Question 1

-As the price decreases,the behaviour of the data in Column 2 is most consistent with

Accepted Answer

A)  a supply curve. 
B)  excess demand. 
C)  excess supply. 
D)  a demand curve. 
E)  an equilibrium. 
A)  a supply curve. 
B)  excess demand. 
C)  excess supply. 
D)  a demand curve. 
E)  an equilibrium. A

Question 2

Which of the following will NOT cause a shift in the supply curve for Athlon processors?

Accepted Answer

A)  An increase in the price of memory. 
B)  A decrease in the price of Intel processors. 
C)  A decrease in the price of motherboards. 
D)  A decrease in the price of Athlon processors. 
E)  An increase in the wages paid to high-tech workers. 
A)  An increase in the price of memory. 
B)  A decrease in the price of Intel processors. 
C)  A decrease in the price of motherboards. 
D)  A decrease in the price of Athlon processors. 
E)  An increase in the wages paid to high-tech workers. D

Question 3

If the price of a good is below the equilibrium price,then

Accepted Answer

A)  the government needs to set a higher price. 
B)  firms,dissatisfied with growing inventories,will raise the price. 
C)  consumers,wanting to ensure they acquire the good,will bid the price higher. 
D)  the government needs to set a lower price. 
E)  firms,dissatisfied with growing inventories,will lower the pricE. 
A)  the government needs to set a higher price. 
B)  firms,dissatisfied with growing inventories,will raise the price. 
C)  consumers,wanting to ensure they acquire the good,will bid the price higher. 
D)  the government needs to set a lower price. 
E)  firms,dissatisfied with growing inventories,will lower the pricE. C

Question 4

Since 1990,per-capita income in China has risen.In addition,computer manufacturers have overcome the enormous 13,000 character barrier to creating a workable keyboard through voice and handwriting.The most likely effect on the market for PCs in China was that initially price _______ while quantity sold _________.

Accepted Answer

A)  fell,then rose;fell,then rose 
B)  fell,then rose;rose continuously 
C)  rose,then fell;fell,then rose 
D)  rose,then fell;rose continuously 
E)  rose,then fell;fell continuously 
A)  fell,then rose;fell,then rose 
B)  fell,then rose;rose continuously 
C)  rose,then fell;fell,then rose 
D)  rose,then fell;rose continuously 
E)  rose,then fell;fell continuously

Question 5

When the demand for a good increases,firms respond by

Accepted Answer

A)  increasing their supply. 
B)  decreasing their costs. 
C)  leaving their production decisions alone. 
D)  increasing their quantity supplied. 
E)  decreasing their supply. 
A)  increasing their supply. 
B)  decreasing their costs. 
C)  leaving their production decisions alone. 
D)  increasing their quantity supplied. 
E)  decreasing their supply.

Question 6

Suppose that one observes that,when the price of peanut butter increases,the demand for crackers increases.One must conclude that

Accepted Answer

A)  peanut butter and crackers are complements. 
B)  peanut butter and crackers are substitutes. 
C)  peanut butter and crackers are normal goods. 
D)  peanut butter and crackers are inferior goods. 
E)  peanut butter and crackers are superior goods. 
A)  peanut butter and crackers are complements. 
B)  peanut butter and crackers are substitutes. 
C)  peanut butter and crackers are normal goods. 
D)  peanut butter and crackers are inferior goods. 
E)  peanut butter and crackers are superior goods.

Question 7

The demand curve illustrates that consumers purchase

Accepted Answer

A)  more of a good as its price rises. 
B)  name brand products more frequently than generic products. 
C)  more of a good as its price falls. 
D)  more of a good as their incomes fall. 
E)  more of a good as their incomes risE. 
A)  more of a good as its price rises. 
B)  name brand products more frequently than generic products. 
C)  more of a good as its price falls. 
D)  more of a good as their incomes fall. 
E)  more of a good as their incomes risE.

Question 8

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then the market reaches an equilibrium at a price of

Accepted Answer

A)  $12.50. 
B)  $10. 
C)  $7.50. 
D)  $5. 
E)  $2.50. 
A)  $12.50. 
B)  $10. 
C)  $7.50. 
D)  $5. 
E)  $2.50.

Question 9

In 1996,"mad cow" disease caused the European Union to ban imported British beef and the British government to ban the sale of older cattle.The effect on the market for British beef was for

Accepted Answer

A)  demand to fall and supply to rise. 
B)  demand to rise and supply to fall. 
C)  demand to rise and supply to rise. 
D)  demand to fall and supply to fall. 
E)  demand to fall and supply to remain unchanged. 
A)  demand to fall and supply to rise. 
B)  demand to rise and supply to fall. 
C)  demand to rise and supply to rise. 
D)  demand to fall and supply to fall. 
E)  demand to fall and supply to remain unchanged.

Question 10

Suppose that a market is currently at equilibrium.A rightward shift of the demand curve would imply

Accepted Answer

A)  a rightward shift of the supply curve. 
B)  a leftward shift of the supply curve. 
C)  that the demand curve would continue to shift to the right over time. 
D)  that the demand curve would eventually have to shift back to its original position. 
E)  that there is an upward movement along the existing supply curvE. 
A)  a rightward shift of the supply curve. 
B)  a leftward shift of the supply curve. 
C)  that the demand curve would continue to shift to the right over time. 
D)  that the demand curve would eventually have to shift back to its original position. 
E)  that there is an upward movement along the existing supply curvE.

Question 11

In the mid-1990s,The Wall Street Journal reported a renewed interest in eating caviar.At the same time,the supply of Russian caviar was shrinking following the collapse of Soviet Communism.As a result of these events,one would expect that the price of caviar ________ while the quantity sold _______.

Accepted Answer

A)  rose;fell 
B)  rose;cannot be predicted because the change is indeterminate 
C)  fell;cannot be predicted because the change is indeterminate 
D)  fell;rose. 
E)  None of these 
A)  rose;fell 
B)  rose;cannot be predicted because the change is indeterminate 
C)  fell;cannot be predicted because the change is indeterminate 
D)  fell;rose. 
E)  None of these

Question 12

Market Equilibrium and Shifts in Demand and Supply
  
-Assume that column A and column C are the initial demand and supply curves.If demand changes to column B,one can infer the new equilibrium

Accepted Answer

A)  price will be less than $40. 
B)  quantity will more than 80 units. 
C)  price will be greater than $40 but less than $50. 
D)  quantity will be less than 70 units. 
E)  price will be greater than $50. 
A)  price will be less than $40. 
B)  quantity will more than 80 units. 
C)  price will be greater than $40 but less than $50. 
D)  quantity will be less than 70 units. 
E)  price will be greater than $50.

Question 13

Which of the following would cause an increase in the quantity supplied in a market?

Accepted Answer

A)  The price farmers receive for their crops rises. 
B)  The United Auto Workers negotiates a wage increase for its union members. 
C)  The price firms pay for insurance falls. 
D)  New,faster computer processors are introduced. 
E)  OPEC limits the production of crude oil. 
A)  The price farmers receive for their crops rises. 
B)  The United Auto Workers negotiates a wage increase for its union members. 
C)  The price firms pay for insurance falls. 
D)  New,faster computer processors are introduced. 
E)  OPEC limits the production of crude oil.

Question 14

As more houses are needed in Calgary due to the oil boom,the demand curve for an average house in Calgary is expected to

Accepted Answer

A)  shift to the right. 
B)  shift to the left. 
C)  move down along the old existing demand curve. 
D)  move up along the old existing demand curve. 
E)  move in the opposite direction as the supply curvE. 
A)  shift to the right. 
B)  shift to the left. 
C)  move down along the old existing demand curve. 
D)  move up along the old existing demand curve. 
E)  move in the opposite direction as the supply curvE.

Question 15

Suppose that a market is currently at equilibrium.A rightward shift of the supply curve would imply

Accepted Answer

A)  a rightward shift of the demand curve. 
B)  a leftward shift of the demand curve. 
C)  that the supply curve would continue to shift to the right over time. 
D)  that the supply curve would eventually have to shift back to its original position. 
E)  that there is a downward movement along the existing demand curvE. 
A)  a rightward shift of the demand curve. 
B)  a leftward shift of the demand curve. 
C)  that the supply curve would continue to shift to the right over time. 
D)  that the supply curve would eventually have to shift back to its original position. 
E)  that there is a downward movement along the existing demand curvE.

Question 16

Market Equilibrium
  
-Assume that column A and column C are the initial demand and supply curves.At a price of $50,the market would experience

Accepted Answer

A)  an equilibrium. 
B)  excess demand of 25 units. 
C)  excess supply of 55 units. 
D)  excess demand of 80 units. 
E)  excess supply of 25 units. 
A)  an equilibrium. 
B)  excess demand of 25 units. 
C)  excess supply of 55 units. 
D)  excess demand of 80 units. 
E)  excess supply of 25 units.

Question 17

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then at a price of $10,the market experiences ______________ equal to _________ units.

Accepted Answer

A)  excess demand;40 
B)  excess demand;20 
C)  excess supply;0 
D)  excess supply;20 
E)  excess supply;60 
A)  excess demand;40 
B)  excess demand;20 
C)  excess supply;0 
D)  excess supply;20 
E)  excess supply;60

Question 18

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that equilibrium price will ________ and equilibrium quantity will ________.

Accepted Answer

A)  fall;change very little 
B)  rise;change very little 
C)  change very little;fall 
D)  change very little;rise 
E)  be the same;be the same 
A)  fall;change very little 
B)  rise;change very little 
C)  change very little;fall 
D)  change very little;rise 
E)  be the same;be the same

Question 19

-Assume that the technology used by firms improves.As a result,supply shifts from _______ to ________ and the equilibrium price moves from __________ to __________.

Accepted Answer

A)  S2;S1;$30;$60 
B)  S1;S2;$30;$60 
C)  S2;S1;$60;$30 
D)  S1;S2;$60;$30 
E)  S1;S2;$60;$60 
A)  S2;S1;$30;$60 
B)  S1;S2;$30;$60 
C)  S2;S1;$60;$30 
D)  S1;S2;$60;$30 
E)  S1;S2;$60;$60

Question 20

Season tickets to the Toronto Maple Leafs games are sold out at $100 per game,leaving some fans without tickets.As the season progresses,it is clear that the Maple Leafs will make it to the playoffs.What is the effect on demand for and resale price of Maple Leafs tickets,assuming resale is legal?

Accepted Answer

A)  Demand will rise and the resale price will remain at $100 per game. 
B)  Demand will rise and the resale price will rise. 
C)  Demand will fall and the resale price will remain at $100 per game. 
D)  Demand will rise and the resale price will fall. 
E)  Demand and the resale price will be unchanged. 
A)  Demand will rise and the resale price will remain at $100 per game. 
B)  Demand will rise and the resale price will rise. 
C)  Demand will fall and the resale price will remain at $100 per game. 
D)  Demand will rise and the resale price will fall. 
E)  Demand and the resale price will be unchanged.

-As the price decreases,the behaviour of the data in Column 2 is most consistent with

Which of the following will NOT cause a shift in the supply curve for Athlon processors?

If the price of a good is below the equilibrium price,then

When the demand for a good increases,firms respond by

Suppose that one observes that,when the price of peanut butter increases,the demand for crackers increases.One must conclude that

The demand curve illustrates that consumers purchase

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then the market reaches an equilibrium at a price of

In 1996,"mad cow" disease caused the European Union to ban imported British beef and the British government to ban the sale of older cattle.The effect on the market for British beef was for

Suppose that a market is currently at equilibrium.A rightward shift of the demand curve would imply

In the mid-1990s,The Wall Street Journal reported a renewed interest in eating caviar.At the same time,the supply of Russian caviar was shrinking following the collapse of Soviet Communism.As a result of these events,one would expect that the price of caviar __ while the quantity sold _.

Market Equilibrium and Shifts in Demand and Supply -Assume that column A and column C are the initial demand and supply curves.If demand changes to column B,one can infer the new equilibrium

Which of the following would cause an increase in the quantity supplied in a market?

As more houses are needed in Calgary due to the oil boom,the demand curve for an average house in Calgary is expected to

Suppose that a market is currently at equilibrium.A rightward shift of the supply curve would imply

Market Equilibrium -Assume that column A and column C are the initial demand and supply curves.At a price of $50,the market would experience

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then at a price of $10,the market experiences ______ equal to _ units.

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that equilibrium price will and equilibrium quantity will .

-Assume that the technology used by firms improves.As a result,supply shifts from _ to and the equilibrium price moves from to ______.

Season tickets to the Toronto Maple Leafs games are sold out at $100 per game,leaving some fans without tickets.As the season progresses,it is clear that the Maple Leafs will make it to the playoffs.What is the effect on demand for and resale price of Maple Leafs tickets,assuming resale is legal?

Measuring Macroeconomic Performance: Output and Prices

Measuring Macroeconomic Performance: Saving and Wealth

Short-Term Economic Fluctuations

Spending and Output in the Short Run

Fiscal Policy

Money, Prices and the Reserve Bank

The Reserve Bank and the Economy

The Aggregate Demand - Aggregate Supply Model

Macroeconomic Policy

The Economy in the Long Run: an Introduction to Economic Growth

The Production Function Approach to Understanding Growth

Savings, Capital Formation and Comparative Economic Growth

International Trade

Exchange Rates and the Open Economy

The Balance of Payments: Net Exports and International Capital Flows

Filters

Exam 3: Measuring Macroeconomic Performance: Wages, Employment and the Labour Market

-As the price decreases,the behaviour of the data in Column 2 is most consistent with

Which of the following will NOT cause a shift in the supply curve for Athlon processors?

If the price of a good is below the equilibrium price,then

When the demand for a good increases,firms respond by

Suppose that one observes that,when the price of peanut butter increases,the demand for crackers increases.One must conclude that

The demand curve illustrates that consumers purchase

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then the market reaches an equilibrium at a price of

In 1996,"mad cow" disease caused the European Union to ban imported British beef and the British government to ban the sale of older cattle.The effect on the market for British beef was for

Suppose that a market is currently at equilibrium.A rightward shift of the demand curve would imply

Market Equilibrium and Shifts in Demand and Supply -Assume that column A and column C are the initial demand and supply curves.If demand changes to column B,one can infer the new equilibrium

Which of the following would cause an increase in the quantity supplied in a market?

As more houses are needed in Calgary due to the oil boom,the demand curve for an average house in Calgary is expected to

Suppose that a market is currently at equilibrium.A rightward shift of the supply curve would imply

Market Equilibrium -Assume that column A and column C are the initial demand and supply curves.At a price of $50,the market would experience

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then at a price of $10,the market experiences ______________ equal to _________ units.

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that equilibrium price will ________ and equilibrium quantity will ________.

-Assume that the technology used by firms improves.As a result,supply shifts from _______ to ________ and the equilibrium price moves from __________ to __________.

Season tickets to the Toronto Maple Leafs games are sold out at $100 per game,leaving some fans without tickets.As the season progresses,it is clear that the Maple Leafs will make it to the playoffs.What is the effect on demand for and resale price of Maple Leafs tickets,assuming resale is legal?

Measuring Macroeconomic Performance: Output and Prices

Measuring Macroeconomic Performance: Saving and Wealth

Short-Term Economic Fluctuations

Spending and Output in the Short Run

Fiscal Policy

Money, Prices and the Reserve Bank

The Reserve Bank and the Economy

The Aggregate Demand - Aggregate Supply Model

Macroeconomic Policy

The Economy in the Long Run: an Introduction to Economic Growth

The Production Function Approach to Understanding Growth

Savings, Capital Formation and Comparative Economic Growth

International Trade

Exchange Rates and the Open Economy

The Balance of Payments: Net Exports and International Capital Flows

Filters

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then at a price of $10,the market experiences ______ equal to _ units.

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that equilibrium price will and equilibrium quantity will .

-Assume that the technology used by firms improves.As a result,supply shifts from _ to and the equilibrium price moves from to ______.