Question 1

What would it mean if a demand curve sloped upward?

Accepted Answer

A)  Quantity demanded drops as the price increases. 
B)  Quantity demanded increases as the price increases. 
C)  There is no relationship between price and quantity demanded. 
D)  Quantity demanded increases as the price drops. 
A)  Quantity demanded drops as the price increases. 
B)  Quantity demanded increases as the price increases. 
C)  There is no relationship between price and quantity demanded. 
D)  Quantity demanded increases as the price drops.

Question 2

$$\begin{array} { | l | l | } 
\hline \text { Price } & \begin{array} { l } 
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline \$ 0 & 1,000 \
\hline \$ 1 & 400 \
\hline \$ 2 & 200 \
\hline \$ 3 & 100 \
\hline \$ 4 & 25 \
\hline
\end{array}$$ Refer to the table,which shows the number of MP3 downloads demanded per month for the students at a certain university.What would happen to the quantity of MP3s demanded at a price of $2 if the university's enrollment were to increase significantly?

Accepted Answer

A)  The quantity demanded would fall below 200 because there would be more students competing for MP3s. 
B)  The quantity demanded would remain at 200 because the number of buyers in a market does not impact the market demand schedule. 
C)  The quantity demanded would increase above 200 because the market demand schedule is the sum of individual demand schedules, and more students mean more individual demand schedules for MP3s. 
D)  The quantity demanded would rise to exactly 400 because every number in the table would simply shift down one row. 
A)  The quantity demanded would fall below 200 because there would be more students competing for MP3s. 
B)  The quantity demanded would remain at 200 because the number of buyers in a market does not impact the market demand schedule. 
C)  The quantity demanded would increase above 200 because the market demand schedule is the sum of individual demand schedules, and more students mean more individual demand schedules for MP3s. 
D)  The quantity demanded would rise to exactly 400 because every number in the table would simply shift down one row.

Question 3

A market demand schedule for hamburgers would NOT include which of the following?

Accepted Answer

A)  Vegetarians, who buy no hamburgers. 
B)  People who eat a cheeseburger every day for lunch. 
C)  The concept of ceteris paribus. 
D)  The labor market. 
A)  Vegetarians, who buy no hamburgers. 
B)  People who eat a cheeseburger every day for lunch. 
C)  The concept of ceteris paribus. 
D)  The labor market.

Question 4

What does an upward-sloping supply curve mean?

Accepted Answer

As the price increases,the quantity supp

Question 5

The Internet has allowed an increasing number of goods and services to be traded on the national market.

Accepted Answer

A) True 
 B)False

Question 6

Natural resources,such as crude oil and fish,are often sold in __________ markets.

Accepted Answer

A)  local 
B)  national 
C)  global 
D)  labor 
A)  local 
B)  national 
C)  global 
D)  labor

Question 7

Global markets consist of buyers and sellers

Accepted Answer

A)  anywhere in the world. 
B)  only within their community. 
C)  within a nation. 
D)  within a state. 
A)  anywhere in the world. 
B)  only within their community. 
C)  within a nation. 
D)  within a state.

Question 8

The demand curve is the graphical counterpart to the

Accepted Answer

A)  demand schedule. 
B)  supply curve. 
C)  supply schedule. 
D)  general demand. 
A)  demand schedule. 
B)  supply curve. 
C)  supply schedule. 
D)  general demand.

Question 9

$$\begin{array} { | l | l | } 
\hline \text { Price } & \begin{array} { l } 
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline \$ 0 & 1,000 \
\hline \$ 1 & 400 \
\hline \$ 2 & 200 \
\hline \$ 3 & 100 \
\hline \$ 4 & 25 \
\hline
\end{array}$$ Refer to the table,which shows the number of MP3 downloads demanded per month for the students at a certain university.Does this demand schedule conform to the law of demand?

Accepted Answer

A)  Yes, because as the price falls, the quantity demanded rises. 
B)  Yes, because as the price falls, the quantity demanded also falls. 
C)  No, because there appears to be no relationship between price and quantity demanded. 
D)  No, because the demand for most goods does not follow the law of demand. 
A)  Yes, because as the price falls, the quantity demanded rises. 
B)  Yes, because as the price falls, the quantity demanded also falls. 
C)  No, because there appears to be no relationship between price and quantity demanded. 
D)  No, because the demand for most goods does not follow the law of demand.

Question 10

If the market price of $10 per lawn leads to the quantity supplied of 15 mowed lawns,and the market price of $15 per lawn leads to 25 lawns mowed,which way does the supply curve slope?

Accepted Answer

A)  Downward. 
B)  Upward. 
C)  Horizontally. 
D)  Vertically. 
A)  Downward. 
B)  Upward. 
C)  Horizontally. 
D)  Vertically.

Question 11

Crude oil is sold on a local market.

Accepted Answer

A) True 
 B)False

Question 12

A demand schedule illustrates the quantities demanded for a particular product or service at different prices.

Accepted Answer

A) True 
 B)False

Question 13

Opportunity cost is defined as the value or benefit of the

Accepted Answer

A)  most expensive item. 
B)  least expensive item. 
C)  supply curve. 
D)  next best alternative. 
A)  most expensive item. 
B)  least expensive item. 
C)  supply curve. 
D)  next best alternative.

Question 14

What phrase do economists use to describe the assumption that everything else about a situation stays the same,while one variable,such as price,changes?

Accepted Answer

A)  E pluribus unum. 
B)  Caveat emptor. 
C)  Vini, vidi, vici. 
D)  Ceteris paribus. 
A)  E pluribus unum. 
B)  Caveat emptor. 
C)  Vini, vidi, vici. 
D)  Ceteris paribus.

Question 15

The average sale price of a home in the United States increased from $207,000 to $297,000 from 2000 to 2005.All else equal,we would expect that during the same time

Accepted Answer

A)  The quantity of new homes supplied also increased. 
B)  The quantity of new homes supplied decreased. 
C)  The quantity of new homes supplied did not change. 
D)  The quantity of new homes supplied changed in proportion to changes in the population. 
A)  The quantity of new homes supplied also increased. 
B)  The quantity of new homes supplied decreased. 
C)  The quantity of new homes supplied did not change. 
D)  The quantity of new homes supplied changed in proportion to changes in the population.

Question 16

If the average market price for haircuts increases,all else equal,which of the following is LEAST likely to occur as a result?

Accepted Answer

A)  More new salons will open. 
B)  Existing salons and barber shops will hire more stylists and barbers. 
C)  Some workers will leave other jobs in order to become hair stylists. 
D)  Many salons will go out of business. 
A)  More new salons will open. 
B)  Existing salons and barber shops will hire more stylists and barbers. 
C)  Some workers will leave other jobs in order to become hair stylists. 
D)  Many salons will go out of business.

Question 17

Give three examples of why new markets are created every day.

Accepted Answer

New technologies create products for nee

Question 18

The law of demand suggests that most demand curves will be

Accepted Answer

A)  upward-sloping. 
B)  a straight line. 
C)  downward-sloping. 
D)  variable. 
A)  upward-sloping. 
B)  a straight line. 
C)  downward-sloping. 
D)  variable.

Question 19

Which of the following is not an example of zero price?

Accepted Answer

A)  Most cable television plans. 
B)  Unlimited cell-to-cell calling plans. 
C)  Unlimited refills of coffee. 
D)  A hot dog at a stand. 
A)  Most cable television plans. 
B)  Unlimited cell-to-cell calling plans. 
C)  Unlimited refills of coffee. 
D)  A hot dog at a stand.

Question 20

The demand schedule reports the quantity demanded at

Accepted Answer

A)  different prices. 
B)  one price. 
C)  the average of all prices. 
D)  the supply price. 
A)  different prices. 
B)  one price. 
C)  the average of all prices. 
D)  the supply price.

What would it mean if a demand curve sloped upward?

A market demand schedule for hamburgers would NOT include which of the following?

What does an upward-sloping supply curve mean?

The Internet has allowed an increasing number of goods and services to be traded on the national market.

Natural resources,such as crude oil and fish,are often sold in __________ markets.

Global markets consist of buyers and sellers

The demand curve is the graphical counterpart to the

Price Quantity Demanded \ 0 1,000 \ 1 400 \ 2 200 \ 3 100 \ 4 25 Refer to the table,which shows the number of MP3 downloads demanded per month for the students at a certain university.Does this demand schedule conform to the law of demand?

If the market price of $10 per lawn leads to the quantity supplied of 15 mowed lawns,and the market price of $15 per lawn leads to 25 lawns mowed,which way does the supply curve slope?

Crude oil is sold on a local market.

A demand schedule illustrates the quantities demanded for a particular product or service at different prices.

Opportunity cost is defined as the value or benefit of the

What phrase do economists use to describe the assumption that everything else about a situation stays the same,while one variable,such as price,changes?

The average sale price of a home in the United States increased from $207,000 to $297,000 from 2000 to 2005.All else equal,we would expect that during the same time

If the average market price for haircuts increases,all else equal,which of the following is LEAST likely to occur as a result?

Give three examples of why new markets are created every day.

The law of demand suggests that most demand curves will be

Which of the following is not an example of zero price?

The demand schedule reports the quantity demanded at

Introduction

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

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Exam 2: Demand and Supply: The Basics of the Market Economy

What would it mean if a demand curve sloped upward?

A market demand schedule for hamburgers would NOT include which of the following?

What does an upward-sloping supply curve mean?

The Internet has allowed an increasing number of goods and services to be traded on the national market.

Natural resources,such as crude oil and fish,are often sold in __________ markets.

Global markets consist of buyers and sellers

The demand curve is the graphical counterpart to the

Price Quantity Demanded \ 0 1,000 \ 1 400 \ 2 200 \ 3 100 \ 4 25 Refer to the table,which shows the number of MP3 downloads demanded per month for the students at a certain university.Does this demand schedule conform to the law of demand?

If the market price of $10 per lawn leads to the quantity supplied of 15 mowed lawns,and the market price of $15 per lawn leads to 25 lawns mowed,which way does the supply curve slope?

Crude oil is sold on a local market.

A demand schedule illustrates the quantities demanded for a particular product or service at different prices.

Opportunity cost is defined as the value or benefit of the

What phrase do economists use to describe the assumption that everything else about a situation stays the same,while one variable,such as price,changes?

The average sale price of a home in the United States increased from $207,000 to $297,000 from 2000 to 2005.All else equal,we would expect that during the same time

If the average market price for haircuts increases,all else equal,which of the following is LEAST likely to occur as a result?

Give three examples of why new markets are created every day.

The law of demand suggests that most demand curves will be

Which of the following is not an example of zero price?

The demand schedule reports the quantity demanded at

Introduction

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters