Question 1

Which of the following is NOT a non-price determinant of demand?

Accepted Answer

A) the price of the good or service 
B) tastes and preferences 
C) expectations of future prices 
D) prices of related goods and services 
A) the price of the good or service 
B) tastes and preferences 
C) expectations of future prices 
D) prices of related goods and services

Question 2

The relationship between a change in the price of a complementary good and demand for another complementary good is

Accepted Answer

A) positive. 
B) negative. 
C) inconclusive. 
D) zero. 
A) positive. 
B) negative. 
C) inconclusive. 
D) zero.

Question 3

The market supply curve is found by

Accepted Answer

A) plotting the supply curves of individual firms. 
B) plotting and summing up the supply curves of individual firms. 
C) plotting the supply curves of individual consumers. 
D) taking the supply curve of the representative firm. 
A) plotting the supply curves of individual firms. 
B) plotting and summing up the supply curves of individual firms. 
C) plotting the supply curves of individual consumers. 
D) taking the supply curve of the representative firm.

Question 4

The relative price of a good is that price

Accepted Answer

A) expressed in today's dollars. 
B) expressed in constant 2012 dollars. 
C) expressed in terms of the price of another good. 
D) that is equal to the equilibrium price. 
A) expressed in today's dollars. 
B) expressed in constant 2012 dollars. 
C) expressed in terms of the price of another good. 
D) that is equal to the equilibrium price.

Question 5

Graphically,a market demand curve is found by

Accepted Answer

A) taking the average of all prices that people are willing to pay. 
B) summing the quantities demanded by all individuals at each price. 
C) summing the prices each consumer would pay for each quantity. 
D) taking the average of the individual demand curves. 
A) taking the average of all prices that people are willing to pay. 
B) summing the quantities demanded by all individuals at each price. 
C) summing the prices each consumer would pay for each quantity. 
D) taking the average of the individual demand curves.

Question 6

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 7

More cattle are found to have mad cow disease.As a result,consumer confidence in the safety of beef is shaken.What would an economist predict will happen in the beef market?

Accepted Answer

A) As consumer preferences move away from beef,there is an upward movement along the beef demand curve. 
B) The demand curve will shift to the left. 
C) The demand curve does not shift but consumers move to a point lower down the curve. 
D) Absolutely no change in either the quantity demand or the demand for beef. 
A) As consumer preferences move away from beef,there is an upward movement along the beef demand curve. 
B) The demand curve will shift to the left. 
C) The demand curve does not shift but consumers move to a point lower down the curve. 
D) Absolutely no change in either the quantity demand or the demand for beef.

Question 8

How does a change in quantity supplied differ from a change in supply?

Accepted Answer

A) A change in quantity supplied shifts the supply curve;a change in supply is a movement along the curve. 
B) A change in one of the ceteris paribus conditions affects quantity supplied,not supply. 
C) A change in the price affects quantity supplied,not supply. 
D) There is no difference. 
A) A change in quantity supplied shifts the supply curve;a change in supply is a movement along the curve. 
B) A change in one of the ceteris paribus conditions affects quantity supplied,not supply. 
C) A change in the price affects quantity supplied,not supply. 
D) There is no difference.

Question 9

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 10

Which of the following would likely cause an increase in the supply of espresso coffee makers?

Accepted Answer

A) an increase in the number of business firms demanding espresso makers 
B) an increase in the price of espresso makers 
C) an increase in the cost of manufacturing espresso makers 
D) a widespread expectation that the price of espresso makers will fall in the future 
A) an increase in the number of business firms demanding espresso makers 
B) an increase in the price of espresso makers 
C) an increase in the cost of manufacturing espresso makers 
D) a widespread expectation that the price of espresso makers will fall in the future

Question 11

If a demand curve shifts,we know that

Accepted Answer

A) the price of the good itself is not a factor. 
B) the price of the good itself is a factor. 
C) the price of the good and supply are the major factors. 
D) the price of the good and demand are major factors. 
A) the price of the good itself is not a factor. 
B) the price of the good itself is a factor. 
C) the price of the good and supply are the major factors. 
D) the price of the good and demand are major factors.

Question 12

Which of the following does NOT cause a shift in demand?

Accepted Answer

A) Change in income 
B) Change in tastes 
C) Change in the price of the good 
D) Change in the price of a related good 
A) Change in income 
B) Change in tastes 
C) Change in the price of the good 
D) Change in the price of a related good

Question 13

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 14

Demand is a schedule that shows

Accepted Answer

A) a set of possible prices for a good and the quantities of the good that will be purchased at each of those prices. 
B) how much income it takes to afford various quantities of a good. 
C) the relationship between the cost of producing a good and the price that sellers will charge. 
D) how population changes will affect the amount of a good that is needed. 
A) a set of possible prices for a good and the quantities of the good that will be purchased at each of those prices. 
B) how much income it takes to afford various quantities of a good. 
C) the relationship between the cost of producing a good and the price that sellers will charge. 
D) how population changes will affect the amount of a good that is needed.

Question 15

A shift in the demand curve to the right represents

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 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

When income falls,

Accepted Answer

A) the demand for a normal goods rises. 
B) the demand for an inferior goods rises. 
C) there is a movement downward along the demand curve for a normal good. 
D) there is a movement downward along the demand curve for an inferior good. 
A) the demand for a normal goods rises. 
B) the demand for an inferior goods rises. 
C) there is a movement downward along the demand curve for a normal good. 
D) there is a movement downward along the demand curve for an inferior good.

Question 18

Which one of the following statements is FALSE?

Accepted Answer

A) There is an inverse (negative)relationship between product price and quantity supplied. 
B) There is some price at which quantity supplied of a product is zero. 
C) As product price increases,producers are willing to put more of the good on the market for sale. 
D) In order to entice producers to offer more of a product on the market for sale,product price must rise. 
A) There is an inverse (negative)relationship between product price and quantity supplied. 
B) There is some price at which quantity supplied of a product is zero. 
C) As product price increases,producers are willing to put more of the good on the market for sale. 
D) In order to entice producers to offer more of a product on the market for sale,product price must rise.

Question 19

A shortage will occur whenever

Accepted Answer

A) price is below the equilibrium price. 
B) price is above the equilibrium price. 
C) price is equal to the equilibrium price. 
D) the supply curve is upward sloping. 
A) price is below the equilibrium price. 
B) price is above the equilibrium price. 
C) price is equal to the equilibrium price. 
D) the supply curve is upward sloping.

Question 20

A shift in the demand curve will occur when

Accepted Answer

A) supply shifts. 
B) the price of an input used to produce the good changes. 
C) consumers' income changes. 
D) the price of the product changes. 
A) supply shifts. 
B) the price of an input used to produce the good changes. 
C) consumers' income changes. 
D) the price of the product changes.

Which of the following is NOT a non-price determinant of demand?

The relationship between a change in the price of a complementary good and demand for another complementary good is

The market supply curve is found by

The relative price of a good is that price

Graphically,a market demand curve is found by

When the price of a good falls,there will be

More cattle are found to have mad cow disease.As a result,consumer confidence in the safety of beef is shaken.What would an economist predict will happen in the beef market?

How does a change in quantity supplied differ from a change in supply?

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

Which of the following would likely cause an increase in the supply of espresso coffee makers?

If a demand curve shifts,we know that

Which of the following does NOT cause a shift in demand?

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

Demand is a schedule that shows

A shift in the demand curve to the right represents

Which of the following would most likely be considered complements?

When income falls,

Which one of the following statements is FALSE?

A shortage will occur whenever

A shift in the demand curve will occur when

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

Which of the following is NOT a non-price determinant of demand?

The relationship between a change in the price of a complementary good and demand for another complementary good is

The market supply curve is found by

The relative price of a good is that price

Graphically,a market demand curve is found by

When the price of a good falls,there will be

More cattle are found to have mad cow disease.As a result,consumer confidence in the safety of beef is shaken.What would an economist predict will happen in the beef market?

How does a change in quantity supplied differ from a change in supply?

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

Which of the following would likely cause an increase in the supply of espresso coffee makers?

If a demand curve shifts,we know that

Which of the following does NOT cause a shift in demand?

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

Demand is a schedule that shows

A shift in the demand curve to the right represents

Which of the following would most likely be considered complements?

When income falls,

Which one of the following statements is FALSE?

A shortage will occur whenever

A shift in the demand curve will occur when

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