Question 1

Figure 3-6  
-According to Figure 3-6,if steel mills shift from ignoring the cost of pollution to bearing that cost,then the supply curve would

Accepted Answer

A) remain at S₁. 
B) shift from S₁ to S₂. 
C) shift from S₂ to S₁. 
D) shift,but it is impossible to say in which direction without more information. 
A) remain at S₁. 
B) shift from S₁ to S₂. 
C) shift from S₂ to S₁. 
D) shift,but it is impossible to say in which direction without more information.

Question 2

Explain the difference between wanting a pizza and demanding it.

Accepted Answer

People who demand a pizza are "willing a

Question 3

Table 3-4
  
-According to Table 3-4,at a price of $16 per CD,there is

Accepted Answer

A) an equilibrium. 
B) a shortage of 3,000 CDs. 
C) an excess demand of 3,000 CDs. 
D) an excess supply of 3,000 CDs. 
A) an equilibrium. 
B) a shortage of 3,000 CDs. 
C) an excess demand of 3,000 CDs. 
D) an excess supply of 3,000 CDs.

Question 4

Table 3-4
  
-In Table 3-4,if price rises from $8 to $10

Accepted Answer

A) quantity demanded rises by 500 and quantity supplied falls by 700. 
B) quantity demanded falls by 500 and quantity supplied rises by 700. 
C) quantity demanded rises by 1000 and quantity supplies falls by 1700. 
D) quantity demand falls by 500 but quantity supplied does not change. 
A) quantity demanded rises by 500 and quantity supplied falls by 700. 
B) quantity demanded falls by 500 and quantity supplied rises by 700. 
C) quantity demanded rises by 1000 and quantity supplies falls by 1700. 
D) quantity demand falls by 500 but quantity supplied does not change.

Question 5

Which of the following statements is TRUE,ceteris paribus?

Accepted Answer

A) If price goes down,demand decreases. 
B) If price goes down,demand increases. 
C) If demand increases,then the demand curve shifts to the left. 
D) If demand decreases,then the demand curve shifts to the left. 
A) If price goes down,demand decreases. 
B) If price goes down,demand increases. 
C) If demand increases,then the demand curve shifts to the left. 
D) If demand decreases,then the demand curve shifts to the left.

Question 6

If the price of hot dogs increases,the demand for hot dog buns will

Accepted Answer

A) shift to the right. 
B) increase. 
C) decrease. 
D) remain constant. 
A) shift to the right. 
B) increase. 
C) decrease. 
D) remain constant.

Question 7

When market demand and supply both increase

Accepted Answer

A) equilibrium price will increase and equilibrium quantity will decrease. 
B) equilibrium quantity will increase but equilibrium price may increase or decrease. 
C) equilibrium quantity will increase and equilibrium price will increase. 
D) equilibrium price will decrease and equilibrium quantity will decrease. 
A) equilibrium price will increase and equilibrium quantity will decrease. 
B) equilibrium quantity will increase but equilibrium price may increase or decrease. 
C) equilibrium quantity will increase and equilibrium price will increase. 
D) equilibrium price will decrease and equilibrium quantity will decrease.

Question 8

Which of the following statements is FALSE?

Accepted Answer

A) A change in the demand for a product is caused by factors other than changes in the product's price. 
B) A decrease in demand shifts the demand curve leftward toward the origin,while a decrease in quantity demanded involves a movement upward along a particular demand curve. 
C) If there is an increase in the demand for a product,consumers want to buy more of the product at each and every possible price. 
D) If the price of a good rises,quantity demanded of the good decreases and the demand curve shifts toward the origin. 
A) A change in the demand for a product is caused by factors other than changes in the product's price. 
B) A decrease in demand shifts the demand curve leftward toward the origin,while a decrease in quantity demanded involves a movement upward along a particular demand curve. 
C) If there is an increase in the demand for a product,consumers want to buy more of the product at each and every possible price. 
D) If the price of a good rises,quantity demanded of the good decreases and the demand curve shifts toward the origin.

Question 9

If the price of cotton used in making blue jeans increases,which of the following will definitely occur?

Accepted Answer

A) There will be a movement along the original blue jean supply curve. 
B) The supply curve for jeans will shift outward,followed by a movement along the curve. 
C) The supply curve for jeans will shift leftward. 
D) The supply curve for jeans will shift rightward. 
A) There will be a movement along the original blue jean supply curve. 
B) The supply curve for jeans will shift outward,followed by a movement along the curve. 
C) The supply curve for jeans will shift leftward. 
D) The supply curve for jeans will shift rightward.

Question 10

The relationship between quantity supplied and the price of output is such that

Accepted Answer

A) an increase in price will lead to an increase in quantity supplied. 
B) quantity will decrease as the number of firms increases. 
C) an increase in price will produce an inward shift in the supply curve. 
D) an increase in quantity will automatically lead to a reduction in price. 
A) an increase in price will lead to an increase in quantity supplied. 
B) quantity will decrease as the number of firms increases. 
C) an increase in price will produce an inward shift in the supply curve. 
D) an increase in quantity will automatically lead to a reduction in price.

Question 11

Table 3-1
  
-In Table 3-1,what quantity of CDs would be demanded at a price of $12?

Accepted Answer

A) 6 
B) 9 
C) 12 
D) 24 
A) 6 
B) 9 
C) 12 
D) 24

Question 12

An increase in the price of corn,ceteris paribus,will lead to

Accepted Answer

A) an upward (and leftward)movement along the demand curve. 
B) an inward shift in demand. 
C) an increase in the quantity of corn consumed. 
D) an outward shift in the supply of corn. 
A) an upward (and leftward)movement along the demand curve. 
B) an inward shift in demand. 
C) an increase in the quantity of corn consumed. 
D) an outward shift in the supply of corn.

Question 13

Which of the following would most likely be complementary goods?

Accepted Answer

A) beef and chicken. 
B) beer and pretzels. 
C) margarine and butter. 
D) tea and coffee. 
A) beef and chicken. 
B) beer and pretzels. 
C) margarine and butter. 
D) tea and coffee.

Question 14

A new government subsidy paid to the producers of butter would

Accepted Answer

A) have no effect on the supply of butter 
B) shift the supply curve to the left. 
C) reduce the supply of butter. 
D) shift the supply curve to the right. 
A) have no effect on the supply of butter 
B) shift the supply curve to the left. 
C) reduce the supply of butter. 
D) shift the supply curve to the right.

Question 15

Figure 3-6  
-According to Figure 3-6,if steel mills ignore the cost of pollution (shown as the difference between S₂ and S₁)the equilibrium quantity of steel will be

Accepted Answer

A) Q₂. 
B) Q₂ - Q₁. 
C) Q₁. 
D) Q₂ + Q₁. 
A) Q₂. 
B) Q₂ - Q₁. 
C) Q₁. 
D) Q₂ + Q₁.

Question 16

Figure 3-3  
-In Figure 3-3,if the market price is reduced from P₀ to P₁,then

Accepted Answer

A) there will be a shortage of Q₂ units minus Q₁ units. 
B) there will be a further tendency for price to fall. 
C) there will be a surplus equal to Q₂ units minus Q₁ units. 
D) price will rise to P₂ in the next period. 
A) there will be a shortage of Q₂ units minus Q₁ units. 
B) there will be a further tendency for price to fall. 
C) there will be a surplus equal to Q₂ units minus Q₁ units. 
D) price will rise to P₂ in the next period.

Question 17

Briefly explain the determinants of a good's supply curve.

Accepted Answer

Ceteris paribus,an increase in the price

Question 18

The demand for a coffee ________ when the price of cream decreases.

Accepted Answer

A) will fall. 
B) will shift outward. 
C) remains constant. 
D) will shift inward. 
A) will fall. 
B) will shift outward. 
C) remains constant. 
D) will shift inward.

Question 19

Which of the following is NOT a determinant of consumer demand?

Accepted Answer

A) tastes and preferences 
B) household income 
C) the state of technology 
D) prices of related goods 
A) tastes and preferences 
B) household income 
C) the state of technology 
D) prices of related goods

Question 20

Other things constant,quantity supplied of a product is determined by

Accepted Answer

A) input prices. 
B) the product's price. 
C) taxes and subsidies. 
D) price expectations. 
A) input prices. 
B) the product's price. 
C) taxes and subsidies. 
D) price expectations.

Figure 3-6 -According to Figure 3-6,if steel mills shift from ignoring the cost of pollution to bearing that cost,then the supply curve would

Explain the difference between wanting a pizza and demanding it.

Table 3-4 -According to Table 3-4,at a price of $16 per CD,there is

Table 3-4 -In Table 3-4,if price rises from $8 to $10

Which of the following statements is TRUE,ceteris paribus?

If the price of hot dogs increases,the demand for hot dog buns will

When market demand and supply both increase

Which of the following statements is FALSE?

If the price of cotton used in making blue jeans increases,which of the following will definitely occur?

The relationship between quantity supplied and the price of output is such that

Table 3-1 -In Table 3-1,what quantity of CDs would be demanded at a price of $12?

An increase in the price of corn,ceteris paribus,will lead to

Which of the following would most likely be complementary goods?

A new government subsidy paid to the producers of butter would

Figure 3-6 -According to Figure 3-6,if steel mills ignore the cost of pollution (shown as the difference between S₂ and S₁)the equilibrium quantity of steel will be

Figure 3-3 -In Figure 3-3,if the market price is reduced from P₀ to P₁,then

Briefly explain the determinants of a good's supply curve.

The demand for a coffee ________ when the price of cream decreases.

Which of the following is NOT a determinant of consumer demand?

Other things constant,quantity supplied of a product is determined by

The Nature of Economics

Production Possibilities and Economic Systems

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 3: Demand and Supply

Figure 3-6 -According to Figure 3-6,if steel mills shift from ignoring the cost of pollution to bearing that cost,then the supply curve would

Explain the difference between wanting a pizza and demanding it.

Table 3-4 -According to Table 3-4,at a price of $16 per CD,there is

Table 3-4 -In Table 3-4,if price rises from $8 to $10

Which of the following statements is TRUE,ceteris paribus?

If the price of hot dogs increases,the demand for hot dog buns will

When market demand and supply both increase

Which of the following statements is FALSE?

If the price of cotton used in making blue jeans increases,which of the following will definitely occur?

The relationship between quantity supplied and the price of output is such that

Table 3-1 -In Table 3-1,what quantity of CDs would be demanded at a price of $12?

An increase in the price of corn,ceteris paribus,will lead to

Which of the following would most likely be complementary goods?

A new government subsidy paid to the producers of butter would

Figure 3-6 -According to Figure 3-6,if steel mills ignore the cost of pollution (shown as the difference between S₂ and S₁)the equilibrium quantity of steel will be

Figure 3-3 -In Figure 3-3,if the market price is reduced from P₀ to P₁,then

Briefly explain the determinants of a good's supply curve.

The demand for a coffee ________ when the price of cream decreases.

Which of the following is NOT a determinant of consumer demand?

Other things constant,quantity supplied of a product is determined by

The Nature of Economics

Production Possibilities and Economic Systems

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters