Question 1

-Assume that the market is originally at point Z.Movement to point X is a combination of

Accepted Answer

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

Question 2

Which of the following would result in an increase in supply?

Accepted Answer

A)  A reduction in the premiums firms pay for insurance. 
B)  A reduction in the quality of technology used by firms. 
C)  An increase in demand. 
D)  An increase in consumers' incomes. 
E)  An increase in the population of consumers. 
A)  A reduction in the premiums firms pay for insurance. 
B)  A reduction in the quality of technology used by firms. 
C)  An increase in demand. 
D)  An increase in consumers' incomes. 
E)  An increase in the population of consumers.

Question 3

If a good or service is labeled normal,then

Accepted Answer

A)  as income falls,demand for the item increases. 
B)  as income rises,the quantity demanded of the item decreases. 
C)  as income rises,the quantity demanded of the item increases. 
D)  as income rises,demand for the item increases. 
E)  as income falls,the quantity demanded of the item increases. 
A)  as income falls,demand for the item increases. 
B)  as income rises,the quantity demanded of the item decreases. 
C)  as income rises,the quantity demanded of the item increases. 
D)  as income rises,demand for the item increases. 
E)  as income falls,the quantity demanded of the item increases.

Question 4

When the price of a good is above its equilibrium value,

Accepted Answer

A)  consumers will bid the price up. 
B)  excess demand will occur. 
C)  it will tend to stay above the equilibrium value. 
D)  suppliers will notice their inventories are shrinking. 
E)  suppliers will lower the pricE. 
A)  consumers will bid the price up. 
B)  excess demand will occur. 
C)  it will tend to stay above the equilibrium value. 
D)  suppliers will notice their inventories are shrinking. 
E)  suppliers will lower the pricE.

Question 5

"Improvements in personal computer technology and its widespread adoption in the workplace have served to increase productivity." Assuming the statement is true,one would expect this to cause

Accepted Answer

A)  an increase in supply. 
B)  an increase in the quantity supplied. 
C)  a decrease in supply. 
D)  a decrease in the quantity supplied. 
E)  no change in the marketplacE. 
A)  an increase in supply. 
B)  an increase in the quantity supplied. 
C)  a decrease in supply. 
D)  a decrease in the quantity supplied. 
E)  no change in the marketplacE.

Question 6

Which of the following could NEVER be a feature of an unregulated market in a state of disequilibrium?

Accepted Answer

A)  Excess supply. 
B)  A stable price. 
C)  Excess demand. 
D)  Changes in the equilibrium quantity. 
E)  A rising pricE. 
A)  Excess supply. 
B)  A stable price. 
C)  Excess demand. 
D)  Changes in the equilibrium quantity. 
E)  A rising pricE.

Question 7

Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer.The likely result will be that the

Accepted Answer

A)  quantity of fibre supplements demanded will fall. 
B)  demand for fibre supplements will decrease. 
C)  supply of fibre supplements will increase. 
D)  price of fibre supplements will rise. 
E)  market for fibre supplements will be unaffected. 
A)  quantity of fibre supplements demanded will fall. 
B)  demand for fibre supplements will decrease. 
C)  supply of fibre supplements will increase. 
D)  price of fibre supplements will rise. 
E)  market for fibre supplements will be unaffected.

Question 8

-Moving from supply curve S1 to supply curve S2 could be caused by a(n)

Accepted Answer

A)  decrease in consumers' incomes. 
B)  decrease in quantity demanded. 
C)  improvement in the technology firms use to produce the good. 
D)  increase in the price of raw materials. 
E)  increase in the wages of labourers. 
A)  decrease in consumers' incomes. 
B)  decrease in quantity demanded. 
C)  improvement in the technology firms use to produce the good. 
D)  increase in the price of raw materials. 
E)  increase in the wages of labourers.

Question 9

As the price of flour (an input in the cookie production process)increases,firms that produce cookies will

Accepted Answer

A)  increase the supply of cookies. 
B)  increase the quantity of cookies supplied. 
C)  decrease the supply of cookies. 
D)  decrease the quantity of cookies supplied. 
E)  leave their production unchanged. 
A)  increase the supply of cookies. 
B)  increase the quantity of cookies supplied. 
C)  decrease the supply of cookies. 
D)  decrease the quantity of cookies supplied. 
E)  leave their production unchanged.

Question 10

A movement along a demand curve from one price-quantity combination to another is called

Accepted Answer

A)  a change in quantity demanded. 
B)  a shift in the demand curve. 
C)  a change in demand. 
D)  a change in quantity supplied. 
E)  a change in supply. 
A)  a change in quantity demanded. 
B)  a shift in the demand curve. 
C)  a change in demand. 
D)  a change in quantity supplied. 
E)  a change in supply.

Question 11

The demand curve for any good is a downward-sloping function of

Accepted Answer

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

Question 12

If the price in a market is below the equilibrium price,then a supplier can produce an additional unit at a cost that is lower than the price buyers are willing to pay.This is referred to as

Accepted Answer

A)  leaving "cash on the table." 
B)  market equilibrium. 
C)  exploiting all opportunities. 
D)  maximizing economic surplus. 
E)  achieving economic efficiency. 
A)  leaving "cash on the table." 
B)  market equilibrium. 
C)  exploiting all opportunities. 
D)  maximizing economic surplus. 
E)  achieving economic efficiency.

Question 13

If,in a particular market,all unexploited opportunities have been realized,one can conclude that

Accepted Answer

A)  government regulation has proven successful. 
B)  the market is in equilibrium. 
C)  demanders are unable to find adequate amounts of the good. 
D)  excess demand is present. 
E)  excess supply is present. 
A)  government regulation has proven successful. 
B)  the market is in equilibrium. 
C)  demanders are unable to find adequate amounts of the good. 
D)  excess demand is present. 
E)  excess supply is present.

Question 14

An increase in the demand for GM automobiles results in

Accepted Answer

A)  a lower equilibrium price for GM automobiles. 
B)  an increase in the quantity of GM automobiles supplied. 
C)  an increase in the supply of GM automobiles. 
D)  a lower equilibrium quantity of GM automobiles. 
E)  a decrease in the quantity of GM automobiles supplied. 
A)  a lower equilibrium price for GM automobiles. 
B)  an increase in the quantity of GM automobiles supplied. 
C)  an increase in the supply of GM automobiles. 
D)  a lower equilibrium quantity of GM automobiles. 
E)  a decrease in the quantity of GM automobiles supplied.

Question 15

-Assume demand remains unchanged at D1.If supply shifts from S1 to S2,then the equilibrium price will ________ and the equilibrium quantity will __________.

Accepted Answer

A)  rise;fall 
B)  rise;rise 
C)  fall;fall 
D)  fall;rise 
E)  rise;be indeterminate 
A)  rise;fall 
B)  rise;rise 
C)  fall;fall 
D)  fall;rise 
E)  rise;be indeterminate

Question 16

"Holding all other relevant factors constant,consumers will purchase more of a good as its price falls." This statement reflects the behaviour underlying

Accepted Answer

A)  the demand curve. 
B)  an increase in demand. 
C)  the supply curve. 
D)  a decrease in demand. 
E)  the production possibilities curvE. 
A)  the demand curve. 
B)  an increase in demand. 
C)  the supply curve. 
D)  a decrease in demand. 
E)  the production possibilities curvE.

Question 17

"As the price of personal computers continues to fall,demand increases." This headline is inaccurate because

Accepted Answer

A)  a change in the price of personal computers shifts the demand curve. 
B)  a change in the price of personal computers shifts the supply curve. 
C)  the statement is backwards: increased demand leads to lower prices. 
D)  falling prices of personal computers increase quantity demanded,not demand. 
E)  falling prices of personal computers increase quantity supplied. 
A)  a change in the price of personal computers shifts the demand curve. 
B)  a change in the price of personal computers shifts the supply curve. 
C)  the statement is backwards: increased demand leads to lower prices. 
D)  falling prices of personal computers increase quantity demanded,not demand. 
E)  falling prices of personal computers increase quantity supplied.

Question 18

Assume the demand for flash drives increases,while the supply decreases.Which of the following outcomes is certain to occur?

Accepted Answer

A)  The equilibrium price of flash drives will rise. 
B)  The equilibrium quantity of flash drives will rise. 
C)  The equilibrium price of flash drives will fall. 
D)  The equilibrium quantity of flash drives will fall. 
E)  Neither the equilibrium price nor the equilibrium quantity of flash drives can be predicted. 
A)  The equilibrium price of flash drives will rise. 
B)  The equilibrium quantity of flash drives will rise. 
C)  The equilibrium price of flash drives will fall. 
D)  The equilibrium quantity of flash drives will fall. 
E)  Neither the equilibrium price nor the equilibrium quantity of flash drives can be predicted.

Question 19

In general,when the demand curve shifts to the right and supply remains constant,then

Accepted Answer

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

Question 20

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,which of the following is most likely to be UNTRUE of the period?

Accepted Answer

A)  There has been an increase in population. 
B)  There has been a fall in income. 
C)  There has been an increase in housing prices. 
D)  There has been an increase in consumers' preferences toward home ownership. 
E)  There has been an increase in the number of builders. 
A)  There has been an increase in population. 
B)  There has been a fall in income. 
C)  There has been an increase in housing prices. 
D)  There has been an increase in consumers' preferences toward home ownership. 
E)  There has been an increase in the number of builders.

-Assume that the market is originally at point Z.Movement to point X is a combination of

Which of the following would result in an increase in supply?

If a good or service is labeled normal,then

When the price of a good is above its equilibrium value,

"Improvements in personal computer technology and its widespread adoption in the workplace have served to increase productivity." Assuming the statement is true,one would expect this to cause

Which of the following could NEVER be a feature of an unregulated market in a state of disequilibrium?

Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer.The likely result will be that the

-Moving from supply curve S1 to supply curve S2 could be caused by a(n)

As the price of flour (an input in the cookie production process)increases,firms that produce cookies will

A movement along a demand curve from one price-quantity combination to another is called

The demand curve for any good is a downward-sloping function of

If the price in a market is below the equilibrium price,then a supplier can produce an additional unit at a cost that is lower than the price buyers are willing to pay.This is referred to as

If,in a particular market,all unexploited opportunities have been realized,one can conclude that

An increase in the demand for GM automobiles results in

-Assume demand remains unchanged at D1.If supply shifts from S1 to S2,then the equilibrium price will and the equilibrium quantity will __.

"Holding all other relevant factors constant,consumers will purchase more of a good as its price falls." This statement reflects the behaviour underlying

"As the price of personal computers continues to fall,demand increases." This headline is inaccurate because

Assume the demand for flash drives increases,while the supply decreases.Which of the following outcomes is certain to occur?

In general,when the demand curve shifts to the right and supply remains constant,then

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,which of the following is most likely to be UNTRUE of the period?

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

-Assume that the market is originally at point Z.Movement to point X is a combination of

Which of the following would result in an increase in supply?

If a good or service is labeled normal,then

When the price of a good is above its equilibrium value,

"Improvements in personal computer technology and its widespread adoption in the workplace have served to increase productivity." Assuming the statement is true,one would expect this to cause

Which of the following could NEVER be a feature of an unregulated market in a state of disequilibrium?

Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer.The likely result will be that the

-Moving from supply curve S1 to supply curve S2 could be caused by a(n)

As the price of flour (an input in the cookie production process)increases,firms that produce cookies will

A movement along a demand curve from one price-quantity combination to another is called

The demand curve for any good is a downward-sloping function of

If the price in a market is below the equilibrium price,then a supplier can produce an additional unit at a cost that is lower than the price buyers are willing to pay.This is referred to as

If,in a particular market,all unexploited opportunities have been realized,one can conclude that

An increase in the demand for GM automobiles results in

-Assume demand remains unchanged at D1.If supply shifts from S1 to S2,then the equilibrium price will ________ and the equilibrium quantity will __________.

"Holding all other relevant factors constant,consumers will purchase more of a good as its price falls." This statement reflects the behaviour underlying

"As the price of personal computers continues to fall,demand increases." This headline is inaccurate because

Assume the demand for flash drives increases,while the supply decreases.Which of the following outcomes is certain to occur?

In general,when the demand curve shifts to the right and supply remains constant,then

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,which of the following is most likely to be UNTRUE of the period?

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 demand remains unchanged at D1.If supply shifts from S1 to S2,then the equilibrium price will and the equilibrium quantity will __.