Question 1

Which of the following will cause a movement along the supply curve for oil?

Accepted Answer

A) new technology to drill oil underwater in the Gulf of Mexico 
B) a change in the price of oil 
C) an increase in the number of oil-producing firms 
D) government subsidies to oil producers in Wyoming 
A) new technology to drill oil underwater in the Gulf of Mexico 
B) a change in the price of oil 
C) an increase in the number of oil-producing firms 
D) government subsidies to oil producers in Wyoming

Question 2

The money price of a good is also known as its

Accepted Answer

A) relative price. 
B) case price. 
C) absolute price. 
D) subjective price. 
A) relative price. 
B) case price. 
C) absolute price. 
D) subjective price.

Question 3

Which of the following will cause a movement along the demand curve instead of a shift of the demand curve?

Accepted Answer

A) Income 
B) Tastes and preferences 
C) Expectations of the future price of a good 
D) none of the above 
A) Income 
B) Tastes and preferences 
C) Expectations of the future price of a good 
D) none of the above

Question 4

The supply curve has a

Accepted Answer

A) negative slope. 
B) positive slope. 
C) slope equal to -1. 
D) undefined slope. 
A) negative slope. 
B) positive slope. 
C) slope equal to -1. 
D) undefined slope.

Question 5

$$\begin{array} { c c c c c } 
\text { Price } &  \text { Quantity Demanded } \
\hline  \text { Per DVD } & \text { Buyer 1 } & \text { Buyer 2 } & \text { Buyer 3 } & \text { Buyer 4 } \
\hline \$ 20 & 0 & 0 & 1 & 0 \
18 & 0 & 1 & 3 & 0 \
16 & 1 & 2 & 5 & 1 \
14 & 2 & 4 & 7 & 3 \
12 & 3 & 6 & 9 & 6 \
10 & 4 & 8 & 11 & 10 \
8 & 5 & 11 & 13 & 15\\hline
\end{array}$$
-Refer to the above table.What is the market quantity demanded of DVDs at a price of $12?

Accepted Answer

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

Question 6

Which of the following factors will lead to a shift in the demand curve?

Accepted Answer

A) Changes in the costs of inputs 
B) Changes in technology 
C) Changes in the price of the good 
D) Changes in consumers' tastes and preferences 
A) Changes in the costs of inputs 
B) Changes in technology 
C) Changes in the price of the good 
D) Changes in consumers' tastes and preferences

Question 7

With reference to the difference between a change in demand and a change in quantity demanded,which of the following is true?

Accepted Answer

A) If a good's price goes down,then demand for the good will decrease. 
B) If a good's price goes down,then quantity demanded will increase. 
C) If demand increases,then the demand curve will shift to the left. 
D) If price rises and quantity demanded decreases,then the demand curve will shift to the left. 
A) If a good's price goes down,then demand for the good will decrease. 
B) If a good's price goes down,then quantity demanded will increase. 
C) If demand increases,then the demand curve will shift to the left. 
D) If price rises and quantity demanded decreases,then the demand curve will shift to the left.

Question 8

When the price of a good falls,there will be

Accepted Answer

A) an outward shift in the good's demand curve. 
B) both an outward shift in the good's demand curve and a movement along the good's demand curve. 
C) a movement along the good's demand curve. 
D) no change in quantity demanded. 
A) an outward shift in the good's demand curve. 
B) both an outward shift in the good's demand curve and a movement along the good's demand curve. 
C) a movement along the good's demand curve. 
D) no change in quantity demanded.

Question 9

Which of the following situations could generate a shortage?

Accepted Answer

A) Demand for a good increases,resulting in a new higher market clearing price. 
B) Demand for a good decreases,resulting in a new lower market clearing price. 
C) Demand for a good increases,but the price is not permitted to rise. 
D) Demand for a good decreases,but the price is not permitted to fall. 
A) Demand for a good increases,resulting in a new higher market clearing price. 
B) Demand for a good decreases,resulting in a new lower market clearing price. 
C) Demand for a good increases,but the price is not permitted to rise. 
D) Demand for a good decreases,but the price is not permitted to fall.

Question 10

Which of the following statements is consistent with a decrease in supply?

Accepted Answer

A) Prices of raw material inputs have increased. 
B) There has been an advance in technology. 
C) Consumers' incomes have increased. 
D) The market price has decreased. 
A) Prices of raw material inputs have increased. 
B) There has been an advance in technology. 
C) Consumers' incomes have increased. 
D) The market price has decreased.

Question 11

-Refer to the above figure.At a price of $6,excess quantity supplied equals

Accepted Answer

A) 0. 
B) 12. 
C) 15. 
D) infinity. 
A) 0. 
B) 12. 
C) 15. 
D) infinity.

Question 12

An expected increase in the future price of automobiles will lead to

Accepted Answer

A) an outward shift in demand for automobiles today. 
B) a reduction in the demand for gasoline today. 
C) a movement down the demand schedule for automobiles. 
D) no predictable impact on today's demand for automobiles. 
A) an outward shift in demand for automobiles today. 
B) a reduction in the demand for gasoline today. 
C) a movement down the demand schedule for automobiles. 
D) no predictable impact on today's demand for automobiles.

Question 13

Suppose the price of cement goes up in the United States.What happens in the market for new homes?

Accepted Answer

A) Supply shifts upward and to the left. 
B) Demand shifts left. 
C) Supply shifts downward and to the right. 
D) Demand shifts to the right. 
A) Supply shifts upward and to the left. 
B) Demand shifts left. 
C) Supply shifts downward and to the right. 
D) Demand shifts to the right.

Question 14

As John's income has increased,he has purchased fewer hamburgers.Hamburgers are

Accepted Answer

A) a normal good for John. 
B) an inferior good for John. 
C) not following the law of demand. 
D) leading to a rightward shift in John's demand curve for hamburgers. 
A) a normal good for John. 
B) an inferior good for John. 
C) not following the law of demand. 
D) leading to a rightward shift in John's demand curve for hamburgers.

Question 15

Kariuki decreases his consumption of grapes after his income goes up.For Kariuki

Accepted Answer

A) grapes and income are substitute goods. 
B) grapes and income are complementary goods. 
C) grapes are an inferior good. 
D) grapes are a superior good. 
A) grapes and income are substitute goods. 
B) grapes and income are complementary goods. 
C) grapes are an inferior good. 
D) grapes are a superior good.

Question 16

We know that products G and H are related goods,because when the price of G increases,

Accepted Answer

A) the demand curve for H will shift to the right,because G and H are complementary goods. 
B) the quantity of H demanded will shift along its demand curve,because G and H are complementary goods. 
C) the demand curve for H will shift to the left,because G and H are complementary goods. 
D) the demand curve for H will remain unchanged because G and H are substitute goods. 
A) the demand curve for H will shift to the right,because G and H are complementary goods. 
B) the quantity of H demanded will shift along its demand curve,because G and H are complementary goods. 
C) the demand curve for H will shift to the left,because G and H are complementary goods. 
D) the demand curve for H will remain unchanged because G and H are substitute goods.

Question 17

Which of the following are substitute goods?

Accepted Answer

A) margarine and butter 
B) peanut butter and jelly 
C) pizza and beer 
D) sports utility vehicles and gasoline 
A) margarine and butter 
B) peanut butter and jelly 
C) pizza and beer 
D) sports utility vehicles and gasoline

Question 18

If bagels and croissants are substitute goods,which of the following is likely to occur if the price of bagels has decreased?

Accepted Answer

A) The demand curve for bagels shifts to the right. 
B) A leftward movement along the bagel demand curve. 
C) The demand curve for croissants shifts to the right. 
D) The demand curve for croissants shifts to the left. 
A) The demand curve for bagels shifts to the right. 
B) A leftward movement along the bagel demand curve. 
C) The demand curve for croissants shifts to the right. 
D) The demand curve for croissants shifts to the left.

Question 19

-Refer to the above figure.Excess quantity demanded will exist when

Accepted Answer

A) the price is between $0 and $6. 
B) the price equals $6. 
C) the price equals $10. 
D) quantity demanded equals 3. 
A) the price is between $0 and $6. 
B) the price equals $6. 
C) the price equals $10. 
D) quantity demanded equals 3.

Question 20

Suppose that because of unseasonably cold weather in Florida,a significant portion of the orange crop has been lost to freezing temperatures.This statement means that

Accepted Answer

A) the demand for oranges will rise. 
B) the equilibrium quantity of oranges will rise. 
C) the amount of oranges available at various prices will decline. 
D) the price of oranges will fall. 
A) the demand for oranges will rise. 
B) the equilibrium quantity of oranges will rise. 
C) the amount of oranges available at various prices will decline. 
D) the price of oranges will fall.

Exam 3: Demand and Supply

Which of the following will cause a movement along the supply curve for oil?

The money price of a good is also known as its

Which of the following will cause a movement along the demand curve instead of a shift of the demand curve?

The supply curve has a

Price Quantity Demanded Per DVD Buyer 1 Buyer 2 Buyer 3 Buyer 4 \ 20 0 0 1 0 18 0 1 3 0 16 1 2 5 1 14 2 4 7 3 12 3 6 9 6 10 4 8 11 10 8 5 11 13 15 -Refer to the above table.What is the market quantity demanded of DVDs at a price of $12?

Which of the following factors will lead to a shift in the demand curve?

With reference to the difference between a change in demand and a change in quantity demanded,which of the following is true?

When the price of a good falls,there will be

Which of the following situations could generate a shortage?

Which of the following statements is consistent with a decrease in supply?

-Refer to the above figure.At a price of $6,excess quantity supplied equals

An expected increase in the future price of automobiles will lead to

Suppose the price of cement goes up in the United States.What happens in the market for new homes?

As John's income has increased,he has purchased fewer hamburgers.Hamburgers are

Kariuki decreases his consumption of grapes after his income goes up.For Kariuki

We know that products G and H are related goods,because when the price of G increases,

Which of the following are substitute goods?

If bagels and croissants are substitute goods,which of the following is likely to occur if the price of bagels has decreased?

-Refer to the above figure.Excess quantity demanded will exist when

Suppose that because of unseasonably cold weather in Florida,a significant portion of the orange crop has been lost to freezing temperatures.This statement means that

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters