Question 1

Figure 4.3.1. 
-Look at Figure 4.3.1. The equilibrium price is $________ and the equilibrium quantity is ________ espresso shots.

Accepted Answer

A)  1.30; 1,200 
B)  0.90; 1,000 
C)  1.10; 900 
D)  1.10; 800 
E)  1.00; 800 
A)  1.30; 1,200 
B)  0.90; 1,000 
C)  1.10; 900 
D)  1.10; 800 
E)  1.00; 800

Question 2

At the market-clearing price, both sellers and buyers end up frustrated.

Accepted Answer

A) True 
 B)False

Question 3

For exchange to be voluntary, price must be more than the

Accepted Answer

A)  marginal benefit of the seller. 
B)  opportunity cost of the buyer. 
C)  opportunity cost of the seller. 
D)  maximum amount the buyer is willing to pay. 
E)  marginal benefit of the buyer. 
A)  marginal benefit of the seller. 
B)  opportunity cost of the buyer. 
C)  opportunity cost of the seller. 
D)  maximum amount the buyer is willing to pay. 
E)  marginal benefit of the buyer.

Question 4

Consumer surplus is zero at an efficient market outcome.

Accepted Answer

A) True 
 B)False

Question 5

In trying to increases sales, Sears offers to pay the HST consumers usually have to pay. Sears is making a quantity adjustment, not a price adjustment.

Accepted Answer

A) True 
 B)False

Question 6

A new car has a list price of $45,000. Harnit decided that he would pay no more than $42,000 for this car. He buys the car for $41,000. Harnit's consumer surplus is

Accepted Answer

A)  $45,000. 
B)  $42,000. 
C)  $4,000. 
D)  $3,000. 
E)  $1,000. 
A)  $45,000. 
B)  $42,000. 
C)  $4,000. 
D)  $3,000. 
E)  $1,000.

Question 7

There is a surplus when quantity supplied exceeds quantity demanded.

Accepted Answer

A) True 
 B)False

Question 8

Which event leads to a rise in the price of oranges?

Accepted Answer

A)  a rise in the price of apples 
B)  a scientific discovery that oranges cause hair loss 
C)  a decrease in income if oranges are a normal good 
D)  good growing weather in Florida 
E)  technological improvements in orange growing 
A)  a rise in the price of apples 
B)  a scientific discovery that oranges cause hair loss 
C)  a decrease in income if oranges are a normal good 
D)  good growing weather in Florida 
E)  technological improvements in orange growing

Question 9

Figure 4.3.1. 
-Look at Figure 4.3.1. If the price is set at $1.30 per espresso shot, there is a(n) ________ leading to a price ________.

Accepted Answer

A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall 
E)  equilibrium; rise 
A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall 
E)  equilibrium; rise

Question 10

The miracle of markets occurs

Accepted Answer

A)  because government enforces property rights. 
B)  because prices serve as signals to consumers and businesses for smart choices. 
C)  when consumers and businesses make self-interested smart choices based on prices. 
D)  as a byproduct of individual decisions made by complete strangers. 
E)  because all of the above are true. 
A)  because government enforces property rights. 
B)  because prices serve as signals to consumers and businesses for smart choices. 
C)  when consumers and businesses make self-interested smart choices based on prices. 
D)  as a byproduct of individual decisions made by complete strangers. 
E)  because all of the above are true.

Question 11

Table 4.3.1. 
-Look at Table 4.3.1. Drought destroys many coffee plants, causing half of the espresso businesses to go out of business. As a result, quantity supplied decreases by half at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ espresso shots.

Accepted Answer

A)  1.30; 600 
B)  1.50; 400 
C)  0.90; 400 
D)  1.20; 700 
E)  1.30; 500 
A)  1.30; 600 
B)  1.50; 400 
C)  0.90; 400 
D)  1.20; 700 
E)  1.30; 500

Question 12

The concept of consumer surplus is easiest to see by reading the demand curve as a demand curve instead of as a marginal benefit curve.

Accepted Answer

A) True 
 B)False

Question 13

Prices fall if supply increases.

Accepted Answer

A) True 
 B)False

Question 14

The introduction of a cost-saving technology at the espresso bar should make the price of espressos fall.

Accepted Answer

A) True 
 B)False

Question 15

Which is not a quantity adjustment?

Accepted Answer

A)  Ford asks its assembly plant workers to work overtime. 
B)  Leon's Furniture eliminates the HST on furniture sales. 
C)  PBS orders extra DVD copies of Downton Abbey. 
D)  Ontario Hydro lays off half of the workers in its nuclear plants. 
E)  Apple builds up inventories of iPads before selling a new model. 
A)  Ford asks its assembly plant workers to work overtime. 
B)  Leon's Furniture eliminates the HST on furniture sales. 
C)  PBS orders extra DVD copies of Downton Abbey. 
D)  Ontario Hydro lays off half of the workers in its nuclear plants. 
E)  Apple builds up inventories of iPads before selling a new model.

Question 16

The concept of the visible hand was introduced by Adam Smith.

Accepted Answer

A) True 
 B)False

Question 17

When the RCMP arrested several large marijuana dealers, economists predicted that the street price of marijuana would ________ because ________.

Accepted Answer

A)  rise; there are fewer sellers in the market 
B)  fall; this is an illegal activity 
C)  fall; the economy will go into a recession 
D)  rise; there are more buyers in the market 
E)  fall; selling drugs isn't a market-based activity 
A)  rise; there are fewer sellers in the market 
B)  fall; this is an illegal activity 
C)  fall; the economy will go into a recession 
D)  rise; there are more buyers in the market 
E)  fall; selling drugs isn't a market-based activity

Question 18

The price of a product falls if

Accepted Answer

A)  demand for the product increases. 
B)  supply of the product decreases. 
C)  supply of the product increases. 
D)  demand for the product remains constant. 
E)  supply of the product remains constant. 
A)  demand for the product increases. 
B)  supply of the product decreases. 
C)  supply of the product increases. 
D)  demand for the product remains constant. 
E)  supply of the product remains constant.

Question 19

Pizza Pizza developes a microwave pizza oven that cook a large pizza in 23 seconds. This cost-saving technology causes the price of pizza to

Accepted Answer

A)  rise, and quantity demanded decreases. 
B)  rise, and quantity demanded increases. 
C)  fall, and quantity demanded decreases. 
D)  fall, and demand decreases. 
E)  fall, and quantity demanded increases. 
A)  rise, and quantity demanded decreases. 
B)  rise, and quantity demanded increases. 
C)  fall, and quantity demanded decreases. 
D)  fall, and demand decreases. 
E)  fall, and quantity demanded increases.

Question 20

Table 4.2.2.
-Look at Table 4.2.2. Input prices rise, and supply decreases by 100 rubber ducks at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ rubber ducks.

Accepted Answer

A)  70; 450 
B)  70; 350 
C)  50; 450 
D)  50; 350 
E)  60; 400 
A)  70; 450 
B)  70; 350 
C)  50; 450 
D)  50; 350 
E)  60; 400

Figure 4.3.1. -Look at Figure 4.3.1. The equilibrium price is $ and the equilibrium quantity is espresso shots.

At the market-clearing price, both sellers and buyers end up frustrated.

For exchange to be voluntary, price must be more than the

Consumer surplus is zero at an efficient market outcome.

In trying to increases sales, Sears offers to pay the HST consumers usually have to pay. Sears is making a quantity adjustment, not a price adjustment.

A new car has a list price of $45,000. Harnit decided that he would pay no more than $42,000 for this car. He buys the car for $41,000. Harnit's consumer surplus is

There is a surplus when quantity supplied exceeds quantity demanded.

Which event leads to a rise in the price of oranges?

Figure 4.3.1. -Look at Figure 4.3.1. If the price is set at $1.30 per espresso shot, there is a(n) leading to a price .

The miracle of markets occurs

Table 4.3.1. -Look at Table 4.3.1. Drought destroys many coffee plants, causing half of the espresso businesses to go out of business. As a result, quantity supplied decreases by half at each price. The new equilibrium price is $ and the new equilibrium quantity is espresso shots.

The concept of consumer surplus is easiest to see by reading the demand curve as a demand curve instead of as a marginal benefit curve.

Prices fall if supply increases.

The introduction of a cost-saving technology at the espresso bar should make the price of espressos fall.

Which is not a quantity adjustment?

The concept of the visible hand was introduced by Adam Smith.

When the RCMP arrested several large marijuana dealers, economists predicted that the street price of marijuana would because .

The price of a product falls if

Pizza Pizza developes a microwave pizza oven that cook a large pizza in 23 seconds. This cost-saving technology causes the price of pizza to

Table 4.2.2. -Look at Table 4.2.2. Input prices rise, and supply decreases by 100 rubber ducks at each price. The new equilibrium price is $ and the new equilibrium quantity is rubber ducks.

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

Figure 4.3.1. -Look at Figure 4.3.1. The equilibrium price is $________ and the equilibrium quantity is ________ espresso shots.

At the market-clearing price, both sellers and buyers end up frustrated.

For exchange to be voluntary, price must be more than the

Consumer surplus is zero at an efficient market outcome.

In trying to increases sales, Sears offers to pay the HST consumers usually have to pay. Sears is making a quantity adjustment, not a price adjustment.

A new car has a list price of $45,000. Harnit decided that he would pay no more than $42,000 for this car. He buys the car for $41,000. Harnit's consumer surplus is

There is a surplus when quantity supplied exceeds quantity demanded.

Which event leads to a rise in the price of oranges?

Figure 4.3.1. -Look at Figure 4.3.1. If the price is set at $1.30 per espresso shot, there is a(n) ________ leading to a price ________.

The miracle of markets occurs

Table 4.3.1. -Look at Table 4.3.1. Drought destroys many coffee plants, causing half of the espresso businesses to go out of business. As a result, quantity supplied decreases by half at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ espresso shots.

The concept of consumer surplus is easiest to see by reading the demand curve as a demand curve instead of as a marginal benefit curve.

Prices fall if supply increases.

The introduction of a cost-saving technology at the espresso bar should make the price of espressos fall.

Which is not a quantity adjustment?

The concept of the visible hand was introduced by Adam Smith.

When the RCMP arrested several large marijuana dealers, economists predicted that the street price of marijuana would ________ because ________.

The price of a product falls if

Pizza Pizza developes a microwave pizza oven that cook a large pizza in 23 seconds. This cost-saving technology causes the price of pizza to

Table 4.2.2. -Look at Table 4.2.2. Input prices rise, and supply decreases by 100 rubber ducks at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ rubber ducks.

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

Figure 4.3.1. -Look at Figure 4.3.1. The equilibrium price is $ and the equilibrium quantity is espresso shots.

Figure 4.3.1. -Look at Figure 4.3.1. If the price is set at $1.30 per espresso shot, there is a(n) leading to a price .

Table 4.3.1. -Look at Table 4.3.1. Drought destroys many coffee plants, causing half of the espresso businesses to go out of business. As a result, quantity supplied decreases by half at each price. The new equilibrium price is $ and the new equilibrium quantity is espresso shots.

When the RCMP arrested several large marijuana dealers, economists predicted that the street price of marijuana would because .

Table 4.2.2. -Look at Table 4.2.2. Input prices rise, and supply decreases by 100 rubber ducks at each price. The new equilibrium price is $ and the new equilibrium quantity is rubber ducks.