Question 1

The market price of a hamburger is determined by the

Accepted Answer

A)  the cost of production 
B)  value to the consumer. 
C)  cost of production and the value to the consumer. 
D)  government 
E)  financial markets 
A)  the cost of production 
B)  value to the consumer. 
C)  cost of production and the value to the consumer. 
D)  government 
E)  financial markets

Question 2

If the price of tea increases and,as a result,the demand for sugar decreases,then

Accepted Answer

A)  tea and sugar are complements. 
B)  tea is a normal good and sugar is inferior. 
C)  tea and sugar are substitutes. 
D)  tea is an inferior good and sugar is normal. 
E)  tea and sugar are unrelated to each other. 
A)  tea and sugar are complements. 
B)  tea is a normal good and sugar is inferior. 
C)  tea and sugar are substitutes. 
D)  tea is an inferior good and sugar is normal. 
E)  tea and sugar are unrelated to each other.

Question 3

As consumers' incomes increase,the demand for some goods decreases.These types of goods are called

Accepted Answer

A)  normal goods. 
B)  complement goods. 
C)  substitute goods. 
D)  defective goods. 
E)  inferior goods. 
A)  normal goods. 
B)  complement goods. 
C)  substitute goods. 
D)  defective goods. 
E)  inferior goods.

Question 4

Which of the following would be expected to cause an increase in the supply of fax machines?

Accepted Answer

A)  An increase in the number of business firms demanding fax machines. 
B)  An increase in the price of fax machines. 
C)  A decrease in the cost of manufacturing fax machines. 
D)  The expectation that the price of fax machines will fall in the future. 
E)  An increase in the demand for fax machines. 
A)  An increase in the number of business firms demanding fax machines. 
B)  An increase in the price of fax machines. 
C)  A decrease in the cost of manufacturing fax machines. 
D)  The expectation that the price of fax machines will fall in the future. 
E)  An increase in the demand for fax machines.

Question 5

-Assume that the market is originally at point W.Movement to point X 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 6

If a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is ________ and the change in the equilibrium quantity is _________.

Accepted Answer

A)  positive;positive 
B)  positive;negative 
C)  positive;indeterminate 
D)  indeterminate;positive 
E)  negative;negative 
A)  positive;positive 
B)  positive;negative 
C)  positive;indeterminate 
D)  indeterminate;positive 
E)  negative;negative

Question 7

As the price of cookies 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 8

-At a price of $3,quantity supplied is

Accepted Answer

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

Question 9

For two goods,X and Y,to be classified as complements,it must be the case that

Accepted Answer

A)  X and Y are indistinguishable. 
B)  consumers tend to purchase either X or Y. 
C)  when the price of X rises,the demand for Y decreases. 
D)  when the price of X rises,the demand for Y increases. 
E)  X and Y look alikE. 
A)  X and Y are indistinguishable. 
B)  consumers tend to purchase either X or Y. 
C)  when the price of X rises,the demand for Y decreases. 
D)  when the price of X rises,the demand for Y increases. 
E)  X and Y look alikE.

Question 10

In order to understand how the price of a good is determined in the market,one must account for the desires of

Accepted Answer

A)  consumers exclusively. 
B)  firms exclusively. 
C)  governmental agencies exclusively. 
D)  lobbyists exclusively. 
E)  both consumers and firms. 
A)  consumers exclusively. 
B)  firms exclusively. 
C)  governmental agencies exclusively. 
D)  lobbyists exclusively. 
E)  both consumers and firms.

Question 11

-Assume that the market is originally at point W.Movement to point Z 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 12

A market in equilibrium would feature

Accepted Answer

A)  excess supply. 
B)  unexploited opportunities. 
C)  excess demand. 
D)  wild variation in price. 
E)  no tendency to changE. 
A)  excess supply. 
B)  unexploited opportunities. 
C)  excess demand. 
D)  wild variation in price. 
E)  no tendency to changE.

Question 13

-Assume demand remains unchanged at D1.If supply shifts from S2 to S1,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 14

-At a price of $9,the market will experience ______________ in the amount of __________ units.

Accepted Answer

A)  excess demand;1 
B)  excess supply;6 
C)  equilibrium;0 
D)  excess demand;5 
E)  excess supply;5 
A)  excess demand;1 
B)  excess supply;6 
C)  equilibrium;0 
D)  excess demand;5 
E)  excess supply;5

Question 15

Suppose that the demand curve for a good is given by QD = 60 - 0.5PD,while the supply curve for the good is given by QS = 20 + 0.5PS.If the price in this market is currently equal to 30,then the quantity demanded is ______ and the quantity supplied is _____.

Accepted Answer

A)  60;20 
B)  35;45 
C)  45;35 
D)  20;60 
E)  40;40 
A)  60;20 
B)  35;45 
C)  45;35 
D)  20;60 
E)  40;40

Question 16

-At a price of $3,the market will experience ______________ in the amount of _________ units.

Accepted Answer

A)  excess demand;7 
B)  excess supply;2 
C)  equilibrium;0 
D)  excess demand;5 
E)  excess supply;5 
A)  excess demand;7 
B)  excess supply;2 
C)  equilibrium;0 
D)  excess demand;5 
E)  excess supply;5

Question 17

An increase in the demand for apples with no concurrent change in the supply of apples will result in a ________ equilibrium price and a(n)________ equilibrium quantity.

Accepted Answer

A)  higher;lower 
B)  lower;lower 
C)  higher;unchanged 
D)  higher;higher 
E)  lower;higher 
A)  higher;lower 
B)  lower;lower 
C)  higher;unchanged 
D)  higher;higher 
E)  lower;higher

Question 18

When economists refer to small buyers in the market,they are referring to the notion that

Accepted Answer

A)  no buyers can influence the price of a good 
B)  buyers are mostly children and young adults. 
C)  buyers are buying no more than two hundred units at a time. 
D)  there are only a few buyers in the market. 
E)  there is only one buyer in the market. 
A)  no buyers can influence the price of a good 
B)  buyers are mostly children and young adults. 
C)  buyers are buying no more than two hundred units at a time. 
D)  there are only a few buyers in the market. 
E)  there is only one buyer in the market.

Question 19

Suppose that the demand curve for a good is given by QD = 60 - 0.5PD,while the supply curve for the good is given by QS = 20 + 0.5PS.If the price in this market is currently equal to 30,then there is currently ______ in the amount of _____ units.

Accepted Answer

A)  excess demand;10 
B)  excess demand;20 
C)  excess supply;10 
D)  excess supply;20 
E)  excess supply;40 
A)  excess demand;10 
B)  excess demand;20 
C)  excess supply;10 
D)  excess supply;20 
E)  excess supply;40

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,we can conclude that

Accepted Answer

A)  the demand curve for bungalows must have shifted to the right,but the supply curve has not shifted. 
B)  the supply curve for bungalows must have shifted to the right,but the demand curve has not shifted. 
C)  there is a movement upward along the 1971 demand curve. 
D)  there is a movement upward along the 1971 supply curve. 
E)  both the demand curve and the supply curve of 1971 have shifted to the left. 
A)  the demand curve for bungalows must have shifted to the right,but the supply curve has not shifted. 
B)  the supply curve for bungalows must have shifted to the right,but the demand curve has not shifted. 
C)  there is a movement upward along the 1971 demand curve. 
D)  there is a movement upward along the 1971 supply curve. 
E)  both the demand curve and the supply curve of 1971 have shifted to the left.

The market price of a hamburger is determined by the

If the price of tea increases and,as a result,the demand for sugar decreases,then

As consumers' incomes increase,the demand for some goods decreases.These types of goods are called

Which of the following would be expected to cause an increase in the supply of fax machines?

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

If a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is and the change in the equilibrium quantity is _.

As the price of cookies increases,firms that produce cookies will

-At a price of $3,quantity supplied is

For two goods,X and Y,to be classified as complements,it must be the case that

In order to understand how the price of a good is determined in the market,one must account for the desires of

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

A market in equilibrium would feature

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

-At a price of $9,the market will experience ____ in the amount of units.

Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then the quantity demanded is __ and the quantity supplied is _.

-At a price of $3,the market will experience ______ in the amount of _ units.

An increase in the demand for apples with no concurrent change in the supply of apples will result in a equilibrium price and a(n) equilibrium quantity.

When economists refer to small buyers in the market,they are referring to the notion that

Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then there is currently __ in the amount of _ units.

-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

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 market price of a hamburger is determined by the

If the price of tea increases and,as a result,the demand for sugar decreases,then

As consumers' incomes increase,the demand for some goods decreases.These types of goods are called

Which of the following would be expected to cause an increase in the supply of fax machines?

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

If a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is ________ and the change in the equilibrium quantity is _________.

As the price of cookies increases,firms that produce cookies will

-At a price of $3,quantity supplied is

For two goods,X and Y,to be classified as complements,it must be the case that

In order to understand how the price of a good is determined in the market,one must account for the desires of

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

A market in equilibrium would feature

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

-At a price of $9,the market will experience ______________ in the amount of __________ units.

Suppose that the demand curve for a good is given by QD = 60 - 0.5PD,while the supply curve for the good is given by QS = 20 + 0.5PS.If the price in this market is currently equal to 30,then the quantity demanded is ______ and the quantity supplied is _____.

-At a price of $3,the market will experience ______________ in the amount of _________ units.

An increase in the demand for apples with no concurrent change in the supply of apples will result in a ________ equilibrium price and a(n)________ equilibrium quantity.

When economists refer to small buyers in the market,they are referring to the notion that

Suppose that the demand curve for a good is given by QD = 60 - 0.5PD,while the supply curve for the good is given by QS = 20 + 0.5PS.If the price in this market is currently equal to 30,then there is currently ______ in the amount of _____ units.

-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

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 a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is and the change in the equilibrium quantity is _.

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

-At a price of $9,the market will experience ____ in the amount of units.

Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then the quantity demanded is __ and the quantity supplied is _.

-At a price of $3,the market will experience ______ in the amount of _ units.

An increase in the demand for apples with no concurrent change in the supply of apples will result in a equilibrium price and a(n) equilibrium quantity.

Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then there is currently __ in the amount of _ units.