tax imposed on sales of an industry's product would likely include

Accepted Answer

A) a lower product price at any amount of the product supplied. 
B) a leftward shift of the market supply curve for the product. 
C) a leftward movement along the market supply curve for the product. 
D) none of the above. 
A) a lower product price at any amount of the product supplied. 
B) a leftward shift of the market supply curve for the product. 
C) a leftward movement along the market supply curve for the product. 
D) none of the above.

Question 11

A shift in the demand curve to the right represents

Accepted Answer

A) an increase in demand. 
B) a decrease in demand. 
C) an increase in quantity demanded. 
D) a decrease in quantity demanded. 
A) an increase in demand. 
B) a decrease in demand. 
C) an increase in quantity demanded. 
D) a decrease in quantity demanded.

Question 12

Which of the following will cause an outward (rightward)shift in the supply curve?

Accepted Answer

A) a reduction in the price of the good 
B) an increase in the price of labor input 
C) an increase in the number of consumers 
D) technological progress 
A) a reduction in the price of the good 
B) an increase in the price of labor input 
C) an increase in the number of consumers 
D) technological progress

Question 13

A fundamental principle in demand analysis is that a change in price leads to

Accepted Answer

A) a movement along the demand curve. 
B) a rightward shift of the demand curve. 
C) a leftward shift of the demand curve. 
D) a complementary movement on the supply curve. 
A) a movement along the demand curve. 
B) a rightward shift of the demand curve. 
C) a leftward shift of the demand curve. 
D) a complementary movement on the supply curve.

Question 14

If the price of butter increases, the demand for margarine

Accepted Answer

A) will be unchanged. 
B) will shift outward. 
C) will shift inward. 
D) will kink into an S-curve. 
A) will be unchanged. 
B) will shift outward. 
C) will shift inward. 
D) will kink into an S-curve.

Question 15

A market demand schedule for a product indicates that

Accepted Answer

A) as the product's price falls, consumers buy less of the good. 
B) there is a positive relationship between price and quantity demanded. 
C) as a product's price rises, consumers buy more of the good. 
D) there is a negative relationship between price and quantity demanded. 
A) as the product's price falls, consumers buy less of the good. 
B) there is a positive relationship between price and quantity demanded. 
C) as a product's price rises, consumers buy more of the good. 
D) there is a negative relationship between price and quantity demanded.

Question 16

All of the following are non-price determinants of demand EXCEPT

Accepted Answer

A) price of related goods. 
B) price of raw materials used in production of the good. 
C) income. 
D) number of consumers. 
A) price of related goods. 
B) price of raw materials used in production of the good. 
C) income. 
D) number of consumers.

Question 17

-In the above figure, if the price is equal to $50, there is

Accepted Answer

A) a surplus of 200 units. 
B) a shortage of 100 units. 
C) an excess quantity demanded of 50 units. 
D) an inadequate supply of 100 units. 
A) a surplus of 200 units. 
B) a shortage of 100 units. 
C) an excess quantity demanded of 50 units. 
D) an inadequate supply of 100 units.

Question 18

According to the law of supply

Accepted Answer

A) people buy more of a good when the price increases. 
B) people buy less of a good when the price decreases. 
C) producers provide more of a good when the price decreases. 
D) producers provide less of a good when the price decreases. 
A) people buy more of a good when the price increases. 
B) people buy less of a good when the price decreases. 
C) producers provide more of a good when the price decreases. 
D) producers provide less of a good when the price decreases.

Question 19

The relationship between a change in the price of a complementary good and demand for another complementary good is

Accepted Answer

A) positive. 
B) negative. 
C) inconclusive. 
D) zero. 
A) positive. 
B) negative. 
C) inconclusive. 
D) zero.

Question 20

Suppose all prices increase by 10 percent in the year while the total sales of HDTVs remain constant. This is

Accepted Answer

A) a violation of the law of demand since fewer HDTVs should be purchased at a higher price. 
B) a violation of the law of demand since more HDTVs should have been purchased with higher incomes. 
C) not a violation of the law of demand since the relative price of HDTVs did not change. 
D) not a violation of the law of demand since the law of demand does not apply to expensive goods like HDTVs. 
A) a violation of the law of demand since fewer HDTVs should be purchased at a higher price. 
B) a violation of the law of demand since more HDTVs should have been purchased with higher incomes. 
C) not a violation of the law of demand since the relative price of HDTVs did not change. 
D) not a violation of the law of demand since the law of demand does not apply to expensive goods like HDTVs.

The alternative quantities demanded for a given time period at different possible prices is known as

If the price of flash memory cards increases, then there will be ________ of flash memory cards.

-Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of

When income falls

In general, any ceteris paribus determinant of supply that is favorable to production will

-In the above figure, what would result if the price was $40?

Last year there were 6 pizza shops in town. This year there are only 4. Other things being equal, the decrease in the number of suppliers will

A per-unit government subsidy to producers of a good tends to

Which one of the following statements is FALSE?

The effects of a per-unit tax imposed on sales of an industry's product would likely include

A shift in the demand curve to the right represents

Which of the following will cause an outward (rightward)shift in the supply curve?

A fundamental principle in demand analysis is that a change in price leads to

If the price of butter increases, the demand for margarine

A market demand schedule for a product indicates that

All of the following are non-price determinants of demand EXCEPT

-In the above figure, if the price is equal to $50, there is

According to the law of supply

The relationship between a change in the price of a complementary good and demand for another complementary good is

Suppose all prices increase by 10 percent in the year while the total sales of HDTVs remain constant. This is

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

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Exam 3: Demand and Supply

The alternative quantities demanded for a given time period at different possible prices is known as

If the price of flash memory cards increases, then there will be ________ of flash memory cards.

-Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of

When income falls

In general, any ceteris paribus determinant of supply that is favorable to production will

-In the above figure, what would result if the price was $40?

Last year there were 6 pizza shops in town. This year there are only 4. Other things being equal, the decrease in the number of suppliers will

A per-unit government subsidy to producers of a good tends to

Which one of the following statements is FALSE?

The effects of a per-unit tax imposed on sales of an industry's product would likely include

A shift in the demand curve to the right represents

Which of the following will cause an outward (rightward)shift in the supply curve?

A fundamental principle in demand analysis is that a change in price leads to

If the price of butter increases, the demand for margarine

A market demand schedule for a product indicates that

All of the following are non-price determinants of demand EXCEPT

-In the above figure, if the price is equal to $50, there is

According to the law of supply

The relationship between a change in the price of a complementary good and demand for another complementary good is

Suppose all prices increase by 10 percent in the year while the total sales of HDTVs remain constant. This is

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