Question 1

Which of the following products are likely to be complementary goods?

Accepted Answer

A) Coke and Pepsi 
B) portable MP3 players and batteries 
C) HD-DVDs and Blu-Ray DVDs 
D) Domino's pizza and Papa John's pizza 
A) Coke and Pepsi 
B) portable MP3 players and batteries 
C) HD-DVDs and Blu-Ray DVDs 
D) Domino's pizza and Papa John's pizza

Question 2

For a demand schedule,which of the following is held constant?

Accepted Answer

A) relative prices 
B) quantity demanded 
C) quality of the good 
D) nominal prices 
A) relative prices 
B) quantity demanded 
C) quality of the good 
D) nominal prices

Question 3

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

Accepted Answer

A) There will be a movement along an unchanged supply curve for jeans. 
B) The supply curve for jeans will shift rightward. 
C) The supply curve for jeans will shift leftward. 
D) There will be a rightward shift in the supply curve for jeans,followed by a movement along the supply curve. 
A) There will be a movement along an unchanged supply curve for jeans. 
B) The supply curve for jeans will shift rightward. 
C) The supply curve for jeans will shift leftward. 
D) There will be a rightward shift in the supply curve for jeans,followed by a movement along the supply curve.

Question 4

Other things being constant,the only way to move along a given supply curve for a product is for

Accepted Answer

A) the product's relative price to change. 
B) the future relative price of related goods to change. 
C) the number of sellers to change. 
D) technological changes to occur. 
A) the product's relative price to change. 
B) the future relative price of related goods to change. 
C) the number of sellers to change. 
D) technological changes to occur.

Question 5

Which of the following will NOT affect the position of the market supply curve for a good?

Accepted Answer

A) The government grants a subsidy to the producers for each unit of a good that they produce. 
B) The price of the good increases. 
C) The number of sellers in the market increases. 
D) There is an increase in the prices of the inputs used in production. 
A) The government grants a subsidy to the producers for each unit of a good that they produce. 
B) The price of the good increases. 
C) The number of sellers in the market increases. 
D) There is an increase in the prices of the inputs used in production.

Question 6

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

Accepted Answer

A) 5 
B) 15 
C) 35 
D) 44 
A) 5 
B) 15 
C) 35 
D) 44

Question 7

The law of demand includes the statement "other things being equal." These other things include all of the following EXCEPT

Accepted Answer

A) the price of that good in the law of demand. 
B) consumers' income. 
C) consumers' tastes and preferences. 
D) the number of potential buyers. 
A) the price of that good in the law of demand. 
B) consumers' income. 
C) consumers' tastes and preferences. 
D) the number of potential buyers.

Question 8

Suppose all prices increase by 10 percent in the year while the total sales of HDTVs remain constant.This is

Accepted Answer

A) a violation of the law of demand since fewer HDTVs should be purchased at a higher price. 
B) a violation of the law of demand since more HDTVs should have been purchased with higher incomes. 
C) not a violation of the law of demand since the relative price of HDTVs did not change. 
D) not a violation of the law of demand since the law of demand does not apply to expensive goods like HDTVs. 
A) a violation of the law of demand since fewer HDTVs should be purchased at a higher price. 
B) a violation of the law of demand since more HDTVs should have been purchased with higher incomes. 
C) not a violation of the law of demand since the relative price of HDTVs did not change. 
D) not a violation of the law of demand since the law of demand does not apply to expensive goods like HDTVs.

Question 9

-Refer to the above figure.The rightward shift of the curve indicates

Accepted Answer

A) an increase in demand. 
B) a decrease in demand. 
C) an increase in quantity demanded. 
D) a decrease in quantity demanded. 
A) an increase in demand. 
B) a decrease in demand. 
C) an increase in quantity demanded. 
D) a decrease in quantity demanded.

Question 10

The law of supply implies that the supply curve is

Accepted Answer

A) flat. 
B) upward sloping. 
C) downward sloping. 
D) vertical. 
A) flat. 
B) upward sloping. 
C) downward sloping. 
D) vertical.

Question 11

-According to the above figure for a gasoline market,what happens when the price per gallon of gasoline jumps from $1 to $4?

Accepted Answer

A) A gasoline surplus is replaces by a gas shortage. 
B) The market moves from a shortage of 40 million gallons/day to a surplus of 50 million gallons/day. 
C) The market shortage is replaced by market equilibrium. 
D) A surplus of 40 million gallons/day results. 
A) A gasoline surplus is replaces by a gas shortage. 
B) The market moves from a shortage of 40 million gallons/day to a surplus of 50 million gallons/day. 
C) The market shortage is replaced by market equilibrium. 
D) A surplus of 40 million gallons/day results.

Question 12

If the price of personal computers were to rise,then the demand for printers would decrease because personal computers and printers are

Accepted Answer

A) complementary goods. 
B) consumer goods. 
C) inferior goods. 
D) substitute goods. 
A) complementary goods. 
B) consumer goods. 
C) inferior goods. 
D) substitute goods.

Question 13

Which of the following represents the law of supply?

Accepted Answer

A) An increase in the price of a good causes an increase in the supply of that good. 
B) An increase in the price of a good causes a rightward shift of the supply curve for that good. 
C) An increase in the price of a good causes an increase in the quantity supplied of that good. 
D) all of the above 
A) An increase in the price of a good causes an increase in the supply of that good. 
B) An increase in the price of a good causes a rightward shift of the supply curve for that good. 
C) An increase in the price of a good causes an increase in the quantity supplied of that good. 
D) all of the above

Question 14

A given supply curve illustrates

Accepted Answer

A) the relationship between price and quantity supplied. 
B) the effect of a change in resource costs on quantity supplied. 
C) the effect of a change in technology on quantity supplied. 
D) the relationship between expected future prices and quantity supplied. 
A) the relationship between price and quantity supplied. 
B) the effect of a change in resource costs on quantity supplied. 
C) the effect of a change in technology on quantity supplied. 
D) the relationship between expected future prices and quantity supplied.

Question 15

According to the law of demand,the quantity demanded of a good is related to

Accepted Answer

A) the average price of all goods. 
B) income. 
C) any factor that affects the decision of an individual consumer but not the market. 
D) the relative price of that good. 
A) the average price of all goods. 
B) income. 
C) any factor that affects the decision of an individual consumer but not the market. 
D) the relative price of that good.

Question 16

Which of the following would most likely be considered complements?

Accepted Answer

A) butter and margarine 
B) rental cars and taxis 
C) plastic wrap and aluminum foil 
D) tennis rackets and tennis balls 
A) butter and margarine 
B) rental cars and taxis 
C) plastic wrap and aluminum foil 
D) tennis rackets and tennis balls

Question 17

According to the law of demand

Accepted Answer

A) price and quantity demanded move in the same direction. 
B) price and quantity demanded move in opposite directions. 
C) ceteris paribus does not apply. 
D) price and quantity demanded are unrelated. 
A) price and quantity demanded move in the same direction. 
B) price and quantity demanded move in opposite directions. 
C) ceteris paribus does not apply. 
D) price and quantity demanded are unrelated.

Question 18

Suppose that,at an official ticket price of $480,there are 6,000 Justin Timberlake fans wanting to attend his concert,but only 4,000 ticketed seats are available.Which one of the following statements is then true?

Accepted Answer

A) There will be scalpers outside the arena selling tickets for $480. 
B) There will be a surplus of tickets. 
C) The market clearing price of the tickets is less than $480. 
D) The market clearing price of the tickets is more than $480. 
A) There will be scalpers outside the arena selling tickets for $480. 
B) There will be a surplus of tickets. 
C) The market clearing price of the tickets is less than $480. 
D) The market clearing price of the tickets is more than $480.

Question 19

-In the above figure,if the price is equal to $50,there is

Accepted Answer

A) a surplus of 200 units. 
B) a shortage of 100 units. 
C) an excess quantity demanded of 50 units. 
D) an inadequate supply of 100 units. 
A) a surplus of 200 units. 
B) a shortage of 100 units. 
C) an excess quantity demanded of 50 units. 
D) an inadequate supply of 100 units.

Question 20

A demand schedule provides

Accepted Answer

A) the quantities of a good people are willing to sell every year. 
B) the amount of a good a person wants to sell during a given time period. 
C) the alternative quantities demanded for a given time period at different possible prices. 
D) the amount of a good a person wants at different times of the day. 
A) the quantities of a good people are willing to sell every year. 
B) the amount of a good a person wants to sell during a given time period. 
C) the alternative quantities demanded for a given time period at different possible prices. 
D) the amount of a good a person wants at different times of the day.

Exam 3: Demand and Supply

Which of the following products are likely to be complementary goods?

For a demand schedule,which of the following is held constant?

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

Other things being constant,the only way to move along a given supply curve for a product is for

Which of the following will NOT affect the position of the market supply curve for a good?

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 at a price of $8?

The law of demand includes the statement "other things being equal." These other things include all of the following EXCEPT

Suppose all prices increase by 10 percent in the year while the total sales of HDTVs remain constant.This is

-Refer to the above figure.The rightward shift of the curve indicates

The law of supply implies that the supply curve is

-According to the above figure for a gasoline market,what happens when the price per gallon of gasoline jumps from $1 to $4?

If the price of personal computers were to rise,then the demand for printers would decrease because personal computers and printers are

Which of the following represents the law of supply?

A given supply curve illustrates

According to the law of demand,the quantity demanded of a good is related to

Which of the following would most likely be considered complements?

According to the law of demand

Suppose that,at an official ticket price of $480,there are 6,000 Justin Timberlake fans wanting to attend his concert,but only 4,000 ticketed seats are available.Which one of the following statements is then true?

-In the above figure,if the price is equal to $50,there is

A demand schedule provides

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

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