Question 1

What information is provided by a demand curve? What variables are measured along the axes of the graph?

Accepted Answer

The demand curve is a graphical represen

Question 2

When the price of a good rises,there is

Accepted Answer

A) an increase in supply. 
B) a decrease in supply. 
C) a decrease in quantity supplied. 
D) an increase in quantity supplied. 
A) an increase in supply. 
B) a decrease in supply. 
C) a decrease in quantity supplied. 
D) an increase in quantity supplied.

Question 3

When the price of a complement (cream)decreases,the demand for the related good (coffee)

Accepted Answer

A) will fall. 
B) remains constant. 
C) will shift outward. 
D) will shift inward. 
A) will fall. 
B) remains constant. 
C) will shift outward. 
D) will shift inward.

Question 4

Consider the following:   The relative price of hamburgers 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 5

The price of a gallon of gasoline increased from $2.00 to $2.25 while the price of a ride on the city bus increased from 50 cents to 75 cents.The relative price of riding the city bus

Accepted Answer

A) increased from 0.25 to 0.6. 
B) decreased from 4.0 to 3.0. 
C) stayed constant at 0.25. 
D) stayed constant at 4.0. 
A) increased from 0.25 to 0.6. 
B) decreased from 4.0 to 3.0. 
C) stayed constant at 0.25. 
D) stayed constant at 4.0.

Question 6

An increase in demand occurs when

Accepted Answer

A) we measure price in money price rather than real price. 
B) we move up the demand curve. 
C) the demand curve shifts to the right. 
D) the demand curve shifts to the left. 
A) we measure price in money price rather than real price. 
B) we move up the demand curve. 
C) the demand curve shifts to the right. 
D) the demand curve shifts to the left.

Question 7

-In the above figure,when the price of Good B increases,the result can be shown by

Accepted Answer

A) the movement from D1 to D2 in Graph A. 
B) the movement from D2 to D1 in Graph A. 
C) the movement along D0 from P1 to P2. 
D) the movement along D0 from P2 to P1. 
A) the movement from D1 to D2 in Graph A. 
B) the movement from D2 to D1 in Graph A. 
C) the movement along D0 from P1 to P2. 
D) the movement along D0 from P2 to P1.

Question 8

When the price of tablets goes up and fewer tablets are purchased,this is representative of the

Accepted Answer

A) law of demand. 
B) law of supply. 
C) law of market operations. 
D) law of increasing costs. 
A) law of demand. 
B) law of supply. 
C) law of market operations. 
D) law of increasing costs.

Question 9

Which of the following causes a movement along a supply curve?

Accepted Answer

A) a change in resource costs 
B) a change in technology 
C) a change in the price 
D) all of the above 
A) a change in resource costs 
B) a change in technology 
C) a change in the price 
D) all of the above

Question 10

According to the law of demand,the quantity demanded of a good is related to

Accepted Answer

A) the average price of all goods. 
B) income. 
C) any factor that affects the decision of an individual consumer but not the market. 
D) the relative price of that good. 
A) the average price of all goods. 
B) income. 
C) any factor that affects the decision of an individual consumer but not the market. 
D) the relative price of that good.

Question 11

If the price of gasoline rises sharply and the demand for sports utility vehicles falls,then the two goods are

Accepted Answer

A) complements. 
B) normal goods. 
C) substitutes. 
D) inferior goods. 
A) complements. 
B) normal goods. 
C) substitutes. 
D) inferior goods.

Question 12

At the market clearing price,

Accepted Answer

A) there is neither a shortage nor a surplus. 
B) quantity supplied equals quantity demanded. 
C) the supply and demand curves intersect. 
D) All of the above are correct. 
A) there is neither a shortage nor a surplus. 
B) quantity supplied equals quantity demanded. 
C) the supply and demand curves intersect. 
D) All of the above are correct.

Question 13

The market clearing price of a good is

Accepted Answer

A) the price at which there is at least some of the good available for everyone. 
B) the price at which there is no surplus and no shortage. 
C) the price that consumers prefer. 
D) the price that producers prefer. 
A) the price at which there is at least some of the good available for everyone. 
B) the price at which there is no surplus and no shortage. 
C) the price that consumers prefer. 
D) the price that producers prefer.

Question 14

When the current price of an item is greater than the item's market clearing price,

Accepted Answer

A) supply is greater than demand. 
B) demand is greater than supply. 
C) quantity supplied is greater than quantity demanded. 
D) quantity supplied is less than quantity demanded. 
A) supply is greater than demand. 
B) demand is greater than supply. 
C) quantity supplied is greater than quantity demanded. 
D) quantity supplied is less than quantity demanded.

Question 15

If the price of one good goes up and the demand of a related good goes down,the two goods are

Accepted Answer

A) complements. 
B) substitutes. 
C) inferior goods. 
D) normal goods. 
A) complements. 
B) substitutes. 
C) inferior goods. 
D) normal goods.

Question 16

-If there is a surplus,

Accepted Answer

A) fewer producers want to sell the product because it is too scarce. 
B) consumers will drive up the price further. 
C) firms will drive up the price to enhance profits. 
D) the price will decline to the equilibrium level. 
A) fewer producers want to sell the product because it is too scarce. 
B) consumers will drive up the price further. 
C) firms will drive up the price to enhance profits. 
D) the price will decline to the equilibrium level.

Question 17

If the price of a product increases,we would expect

Accepted Answer

A) the level of demand to decrease. 
B) quantity supplied to increase. 
C) the level of supply to increase. 
D) an increase in quantity demanded. 
A) the level of demand to decrease. 
B) quantity supplied to increase. 
C) the level of supply to increase. 
D) an increase in quantity demanded.

Question 18

In order to increase the supply of a good,producers must

Accepted Answer

A) convince consumers to reduce the quantity demanded. 
B) see an increase in quantity supplied by competitors. 
C) reduce their per-unit costs of producing the good. 
D) cut back on labor to reduce production costs. 
A) convince consumers to reduce the quantity demanded. 
B) see an increase in quantity supplied by competitors. 
C) reduce their per-unit costs of producing the good. 
D) cut back on labor to reduce production costs.

Question 19

If the price of oil rises,producers of oil will

Accepted Answer

A) increase the quantity of oil supplied. 
B) supply less oil. 
C) leave the amount of oil supplied unchanged. 
D) cut the price. 
A) increase the quantity of oil supplied. 
B) supply less oil. 
C) leave the amount of oil supplied unchanged. 
D) cut the price.

Question 20

-Refer to the above figure.For a normal good,the rightward shift of the curve could have been caused by

Accepted Answer

A) a technological improvement. 
B) an increase in the cost of inputs. 
C) an increase in income. 
D) a decrease in income. 
A) a technological improvement. 
B) an increase in the cost of inputs. 
C) an increase in income. 
D) a decrease in income.

What information is provided by a demand curve? What variables are measured along the axes of the graph?

When the price of a good rises,there is

When the price of a complement (cream)decreases,the demand for the related good (coffee)

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

The price of a gallon of gasoline increased from $2.00 to $2.25 while the price of a ride on the city bus increased from 50 cents to 75 cents.The relative price of riding the city bus

An increase in demand occurs when

-In the above figure,when the price of Good B increases,the result can be shown by

When the price of tablets goes up and fewer tablets are purchased,this is representative of the

Which of the following causes a movement along a supply curve?

According to the law of demand,the quantity demanded of a good is related to

If the price of gasoline rises sharply and the demand for sports utility vehicles falls,then the two goods are

At the market clearing price,

The market clearing price of a good is

When the current price of an item is greater than the item's market clearing price,

If the price of one good goes up and the demand of a related good goes down,the two goods are

-If there is a surplus,

If the price of a product increases,we would expect

In order to increase the supply of a good,producers must

If the price of oil rises,producers of oil will

-Refer to the above figure.For a normal good,the rightward shift of the curve could have been caused by

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

What information is provided by a demand curve? What variables are measured along the axes of the graph?

When the price of a good rises,there is

When the price of a complement (cream)decreases,the demand for the related good (coffee)

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

The price of a gallon of gasoline increased from $2.00 to $2.25 while the price of a ride on the city bus increased from 50 cents to 75 cents.The relative price of riding the city bus

An increase in demand occurs when

-In the above figure,when the price of Good B increases,the result can be shown by

When the price of tablets goes up and fewer tablets are purchased,this is representative of the

Which of the following causes a movement along a supply curve?

According to the law of demand,the quantity demanded of a good is related to

If the price of gasoline rises sharply and the demand for sports utility vehicles falls,then the two goods are

At the market clearing price,

The market clearing price of a good is

When the current price of an item is greater than the item's market clearing price,

If the price of one good goes up and the demand of a related good goes down,the two goods are

-If there is a surplus,

If the price of a product increases,we would expect

In order to increase the supply of a good,producers must

If the price of oil rises,producers of oil will

-Refer to the above figure.For a normal good,the rightward shift of the curve could have been caused by

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