Question 1

-In the above figure,what would result if the price was $40?

Accepted Answer

A) a surplus 
B) a shortage 
C) equilibrium 
D) excess demand 
A) a surplus 
B) a shortage 
C) equilibrium 
D) excess demand

Question 2

-In the above figure,what are the equilibrium price and quantity?

Accepted Answer

A) $40 and 200 units 
B) $50 and 100 units 
C) $10 and 200 units 
D) $30 and 100 units 
A) $40 and 200 units 
B) $50 and 100 units 
C) $10 and 200 units 
D) $30 and 100 units

Question 3

-A market is in equilibrium when

Accepted Answer

A) the quantity demanded equals the quantity supplied at the market clearing price. 
B) the horizontal axis crosses the vertical axis. 
C) buyers do not desire for the price to be any lower. 
D) the equilibrium price is below the market price. 
A) the quantity demanded equals the quantity supplied at the market clearing price. 
B) the horizontal axis crosses the vertical axis. 
C) buyers do not desire for the price to be any lower. 
D) the equilibrium price is below the market price.

Question 4

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 5

The arrangements that individuals have with each other to exchange goods is known as

Accepted Answer

A) demand. 
B) supply. 
C) a market. 
D) complements. 
A) demand. 
B) supply. 
C) a market. 
D) complements.

Question 6

If a good is a normal good,an increase in income will

Accepted Answer

A) decrease the quantity demanded of the good. 
B) increase the demand for the good. 
C) cause the demand curve for the good to shift to the left. 
D) cause a movement down along the demand curve. 
A) decrease the quantity demanded of the good. 
B) increase the demand for the good. 
C) cause the demand curve for the good to shift to the left. 
D) cause a movement down along the demand curve.

Question 7

Distinguish between a change in quantity supplied and a change in supply.

Accepted Answer

A change in quantity supplied is a movem

Question 8

-Refer to the above figure.Which panel demonstrates the law of supply?

Accepted Answer

A) Panel A. 
B) Panel B. 
C) Panel C. 
D) Panel D. 
A) Panel A. 
B) Panel B. 
C) Panel C. 
D) Panel D.

Question 9

-Refer to the above figure.Corn is an input for producing Corn Flakes.Which diagram shows the effect on the supply of Corn Flakes when the price of corn 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

-Refer to the above figure.Which of the following statements is true?

Accepted Answer

A) Panel A shows a decrease in demand and Panel B shows an increase in demand. 
B) Both Panels A and B show an increase in demand. 
C) Panel A shows a change in demand and Panel B shows a change in quantity demanded. 
D) Panel A shows a change in quantity demanded and Panel B shows a change in demand. 
A) Panel A shows a decrease in demand and Panel B shows an increase in demand. 
B) Both Panels A and B show an increase in demand. 
C) Panel A shows a change in demand and Panel B shows a change in quantity demanded. 
D) Panel A shows a change in quantity demanded and Panel B shows a change in demand.

Question 11

A supply curve

Accepted Answer

A) has an indirect or negative relationship between price and quantity supplied. 
B) has a direct or positive relationship between price and quantity supplied. 
C) shows the relationship between quantity supplied and income. 
D) shows the relationship between complements. 
A) has an indirect or negative relationship between price and quantity supplied. 
B) has a direct or positive relationship between price and quantity supplied. 
C) shows the relationship between quantity supplied and income. 
D) shows the relationship between complements.

Question 12

All of the following cause a shift in the demand curve EXCEPT a change in the

Accepted Answer

A) price of related goods. 
B) price of the good or service. 
C) consumer income. 
D) number of consumers. 
A) price of related goods. 
B) price of the good or service. 
C) consumer income. 
D) number of consumers.

Question 13

In deriving the demand schedule for a good,economists assume that

Accepted Answer

A) consumers have equal incomes to allocate among goods. 
B) a consumer will allocate all of her income to one good. 
C) all other influences on demand except the product price are held constant. 
D) reported income changes at each point on the demand schedule. 
A) consumers have equal incomes to allocate among goods. 
B) a consumer will allocate all of her income to one good. 
C) all other influences on demand except the product price are held constant. 
D) reported income changes at each point on the demand schedule.

Question 14

If goods X and Y are substitute goods,then an increase in the price of Y,other things being equal,

Accepted Answer

A) results in a decrease in the amounts of both X and Y consumed. 
B) decreases the quantity demanded of Y,but has no effect on the amount of X consumed. 
C) results in a decrease in the quantity of Y consumed,but increases the demand for X. 
D) has no real effect on the quantity demanded of good Y,but increases the demand for X. 
A) results in a decrease in the amounts of both X and Y consumed. 
B) decreases the quantity demanded of Y,but has no effect on the amount of X consumed. 
C) results in a decrease in the quantity of Y consumed,but increases the demand for X. 
D) has no real effect on the quantity demanded of good Y,but increases the demand for X.

Question 15

All of the following will affect the position of the demand curve EXCEPT

Accepted Answer

A) income. 
B) taste and preference. 
C) changes in expectations of future relative prices. 
D) prices of resources used to produce the product. 
A) income. 
B) taste and preference. 
C) changes in expectations of future relative prices. 
D) prices of resources used to produce the product.

Question 16

The only variable that can affect a movement along the demand curve is

Accepted Answer

A) income levels. 
B) the price of the good itself. 
C) the number of buyers. 
D) the number of substitutes. 
A) income levels. 
B) the price of the good itself. 
C) the number of buyers. 
D) the number of substitutes.

Question 17

If more buyers came into the market for a good,we would expect to see the market demand curve

Accepted Answer

A) shift inward and to the left. 
B) remain unchanged since none of the determinants of individual demand changed. 
C) shift outward and to the right. 
D) reflect a positive relationship between price and quantity demanded. 
A) shift inward and to the left. 
B) remain unchanged since none of the determinants of individual demand changed. 
C) shift outward and to the right. 
D) reflect a positive relationship between price and quantity demanded.

Question 18

A subsidy to carrot farmers will

Accepted Answer

A) increase the quantity of carrots demanded. 
B) decrease the quantity of carrots supplied. 
C) increase the supply of carrots. 
D) leave both the supply and demand of carrots unchanged. 
A) increase the quantity of carrots demanded. 
B) decrease the quantity of carrots supplied. 
C) increase the supply of carrots. 
D) leave both the supply and demand of carrots unchanged.

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

If there is a decline in the price of milk,an input in the production of ice cream,then there will be a(n)

Accepted Answer

A) decrease in the supply of ice cream and a leftward shift of the supply curve. 
B) decrease in the quantity of ice cream supplied and a movement up along the supply curve. 
C) increase in the supply of ice cream and a rightward shift of the supply curve. 
D) increase in the quantity of ice cream supplied and a movement down along the supply curve. 
A) decrease in the supply of ice cream and a leftward shift of the supply curve. 
B) decrease in the quantity of ice cream supplied and a movement up along the supply curve. 
C) increase in the supply of ice cream and a rightward shift of the supply curve. 
D) increase in the quantity of ice cream supplied and a movement down along the supply curve.

-In the above figure,what would result if the price was $40?

-In the above figure,what are the equilibrium price and quantity?

-A market is in equilibrium when

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

The arrangements that individuals have with each other to exchange goods is known as

If a good is a normal good,an increase in income will

Distinguish between a change in quantity supplied and a change in supply.

-Refer to the above figure.Which panel demonstrates the law of supply?

-Refer to the above figure.Corn is an input for producing Corn Flakes.Which diagram shows the effect on the supply of Corn Flakes when the price of corn has increased?

-Refer to the above figure.Which of the following statements is true?

A supply curve

All of the following cause a shift in the demand curve EXCEPT a change in the

In deriving the demand schedule for a good,economists assume that

If goods X and Y are substitute goods,then an increase in the price of Y,other things being equal,

All of the following will affect the position of the demand curve EXCEPT

The only variable that can affect a movement along the demand curve is

If more buyers came into the market for a good,we would expect to see the market demand curve

A subsidy to carrot farmers will

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

If there is a decline in the price of milk,an input in the production of ice cream,then there will be a(n)

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,what would result if the price was $40?

-In the above figure,what are the equilibrium price and quantity?

-A market is in equilibrium when

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

The arrangements that individuals have with each other to exchange goods is known as

If a good is a normal good,an increase in income will

Distinguish between a change in quantity supplied and a change in supply.

-Refer to the above figure.Which panel demonstrates the law of supply?

-Refer to the above figure.Corn is an input for producing Corn Flakes.Which diagram shows the effect on the supply of Corn Flakes when the price of corn has increased?

-Refer to the above figure.Which of the following statements is true?

A supply curve

All of the following cause a shift in the demand curve EXCEPT a change in the

In deriving the demand schedule for a good,economists assume that

If goods X and Y are substitute goods,then an increase in the price of Y,other things being equal,

All of the following will affect the position of the demand curve EXCEPT

The only variable that can affect a movement along the demand curve is

If more buyers came into the market for a good,we would expect to see the market demand curve

A subsidy to carrot farmers will

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

If there is a decline in the price of milk,an input in the production of ice cream,then there will be a(n)

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