Question 1

The law of demand states that,ceteris paribus,price and quantity demanded are:

Accepted Answer

A)  directly related. 
B)  inversely related. 
C)  uniformly related. 
D)  horizontally related. 
A)  directly related. 
B)  inversely related. 
C)  uniformly related. 
D)  horizontally related.

Question 2

A change in supply cannot be caused by a change in:

Accepted Answer

A)  resource prices. 
B)  technology. 
C)  prices of other goods. 
D)  the price of the good itself. 
E)  the number of suppliers. 
A)  resource prices. 
B)  technology. 
C)  prices of other goods. 
D)  the price of the good itself. 
E)  the number of suppliers.

Question 3

Assume Qs represents the quantity supplied at a given price and Qd represents the quantity demanded at the same given price.Which of the following market conditions produce a downward movement of the price?

Accepted Answer

A)  Qs = 1,000, Qd = 750. 
B)  Qs = 750, Qd = 750. 
C)  Qs = 750, Qd = 1,000. 
D)  Qs = 1,000, Qd = 1,000. 
A)  Qs = 1,000, Qd = 750. 
B)  Qs = 750, Qd = 750. 
C)  Qs = 750, Qd = 1,000. 
D)  Qs = 1,000, Qd = 1,000.

Question 4

The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the

Accepted Answer

A)  supply curve. 
B)  demand curve. 
C)  production possibilities curve. 
D)  consumption curve. 
A)  supply curve. 
B)  demand curve. 
C)  production possibilities curve. 
D)  consumption curve.

Question 5

A curve that is derived by summing horizontally individual demand curves is called:

Accepted Answer

A)  aggregate supply. 
B)  market supply. 
C)  aggregate demand. 
D)  market demand. 
A)  aggregate supply. 
B)  market supply. 
C)  aggregate demand. 
D)  market demand.

Question 6

A decrease in supply means that:

Accepted Answer

A)  demand will increase by the same amount. 
B)  the quantity demanded will increase. 
C)  there is a movement down and to the left along the supply curve. 
D)  the quantity supplied at every price will decrease. 
E)  the supply curve will shift out and to the right. 
A)  demand will increase by the same amount. 
B)  the quantity demanded will increase. 
C)  there is a movement down and to the left along the supply curve. 
D)  the quantity supplied at every price will decrease. 
E)  the supply curve will shift out and to the right.

Question 7

Assuming that travel from New York to Los Angeles is a normal good,a decrease in consumer income,other things being equal,will:

Accepted Answer

A)  decrease the quantity demanded of travel to Los Angeles. 
B)  increase the demand for travel to Los Angeles. 
C)  decrease the demand for travel to Los Angeles. 
D)  increase the quantity of travel to Los Angeles demanded. 
A)  decrease the quantity demanded of travel to Los Angeles. 
B)  increase the demand for travel to Los Angeles. 
C)  decrease the demand for travel to Los Angeles. 
D)  increase the quantity of travel to Los Angeles demanded.

Question 8

Which of the following best represents the effects of a decrease in the price of coffee,other things being equal?

Accepted Answer

A)  A leftward shift in the demand curve for coffee. 
B)  A downward movement along the demand curve for coffee. 
C)  A rightward shift in the demand curve for coffee. 
D)  An upward movement along the demand curve for coffee. 
A)  A leftward shift in the demand curve for coffee. 
B)  A downward movement along the demand curve for coffee. 
C)  A rightward shift in the demand curve for coffee. 
D)  An upward movement along the demand curve for coffee.

Question 9

A supply schedule shows the relationship between:

Accepted Answer

A)  demand and supply. 
B)  supply and income. 
C)  price and income. 
D)  quantity supplied and price. 
E)  income and quantity supplied. 
A)  demand and supply. 
B)  supply and income. 
C)  price and income. 
D)  quantity supplied and price. 
E)  income and quantity supplied.

Question 10

Assume that oranges and peaches can both be grown on the same type of land,a decrease in the price of peaches,other things being equal,will cause a(n):

Accepted Answer

A)  upward movement along the supply curve for oranges. 
B)  downward movement along the supply curve for oranges. 
C)  rightward shift of the supply curve for oranges. 
D)  leftward shift of the supply curve for oranges. 
A)  upward movement along the supply curve for oranges. 
B)  downward movement along the supply curve for oranges. 
C)  rightward shift of the supply curve for oranges. 
D)  leftward shift of the supply curve for oranges.

The law of demand states that,ceteris paribus,price and quantity demanded are:

A change in supply cannot be caused by a change in:

Assume Qs represents the quantity supplied at a given price and Qd represents the quantity demanded at the same given price.Which of the following market conditions produce a downward movement of the price?

The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the

A curve that is derived by summing horizontally individual demand curves is called:

A decrease in supply means that:

Assuming that travel from New York to Los Angeles is a normal good,a decrease in consumer income,other things being equal,will:

Which of the following best represents the effects of a decrease in the price of coffee,other things being equal?

A supply schedule shows the relationship between:

Assume that oranges and peaches can both be grown on the same type of land,a decrease in the price of peaches,other things being equal,will cause a(n):

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

Exam 3: Part 1: Market Demand and Supply

The law of demand states that,ceteris paribus,price and quantity demanded are:

A change in supply cannot be caused by a change in:

Assume Qs represents the quantity supplied at a given price and Qd represents the quantity demanded at the same given price.Which of the following market conditions produce a downward movement of the price?

The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the

A curve that is derived by summing horizontally individual demand curves is called:

A decrease in supply means that:

Assuming that travel from New York to Los Angeles is a normal good,a decrease in consumer income,other things being equal,will:

Which of the following best represents the effects of a decrease in the price of coffee,other things being equal?

A supply schedule shows the relationship between:

Assume that oranges and peaches can both be grown on the same type of land,a decrease in the price of peaches,other things being equal,will cause a(n):

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters