Question 1

-In the above figure,the demand curve for Good A shifts from D1 to D2 in Graph A when the price of Good B changes from P1 to P2 in Graph B.We can conclude that

Accepted Answer

A) Good A and Good B are substitutes. 
B) Good A and Good B are complements. 
C) Good A is a normal good but Good B is an inferior good. 
D) Good A and Good B are unrelated. 
A) Good A and Good B are substitutes. 
B) Good A and Good B are complements. 
C) Good A is a normal good but Good B is an inferior good. 
D) Good A and Good B are unrelated.

Question 2

-According to the above table,at a price of $16 per DVD,there is

Accepted Answer

A) an equilibrium. 
B) a surplus of 3000 DVDs. 
C) a shortage of 3000 DVDs. 
D) a shortage of 1500 DVDs. 
A) an equilibrium. 
B) a surplus of 3000 DVDs. 
C) a shortage of 3000 DVDs. 
D) a shortage of 1500 DVDs.

Question 3

A demand curve is a

Accepted Answer

A) graphical representation of the demand schedule. 
B) graphical representation of alternative demands. 
C) horizontal line connecting amounts demanded at various income levels. 
D) graphical relationship,that includes several things such as tastes,time,and supply. 
A) graphical representation of the demand schedule. 
B) graphical representation of alternative demands. 
C) horizontal line connecting amounts demanded at various income levels. 
D) graphical relationship,that includes several things such as tastes,time,and supply.

Question 4

-Refer to the above table.The equilibrium price of tablets is

Accepted Answer

A) $500. 
B) $550. 
C) $650. 
D) $700. 
A) $500. 
B) $550. 
C) $650. 
D) $700.

Question 5

An increase in demand is shown graphically by

Accepted Answer

A) a shift of the demand curve to the left. 
B) a movement up along the existing curve. 
C) a shift of the demand curve to the right. 
D) a movement down the existing curve. 
A) a shift of the demand curve to the left. 
B) a movement up along the existing curve. 
C) a shift of the demand curve to the right. 
D) a movement down the existing curve.

Question 6

-Refer to the above figure.Excess quantity supplied 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 15. 
A) the price is between $0 and $6. 
B) the price equals $6. 
C) the price equals $10. 
D) quantity demanded equals 15.

Question 7

The price of an MP3 music player increased from $50 to $70 while the price of a music download increased from $1 to $2.The relative price of an MP3 music player in terms of music downloads

Accepted Answer

A) increased from 0.04 to 0.05. 
B) decreased from 50 to 35. 
C) increased,but we need more information to know by how much. 
D) decreased,but we need more information to know by how much. 
A) increased from 0.04 to 0.05. 
B) decreased from 50 to 35. 
C) increased,but we need more information to know by how much. 
D) decreased,but we need more information to know by how much.

Question 8

In economic terminology,a normal good is a good

Accepted Answer

A) on which a monetary value cannot be placed. 
B) that is liked only by normal people. 
C) for which demand increases when price increases. 
D) for which demand increases when income increases. 
A) on which a monetary value cannot be placed. 
B) that is liked only by normal people. 
C) for which demand increases when price increases. 
D) for which demand increases when income increases.

Question 9

An increase in the price of corn will lead to

Accepted Answer

A) an upward (and leftward)movement along the demand curve for corn. 
B) a leftward shift in the demand curve for corn. 
C) a rightward shift in the supply curve for corn. 
D) an increase in the quantity of corn consumed. 
A) an upward (and leftward)movement along the demand curve for corn. 
B) a leftward shift in the demand curve for corn. 
C) a rightward shift in the supply curve for corn. 
D) an increase in the quantity of corn consumed.

Question 10

Which of the following would cause an increase in the market supply of mountain bikes?

Accepted Answer

A) a decrease in the demand for mountain bikes 
B) an increase in taxes levied on mountain bike manufacturers 
C) an increase in the cost of components used to assemble mountain bikes 
D) an increase in the number of firms making mountain bikes 
A) a decrease in the demand for mountain bikes 
B) an increase in taxes levied on mountain bike manufacturers 
C) an increase in the cost of components used to assemble mountain bikes 
D) an increase in the number of firms making mountain bikes

Question 11

Which of the following will cause an outward (rightward)shift in the supply curve?

Accepted Answer

A) A reduction in the price of the good 
B) An increase in the price of labor input 
C) An increase in the number of consumers 
D) Technological progress 
A) A reduction in the price of the good 
B) An increase in the price of labor input 
C) An increase in the number of consumers 
D) Technological progress

Question 12

Total market demand can be calculated by

Accepted Answer

A) horizontally summing individual demand curves at each and every price level. 
B) vertically summing individual demand curves at each and every income level. 
C) adding up the largest quantity demanded by each individual. 
D) looking at the changes in the products' popularity. 
A) horizontally summing individual demand curves at each and every price level. 
B) vertically summing individual demand curves at each and every income level. 
C) adding up the largest quantity demanded by each individual. 
D) looking at the changes in the products' popularity.

Question 13

A decrease in quantity demanded of a good is caused by

Accepted Answer

A) a decrease in income. 
B) a decrease in the price of a substitute. 
C) an increase in the price of the good. 
D) a change of tastes. 
A) a decrease in income. 
B) a decrease in the price of a substitute. 
C) an increase in the price of the good. 
D) a change of tastes.

Question 14

Market clearing price

Accepted Answer

A) refers to a movement along the demand curve. 
B) refers to a supply curve. 
C) exists at a the point at which quantity demanded equals quantity supplied. 
D) refers to a surplus. 
A) refers to a movement along the demand curve. 
B) refers to a supply curve. 
C) exists at a the point at which quantity demanded equals quantity supplied. 
D) refers to a surplus.

Question 15

When the term "price" is used in the law of demand,price refers to

Accepted Answer

A) the dollar price of the good. 
B) the price of the good relative to the price of another good. 
C) the absolute price of the good. 
D) the nominal price of the good relative to its nominal price in the previous year. 
A) the dollar price of the good. 
B) the price of the good relative to the price of another good. 
C) the absolute price of the good. 
D) the nominal price of the good relative to its nominal price in the previous year.

Question 16

Which one of the following statements is true?

Accepted Answer

A) If the money price of a good increases,its relative price necessarily increases. 
B) If the money price of a good increases,its relative price necessarily decreases. 
C) The relative price of a good refers to the opportunity cost of purchasing it. 
D) Rational consumers always ignore the monetary price of a good when deciding whether to buy it. 
A) If the money price of a good increases,its relative price necessarily increases. 
B) If the money price of a good increases,its relative price necessarily decreases. 
C) The relative price of a good refers to the opportunity cost of purchasing it. 
D) Rational consumers always ignore the monetary price of a good when deciding whether to buy it.

Question 17

Consider the following:   The relative price of movies this year has

Accepted Answer

A) increased. 
B) decreased. 
C) stayed the same. 
D) Not enough information has been given to calculate an answer. 
A) increased. 
B) decreased. 
C) stayed the same. 
D) Not enough information has been given to calculate an answer.

Question 18

When there is an excess quantity of a product supplied,there will be

Accepted Answer

A) a tendency for price of the product to increase. 
B) a tendency for price of the product to fall. 
C) incentives for consumers to leave the market. 
D) upward pressure on the price of labor. 
A) a tendency for price of the product to increase. 
B) a tendency for price of the product to fall. 
C) incentives for consumers to leave the market. 
D) upward pressure on the price of labor.

Question 19

Which of the following will cause the demand curve for beer to shift right?

Accepted Answer

A) a fall in the price of beer 
B) a fall in average incomes of beer consumers 
C) a decline in population 
D) a successful advertising campaign linking beer consumption to lower cholesterol 
A) a fall in the price of beer 
B) a fall in average incomes of beer consumers 
C) a decline in population 
D) a successful advertising campaign linking beer consumption to lower cholesterol

Question 20

-According to the above figure,equilibrium is at point

Accepted Answer

A) E. 
B) B. 
C) C. 
D) D. 
A) E. 
B) B. 
C) C. 
D) D.

-In the above figure,the demand curve for Good A shifts from D1 to D2 in Graph A when the price of Good B changes from P1 to P2 in Graph B.We can conclude that

-According to the above table,at a price of $16 per DVD,there is

A demand curve is a

-Refer to the above table.The equilibrium price of tablets is

An increase in demand is shown graphically by

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

The price of an MP3 music player increased from $50 to $70 while the price of a music download increased from $1 to $2.The relative price of an MP3 music player in terms of music downloads

In economic terminology,a normal good is a good

An increase in the price of corn will lead to

Which of the following would cause an increase in the market supply of mountain bikes?

Which of the following will cause an outward (rightward)shift in the supply curve?

Total market demand can be calculated by

A decrease in quantity demanded of a good is caused by

Market clearing price

When the term "price" is used in the law of demand,price refers to

Which one of the following statements is true?

Consider the following: The relative price of movies this year has

When there is an excess quantity of a product supplied,there will be

Which of the following will cause the demand curve for beer to shift right?

-According to the above figure,equilibrium is at point

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

-In the above figure,the demand curve for Good A shifts from D1 to D2 in Graph A when the price of Good B changes from P1 to P2 in Graph B.We can conclude that

-According to the above table,at a price of $16 per DVD,there is

A demand curve is a

-Refer to the above table.The equilibrium price of tablets is

An increase in demand is shown graphically by

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

The price of an MP3 music player increased from $50 to $70 while the price of a music download increased from $1 to $2.The relative price of an MP3 music player in terms of music downloads

In economic terminology,a normal good is a good

An increase in the price of corn will lead to

Which of the following would cause an increase in the market supply of mountain bikes?

Which of the following will cause an outward (rightward)shift in the supply curve?

Total market demand can be calculated by

A decrease in quantity demanded of a good is caused by

Market clearing price

When the term "price" is used in the law of demand,price refers to

Which one of the following statements is true?

Consider the following: The relative price of movies this year has

When there is an excess quantity of a product supplied,there will be

Which of the following will cause the demand curve for beer to shift right?

-According to the above figure,equilibrium is at point

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