Question 1

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

Accepted Answer

A)  both the supply and the demand for automobiles. 
B)  the supply but not the demand for automobiles. 
C)  the demand but not the supply of automobiles. 
D)  neither the supply nor the demand for automobiles. 
A)  both the supply and the demand for automobiles. 
B)  the supply but not the demand for automobiles. 
C)  the demand but not the supply of automobiles. 
D)  neither the supply nor the demand for automobiles.

Question 2

-In the above figure,if D₂ is the original demand curve and consumers come to expect that the price of the good will rise in the future,which price and quantity might result?

Accepted Answer

A)  point a, with price P₂ and quantity Q₂ 
B)  point b, with price P₁ and quantity Q₁ 
C)  point c, with price P₃ and quantity Q₃ 
D)  point d, with price P₁ and quantity Q₃ 
A)  point a, with price P₂ and quantity Q₂ 
B)  point b, with price P₁ and quantity Q₁ 
C)  point c, with price P₃ and quantity Q₃ 
D)  point d, with price P₁ and quantity Q₃

Question 3

When the price of a good falls,the income effect for a normal good implies that people buy

Accepted Answer

A)  less of that good because the relative price of the good has fallen. 
B)  more of that good because the relative price of the good has risen. 
C)  less of that good because they cannot afford to buy all the things they previously bought. 
D)  more of that good because they can afford to buy more of all the things they previously bought. 
A)  less of that good because the relative price of the good has fallen. 
B)  more of that good because the relative price of the good has risen. 
C)  less of that good because they cannot afford to buy all the things they previously bought. 
D)  more of that good because they can afford to buy more of all the things they previously bought.

Question 4

An increase in technology will shift the good's supply curve rightward.

Accepted Answer

A) True 
 B)False

Question 5

Crude oil can be refined into home heating oil or gasoline.If very cold weather caused the price of home heating oil to increase then,the

Accepted Answer

A)  supply of gasoline would increase. 
B)  demand for gasoline would increase. 
C)  equilibrium price of gasoline would rise. 
D)  Both answers A and C are correct. 
A)  supply of gasoline would increase. 
B)  demand for gasoline would increase. 
C)  equilibrium price of gasoline would rise. 
D)  Both answers A and C are correct.

Question 6

-The above figure shows the market for gasoline.When a hurricane destroys a major refinery that refines oil into gasoline,the

Accepted Answer

A)  demand curve for gasoline shifts from D₁ to D₂ and the supply curve of gasoline does not shift. 
B)  demand curve for gasoline shifts from D₁ to D₂ and the supply curve of gasoline shifts from S₂ to S₁. 
C)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S₂ to S₁. 
D)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S₁ to S₂. 
A)  demand curve for gasoline shifts from D₁ to D₂ and the supply curve of gasoline does not shift. 
B)  demand curve for gasoline shifts from D₁ to D₂ and the supply curve of gasoline shifts from S₂ to S₁. 
C)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S₂ to S₁. 
D)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S₁ to S₂.

Question 7

-The figure above shows supply curves for soft drinks.Suppose the economy is at point a.A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Accepted Answer

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

Question 8

Which of the following is NOT held constant while moving along a supply curve?

Accepted Answer

A)  expected future prices 
B)  the number of sellers 
C)  the price of the good itself 
D)  prices of factors of production 
A)  expected future prices 
B)  the number of sellers 
C)  the price of the good itself 
D)  prices of factors of production

Question 9

Why does an increase in the supply of computers lead to a lower price for a computer?

Accepted Answer

When the supply of a good,such as comput

Question 10

The price of a bag of corn chips is $3,and the price of a bottle of soda is $1.What is the relative price of a bottle of soda?

Accepted Answer

A)  3 bags of corn chips per bottle of soda 
B)  1/3 bag of corn chips per bottle of soda 
C)  $3 
D)  33¢ 
A)  3 bags of corn chips per bottle of soda 
B)  1/3 bag of corn chips per bottle of soda 
C)  $3 
D)  33¢

Question 11

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in income if fruit snacks are an inferior good?

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 12

Ham and eggs are complements.If the price of ham rises,the demand for eggs will

Accepted Answer

A)  increase or decrease but the demand curve for ham will not change. 
B)  decrease and the demand curve for ham will shift rightward. 
C)  not change but there will be a movement along the demand curve for eggs. 
D)  decrease and the demand curve for eggs will shift leftward. 
A)  increase or decrease but the demand curve for ham will not change. 
B)  decrease and the demand curve for ham will shift rightward. 
C)  not change but there will be a movement along the demand curve for eggs. 
D)  decrease and the demand curve for eggs will shift leftward.

Question 13

Kelly graduates and her income increases by $25,000 a year.Other things remaining the same,she increases the quantity of clothes she buys.For Kelly,clothes are ________.

Accepted Answer

A)  an inferior good 
B)  a normal good 
C)  a substitute good 
D)  a complement good 
A)  an inferior good 
B)  a normal good 
C)  a substitute good 
D)  a complement good

Question 14

-Using the above figure,suppose there is a decrease in the number of suppliers.Then

Accepted Answer

A)  the equilibrium price will decrease below $25 per dozen roses. 
B)  we cannot predict what will happen to equilibrium quantity. 
C)  the equilibrium quantity will decrease below 10 dozen roses. 
D)  both the equilibrium price and quantity will increase. 
A)  the equilibrium price will decrease below $25 per dozen roses. 
B)  we cannot predict what will happen to equilibrium quantity. 
C)  the equilibrium quantity will decrease below 10 dozen roses. 
D)  both the equilibrium price and quantity will increase.

Question 15

-Which of the following will NOT shift the supply curve for pick-up trucks?

Accepted Answer

A)  a technological advance 
B)  an increase in the price of a resource used to produce pick-up trucks 
C)  a change in the number of firms supplying pick-up trucks 
D)  a change in the price of pick-up trucks 
A)  a technological advance 
B)  an increase in the price of a resource used to produce pick-up trucks 
C)  a change in the number of firms supplying pick-up trucks 
D)  a change in the price of pick-up trucks

Question 16

The supply curve slopes upward when graphed against ________,because of ________.

Accepted Answer

A)  the price of the good; increasing marginal cost 
B)  the price of the good; decreasing marginal cost 
C)  income; increasing marginal cost 
D)  income; decreasing marginal cost 
A)  the price of the good; increasing marginal cost 
B)  the price of the good; decreasing marginal cost 
C)  income; increasing marginal cost 
D)  income; decreasing marginal cost

Question 17

-Which of the following shifts the supply curve for good X leftward?

Accepted Answer

A)  a situation in which quantity demanded exceeds quantity supplied 
B)  an increase in the cost of the machinery used to produce X 
C)  a technological advance in the production of X 
D)  a decrease in the wages of workers employed to produce X 
A)  a situation in which quantity demanded exceeds quantity supplied 
B)  an increase in the cost of the machinery used to produce X 
C)  a technological advance in the production of X 
D)  a decrease in the wages of workers employed to produce X

Question 18

If income decreases or the price of a complement rises,

Accepted Answer

A)  the demand curve for a normal good shifts leftward. 
B)  the demand curve for a normal good shifts rightward. 
C)  there is an upward movement along the demand curve for the good. 
D)  there is a downward movement along the demand curve for the good. 
A)  the demand curve for a normal good shifts leftward. 
B)  the demand curve for a normal good shifts rightward. 
C)  there is an upward movement along the demand curve for the good. 
D)  there is a downward movement along the demand curve for the good.

Question 19

-The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers.This change is shown in the figure as a shift from

Accepted Answer

A)  D₀ to D₁. 
B)  D₁ to D₀. 
C)  S₀ to S₁. 
D)  S₁ to S₀. 
A)  D₀ to D₁. 
B)  D₁ to D₀. 
C)  S₀ to S₁. 
D)  S₁ to S₀.

Question 20

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

Accepted Answer

A)  a new 8 percent federal excise tax placed on all new car purchases 
B)  an increase in wages for used car salespeople 
C)  a special rebate program on all new cars 
D)  None of the above answers is correct 
A)  a new 8 percent federal excise tax placed on all new car purchases 
B)  an increase in wages for used car salespeople 
C)  a special rebate program on all new cars 
D)  None of the above answers is correct

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

-In the above figure,if D₂ is the original demand curve and consumers come to expect that the price of the good will rise in the future,which price and quantity might result?

When the price of a good falls,the income effect for a normal good implies that people buy

An increase in technology will shift the good's supply curve rightward.

Crude oil can be refined into home heating oil or gasoline.If very cold weather caused the price of home heating oil to increase then,the

-The above figure shows the market for gasoline.When a hurricane destroys a major refinery that refines oil into gasoline,the

-The figure above shows supply curves for soft drinks.Suppose the economy is at point a.A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Which of the following is NOT held constant while moving along a supply curve?

Why does an increase in the supply of computers lead to a lower price for a computer?

The price of a bag of corn chips is $3,and the price of a bottle of soda is $1.What is the relative price of a bottle of soda?

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in income if fruit snacks are an inferior good?

Ham and eggs are complements.If the price of ham rises,the demand for eggs will

Kelly graduates and her income increases by $25,000 a year.Other things remaining the same,she increases the quantity of clothes she buys.For Kelly,clothes are ________.

-Using the above figure,suppose there is a decrease in the number of suppliers.Then

-Which of the following will NOT shift the supply curve for pick-up trucks?

The supply curve slopes upward when graphed against ,because of .

-Which of the following shifts the supply curve for good X leftward?

If income decreases or the price of a complement rises,

-The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers.This change is shown in the figure as a shift from

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

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

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

-In the above figure,if D₂ is the original demand curve and consumers come to expect that the price of the good will rise in the future,which price and quantity might result?

When the price of a good falls,the income effect for a normal good implies that people buy

An increase in technology will shift the good's supply curve rightward.

Crude oil can be refined into home heating oil or gasoline.If very cold weather caused the price of home heating oil to increase then,the

-The above figure shows the market for gasoline.When a hurricane destroys a major refinery that refines oil into gasoline,the

-The figure above shows supply curves for soft drinks.Suppose the economy is at point a.A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Which of the following is NOT held constant while moving along a supply curve?

Why does an increase in the supply of computers lead to a lower price for a computer?

The price of a bag of corn chips is $3,and the price of a bottle of soda is $1.What is the relative price of a bottle of soda?

-The figure above shows the demand for fruit snacks.Which movement reflects an increase in income if fruit snacks are an inferior good?

Ham and eggs are complements.If the price of ham rises,the demand for eggs will

Kelly graduates and her income increases by $25,000 a year.Other things remaining the same,she increases the quantity of clothes she buys.For Kelly,clothes are ________.

-Using the above figure,suppose there is a decrease in the number of suppliers.Then

-Which of the following will NOT shift the supply curve for pick-up trucks?

The supply curve slopes upward when graphed against ________,because of ________.

-Which of the following shifts the supply curve for good X leftward?

If income decreases or the price of a complement rises,

-The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers.This change is shown in the figure as a shift from

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

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

The supply curve slopes upward when graphed against ,because of .