Question 1

The supply and demand model is not appropriate when analyzing markets where

Accepted Answer

A)  there are many buyers. 
B)  there are few sellers. 
C)  suppliers provide identical products. 
D)  transactions occur easily. 
E)  both buyers and sellers know all the information about the product. 
A)  there are many buyers. 
B)  there are few sellers. 
C)  suppliers provide identical products. 
D)  transactions occur easily. 
E)  both buyers and sellers know all the information about the product.

Question 2

Suppose that the equilibrium price of French fries rises,while the equilibrium quantity falls.The most consistent explanation for these observations is

Accepted Answer

A)  a decrease in the demand for French fries with no change in supply. 
B)  an increase in the demand for French fries with no change in supply. 
C)  an increase in the supply of French fries and an increase in the demand for French fries. 
D)  a decrease in the supply of French fries with no change in demand. 
E)  an increase in the supply of French fries with no change in demand. 
A)  a decrease in the demand for French fries with no change in supply. 
B)  an increase in the demand for French fries with no change in supply. 
C)  an increase in the supply of French fries and an increase in the demand for French fries. 
D)  a decrease in the supply of French fries with no change in demand. 
E)  an increase in the supply of French fries with no change in demand.

Question 3

The supply curve for any good is an upward-sloping function of

Accepted Answer

A)  buyers' incomes. 
B)  sellers' profit margins. 
C)  its own price. 
D)  its price and its cost of production. 
E)  its price as well as buyers' incomes and tastes. 
A)  buyers' incomes. 
B)  sellers' profit margins. 
C)  its own price. 
D)  its price and its cost of production. 
E)  its price as well as buyers' incomes and tastes.

Question 4

If the wages paid to workers in the steel industry rise,one would expect to see a(n)

Accepted Answer

A)  increase in the quantity of steel supplied. 
B)  increase in the supply of steel. 
C)  increase in the demand for steel. 
D)  decrease in the quantity of steel supplied. 
E)  decrease in the supply of steel. 
A)  increase in the quantity of steel supplied. 
B)  increase in the supply of steel. 
C)  increase in the demand for steel. 
D)  decrease in the quantity of steel supplied. 
E)  decrease in the supply of steel.

Question 5

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

Accepted Answer

A)  price will be less than $40. 
B)  quantity will be greater than 70 units. 
C)  price will be greater than $50. 
D)  quantity will be less than 60 units. 
E)  quantity will be less than 70 units but greater than 60 units. 
A)  price will be less than $40. 
B)  quantity will be greater than 70 units. 
C)  price will be greater than $50. 
D)  quantity will be less than 60 units. 
E)  quantity will be less than 70 units but greater than 60 units.

Question 6

-Assume supply and demand both shift to the right so that D2 and S2 are now the relevant curves.The new equilibrium occurs at a price of _______ and ______ units exchanged.

Accepted Answer

A)  $90;50 
B)  $60;20 
C)  $60;40 
D)  $30;30 
E)  $30;70 
A)  $90;50 
B)  $60;20 
C)  $60;40 
D)  $30;30 
E)  $30;70

Question 7

Potential buyers and sellers of a particular good comprise the

Accepted Answer

A)  market for the good. 
B)  demand for the good. 
C)  supply for the good. 
D)  production possibilities curve for the good. 
E)  economic model for all goods in a mixed economy 
A)  market for the good. 
B)  demand for the good. 
C)  supply for the good. 
D)  production possibilities curve for the good. 
E)  economic model for all goods in a mixed economy

Question 8

Some economics students cite the following three factors that may cause the demand curve for houses in Calgary to shift to the right when the price of oil rises:
(1)the population in Calgary increase during oil booms;
(2)the income of individuals increase during oil booms;
(3)the price of the average house rises substantially during oil booms,but is not expected to rise further.
Which of the above factors were cited correctly?

Accepted Answer

A)  Factor 1 only. 
B)  Factor 2 only. 
C)  Factor 3 only. 
D)  Factors 1 and 2. 
E)  Factors 1,2,and 3. 
A)  Factor 1 only. 
B)  Factor 2 only. 
C)  Factor 3 only. 
D)  Factors 1 and 2. 
E)  Factors 1,2,and 3.

Question 9

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that:

Accepted Answer

A)  the demand curve is not downward-sloping after all. 
B)  the demand curve is generally downward-sloping,but it does not apply to the housing market in Toronto. 
C)  there are exceptions to the generally downward-sloping demand curve;the period 1971 to 1991 is an example of such exceptions. 
D)  the demand curve for small bungalows around Toronto in 1971 to 1991 is upward-sloping. 
E)  over the 30-year period,the demand curve most likely shifted to the right. 
A)  the demand curve is not downward-sloping after all. 
B)  the demand curve is generally downward-sloping,but it does not apply to the housing market in Toronto. 
C)  there are exceptions to the generally downward-sloping demand curve;the period 1971 to 1991 is an example of such exceptions. 
D)  the demand curve for small bungalows around Toronto in 1971 to 1991 is upward-sloping. 
E)  over the 30-year period,the demand curve most likely shifted to the right.

Question 10

-The equilibrium price and quantity for this market are

Accepted Answer

A)  $10 and 0 units. 
B)  $8 and 6 units. 
C)  $6 and 4 units. 
D)  $4 and 6 units. 
E)  $2 and 8 units. 
A)  $10 and 0 units. 
B)  $8 and 6 units. 
C)  $6 and 4 units. 
D)  $4 and 6 units. 
E)  $2 and 8 units.

Question 11

Suppose that both the supply of beer and the demand for beer decrease.One can predict that the

Accepted Answer

A)  equilibrium price will rise but the equilibrium quantity can increase or decrease. 
B)  equilibrium price and quantity will decrease. 
C)  equilibrium price and quantity will rise. 
D)  equilibrium quantity will fall but the equilibrium price can rise or fall. 
E)  change in price and quantity are both unknown. 
A)  equilibrium price will rise but the equilibrium quantity can increase or decrease. 
B)  equilibrium price and quantity will decrease. 
C)  equilibrium price and quantity will rise. 
D)  equilibrium quantity will fall but the equilibrium price can rise or fall. 
E)  change in price and quantity are both unknown.

Question 12

Suppose that the price of beer increases.One would expect to see

Accepted Answer

A)  an increase in the quantity of wine demanded. 
B)  an increase in the demand for wine. 
C)  a decrease in the quantity of wine demanded. 
D)  a decrease in the demand for wine. 
E)  no change in the wine market. 
A)  an increase in the quantity of wine demanded. 
B)  an increase in the demand for wine. 
C)  a decrease in the quantity of wine demanded. 
D)  a decrease in the demand for wine. 
E)  no change in the wine market.

Question 13

An increase in the price of Colgate toothpaste,a substitute for Crest toothpaste,will cause

Accepted Answer

A)  the quantity of Crest toothpaste demanded to increase. 
B)  the quantity of Colgate toothpaste demanded to increase. 
C)  the demand for Colgate toothpaste to decrease. 
D)  the demand for Colgate toothpaste to increase. 
E)  the demand for Crest toothpaste to increasE. 
A)  the quantity of Crest toothpaste demanded to increase. 
B)  the quantity of Colgate toothpaste demanded to increase. 
C)  the demand for Colgate toothpaste to decrease. 
D)  the demand for Colgate toothpaste to increase. 
E)  the demand for Crest toothpaste to increasE.

Question 14

Suppose that the demand curve for a good is given by QD = 80 - PD,while the supply curve for the good is given by QS = 3PS.If the price in this market is currently equal to 10,then the quantity demanded is ______ and the quantity supplied is _______.

Accepted Answer

A)  30;70 
B)  30;80 
C)  80;30 
D)  80;3 
E)  70;30 
A)  30;70 
B)  30;80 
C)  80;30 
D)  80;3 
E)  70;30

Question 15

Suppose that both the equilibrium price and the equilibrium quantity of mustard rise.The most consistent explanation for these observations is

Accepted Answer

A)  a decrease in the demand for mustard with no change in supply. 
B)  a decrease in the supply of mustard with no change in demand. 
C)  a decrease in the demand for mustard and a decrease in the supply of mustard. 
D)  an increase in the demand for mustard with no change in supply. 
E)  an increase in the supply of mustard with no change in demand. 
A)  a decrease in the demand for mustard with no change in supply. 
B)  a decrease in the supply of mustard with no change in demand. 
C)  a decrease in the demand for mustard and a decrease in the supply of mustard. 
D)  an increase in the demand for mustard with no change in supply. 
E)  an increase in the supply of mustard with no change in demand.

Question 16

If price is below the equilibrium value,then

Accepted Answer

A)  producers cannot sell all they make. 
B)  neither buyers nor sellers wish to alter their behaviour. 
C)  the government must enforce price controls. 
D)  buyers will start to bid the price up. 
E)  a surplus develops. 
A)  producers cannot sell all they make. 
B)  neither buyers nor sellers wish to alter their behaviour. 
C)  the government must enforce price controls. 
D)  buyers will start to bid the price up. 
E)  a surplus develops.

Question 17

If the price of network servers increases,the impact on firms doing business through the internet will be to

Accepted Answer

A)  shift the supply curve to the right. 
B)  move down along the supply curve. 
C)  shift the supply curve to the left. 
D)  move up along the supply curve. 
E)  shift the demand curve to the right. 
A)  shift the supply curve to the right. 
B)  move down along the supply curve. 
C)  shift the supply curve to the left. 
D)  move up along the supply curve. 
E)  shift the demand curve to the right.

Question 18

One of the assumptions of the supply and demand model is that

Accepted Answer

A)  there are many sellers and few buyers. 
B)  there are few sellers and many buyers. 
C)  there are few sellers and few buyers. 
D)  suppliers provide identical products. 
E)  sellers have more information than buyers about the product. 
A)  there are many sellers and few buyers. 
B)  there are few sellers and many buyers. 
C)  there are few sellers and few buyers. 
D)  suppliers provide identical products. 
E)  sellers have more information than buyers about the product.

Question 19

-Moving from supply curve S1 to supply curve S2 illustrates a(n)

Accepted Answer

A)  decrease in quantity demanded. 
B)  increase in supply. 
C)  decrease in supply. 
D)  increase in quantity supplied. 
E)  decrease in quantity supplied. 
A)  decrease in quantity demanded. 
B)  increase in supply. 
C)  decrease in supply. 
D)  increase in quantity supplied. 
E)  decrease in quantity supplied.

Question 20

At the beginning of the fall semester,university towns experience large increases in their populations,causing a(n)

Accepted Answer

A)  increase in the quantity of apartments demanded. 
B)  increase in the supply of apartments. 
C)  increase in the demand for apartments. 
D)  decrease in the quantity of apartments supplied. 
E)  decrease in the supply of apartments. 
A)  increase in the quantity of apartments demanded. 
B)  increase in the supply of apartments. 
C)  increase in the demand for apartments. 
D)  decrease in the quantity of apartments supplied. 
E)  decrease in the supply of apartments.

The supply and demand model is not appropriate when analyzing markets where

Suppose that the equilibrium price of French fries rises,while the equilibrium quantity falls.The most consistent explanation for these observations is

The supply curve for any good is an upward-sloping function of

If the wages paid to workers in the steel industry rise,one would expect to see a(n)

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

-Assume supply and demand both shift to the right so that D2 and S2 are now the relevant curves.The new equilibrium occurs at a price of _ and units exchanged.

Potential buyers and sellers of a particular good comprise the

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that:

-The equilibrium price and quantity for this market are

Suppose that both the supply of beer and the demand for beer decrease.One can predict that the

Suppose that the price of beer increases.One would expect to see

An increase in the price of Colgate toothpaste,a substitute for Crest toothpaste,will cause

Suppose that the demand curve for a good is given by Q_D = 80 - P_D,while the supply curve for the good is given by Q_S = 3P_S.If the price in this market is currently equal to 10,then the quantity demanded is and the quantity supplied is _.

Suppose that both the equilibrium price and the equilibrium quantity of mustard rise.The most consistent explanation for these observations is

If price is below the equilibrium value,then

If the price of network servers increases,the impact on firms doing business through the internet will be to

One of the assumptions of the supply and demand model is that

-Moving from supply curve S1 to supply curve S2 illustrates a(n)

At the beginning of the fall semester,university towns experience large increases in their populations,causing a(n)

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

The supply and demand model is not appropriate when analyzing markets where

Suppose that the equilibrium price of French fries rises,while the equilibrium quantity falls.The most consistent explanation for these observations is

The supply curve for any good is an upward-sloping function of

If the wages paid to workers in the steel industry rise,one would expect to see a(n)

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

-Assume supply and demand both shift to the right so that D2 and S2 are now the relevant curves.The new equilibrium occurs at a price of _______ and ______ units exchanged.

Potential buyers and sellers of a particular good comprise the

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that:

-The equilibrium price and quantity for this market are

Suppose that both the supply of beer and the demand for beer decrease.One can predict that the

Suppose that the price of beer increases.One would expect to see

An increase in the price of Colgate toothpaste,a substitute for Crest toothpaste,will cause

Suppose that the demand curve for a good is given by QD = 80 - PD,while the supply curve for the good is given by QS = 3PS.If the price in this market is currently equal to 10,then the quantity demanded is ______ and the quantity supplied is _______.

Suppose that both the equilibrium price and the equilibrium quantity of mustard rise.The most consistent explanation for these observations is

If price is below the equilibrium value,then

If the price of network servers increases,the impact on firms doing business through the internet will be to

One of the assumptions of the supply and demand model is that

-Moving from supply curve S1 to supply curve S2 illustrates a(n)

At the beginning of the fall semester,university towns experience large increases in their populations,causing a(n)

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

-Assume supply and demand both shift to the right so that D2 and S2 are now the relevant curves.The new equilibrium occurs at a price of _ and units exchanged.

Suppose that the demand curve for a good is given by Q_D = 80 - P_D,while the supply curve for the good is given by Q_S = 3P_S.If the price in this market is currently equal to 10,then the quantity demanded is and the quantity supplied is _.