Question 1

A shortage occurs when

Accepted Answer

A)  demand is greater than supply. 
B)  the equilibrium price is too high. 
C)  quantity demanded exceeds quantity supplied. 
D)  quantity supplied exceeds quantity demanded. 
E)  price is above the equilibrium pricE. 
A)  demand is greater than supply. 
B)  the equilibrium price is too high. 
C)  quantity demanded exceeds quantity supplied. 
D)  quantity supplied exceeds quantity demanded. 
E)  price is above the equilibrium pricE.

Question 2

Assume both the demand for and the supply of 4 GB flash drives decrease.Which of the following outcomes is certain to occur?

Accepted Answer

A)  The equilibrium price of 4 GB flash drives will rise. 
B)  The equilibrium quantity of 4 GB flash drives will rise. 
C)  The equilibrium price of 4 GB flash drives will fall. 
D)  The equilibrium quantity of 4 GB flash drives will fall. 
E)  Neither the equilibrium price nor the equilibrium quantity of 4 GB flash drives can be predicted. 
A)  The equilibrium price of 4 GB flash drives will rise. 
B)  The equilibrium quantity of 4 GB flash drives will rise. 
C)  The equilibrium price of 4 GB flash drives will fall. 
D)  The equilibrium quantity of 4 GB flash drives will fall. 
E)  Neither the equilibrium price nor the equilibrium quantity of 4 GB flash drives can be predicted.

Question 3

The essential difference between a change in supply and a change in the quantity supplied is

Accepted Answer

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

Question 4

-At the point where the market price is $6 and the quantity demanded is 4 units,which of the following statements is true?

Accepted Answer

A)  The maximum price that consumers are willing to pay for any of the 4 units of pizza demanded is $6. 
B)  The minimum price that consumers are willing to pay for any of the 4 units of pizza demanded is $6. 
C)  No one currently buying pizza thinks that a unit of pizza is worth more than $6. 
D)  If producers produced more than 4 units of pizza at the market price of $6,more pizza will be demanded. 
E)  At the market price of $6,4 units of pizza will be demanded. 
A)  The maximum price that consumers are willing to pay for any of the 4 units of pizza demanded is $6. 
B)  The minimum price that consumers are willing to pay for any of the 4 units of pizza demanded is $6. 
C)  No one currently buying pizza thinks that a unit of pizza is worth more than $6. 
D)  If producers produced more than 4 units of pizza at the market price of $6,more pizza will be demanded. 
E)  At the market price of $6,4 units of pizza will be demanded.

Question 5

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

Accepted Answer

A)  a decrease in the quantity supplied and an increase in demand. 
B)  a decrease in supply and a decrease 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 a decrease 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 6

The equilibrium principle asserts that

Accepted Answer

A)  in equilibrium,many unexploited opportunities exist. 
B)  in equilibrium,a few unexploited opportunities exist. 
C)  in disequilibrium,all opportunities have been exploited. 
D)  in disequilibrium,no opportunities exist. 
E)  in equilibrium,all opportunities have been exploited. 
A)  in equilibrium,many unexploited opportunities exist. 
B)  in equilibrium,a few unexploited opportunities exist. 
C)  in disequilibrium,all opportunities have been exploited. 
D)  in disequilibrium,no opportunities exist. 
E)  in equilibrium,all opportunities have been exploited.

Question 7

Which of the following is NOT true of a demand curve?

Accepted Answer

A)  It has a negative slope. 
B)  It shows the amount consumers are willing and able to purchase at various prices,holding other factors constant. 
C)  It relates the price of an item to the quantity demanded of that item. 
D)  It relates the price of an item to the supply for that item. 
E)  It shows that consumers tend to purchase less of a good as its price rises. 
A)  It has a negative slope. 
B)  It shows the amount consumers are willing and able to purchase at various prices,holding other factors constant. 
C)  It relates the price of an item to the quantity demanded of that item. 
D)  It relates the price of an item to the supply for that item. 
E)  It shows that consumers tend to purchase less of a good as its price rises.

Question 8

-Assume that the market is originally at point Z.Movement to point Y 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 9

Suppose that bad weather destroys the cocoa crop in Ghana.This means that the

Accepted Answer

A)  quantity of chocolate supplied will decrease. 
B)  demand for chocolate will decrease. 
C)  price of chocolate will remain unchanged. 
D)  supply of chocolate will decrease. 
E)  demand for chocolate will increasE. 
A)  quantity of chocolate supplied will decrease. 
B)  demand for chocolate will decrease. 
C)  price of chocolate will remain unchanged. 
D)  supply of chocolate will decrease. 
E)  demand for chocolate will increasE.

Question 10

Without the aid of a graph,one can say definitively that,if supply decreases while demand increases simultaneously,the new equilibrium price is ___________ and the new equilibrium quantity is _________________.

Accepted Answer

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

Question 11

Which of the following would NOT shift the supply curve for Intel processors?

Accepted Answer

A)  A decrease in the price of silicon wafers. 
B)  An increase in the demand for Intel processors. 
C)  An improvement in the technology used to make processors. 
D)  An increase in the wage rate paid to high-tech workers. 
E)  An earthquake centred in Silicon Valley. 
A)  A decrease in the price of silicon wafers. 
B)  An increase in the demand for Intel processors. 
C)  An improvement in the technology used to make processors. 
D)  An increase in the wage rate paid to high-tech workers. 
E)  An earthquake centred in Silicon Valley.

Question 12

If the demand for a good increases as consumers' incomes rise,the good is termed a(n)

Accepted Answer

A)  inferior good. 
B)  complement good. 
C)  normal good. 
D)  substitute good. 
E)  typical good. 
A)  inferior good. 
B)  complement good. 
C)  normal good. 
D)  substitute good. 
E)  typical good.

Question 13

-At a price of $10,quantity demanded 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 14

When supply for a good decreases,consumers respond by

Accepted Answer

A)  decreasing their demand. 
B)  increasing their preferences for the good. 
C)  decreasing their quantity demanded. 
D)  increasing their quantity demanded. 
E)  purchasing more complementary goods. 
A)  decreasing their demand. 
B)  increasing their preferences for the good. 
C)  decreasing their quantity demanded. 
D)  increasing their quantity demanded. 
E)  purchasing more complementary goods.

Question 15

-Given that demand shifts from D1 to D2,the equilibrium price will

Accepted Answer

A)  rise to $10. 
B)  fall to $9. 
C)  rise to $9. 
D)  fall to $6. 
E)  remain unchanged. 
A)  rise to $10. 
B)  fall to $9. 
C)  rise to $9. 
D)  fall to $6. 
E)  remain unchanged.

Question 16

-Assume that D1 and S1 are the initial demand and supply curves.The 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

A shortage occurs when

Assume both the demand for and the supply of 4 GB flash drives decrease.Which of the following outcomes is certain to occur?

The essential difference between a change in supply and a change in the quantity supplied is

-At the point where the market price is $6 and the quantity demanded is 4 units,which of the following statements is true?

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

The equilibrium principle asserts that

Which of the following is NOT true of a demand curve?

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

Suppose that bad weather destroys the cocoa crop in Ghana.This means that the

Without the aid of a graph,one can say definitively that,if supply decreases while demand increases simultaneously,the new equilibrium price is _ and the new equilibrium quantity is _______.

Which of the following would NOT shift the supply curve for Intel processors?

If the demand for a good increases as consumers' incomes rise,the good is termed a(n)

-At a price of $10,quantity demanded is

When supply for a good decreases,consumers respond by

-Given that demand shifts from D1 to D2,the equilibrium price will

-Assume that D1 and S1 are the initial demand and supply curves.The equilibrium occurs at a price of _ and __ units exchanged.

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

A shortage occurs when

Assume both the demand for and the supply of 4 GB flash drives decrease.Which of the following outcomes is certain to occur?

The essential difference between a change in supply and a change in the quantity supplied is

-At the point where the market price is $6 and the quantity demanded is 4 units,which of the following statements is true?

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

The equilibrium principle asserts that

Which of the following is NOT true of a demand curve?

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

Suppose that bad weather destroys the cocoa crop in Ghana.This means that the

Without the aid of a graph,one can say definitively that,if supply decreases while demand increases simultaneously,the new equilibrium price is ___________ and the new equilibrium quantity is _________________.

Which of the following would NOT shift the supply curve for Intel processors?

If the demand for a good increases as consumers' incomes rise,the good is termed a(n)

-At a price of $10,quantity demanded is

When supply for a good decreases,consumers respond by

-Given that demand shifts from D1 to D2,the equilibrium price will

-Assume that D1 and S1 are the initial demand and supply curves.The equilibrium occurs at a price of _______ and ________ units exchanged.

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

Without the aid of a graph,one can say definitively that,if supply decreases while demand increases simultaneously,the new equilibrium price is _ and the new equilibrium quantity is _______.

-Assume that D1 and S1 are the initial demand and supply curves.The equilibrium occurs at a price of _ and __ units exchanged.