Question 1

By summing the quantities demanded by individuals at each price we obtain the

Accepted Answer

A) equilibrium price. 
B) market demand curve. 
C) market supply curve. 
D) individual demand curve. 
A) equilibrium price. 
B) market demand curve. 
C) market supply curve. 
D) individual demand curve.

Question 2

An increase in the quantity demanded is shown by

Accepted Answer

A) a leftward shift of the demand curve. 
B) a rightward shift of the demand curve. 
C) a movement down along a demand curve. 
D) a movement up along a demand curve. 
A) a leftward shift of the demand curve. 
B) a rightward shift of the demand curve. 
C) a movement down along a demand curve. 
D) a movement up along a demand curve.

Question 3

The quantity supplied of a particular good is the amount of the good that

Accepted Answer

A) households are willing to consume at each particular price. 
B) firms will actually end up buying at a particular price during a given time period. 
C) firms are willing to sell at each price during a particular time period. 
D) households want firms to sell at each price during a particular time period. 
A) households are willing to consume at each particular price. 
B) firms will actually end up buying at a particular price during a given time period. 
C) firms are willing to sell at each price during a particular time period. 
D) households want firms to sell at each price during a particular time period.

Question 4

-Refer to the above figure for the market of Cheerios.Which diagram depicts the effect of an increase in the price of Cheerios?

Accepted Answer

A) A 
B) B 
C) neither graph 
D) both graphs 
A) A 
B) B 
C) neither graph 
D) both graphs

Question 5

Scalping and other black market activities arise when

Accepted Answer

A) the prices of goods are allowed to adjust to their equilibrium levels. 
B) the quantities of goods demanded and supplied are allowed to adjust to their equilibrium levels. 
C) the prices of goods are restricted to levels above equilibrium prices. 
D) the prices of goods are restricted to levels below equilibrium prices. 
A) the prices of goods are allowed to adjust to their equilibrium levels. 
B) the quantities of goods demanded and supplied are allowed to adjust to their equilibrium levels. 
C) the prices of goods are restricted to levels above equilibrium prices. 
D) the prices of goods are restricted to levels below equilibrium prices.

Question 6

Which one of the following would cause an increase in the supply of cardboard?

Accepted Answer

A) a decrease in the demand for cardboard 
B) an increase in the price of cardboard 
C) an increase in taxes applied to cardboard producers 
D) an improvement in the technology used to produce cardboard 
A) a decrease in the demand for cardboard 
B) an increase in the price of cardboard 
C) an increase in taxes applied to cardboard producers 
D) an improvement in the technology used to produce cardboard

Question 7

-Refer to the above table.There is an excess quantity supplied of 2,000 units at a price of

Accepted Answer

A) $450. 
B) $500. 
C) $600. 
D) $700. 
A) $450. 
B) $500. 
C) $600. 
D) $700.

Question 8

-Refer to the above figure.At a price of three cents,a(n)________ of bubble gum will exist in the market.

Accepted Answer

A) surplus 
B) shortage 
C) equilibrium quantity 
D) excess quantity supplied 
A) surplus 
B) shortage 
C) equilibrium quantity 
D) excess quantity supplied

Question 9

-Refer to the above figure.Which diagram shows the effect on the market of Corn Flakes when the price of Corn Flakes has increased?

Accepted Answer

A) graph C 
B) graph D 
C) neither graph 
D) both graphs 
A) graph C 
B) graph D 
C) neither graph 
D) both graphs

Question 10

What happens as the result of a shortage?

Accepted Answer

A) There is downward pressure on prices. 
B) There is upward pressure on prices. 
C) Consumers begin to view the good as an inferior good because they have a hard time finding it. 
D) Supply of the good decreases. 
A) There is downward pressure on prices. 
B) There is upward pressure on prices. 
C) Consumers begin to view the good as an inferior good because they have a hard time finding it. 
D) Supply of the good decreases.

Question 11

Another term for the equilibrium price is

Accepted Answer

A) excess demand. 
B) nominal price. 
C) law of demand. 
D) market clearing price. 
A) excess demand. 
B) nominal price. 
C) law of demand. 
D) market clearing price.

Question 12

The law of demand states that

Accepted Answer

A) consumers have unlimited demands for a good. 
B) a higher price will lead to increased sales. 
C) the price can never be too high for some consumers. 
D) quantity demanded will vary inversely with the price of the good. 
A) consumers have unlimited demands for a good. 
B) a higher price will lead to increased sales. 
C) the price can never be too high for some consumers. 
D) quantity demanded will vary inversely with the price of the good.

Question 13

If Apple's iTunes Music Store increases its "fee" for its music downloads,the law of demand predicts that

Accepted Answer

A) the number of iTunes music downloads would increase. 
B) there would be no change in the demand for iTunes music downloads. 
C) the number of iTunes music downloads would decrease. 
D) iTunes music supply would change but demand would not. 
A) the number of iTunes music downloads would increase. 
B) there would be no change in the demand for iTunes music downloads. 
C) the number of iTunes music downloads would decrease. 
D) iTunes music supply would change but demand would not.

Question 14

The effects of a per-unit tax imposed on sales of an industry's product would likely include

Accepted Answer

A) a lower product price at any amount of the product supplied. 
B) a leftward shift of the market supply curve for the product. 
C) a leftward movement along the market supply curve for the product. 
D) none of the above. 
A) a lower product price at any amount of the product supplied. 
B) a leftward shift of the market supply curve for the product. 
C) a leftward movement along the market supply curve for the product. 
D) none of the above.

Question 15

An inferior good is one for which

Accepted Answer

A) demand increases as income increases. 
B) demand decreases as income increases. 
C) the demand curve is vertical. 
D) the demand curve slopes up. 
A) demand increases as income increases. 
B) demand decreases as income increases. 
C) the demand curve is vertical. 
D) the demand curve slopes up.

Question 16

Demand is a schedule of

Accepted Answer

A) how much of a good a person wants. 
B) how much of a good people will purchase at each different possible price. 
C) how much of a good people will purchase at each income level. 
D) each possible price and the amount people will buy when their incomes change. 
A) how much of a good a person wants. 
B) how much of a good people will purchase at each different possible price. 
C) how much of a good people will purchase at each income level. 
D) each possible price and the amount people will buy when their incomes change.

Question 17

John believes that when the price of a good increases people will purchase more of the good.This statement is

Accepted Answer

A) consistent with the law of demand. 
B) inconsistent with the law of demand. 
C) referring to money prices. 
D) consistent with the law of supply. 
A) consistent with the law of demand. 
B) inconsistent with the law of demand. 
C) referring to money prices. 
D) consistent with the law of supply.

Question 18

Suppose an individual experiences a permanent increase in income.As a result of this increased income,further assume that the individual eats dinner at restaurants more frequently each month.This information suggests that dinners at restaurants for this individual are

Accepted Answer

A) an inferior good. 
B) a substitute good. 
C) a normal good. 
D) both complimentary and inferior. 
A) an inferior good. 
B) a substitute good. 
C) a normal good. 
D) both complimentary and inferior.

Question 19

Briefly discuss the determinants of demand other than price.

Accepted Answer

An increase in income causes demand of a

Question 20

Which of the following is an example of the law of demand?

Accepted Answer

A) A decrease in the price of milk is followed by an increase in milk purchases. 
B) A decrease in the price of milk is followed by a decrease in milk purchases. 
C) An increase in the price of milk has no effect on the amount of milk purchased. 
D) The amount of milk purchased increases when the price is constant. 
A) A decrease in the price of milk is followed by an increase in milk purchases. 
B) A decrease in the price of milk is followed by a decrease in milk purchases. 
C) An increase in the price of milk has no effect on the amount of milk purchased. 
D) The amount of milk purchased increases when the price is constant.

By summing the quantities demanded by individuals at each price we obtain the

An increase in the quantity demanded is shown by

The quantity supplied of a particular good is the amount of the good that

-Refer to the above figure for the market of Cheerios.Which diagram depicts the effect of an increase in the price of Cheerios?

Scalping and other black market activities arise when

Which one of the following would cause an increase in the supply of cardboard?

-Refer to the above table.There is an excess quantity supplied of 2,000 units at a price of

-Refer to the above figure.At a price of three cents,a(n)________ of bubble gum will exist in the market.

-Refer to the above figure.Which diagram shows the effect on the market of Corn Flakes when the price of Corn Flakes has increased?

What happens as the result of a shortage?

Another term for the equilibrium price is

The law of demand states that

If Apple's iTunes Music Store increases its "fee" for its music downloads,the law of demand predicts that

The effects of a per-unit tax imposed on sales of an industry's product would likely include

An inferior good is one for which

Demand is a schedule of

John believes that when the price of a good increases people will purchase more of the good.This statement is

Suppose an individual experiences a permanent increase in income.As a result of this increased income,further assume that the individual eats dinner at restaurants more frequently each month.This information suggests that dinners at restaurants for this individual are

Briefly discuss the determinants of demand other than price.

Which of the following is an example of the law of demand?

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

By summing the quantities demanded by individuals at each price we obtain the

An increase in the quantity demanded is shown by

The quantity supplied of a particular good is the amount of the good that

-Refer to the above figure for the market of Cheerios.Which diagram depicts the effect of an increase in the price of Cheerios?

Scalping and other black market activities arise when

Which one of the following would cause an increase in the supply of cardboard?

-Refer to the above table.There is an excess quantity supplied of 2,000 units at a price of

-Refer to the above figure.At a price of three cents,a(n)________ of bubble gum will exist in the market.

-Refer to the above figure.Which diagram shows the effect on the market of Corn Flakes when the price of Corn Flakes has increased?

What happens as the result of a shortage?

Another term for the equilibrium price is

The law of demand states that

If Apple's iTunes Music Store increases its "fee" for its music downloads,the law of demand predicts that

The effects of a per-unit tax imposed on sales of an industry's product would likely include

An inferior good is one for which

Demand is a schedule of

John believes that when the price of a good increases people will purchase more of the good.This statement is

Suppose an individual experiences a permanent increase in income.As a result of this increased income,further assume that the individual eats dinner at restaurants more frequently each month.This information suggests that dinners at restaurants for this individual are

Briefly discuss the determinants of demand other than price.

Which of the following is an example of the law of demand?

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