Question 1

Falling prices for a service

Accepted Answer

A)  create incentives for consumers to find cheaper substitutes. 
B)  eliminate shortages. 
C)  decrease quantity demanded of the service. 
D)  decrease supply of the service. 
E)  do none of the above. 
A)  create incentives for consumers to find cheaper substitutes. 
B)  eliminate shortages. 
C)  decrease quantity demanded of the service. 
D)  decrease supply of the service. 
E)  do none of the above.

Question 2

Falling prices for a product

Accepted Answer

A)  create incentives for consumers to buy more, switching from more expensive substitutes. 
B)  eliminate surpluses. 
C)  create incentives for businesses to produce less. 
D)  decrease quantity supplied of the product. 
E)  do all of the above. 
A)  create incentives for consumers to buy more, switching from more expensive substitutes. 
B)  eliminate surpluses. 
C)  create incentives for businesses to produce less. 
D)  decrease quantity supplied of the product. 
E)  do all of the above.

Question 3

Farm land can be used to produce either cattle or corn. If the demand for cattle increases, then the

Accepted Answer

A)  demand for corn increases. 
B)  supply of corn increases. 
C)  demand for corn decreases. 
D)  supply of corn decreases. 
E)  cattle will eat all of the corn. 
A)  demand for corn increases. 
B)  supply of corn increases. 
C)  demand for corn decreases. 
D)  supply of corn decreases. 
E)  cattle will eat all of the corn.

Question 4

Without appropriately defined property rights, markets fail.

Accepted Answer

A) True 
 B)False

Question 5

Prices rise if demand increases.

Accepted Answer

A) True 
 B)False

Question 6

Figure 4.2.3.
-Look at Figure 4.2.3. At a price of $12 there is a

Accepted Answer

A)  surplus of 20. 
B)  shortage of 20. 
C)  surplus of 10. 
D)  surplus of 40. 
E)  shortage of 8. 
A)  surplus of 20. 
B)  shortage of 20. 
C)  surplus of 10. 
D)  surplus of 40. 
E)  shortage of 8.

Question 7

In a voluntary exchange, the price must at least be equal to the minimum amount the seller is willing to accept.

Accepted Answer

A) True 
 B)False

Question 8

If people eat more potato chips even though the price rises, it is likely that

Accepted Answer

A)  demand increased. 
B)  supply increased. 
C)  demand decreased. 
D)  potato chips make you fat. 
E)  supply decreased. 
A)  demand increased. 
B)  supply increased. 
C)  demand decreased. 
D)  potato chips make you fat. 
E)  supply decreased.

Question 9

When demand increases, price falls to eliminate the shortage.

Accepted Answer

A) True 
 B)False

Question 10

The introduction of a cost-saving technology in the Office of The Registrar should make tuition fees rise.

Accepted Answer

A) True 
 B)False

Question 11

Total surplus equals consumer surplus plus producer surplus.

Accepted Answer

A) True 
 B)False

Question 12

When consumers' incomes increase, the price of a normal product or service rises.

Accepted Answer

A) True 
 B)False

Question 13

Crude oil is an important input in producing gasoline. If the price of crude oil rises, the

Accepted Answer

A)  price of gasoline rises due to increased demand. 
B)  price of gasoline falls due to increased demand. 
C)  price of gasoline rises due to decreased supply. 
D)  equilibrium quantity of gasoline falls due to increased supply. 
E)  equilibrium quantity of gasoline rises due to increased demand. 
A)  price of gasoline rises due to increased demand. 
B)  price of gasoline falls due to increased demand. 
C)  price of gasoline rises due to decreased supply. 
D)  equilibrium quantity of gasoline falls due to increased supply. 
E)  equilibrium quantity of gasoline rises due to increased demand.

Question 14

Property rights are a prerequisite for anything to be produced.

Accepted Answer

A) True 
 B)False

Question 15

The price of a product falls if

Accepted Answer

A)  there is a shortage of the product. 
B)  demand for the product increases. 
C)  there is a surplus of the product. 
D)  supply of the product decreases. 
E)  demand for the product does not change. 
A)  there is a shortage of the product. 
B)  demand for the product increases. 
C)  there is a surplus of the product. 
D)  supply of the product decreases. 
E)  demand for the product does not change.

Question 16

Consumer surplus is the

Accepted Answer

A)  the difference between the maximum price consumers are willing and able to pay and the minimum price producers are willing to accept. 
B)  the difference between the maximum price consumers are willing and able to pay and the price actually paid to producers. 
C)  the difference between the amount a producer is willing to accept and the price actually received. 
D)  the area under the marginal benefit curve. 
E)  the total amount consumers paid for a product. 
A)  the difference between the maximum price consumers are willing and able to pay and the minimum price producers are willing to accept. 
B)  the difference between the maximum price consumers are willing and able to pay and the price actually paid to producers. 
C)  the difference between the amount a producer is willing to accept and the price actually received. 
D)  the area under the marginal benefit curve. 
E)  the total amount consumers paid for a product.

Question 17

If the price of Pepsi rises, we expect the price of Coke to rise because the products are substitutes.

Accepted Answer

A) True 
 B)False

Question 18

Rising prices provide incentives for businesses to decrease quantity supplied and for consumers to increase quantity demanded.

Accepted Answer

A) True 
 B)False

Question 19

Figure 4.2.3.
-Look at Figure 4.2.3. At a price of $4 there is a

Accepted Answer

A)  surplus of 20. 
B)  shortage of 20. 
C)  surplus of 10. 
D)  surplus of 40. 
E)  shortage of 40. 
A)  surplus of 20. 
B)  shortage of 20. 
C)  surplus of 10. 
D)  surplus of 40. 
E)  shortage of 40.

Question 20

The price at which there are no shortages and no surpluses is called the

Accepted Answer

A)  maximal price. 
B)  equestrian price. 
C)  most frequently traded price. 
D)  minimal price. 
E)  market-clearing price. 
A)  maximal price. 
B)  equestrian price. 
C)  most frequently traded price. 
D)  minimal price. 
E)  market-clearing price.

Falling prices for a service

Falling prices for a product

Farm land can be used to produce either cattle or corn. If the demand for cattle increases, then the

Without appropriately defined property rights, markets fail.

Prices rise if demand increases.

Figure 4.2.3. -Look at Figure 4.2.3. At a price of $12 there is a

In a voluntary exchange, the price must at least be equal to the minimum amount the seller is willing to accept.

If people eat more potato chips even though the price rises, it is likely that

When demand increases, price falls to eliminate the shortage.

The introduction of a cost-saving technology in the Office of The Registrar should make tuition fees rise.

Total surplus equals consumer surplus plus producer surplus.

When consumers' incomes increase, the price of a normal product or service rises.

Crude oil is an important input in producing gasoline. If the price of crude oil rises, the

Property rights are a prerequisite for anything to be produced.

The price of a product falls if

Consumer surplus is the

If the price of Pepsi rises, we expect the price of Coke to rise because the products are substitutes.

Rising prices provide incentives for businesses to decrease quantity supplied and for consumers to increase quantity demanded.

Figure 4.2.3. -Look at Figure 4.2.3. At a price of $4 there is a

The price at which there are no shortages and no surpluses is called the

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters

Exam 4: Coordinating Smart Choices: Demand and Supply

Falling prices for a service

Falling prices for a product

Farm land can be used to produce either cattle or corn. If the demand for cattle increases, then the

Without appropriately defined property rights, markets fail.

Prices rise if demand increases.

Figure 4.2.3. -Look at Figure 4.2.3. At a price of $12 there is a

In a voluntary exchange, the price must at least be equal to the minimum amount the seller is willing to accept.

If people eat more potato chips even though the price rises, it is likely that

When demand increases, price falls to eliminate the shortage.

The introduction of a cost-saving technology in the Office of The Registrar should make tuition fees rise.

Total surplus equals consumer surplus plus producer surplus.

When consumers' incomes increase, the price of a normal product or service rises.

Crude oil is an important input in producing gasoline. If the price of crude oil rises, the

Property rights are a prerequisite for anything to be produced.

The price of a product falls if

Consumer surplus is the

If the price of Pepsi rises, we expect the price of Coke to rise because the products are substitutes.

Rising prices provide incentives for businesses to decrease quantity supplied and for consumers to increase quantity demanded.

Figure 4.2.3. -Look at Figure 4.2.3. At a price of $4 there is a

The price at which there are no shortages and no surpluses is called the

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters