Deck 3: Demand and Supply

Question 1

The supply curve expresses the relation between the quantity supplied and:

A)energy prices.
B)output price.
C)wage rates.
D)all of the above.

Answer 1

B

Question 2

Derived demand will fall with a rise in:

A)output prices.
B)profits per unit.
C)variable costs.
D)fixed costs.

Answer 2

C

Question 3

Input demand is:

A)derived demand.
B)direct demand.
C)motivated by utility.
D)unrelated to the profit motive.

Answer 3

A

Question 4

If demand decreases while supply increases for a particular good:

A)its equilibrium price will increase while the quantity of the good produced and sold could increase, decrease, or remain constant.
B)its equilibrium price will decrease while the quantity of the good produced and sold could increase, decrease, or remain constant.
C)the quantity of the good produced and sold will decrease while its equilibrium price could increase, decrease, or remain constant.
D)the quantity of the good produced and sold will increase while its equilibrium price could increase, decrease or remain constant.

Question 5

In the housing market, a rise in interest rates will:

A)increase demand.
B)decrease demand.
C)decrease the quantity demanded.
D)increase the quantity demanded.

Question 6

Surplus is a condition of:

A)excess supply.
B)rising demand.
C)market equilibrium.
D)excess demand.

Question 7

An increase in employer-paid pension costs will decrease the:

A)supply of workers.
B)quantity supplied of workers.
C)quantity demanded of workers.
D)demand for workers.

Question 8

Holding all else equal, an increase in the minimum wage leads to a decrease in:

A)employment.
B)wage rates.
C)worker productivity.
D)inflation.

Question 9

The demand curve for automobiles produced in the United States expresses the relation between the quantity demanded and:

A)import prices.
B)wage rates.
C)interest rates.
D)none of the above.

Question 10

The quantity of product X supplied can be expected to fall with a decline in:

A)the prices of competing products.
B)the price of X.
C)energy costs.
D)worker productivity.