Question 1

Which of the following explains why supply curves slope upward?

Accepted Answer

A)  prices and income 
B)  increasing marginal cost 
C)  resources and technology 
D)  substitutes in production and complements in production 
A)  prices and income 
B)  increasing marginal cost 
C)  resources and technology 
D)  substitutes in production and complements in production B

Question 2

-The above figure shows the market for pizza.Which figure shows the effect of an increase in the price of sandwiches,which for consumers are substitutes for pizza?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D A

Question 3

-The above figures show the market for oranges.Which figure(s) shows the effect of a new government program that provides each public school child with an orange to start the day?

Accepted Answer

A)  Figure A 
B)  Figure D 
C)  Figures A and C 
D)  Figures A and D 
A)  Figure A 
B)  Figure D 
C)  Figures A and C 
D)  Figures A and D A

Question 4

When there is a surplus in the market,the quantity sold is

Accepted Answer

A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought. 
A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought.

Question 5

Between 2000 and 2010,the price of a PC fell and the quantity of PCs sold increased.Which of the explanations below is consistent with these facts?

Accepted Answer

A)  The demand for PCs increased by more then the supply of PCs increased. 
B)  The supply of PCs increased by more than the demand for PCs increased. 
C)  The demand for PCs decreased by more than the supply of PCs increased. 
D)  Both the supply of PCs and the demand for PCs decreased. 
A)  The demand for PCs increased by more then the supply of PCs increased. 
B)  The supply of PCs increased by more than the demand for PCs increased. 
C)  The demand for PCs decreased by more than the supply of PCs increased. 
D)  Both the supply of PCs and the demand for PCs decreased.

Question 6

-Consider the demand curves for soft drinks shown in the figure above.Suppose the economy is at point a.An increase in the price of a soda results in a movement to a point such as

Accepted Answer

A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d. 
A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d.

Question 7

Consumers' income declines and,as a result,the demand for margarine increases.Is margarine a normal or an inferior good?
Explain.

Accepted Answer

Margarine is an inferior good.

Question 8

If shoes rise in price,the demand curve for shoes ________ and the quantity of shoes demanded ________.

Accepted Answer

A)  shifts leftward; decreases 
B)  shifts leftward; does not change 
C)  does not shift; decreases 
D)  does not shift; does not change 
A)  shifts leftward; decreases 
B)  shifts leftward; does not change 
C)  does not shift; decreases 
D)  does not shift; does not change

Question 9

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in the price of a substitute for fruit snacks?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 10

When a market is in equilibrium,

Accepted Answer

A)  everyone has all they want of the commodity in question. 
B)  there is no shortage and no surplus at the equilibrium price. 
C)  the number of buyers is exactly equal to the number of sellers. 
D)  the supply curve has the same slope as the demand curve. 
A)  everyone has all they want of the commodity in question. 
B)  there is no shortage and no surplus at the equilibrium price. 
C)  the number of buyers is exactly equal to the number of sellers. 
D)  the supply curve has the same slope as the demand curve.

Question 11

A change in the price of a good

Accepted Answer

A)  shifts the good's demand curve and also causes a movement along it. 
B)  shifts the good's demand curve but does not cause a movement along it. 
C)  does not shift the good's demand curve but does cause a movement along it. 
D)  neither shifts the good's demand curve nor causes a movement along it. 
A)  shifts the good's demand curve and also causes a movement along it. 
B)  shifts the good's demand curve but does not cause a movement along it. 
C)  does not shift the good's demand curve but does cause a movement along it. 
D)  neither shifts the good's demand curve nor causes a movement along it.

Question 12

-In the figure,the equilibrium price is initially $3 per bushel of wheat.If buyers come to expect that the price of a bushel of wheat will rise in the future,but sellers do not,the current equilibrium price will

Accepted Answer

A)  rise. 
B)  not change. 
C)  fall. 
D)  Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market. 
A)  rise. 
B)  not change. 
C)  fall. 
D)  Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.

Question 13

Cable television companies must pay increased charges by the networks for the programs the cable companies carry.As a result,the price of cable television rises.Thus

Accepted Answer

A)  the demand curve for cable television service shifts rightward. 
B)  the demand curve for cable television service shifts leftward. 
C)  there is a movement down the demand curve for cable television to a higher quantity demanded. 
D)  there is a movement up the demand curve for cable television to a smaller quantity demanded. 
A)  the demand curve for cable television service shifts rightward. 
B)  the demand curve for cable television service shifts leftward. 
C)  there is a movement down the demand curve for cable television to a higher quantity demanded. 
D)  there is a movement up the demand curve for cable television to a smaller quantity demanded.

Question 14

Explain why a relative price is an opportunity cost.

Accepted Answer

A relative price is the ratio of the pri

Question 15

-The equilibrium quantity in the above figure is

Accepted Answer

A)  200 units. 
B)  300 units. 
C)  400 units. 
D)  600 units. 
A)  200 units. 
B)  300 units. 
C)  400 units. 
D)  600 units.

Question 16

-Which of the following shifts the supply curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers 
A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers

Question 17

Which of the following is true?

Accepted Answer

A)  For an inferior good, when income increases, the demand curve shifts leftward. 
B)  The demand curve for a good shifts leftward when the price of a substitute rises. 
C)  If consumers expect the price of a good will rise in the future, the demand curve shifts leftward. 
D)  An increase in population shifts the demand curve for most goods leftward. 
A)  For an inferior good, when income increases, the demand curve shifts leftward. 
B)  The demand curve for a good shifts leftward when the price of a substitute rises. 
C)  If consumers expect the price of a good will rise in the future, the demand curve shifts leftward. 
D)  An increase in population shifts the demand curve for most goods leftward.

Question 18

$$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { disc) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { demanded }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { disc) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { supplied }
\end{array} \
\hline 4 & 36,000 & 4 & 4,000 \
\hline 8 & 32,000 & 8 & 8,000 \
\hline 12 & 28,000 & 12 & 12,000 \
\hline 16 & 24,000 & 16 & 16,000 \
\hline 20 & 20,000 & 20 & 20,000 \
\hline 24 & 16,000 & 24 & 24,000 \
\hline 28 & 12,000 & 28 & 28,000 \
\hline 32 & 8,000 & 32 & 32,000 \
\hline 36 & 4,000 & 36 & 36,000 \
\hline
\end{array}$$
-The above table gives the demand and supply schedules for Blu-ray discs.Suppose that the price of a Blu-ray disc player increases,resulting in the demand for Blu-ray discs decreasing by 8,000 units at all prices.What are the new equilibrium quantity and equilibrium price of Blu-ray discs?

Accepted Answer

A)  8,000 and $8 
B)  16,000 and $16 
C)  20,000 and $20 
D)  28,000 and $28 
A)  8,000 and $8 
B)  16,000 and $16 
C)  20,000 and $20 
D)  28,000 and $28

Question 19

The opportunity cost of a hot dog in terms of hamburgers is the

Accepted Answer

A)  ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. 
B)  ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers. 
C)  money price of a hot dog minus the money price of a hamburger. 
D)  ratio of the money price of a hot dog to the money price of a hamburger. 
A)  ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. 
B)  ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers. 
C)  money price of a hot dog minus the money price of a hamburger. 
D)  ratio of the money price of a hot dog to the money price of a hamburger.

Question 20

If the price of a video rental is below its equilibrium price,there will be a ________ of video rentals and the price will ________.

Accepted Answer

A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall 
A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall

Which of the following explains why supply curves slope upward?

-The above figure shows the market for pizza.Which figure shows the effect of an increase in the price of sandwiches,which for consumers are substitutes for pizza?

-The above figures show the market for oranges.Which figure(s) shows the effect of a new government program that provides each public school child with an orange to start the day?

When there is a surplus in the market,the quantity sold is

Between 2000 and 2010,the price of a PC fell and the quantity of PCs sold increased.Which of the explanations below is consistent with these facts?

-Consider the demand curves for soft drinks shown in the figure above.Suppose the economy is at point a.An increase in the price of a soda results in a movement to a point such as

Consumers' income declines and,as a result,the demand for margarine increases.Is margarine a normal or an inferior good? Explain.

If shoes rise in price,the demand curve for shoes and the quantity of shoes demanded .

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in the price of a substitute for fruit snacks?

When a market is in equilibrium,

A change in the price of a good

-In the figure,the equilibrium price is initially $3 per bushel of wheat.If buyers come to expect that the price of a bushel of wheat will rise in the future,but sellers do not,the current equilibrium price will

Cable television companies must pay increased charges by the networks for the programs the cable companies carry.As a result,the price of cable television rises.Thus

Explain why a relative price is an opportunity cost.

-The equilibrium quantity in the above figure is

-Which of the following shifts the supply curve for oranges?

Which of the following is true?

The opportunity cost of a hot dog in terms of hamburgers is the

If the price of a video rental is below its equilibrium price,there will be a of video rentals and the price will .

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

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 3: Demand and Supply

Which of the following explains why supply curves slope upward?

-The above figure shows the market for pizza.Which figure shows the effect of an increase in the price of sandwiches,which for consumers are substitutes for pizza?

-The above figures show the market for oranges.Which figure(s) shows the effect of a new government program that provides each public school child with an orange to start the day?

When there is a surplus in the market,the quantity sold is

Between 2000 and 2010,the price of a PC fell and the quantity of PCs sold increased.Which of the explanations below is consistent with these facts?

-Consider the demand curves for soft drinks shown in the figure above.Suppose the economy is at point a.An increase in the price of a soda results in a movement to a point such as

Consumers' income declines and,as a result,the demand for margarine increases.Is margarine a normal or an inferior good? Explain.

If shoes rise in price,the demand curve for shoes ________ and the quantity of shoes demanded ________.

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in the price of a substitute for fruit snacks?

When a market is in equilibrium,

A change in the price of a good

-In the figure,the equilibrium price is initially $3 per bushel of wheat.If buyers come to expect that the price of a bushel of wheat will rise in the future,but sellers do not,the current equilibrium price will

Cable television companies must pay increased charges by the networks for the programs the cable companies carry.As a result,the price of cable television rises.Thus

Explain why a relative price is an opportunity cost.

-The equilibrium quantity in the above figure is

-Which of the following shifts the supply curve for oranges?

Which of the following is true?

The opportunity cost of a hot dog in terms of hamburgers is the

If the price of a video rental is below its equilibrium price,there will be a ________ of video rentals and the price will ________.

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

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

If shoes rise in price,the demand curve for shoes and the quantity of shoes demanded .

If the price of a video rental is below its equilibrium price,there will be a of video rentals and the price will .