Question 1

In general,when the supply curve shifts to the left and demand is constant,then the

Accepted Answer

A)  market cannot re-establish an equilibrium. 
B)  equilibrium price will fall. 
C)  equilibrium quantity will rise. 
D)  equilibrium price will rise. 
E)  quantity supplied increases. 
A)  market cannot re-establish an equilibrium. 
B)  equilibrium price will fall. 
C)  equilibrium quantity will rise. 
D)  equilibrium price will rise. 
E)  quantity supplied increases.

Question 2

When a market is not in equilibrium,

Accepted Answer

A)  government intervention is required to achieve equilibrium. 
B)  consumers will organize into special interest groups to promote their agenda. 
C)  firms will increase contributions to political action committees. 
D)  the economic motives of sellers and buyers will move the market to its equilibrium. 
E)  it will simply stay in a state of disequilibrium. 
A)  government intervention is required to achieve equilibrium. 
B)  consumers will organize into special interest groups to promote their agenda. 
C)  firms will increase contributions to political action committees. 
D)  the economic motives of sellers and buyers will move the market to its equilibrium. 
E)  it will simply stay in a state of disequilibrium.

Question 3

The most important determinant of the demand for dental floss is

Accepted Answer

A)  the price of toothpaste. 
B)  the price of toothbrushes. 
C)  consumer income. 
D)  the price of dental floss. 
E)  consumer preferences for healthy gums. 
A)  the price of toothpaste. 
B)  the price of toothbrushes. 
C)  consumer income. 
D)  the price of dental floss. 
E)  consumer preferences for healthy gums.

Question 4

An increase in the price of an input will cause the

Accepted Answer

A)  quantity supplied to decrease. 
B)  demand to decrease. 
C)  supply to decrease. 
D)  quantity supplied to increase. 
E)  demand to increasE. 
A)  quantity supplied to decrease. 
B)  demand to decrease. 
C)  supply to decrease. 
D)  quantity supplied to increase. 
E)  demand to increasE.

Question 5

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then at a price of $7.50,the market experiences ________________.

Accepted Answer

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

Question 6

If the price of an item falls,then one would expect to see a(n)

Accepted Answer

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

Question 7

Assume both the demand for,and the supply of,Athlon 2 GHz processors increase.Which of the following outcomes is certain to occur?

Accepted Answer

A)  The equilibrium price of Athlon 2 Ghz processors will rise. 
B)  The equilibrium quantity of Athlon 2 Ghz processors will rise. 
C)  The equilibrium price of Athlon 2 Ghz processors will fall. 
D)  The equilibrium quantity of Athlon 2 Ghz processors will fall. 
E)  Neither the equilibrium price nor the equilibrium quantity of Athlon 2 Ghz processors can be predicted. 
A)  The equilibrium price of Athlon 2 Ghz processors will rise. 
B)  The equilibrium quantity of Athlon 2 Ghz processors will rise. 
C)  The equilibrium price of Athlon 2 Ghz processors will fall. 
D)  The equilibrium quantity of Athlon 2 Ghz processors will fall. 
E)  Neither the equilibrium price nor the equilibrium quantity of Athlon 2 Ghz processors can be predicted.

Question 8

The equilibrium principle states that

Accepted Answer

A)  a market out of equilibrium leaves no unexploited opportunities for individuals. 
B)  a market out of equilibrium provides the maximum economic surplus. 
C)  a market in equilibrium leaves no unexploited opportunities for individuals. 
D)  a market in equilibrium always leaves unexploited opportunities for individuals. 
E)  no markets are ever in equilibrium. 
A)  a market out of equilibrium leaves no unexploited opportunities for individuals. 
B)  a market out of equilibrium provides the maximum economic surplus. 
C)  a market in equilibrium leaves no unexploited opportunities for individuals. 
D)  a market in equilibrium always leaves unexploited opportunities for individuals. 
E)  no markets are ever in equilibrium.

Question 9

Which of the following is NOT a determinant of demand for gasoline?

Accepted Answer

A)  The price of gasoline. 
B)  The price of diesel. 
C)  The price of automobiles. 
D)  The quantity of gasoline supplied. 
E)  Consumers' incomes. 
A)  The price of gasoline. 
B)  The price of diesel. 
C)  The price of automobiles. 
D)  The quantity of gasoline supplied. 
E)  Consumers' incomes.

Question 10

The supply curve illustrates that firms

Accepted Answer

A)  increase the supply of a good when its price rises. 
B)  increase the quantity supplied of a good when its price rises. 
C)  decrease the quantity supplied of a good when input prices fall. 
D)  increase the quantity supplied of a good when input prices rise. 
E)  decrease the quantity supplied to earn higher profits. 
A)  increase the supply of a good when its price rises. 
B)  increase the quantity supplied of a good when its price rises. 
C)  decrease the quantity supplied of a good when input prices fall. 
D)  increase the quantity supplied of a good when input prices rise. 
E)  decrease the quantity supplied to earn higher profits.

Question 11

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

Accepted Answer

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

Question 12

When a market is not in equilibrium,then

Accepted Answer

A)  it is always possible to identify unexploited opportunities. 
B)  consumers are satisfied with the market. 
C)  firms are satisfied with the market. 
D)  government intervention is necessary. 
E)  it will have a tendency to remain in disequilibrium. 
A)  it is always possible to identify unexploited opportunities. 
B)  consumers are satisfied with the market. 
C)  firms are satisfied with the market. 
D)  government intervention is necessary. 
E)  it will have a tendency to remain in disequilibrium.

Question 13

An increase in the quantity of tea demanded occurs whenever

Accepted Answer

A)  the population of tea drinkers grows. 
B)  the price of coffee rises. 
C)  tea drinkers receive an increase in their incomes. 
D)  the price of lemons falls. 
E)  the price of tea falls. 
A)  the population of tea drinkers grows. 
B)  the price of coffee rises. 
C)  tea drinkers receive an increase in their incomes. 
D)  the price of lemons falls. 
E)  the price of tea falls.

Question 14

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

Accepted Answer

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

Question 15

-Assume that the market is originally at point W.Movement to point Y is a combination of

Accepted Answer

A)  an increase in the quantity supplied and an increase in demand. 
B)  an increase in supply and an increase in demand. 
C)  an increase in supply and an increase in the quantity demanded. 
D)  a decrease in supply and an increase in the quantity demanded. 
E)  an increase in supply and a decrease in the quantity demanded. 
A)  an increase in the quantity supplied and an increase in demand. 
B)  an increase in supply and an increase in demand. 
C)  an increase in supply and an increase in the quantity demanded. 
D)  a decrease in supply and an increase in the quantity demanded. 
E)  an increase in supply and a decrease in the quantity demanded.

Question 16

When we move down along a given demand curve,we know that the

Accepted Answer

A)  price has fallen because the quantity demanded has increased. 
B)  price has increased because the quantity demanded has decreased. 
C)  quantity demanded has increased because the price has fallen. 
D)  quantity demanded has decreased because the price has increased. 
E)  demand has increased because the price has fallen. 
A)  price has fallen because the quantity demanded has increased. 
B)  price has increased because the quantity demanded has decreased. 
C)  quantity demanded has increased because the price has fallen. 
D)  quantity demanded has decreased because the price has increased. 
E)  demand has increased because the price has fallen.

Question 17

Which of the following is NOT a characteristic of a market in equilibrium?

Accepted Answer

A)  Quantity demanded equals quantity supplied. 
B)  Excess supply is zero. 
C)  All consumers are able to purchase as much as they wish. 
D)  Excess demand is zero. 
E)  The equilibrium price is stable,i.E.
,there is no pressure for it to changE. 
A)  Quantity demanded equals quantity supplied. 
B)  Excess supply is zero. 
C)  All consumers are able to purchase as much as they wish. 
D)  Excess demand is zero. 
E)  The equilibrium price is stable,i.E.
,there is no pressure for it to changE.

Question 18

The essential difference between a change in the quantity demanded and a change in demand is

Accepted Answer

A)  the first is a shift of the curve,while the second is a movement along the curve. 
B)  nothing;both are caused by a change in price. 
C)  the first is a movement along the curve,while the second is a shift of the curve. 
D)  the first is caused by changes in income,while the second is caused by a change in price. 
E)  nothing;both are caused by a change in incomE. 
A)  the first is a shift of the curve,while the second is a movement along the curve. 
B)  nothing;both are caused by a change in price. 
C)  the first is a movement along the curve,while the second is a shift of the curve. 
D)  the first is caused by changes in income,while the second is caused by a change in price. 
E)  nothing;both are caused by a change in incomE.

Question 19

If price is above the equilibrium value,then

Accepted Answer

A)  producers hope that buyers will want more in the future. 
B)  buyers are unhappy because they are unable to find the good for sale. 
C)  producers find their inventories growing and will start to cut price. 
D)  neither buyers nor sellers have an incentive to alter their behaviour. 
E)  the government must enforce price controls. 
A)  producers hope that buyers will want more in the future. 
B)  buyers are unhappy because they are unable to find the good for sale. 
C)  producers find their inventories growing and will start to cut price. 
D)  neither buyers nor sellers have an incentive to alter their behaviour. 
E)  the government must enforce price controls.

Question 20

The market equilibrium process depends on the competition among

Accepted Answer

A)  a few sellers and many buyers. 
B)  many small buyers and many small sellers. 
C)  a few buyers and many sellers. 
D)  a few big buyers and a few big sellers. 
E)  many buyers and a single seller. 
A)  a few sellers and many buyers. 
B)  many small buyers and many small sellers. 
C)  a few buyers and many sellers. 
D)  a few big buyers and a few big sellers. 
E)  many buyers and a single seller.

In general,when the supply curve shifts to the left and demand is constant,then the

When a market is not in equilibrium,

The most important determinant of the demand for dental floss is

An increase in the price of an input will cause the

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then at a price of $7.50,the market experiences ________________.

If the price of an item falls,then one would expect to see a(n)

Assume both the demand for,and the supply of,Athlon 2 GHz processors increase.Which of the following outcomes is certain to occur?

The equilibrium principle states that

Which of the following is NOT a determinant of demand for gasoline?

The supply curve illustrates that firms

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

When a market is not in equilibrium,then

An increase in the quantity of tea demanded occurs whenever

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

-Assume that the market is originally at point W.Movement to point Y is a combination of

When we move down along a given demand curve,we know that the

Which of the following is NOT a characteristic of a market in equilibrium?

The essential difference between a change in the quantity demanded and a change in demand is

If price is above the equilibrium value,then

The market equilibrium process depends on the competition among

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

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

In general,when the supply curve shifts to the left and demand is constant,then the

When a market is not in equilibrium,

The most important determinant of the demand for dental floss is

An increase in the price of an input will cause the

-If column 1 represents the demand curve for a product and column 2 represents the supply curve,then at a price of $7.50,the market experiences ________________.

If the price of an item falls,then one would expect to see a(n)

Assume both the demand for,and the supply of,Athlon 2 GHz processors increase.Which of the following outcomes is certain to occur?

The equilibrium principle states that

Which of the following is NOT a determinant of demand for gasoline?

The supply curve illustrates that firms

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

When a market is not in equilibrium,then

An increase in the quantity of tea demanded occurs whenever

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

-Assume that the market is originally at point W.Movement to point Y is a combination of

When we move down along a given demand curve,we know that the

Which of the following is NOT a characteristic of a market in equilibrium?

The essential difference between a change in the quantity demanded and a change in demand is

If price is above the equilibrium value,then

The market equilibrium process depends on the competition among

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