Question 1

Suppose a concert by Lady Gaga and a basketball game played by the L.A.Lakers are substitutes,then which of the following is true?

Accepted Answer

A) If the price of a ticket to a Lakers game increases,then the demand for Lady Gaga tickets will fall. 
B) If the price of a ticket to a Lakers game decreases,the quantity of Lakers tickets demanded will increase. 
C) If the price of a ticket to a Lakers game increases,then the demand for Lady Gaga tickets will remain unchanged. 
D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert. 
A) If the price of a ticket to a Lakers game increases,then the demand for Lady Gaga tickets will fall. 
B) If the price of a ticket to a Lakers game decreases,the quantity of Lakers tickets demanded will increase. 
C) If the price of a ticket to a Lakers game increases,then the demand for Lady Gaga tickets will remain unchanged. 
D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert.

Question 2

Market supply is obtained by

Accepted Answer

A) summing the amount demanded by individual consumers at various prices. 
B) summing the amount supplied by individual producers at various prices. 
C) the law of supply. 
D) observing how the supply curve shifts. 
A) summing the amount demanded by individual consumers at various prices. 
B) summing the amount supplied by individual producers at various prices. 
C) the law of supply. 
D) observing how the supply curve shifts.

Question 3

-At a price of P0 in the above figure,which of the following statements is FALSE?

Accepted Answer

A) Quantity demanded equals quantity supplied. 
B) There is an equilibrium in the market. 
C) P0 is the market clearing price. 
D) There is a surplus equal to Q0. 
A) Quantity demanded equals quantity supplied. 
B) There is an equilibrium in the market. 
C) P0 is the market clearing price. 
D) There is a surplus equal to Q0.

Question 4

A normal good is one for which

Accepted Answer

A) demand increases as income increases. 
B) demand increases as income decreases. 
C) the demand curve is horizontal. 
D) demand increases as the price of a substitute increases. 
A) demand increases as income increases. 
B) demand increases as income decreases. 
C) the demand curve is horizontal. 
D) demand increases as the price of a substitute increases.

Question 5

The price of one product in terms of another commodity is called its

Accepted Answer

A) relative price. 
B) money price. 
C) financial price. 
D) converse price. 
A) relative price. 
B) money price. 
C) financial price. 
D) converse price.

Question 6

Which of the following will shift the supply curve for laptop computers to the left?

Accepted Answer

A) development of a cheaper microchip used in laptop computer production 
B) a subsidy to the laptop computer industry 
C) expectations of a future decline in laptop computer prices 
D) a reduction of the number of firms that make laptop computers 
A) development of a cheaper microchip used in laptop computer production 
B) a subsidy to the laptop computer industry 
C) expectations of a future decline in laptop computer prices 
D) a reduction of the number of firms that make laptop computers

Question 7

Pam graduates from law school and gets a position in a law firm.At the same time the price of hamburger falls while other food prices have stayed the same.She notices that she buys less hamburger than she did before.Is she violating the law of demand?

Accepted Answer

A) Yes,since she is buying less hamburger at a lower price. 
B) Yes,since she is buying less hamburger in a relatively short period of time and we wouldn't expect her tastes to have changed. 
C) No,since the law of demand refers to relative price changes and the price of hamburger falling is an absolute price change. 
D) No,since other things are not held constant,such as her income. 
A) Yes,since she is buying less hamburger at a lower price. 
B) Yes,since she is buying less hamburger in a relatively short period of time and we wouldn't expect her tastes to have changed. 
C) No,since the law of demand refers to relative price changes and the price of hamburger falling is an absolute price change. 
D) No,since other things are not held constant,such as her income.

Question 8

Which one of the following would cause a rightward shift in the demand curve of digital cameras?

Accepted Answer

A) Digital cameras become easier to use. 
B) The price of digital cameras decreases. 
C) Production methods are modified to make production of digital cameras more efficient. 
D) Government regulations are imposed to limit the number of digital cameras imported. 
A) Digital cameras become easier to use. 
B) The price of digital cameras decreases. 
C) Production methods are modified to make production of digital cameras more efficient. 
D) Government regulations are imposed to limit the number of digital cameras imported.

Question 9

The relationship between quantity supplied and price is usually

Accepted Answer

A) an inverse relationship. 
B) a direct relationship. 
C) a negative relationship. 
D) impossible to determine. 
A) an inverse relationship. 
B) a direct relationship. 
C) a negative relationship. 
D) impossible to determine.

Question 10

Which of the following would cause a change in the quantity demanded of a product?

Accepted Answer

A) a higher price 
B) a higher income 
C) expectations of future price increases 
D) All of the above are correct. 
A) a higher price 
B) a higher income 
C) expectations of future price increases 
D) All of the above are correct.

Question 11

Markets are

Accepted Answer

A) a mechanism through which prices of goods and services are determined by the forces of supply and demand. 
B) specific geographic locations. 
C) hypothetical constructs used to analyze how people form their tastes and preferences. 
D) places where people can inspect goods and services carefully. 
A) a mechanism through which prices of goods and services are determined by the forces of supply and demand. 
B) specific geographic locations. 
C) hypothetical constructs used to analyze how people form their tastes and preferences. 
D) places where people can inspect goods and services carefully.

Question 12

A schedule of amounts of a good that people will purchase at various prices during a specific time period holding other factors constant is

Accepted Answer

A) a market. 
B) supply. 
C) demand. 
D) the market clearing price. 
A) a market. 
B) supply. 
C) demand. 
D) the market clearing price.

Question 13

All of the following will cause a shift in the supply of jeans EXCEPT

Accepted Answer

A) a decrease in the prices of jeans. 
B) an increase in the cost of producing jeans. 
C) a per-unit government subsidy on the production of jeans. 
D) a decrease in the number of jean manufacturers. 
A) a decrease in the prices of jeans. 
B) an increase in the cost of producing jeans. 
C) a per-unit government subsidy on the production of jeans. 
D) a decrease in the number of jean manufacturers.

Question 14

Which of the following is a determinant of supply?

Accepted Answer

A) Tastes and preferences of consumers 
B) Technology 
C) Consumer income 
D) Number of consumers 
A) Tastes and preferences of consumers 
B) Technology 
C) Consumer income 
D) Number of consumers

Question 15

The demand curve shows the relationship between quantity demanded and

Accepted Answer

A) income. 
B) price. 
C) supply. 
D) quantity supplied. 
A) income. 
B) price. 
C) supply. 
D) quantity supplied.

Question 16

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 17

The imposition of a per unit tax on a product

Accepted Answer

A) will cause the supply curve to shift downward and to the right. 
B) will cause the supply curve to shift upward and to the left. 
C) will reduce the quantity supplied of the product. 
D) will encourage producers to increase the quantity supplied of the product. 
A) will cause the supply curve to shift downward and to the right. 
B) will cause the supply curve to shift upward and to the left. 
C) will reduce the quantity supplied of the product. 
D) will encourage producers to increase the quantity supplied of the product.

Question 18

-According to the above table,there is an excess quantity demanded of 1500 DVDs at the price

Accepted Answer

A) $14. 
B) $12. 
C) $10. 
D) $8. 
A) $14. 
B) $12. 
C) $10. 
D) $8.

Question 19

State the law of supply and explain it.

Accepted Answer

The law of supply indicates the direct o

Question 20

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

Accepted Answer

A) A change in taste 
B) A change in income 
C) A change in the price of rewriteable DVDs 
D) A change in the price of rewriteable CDs 
A) A change in taste 
B) A change in income 
C) A change in the price of rewriteable DVDs 
D) A change in the price of rewriteable CDs

Suppose a concert by Lady Gaga and a basketball game played by the L.A.Lakers are substitutes,then which of the following is true?

Market supply is obtained by

-At a price of P0 in the above figure,which of the following statements is FALSE?

A normal good is one for which

The price of one product in terms of another commodity is called its

Which of the following will shift the supply curve for laptop computers to the left?

Pam graduates from law school and gets a position in a law firm.At the same time the price of hamburger falls while other food prices have stayed the same.She notices that she buys less hamburger than she did before.Is she violating the law of demand?

Which one of the following would cause a rightward shift in the demand curve of digital cameras?

The relationship between quantity supplied and price is usually

Which of the following would cause a change in the quantity demanded of a product?

Markets are

A schedule of amounts of a good that people will purchase at various prices during a specific time period holding other factors constant is

All of the following will cause a shift in the supply of jeans EXCEPT

Which of the following is a determinant of supply?

The demand curve shows the relationship between quantity demanded and

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

The imposition of a per unit tax on a product

-According to the above table,there is an excess quantity demanded of 1500 DVDs at the price

State the law of supply and explain it.

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

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

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 3: Demand and Supply

Suppose a concert by Lady Gaga and a basketball game played by the L.A.Lakers are substitutes,then which of the following is true?

Market supply is obtained by

-At a price of P0 in the above figure,which of the following statements is FALSE?

A normal good is one for which

The price of one product in terms of another commodity is called its

Which of the following will shift the supply curve for laptop computers to the left?

Pam graduates from law school and gets a position in a law firm.At the same time the price of hamburger falls while other food prices have stayed the same.She notices that she buys less hamburger than she did before.Is she violating the law of demand?

Which one of the following would cause a rightward shift in the demand curve of digital cameras?

The relationship between quantity supplied and price is usually

Which of the following would cause a change in the quantity demanded of a product?

Markets are

A schedule of amounts of a good that people will purchase at various prices during a specific time period holding other factors constant is

All of the following will cause a shift in the supply of jeans EXCEPT

Which of the following is a determinant of supply?

The demand curve shows the relationship between quantity demanded and

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

The imposition of a per unit tax on a product

-According to the above table,there is an excess quantity demanded of 1500 DVDs at the price

State the law of supply and explain it.

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

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

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters