Question 1

A change in the ceteris paribus conditions for supply will lead to a

Accepted Answer

A) change in quantity supplied. 
B) change in supply. 
C) change in quantity supplied and a change in supply. 
D) change in how consumers view the quality of the good. 
A) change in quantity supplied. 
B) change in supply. 
C) change in quantity supplied and a change in supply. 
D) change in how consumers view the quality of the good.

Question 2

A demand curve is a graphical representation of

Accepted Answer

A) consumer tastes. 
B) national income. 
C) the demand schedule. 
D) relative prices. 
A) consumer tastes. 
B) national income. 
C) the demand schedule. 
D) relative prices.

Question 3

What is the difference between a normal good and an inferior good?
 How does this relate to the demand curve?

Accepted Answer

A normal good is one for which demand in

Question 4

In order to increase the supply of a good, producers must

Accepted Answer

A) convince consumers to reduce the quantity demanded. 
B) see an increase in quantity supplied by competitors. 
C) reduce their per-unit costs of producing the good. 
D) cut back on labor to reduce production costs. 
A) convince consumers to reduce the quantity demanded. 
B) see an increase in quantity supplied by competitors. 
C) reduce their per-unit costs of producing the good. 
D) cut back on labor to reduce production costs.

Question 5

A normal good is one for which

Accepted Answer

A) demand increases as income increases. 
B) demand increases as income decreases. 
C) the demand curve is horizontal. 
D) demand increases as the price of a substitute increases. 
A) demand increases as income increases. 
B) demand increases as income decreases. 
C) the demand curve is horizontal. 
D) demand increases as the price of a substitute increases.

Question 6

What information is provided by a demand curve?
 What variables are measured along the axes of the graph?

Accepted Answer

The demand curve is a graphical represen

Question 7

A demand curve represents a(n)

Accepted Answer

A) direct relationship between price and quantity demanded. 
B) direct relationship between price and demand. 
C) indirect or inverse relationship between price and quantity demanded. 
D) indirect or inverse relationship between price and supply. 
A) direct relationship between price and quantity demanded. 
B) direct relationship between price and demand. 
C) indirect or inverse relationship between price and quantity demanded. 
D) indirect or inverse relationship between price and supply.

Question 8

Briefly discuss the determinants of supply other than price.

Accepted Answer

An increase in the costs of inputs used

Question 9

The only variable that can affect a movement along the demand curve is

Accepted Answer

A) income levels. 
B) the price of the good itself. 
C) the number of buyers. 
D) the number of substitutes. 
A) income levels. 
B) the price of the good itself. 
C) the number of buyers. 
D) the number of substitutes.

Question 10

Which of the following is a non-price determinant of supply?

Accepted Answer

A) the price of related goods consumers may buy 
B) technological advances in production 
C) consumers' incomes 
D) the number of consumers 
A) the price of related goods consumers may buy 
B) technological advances in production 
C) consumers' incomes 
D) the number of consumers

Question 11

"A shortage is the same thing as scarcity." Do you agree or disagree with this statement?
 Why?
 What can cause a shortage to disappear in a market?
 What can cause scarcity to disappear?

Accepted Answer

Disagree with the statement. Scarcity is

Question 12

A subsidy to carrot farmers will

Accepted Answer

A) increase the quantity of carrots demanded. 
B) decrease the quantity of carrots supplied. 
C) increase the supply of carrots. 
D) leave both the supply and demand of carrots unchanged. 
A) increase the quantity of carrots demanded. 
B) decrease the quantity of carrots supplied. 
C) increase the supply of carrots. 
D) leave both the supply and demand of carrots unchanged.

Question 13

A decrease in demand would be represented by

Accepted Answer

A) the price of a good going from $3 to $4. 
B) an increase in the cost of resources used to produce the good. 
C) a movement along the demand curve. 
D) a shift of the demand curve to the left. 
A) the price of a good going from $3 to $4. 
B) an increase in the cost of resources used to produce the good. 
C) a movement along the demand curve. 
D) a shift of the demand curve to the left.

Question 14

An increase in quantity demanded is caused by

Accepted Answer

A) an increase in income. 
B) a decrease in the price of the good. 
C) a decrease in the price of a complement. 
D) a change in expectations about price in the future. 
A) an increase in income. 
B) a decrease in the price of the good. 
C) a decrease in the price of a complement. 
D) a change in expectations about price in the future.

Question 15

Suppose it is discovered that consumption of butter leads to a longer life. This information would lead to

Accepted Answer

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

Question 16

The arrangements that individuals have with each other to exchange goods is known as

Accepted Answer

A) demand. 
B) supply. 
C) a market. 
D) complements. 
A) demand. 
B) supply. 
C) a market. 
D) complements.

Question 17

Graphically, the market supply curve is obtained by

Accepted Answer

A) changing the ceteris paribus conditions. 
B) a change in quantity supplied. 
C) horizontally summing quantity supplied at various prices for individual producers. 
D) vertically summing quantity supplied at various prices for individual producers. 
A) changing the ceteris paribus conditions. 
B) a change in quantity supplied. 
C) horizontally summing quantity supplied at various prices for individual producers. 
D) vertically summing quantity supplied at various prices for individual producers.

Question 18

The law of demand states that there is

Accepted Answer

A) an inverse relationship between income and quantity demanded, ceteris paribus. 
B) a direct relationship between income and quantity demanded, ceteris paribus. 
C) no relationship between taste and quantity demanded, ceteris paribus. 
D) an inverse relationship between price and quantity demanded, ceteris paribus. 
A) an inverse relationship between income and quantity demanded, ceteris paribus. 
B) a direct relationship between income and quantity demanded, ceteris paribus. 
C) no relationship between taste and quantity demanded, ceteris paribus. 
D) an inverse relationship between price and quantity demanded, ceteris paribus.

Question 19

A schedule of how much of a good people will purchase for a range of possible prices during a specified time period, other things constant, is the definition of

Accepted Answer

A) supply. 
B) demand. 
C) a purchasing contract. 
D) an economic market. 
A) supply. 
B) demand. 
C) a purchasing contract. 
D) an economic market.

Question 20

-Refer to the above figure. The rightward shift of the curve could have been caused by

Accepted Answer

A) a technological improvement. 
B) a technological setback. 
C) an increase in income. 
D) a decrease in income. 
A) a technological improvement. 
B) a technological setback. 
C) an increase in income. 
D) a decrease in income.

A change in the ceteris paribus conditions for supply will lead to a

A demand curve is a graphical representation of

What is the difference between a normal good and an inferior good? How does this relate to the demand curve?

In order to increase the supply of a good, producers must

A normal good is one for which

What information is provided by a demand curve? What variables are measured along the axes of the graph?

A demand curve represents a(n)

Briefly discuss the determinants of supply other than price.

The only variable that can affect a movement along the demand curve is

Which of the following is a non-price determinant of supply?

"A shortage is the same thing as scarcity." Do you agree or disagree with this statement? Why? What can cause a shortage to disappear in a market? What can cause scarcity to disappear?

A subsidy to carrot farmers will

A decrease in demand would be represented by

An increase in quantity demanded is caused by

Suppose it is discovered that consumption of butter leads to a longer life. This information would lead to

The arrangements that individuals have with each other to exchange goods is known as

Graphically, the market supply curve is obtained by

The law of demand states that there is

A schedule of how much of a good people will purchase for a range of possible prices during a specified time period, other things constant, is the definition of

-Refer to the above figure. The rightward shift of the curve could have been caused by

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

A change in the ceteris paribus conditions for supply will lead to a

A demand curve is a graphical representation of

What is the difference between a normal good and an inferior good? How does this relate to the demand curve?

In order to increase the supply of a good, producers must

A normal good is one for which

What information is provided by a demand curve? What variables are measured along the axes of the graph?

A demand curve represents a(n)

Briefly discuss the determinants of supply other than price.

The only variable that can affect a movement along the demand curve is

Which of the following is a non-price determinant of supply?

"A shortage is the same thing as scarcity." Do you agree or disagree with this statement? Why? What can cause a shortage to disappear in a market? What can cause scarcity to disappear?

A subsidy to carrot farmers will

A decrease in demand would be represented by

An increase in quantity demanded is caused by

Suppose it is discovered that consumption of butter leads to a longer life. This information would lead to

The arrangements that individuals have with each other to exchange goods is known as

Graphically, the market supply curve is obtained by

The law of demand states that there is

A schedule of how much of a good people will purchase for a range of possible prices during a specified time period, other things constant, is the definition of

-Refer to the above figure. The rightward shift of the curve could have been caused by

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