Question 1

Zero-price products and services exist only in the technology sector.

Accepted Answer

A) True 
 B)False  False

Question 2

The market price can sometimes be difficult to identify due to which of the following?

Accepted Answer

A)   The laws of supply and demand.
B)   Equilibriums.
C)   Satiation.
D)   Sale prices, negotiated prices, and volume discounts. D

Question 3

What might happen if the market price of haircuts went up?

Accepted Answer

A)   Haircutting would be less profitable.
B)   Some stylists would work fewer hours.
C)   Some salons might close.
D)   A hair salon might hire more stylists. D

Question 4

Individuals in a market economy can be both buyers and sellers.

Accepted Answer

A) True 
 B)False

Question 5

The market price is the typical price at which a good or service sells.

Accepted Answer

A) True 
 B)False

Question 6

Markets can be

Accepted Answer

A)   global.
B)   national.
C)   local.
D)   global, national, and local.

Question 7

The law of demand says that in most cases,the lower the price,the lower the quantity demanded.

Accepted Answer

A) True 
 B)False

Question 8

A supply schedule illustrates the quantity supplied at

Accepted Answer

A)   various demand levels.
B)   a single selling price.
C)   different selling prices.
D)   market equilibrium.

Question 9

Which of the following is NOT an example of an advance purchase discount?

Accepted Answer

A)   Prepaid tuition plans.
B)   Airline tickets.
C)   Movie tickets purchased online at a lower price than at the box office.
D)   Buying a soda at the local fast-food outlet.

Question 10

The market for iPads did not exist 30 years ago because

Accepted Answer

A)   consumers did not need or want iPads.
B)   portable electronic devices were illegal.
C)   the technology did not exist to produce iPads.
D)   iPads were too expensive for most consumers.

Question 11

The law of demand

Accepted Answer

A)   always holds true.
B)   is the opposite of the law of supply.
C)   works only in large markets.
D)   is a general tendency.

Question 12

Buying a used textbook from a fellow student is an example of what type of market?

Accepted Answer

A)   Local.
B)   National.
C)   Global.
D)   Labor.

Question 13

A vertical supply curve would mean that

Accepted Answer

A)   as price decreases, quantity supplied decreases.
B)   as price decreases, quantity supplied increases.
C)   the price does not affect the quantity supplied.
D)   market equilibrium has been reached.

Question 14

The market for automobiles in China has experienced tremendous growth primarily because of

Accepted Answer

A)   relaxed emissions standards in China.
B)   rising incomes in China.
C)   higher wages of American workers.
D)   the invention of new products.

Question 15

The number of markets is

Accepted Answer

A)   Fixed.
B)   Always changing.
C)   Closed.
D)   Variable on a local basis, and fixed on a national basis.

Question 16

Supply curves are generally

Accepted Answer

A)   upward-sloping.
B)   downward-sloping.
C)   a straight line in real life.
D)   responsive to demand curves.

Question 17

The typical worker is a(n)________ in a labor market.

Accepted Answer

A)   buyer
B)   seller
C)   opportunity cost
D)   market demand

Question 18

If you wished to sell glasses of lemonade,but were uncertain at what price to sell each glass,you would use a __________,if one were available,to assist in the decision.

Accepted Answer

A)   calculator
B)   demand schedule
C)   opportunity schedule
D)   negotiated price

Question 19

What do economists mean when they say ceteris paribus?

Accepted Answer

The answer of What do economists mean when they say...

Question 20

A market supply schedule

Accepted Answer

A)   is all the products or services demanded in a market.
B)   combines the quantities supplied by all businesses in a market.
C)   has an upward-sloping demand curve.
D)   is determined by adding demand and supply.

Exam 2: Demand and Supply: The Basics of the Market Economy

Zero-price products and services exist only in the technology sector.

The market price can sometimes be difficult to identify due to which of the following?

What might happen if the market price of haircuts went up?

Individuals in a market economy can be both buyers and sellers.

The market price is the typical price at which a good or service sells.

Markets can be

The law of demand says that in most cases,the lower the price,the lower the quantity demanded.

A supply schedule illustrates the quantity supplied at

Which of the following is NOT an example of an advance purchase discount?

The market for iPads did not exist 30 years ago because

The law of demand

Buying a used textbook from a fellow student is an example of what type of market?

A vertical supply curve would mean that

The market for automobiles in China has experienced tremendous growth primarily because of

The number of markets is

Supply curves are generally

The typical worker is a(n) ________ in a labor market.

If you wished to sell glasses of lemonade,but were uncertain at what price to sell each glass,you would use a __________,if one were available,to assist in the decision.

What do economists mean when they say ceteris paribus?

A market supply schedule