Question 1

If a scalper for the Super Bowl is able to charge $10,000 for a front-row seat, this suggests that

Accepted Answer

A) at the regular price, there is a surplus of Super Bowl tickets. 
B) at the regular price, there is a shortage of Super Bowl tickets. 
C) at the regular price, the quantity of Super Bowl tickets demanded equals the quantity supplied. 
D) the scalper is making the football fan worse off. 
A) at the regular price, there is a surplus of Super Bowl tickets. 
B) at the regular price, there is a shortage of Super Bowl tickets. 
C) at the regular price, the quantity of Super Bowl tickets demanded equals the quantity supplied. 
D) the scalper is making the football fan worse off.

Question 2

-Refer to the above figure. Which of the following statements is TRUE?

Accepted Answer

A) Panel A shows a decrease in demand and Panel B shows an increase in demand. 
B) Both Panels A and B show an increase in demand. 
C) Panel A shows a change in demand and Panel B shows a change in quantity demanded. 
D) Panel A shows a change in quantity demanded and Panel B shows a change in demand. 
A) Panel A shows a decrease in demand and Panel B shows an increase in demand. 
B) Both Panels A and B show an increase in demand. 
C) Panel A shows a change in demand and Panel B shows a change in quantity demanded. 
D) Panel A shows a change in quantity demanded and Panel B shows a change in demand.

Question 3

The equilibrium or market clearing price occurs at the point at which

Accepted Answer

A) quantity demanded equals quantity supplied. 
B) the supply curve intersects the horizontal axis. 
C) the demand curve intersects the vertical axis. 
D) there is a shortage of the desired good. 
A) quantity demanded equals quantity supplied. 
B) the supply curve intersects the horizontal axis. 
C) the demand curve intersects the vertical axis. 
D) there is a shortage of the desired good.

Question 4

A supply curve

Accepted Answer

A) has an indirect or negative relationship between price and quantity supplied. 
B) has a direct or positive relationship between price and quantity supplied. 
C) shows the relationship between quantity supplied and income. 
D) shows the relationship between complements. 
A) has an indirect or negative relationship between price and quantity supplied. 
B) has a direct or positive relationship between price and quantity supplied. 
C) shows the relationship between quantity supplied and income. 
D) shows the relationship between complements.

Question 5

The market supply curve is found by

Accepted Answer

A) plotting the supply curves of individual firms. 
B) plotting and summing up the supply curves of individual firms. 
C) plotting the supply curves of individual consumers. 
D) taking the supply curve of the representative firm. 
A) plotting the supply curves of individual firms. 
B) plotting and summing up the supply curves of individual firms. 
C) plotting the supply curves of individual consumers. 
D) taking the supply curve of the representative firm.

Question 6

Which of the following are substitute goods?

Accepted Answer

A) margarine and butter 
B) peanut butter and jelly 
C) pizza and beer 
D) sports utility vehicles and gasoline 
A) margarine and butter 
B) peanut butter and jelly 
C) pizza and beer 
D) sports utility vehicles and gasoline

Question 7

-According to the above figure for a gasoline market, what happens when the price per gallon of gasoline jumps from $1 to $4?

Accepted Answer

A) A gasoline surplus is replaced by a gas shortage. 
B) The market moves from a shortage of 40 million gallons/day to a surplus of 50 million gallons/day. 
C) The market shortage is replaced by market equilibrium. 
D) A surplus of 40 million gallons/day results. 
A) A gasoline surplus is replaced by a gas shortage. 
B) The market moves from a shortage of 40 million gallons/day to a surplus of 50 million gallons/day. 
C) The market shortage is replaced by market equilibrium. 
D) A surplus of 40 million gallons/day results.

Question 8

-Refer to the above figure. The highest price that consumers would be willing to pay for quantity Q₂ is

Accepted Answer

A) P₂. 
B) P₀. 
C) P₁. 
D) cannot be determined from the diagram. 
A) P₂. 
B) P₀. 
C) P₁. 
D) cannot be determined from the diagram.

Question 9

-According to the above figure, a shortage is shown between which two points?

Accepted Answer

A) A and E 
B) C and B 
C) A and B 
D) E and F 
A) A and E 
B) C and B 
C) A and B 
D) E and F

Question 10

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

Accepted Answer

A) a change in taste 
B) a change in income 
C) a change in the price of rewriteable DVDs 
D) a change in the price of rewriteable CDs 
A) a change in taste 
B) a change in income 
C) a change in the price of rewriteable DVDs 
D) a change in the price of rewriteable CDs

Question 11

What would happen in the market for prescription drugs if people begin to view over-the-counter remedies as a good substitute for prescription medications?

Accepted Answer

A) Prescription medications will become an inferior good. 
B) There is an upward movement along the demand curve for prescription medications. 
C) There is a downward movement along the demand curve for prescription medications. 
D) The demand for prescription medications will decrease. 
A) Prescription medications will become an inferior good. 
B) There is an upward movement along the demand curve for prescription medications. 
C) There is a downward movement along the demand curve for prescription medications. 
D) The demand for prescription medications will decrease.

Question 12

Equilibrium in a market occurs when

Accepted Answer

A) demand and supply indicate a small surplus of a good. 
B) price is at its minimum. 
C) quantity supplied and quantity demanded are equal at the market clearing price. 
D) the market price leads to a decrease in quantity demanded. 
A) demand and supply indicate a small surplus of a good. 
B) price is at its minimum. 
C) quantity supplied and quantity demanded are equal at the market clearing price. 
D) the market price leads to a decrease in quantity demanded.

Question 13

-According to the above table, at a price of $2 per unit, which of the following would exist?

Accepted Answer

A) a shortage of 800 units 
B) a surplus of 800 units 
C) a shortage of 200 units 
D) a shortage of 400 units 
A) a shortage of 800 units 
B) a surplus of 800 units 
C) a shortage of 200 units 
D) a shortage of 400 units

Question 14

Market demand is

Accepted Answer

A) the total quantities demanded of all consumers of a particular item at given prices. 
B) a movement along the demand curve in response to the market. 
C) total equilibrium demand for the market. 
D) the demand for and supply of a good or service. 
A) the total quantities demanded of all consumers of a particular item at given prices. 
B) a movement along the demand curve in response to the market. 
C) total equilibrium demand for the market. 
D) the demand for and supply of a good or service.

Question 15

Which of the following will cause a movement along the demand curve for shoes?

Accepted Answer

A) an increase in the price of socks 
B) an increase in income 
C) an increase in the price of shoes 
D) all of the above 
A) an increase in the price of socks 
B) an increase in income 
C) an increase in the price of shoes 
D) all of the above

Question 16

Which of the following will shift the supply curve for laptop computers to the left?

Accepted Answer

A) development of a cheaper microchip used in laptop computer production 
B) a subsidy to the laptop computer industry 
C) expectations of a future decline in laptop computer prices 
D) a reduction of the number of firms that make laptop computers 
A) development of a cheaper microchip used in laptop computer production 
B) a subsidy to the laptop computer industry 
C) expectations of a future decline in laptop computer prices 
D) a reduction of the number of firms that make laptop computers

Question 17

Consider the following:  
The relative price of movies this year has

Accepted Answer

A) increased. 
B) decreased. 
C) stayed the same. 
D) Not enough information has been given to calculate an answer. 
A) increased. 
B) decreased. 
C) stayed the same. 
D) Not enough information has been given to calculate an answer.

Question 18

-Refer to the above figure. Other things being equal, if price is at P₂, then we would expect

Accepted Answer

A) price to decline until an equilibrium is achieved at P₀. 
B) consumers to reduce their offering price for the good. 
C) an excess quantity demanded to occur. 
D) consumers to bid against each other for goods and force the price still higher. 
A) price to decline until an equilibrium is achieved at P₀. 
B) consumers to reduce their offering price for the good. 
C) an excess quantity demanded to occur. 
D) consumers to bid against each other for goods and force the price still higher.

Question 19

An increase in demand occurs when

Accepted Answer

A) we measure price in money price rather than real price. 
B) we move up the demand curve. 
C) the demand curve shifts to the right. 
D) the demand curve shifts to the left. 
A) we measure price in money price rather than real price. 
B) we move up the demand curve. 
C) the demand curve shifts to the right. 
D) the demand curve shifts to the left.

Question 20

-Refer to the above figure. A movement from point A to point B indicates

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.

If a scalper for the Super Bowl is able to charge $10,000 for a front-row seat, this suggests that

-Refer to the above figure. Which of the following statements is TRUE?

The equilibrium or market clearing price occurs at the point at which

A supply curve

The market supply curve is found by

Which of the following are substitute goods?

-According to the above figure for a gasoline market, what happens when the price per gallon of gasoline jumps from $1 to $4?

-Refer to the above figure. The highest price that consumers would be willing to pay for quantity Q₂ is

-According to the above figure, a shortage is shown between which two points?

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

What would happen in the market for prescription drugs if people begin to view over-the-counter remedies as a good substitute for prescription medications?

Equilibrium in a market occurs when

-According to the above table, at a price of $2 per unit, which of the following would exist?

Market demand is

Which of the following will cause a movement along the demand curve for shoes?

Which of the following will shift the supply curve for laptop computers to the left?

Consider the following: The relative price of movies this year has

-Refer to the above figure. Other things being equal, if price is at P₂, then we would expect

An increase in demand occurs when

-Refer to the above figure. A movement from point A to point B indicates

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

If a scalper for the Super Bowl is able to charge $10,000 for a front-row seat, this suggests that

-Refer to the above figure. Which of the following statements is TRUE?

The equilibrium or market clearing price occurs at the point at which

A supply curve

The market supply curve is found by

Which of the following are substitute goods?

-According to the above figure for a gasoline market, what happens when the price per gallon of gasoline jumps from $1 to $4?

-Refer to the above figure. The highest price that consumers would be willing to pay for quantity Q₂ is

-According to the above figure, a shortage is shown between which two points?

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

What would happen in the market for prescription drugs if people begin to view over-the-counter remedies as a good substitute for prescription medications?

Equilibrium in a market occurs when

-According to the above table, at a price of $2 per unit, which of the following would exist?

Market demand is

Which of the following will cause a movement along the demand curve for shoes?

Which of the following will shift the supply curve for laptop computers to the left?

Consider the following: The relative price of movies this year has

-Refer to the above figure. Other things being equal, if price is at P₂, then we would expect

An increase in demand occurs when

-Refer to the above figure. A movement from point A to point B indicates

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