Question 1

The government offers numerous educational subsidies through grants and low-cost equipment to schools.They also provide a lot of incentives to go to school.Because of this,we expect that:

Accepted Answer

A)  the equilibrium price of education will be indeterminate and the equilibrium quantity of students will go up.
B)  the equilibrium price of education will go up and the equilibrium quantity of students will go up.
C)  the equilibrium price of education will go down and the equilibrium quantity of students will be indeterminate.
D)  the equilibrium price of education will be indeterminate and the equilibrium quantity of students will go down.
E)  the equilibrium price of education will go up and the equilibrium quantity of students will be indeterminate.

Question 2

According to the figure below,at the price of $5:

Accepted Answer

A)  the equilibrium quantity is 500.
B)  the quantity demanded is 500.
C)  the demand is 500.
D)  there is a surplus.
E)  there is a shortage.

Question 3

The economists at JET Consulting consider Campbell's Soup to be an inferior good.During a recession,when the income in the economy is decreasing,economists at JET Consulting would expect the demand curve for Campbell's Soup to _________,causing the equilibrium price to _________ and the equilibrium quantity to _________.

Accepted Answer

A)  shift to the left; decrease; decrease.
B)  shift to the left; increase; increase.
C)  shift to the right; decrease; increase.
D)  shift to the right; increase; decrease.
E)  shift to the right; increase; increase.

Question 4

When the price of ground beef increases and all else is held constant,we would expect the supply of hamburgers to _________,causing the price to _________.

Accepted Answer

A)  decrease; increase
B)  decease; decrease
C)  stay the same; stay the same
D)  increase; increase
E)  increase; decrease

Question 5

Chuck drives past the same gas station every day.He realizes that the gas station always changes its prices on Tuesdays but keeps the price steady the rest of the week.On Saturday,Chuck turns on the news and hears a report projecting that the price of gasoline is going to increase.Holding all else constant,what do you think would happen to Chuck's demand for gasoline on Monday?

Accepted Answer

A)  His demand would shift to the right.
B)  His demand would shift to the left.
C)  You would see a movement down on his demand curve but no shift.
D)  You would see a movement up on his demand curve but no shift.
E)  You would see nothing happen to his demand curve until the price changed on Tuesday.

Question 6

Something is a normal good if the demand for the good:

Accepted Answer

A)  increases as the consumer's income increases.
B)  increases as the consumer's income decreases.
C)  decreases if the price of a substitute good increases.
D)  increases if the price of a complement good increases.
E)  decreases as the income of the consumer increases.

Question 7

Assume there are 100 suppliers of widgets in the widget market.Half of these suppliers supply 35 widgets to the market each,a quarter of these suppliers supply 40 widgets to the market each,and a quarter of these suppliers supply 50 widgets to the market each.What is the market supply for widgets?

Accepted Answer

A)  100
B)  125
C)  400
D)  4,000
E)  1,750 D

Question 8

Using a supply and demand model,show what happens to the equilibrium price and equilibrium quantity in the market for cigarettes when the government imposes a tax on their production.

Accepted Answer

The answer of Using a supply and demand model,show what...

Question 9

Oil is a main component in the manufacture of plastic bags.If the price of oil were to increase,the price of plastics bags would:

Accepted Answer

A)  increase and the quantity would increase.
B)  increase and the quantity would decrease.
C)  decrease and the quantity would increase.
D)  decrease and the quantity would decrease.
E)  increase and the quantity would stay the same.

Question 10

According to the supply and demand model,when the cotton gin was invented and if all else was held constant,we would expect the equilibrium price of cotton to _________ and the equilibrium quantity of cotton to _________.

Accepted Answer

A)  increase; increase.
B)  increase; decrease.
C)  decrease; increase.
D)  decrease; decrease.
E)  remain the same; increase.

Question 11

Compare and contrast the differences between a competitive market and an imperfect market,and give an example of an imperfect market.

Accepted Answer

A competitive market is where there are ...

Question 12

Which of the following would cause the demand curve to shift to the right?

Accepted Answer

A)  Income decreases for an inferior good.
B)  Income decreases for a normal good.
C)  Tastes and preferences decrease.
D)  The price of a substitute decreases.
E)  The price of a complement increases.

Question 13

A change in quantity supplied:

Accepted Answer

A)  is represented by a shift in the supply curve.
B)  is represented by a movement along the supply curve.
C)  happens only when the price increases.
D)  happens only when the price decreases.
E)  is positive if the price of the good decreases. B

Question 14

What would happen in the market for SUVs if the government started to subsidize the production of SUVs that get very few miles per gallon and the price of gasoline went up?

Accepted Answer

A)  The equilibrium price will go up and equilibrium quantity will go up.
B)  The equilibrium price will go down and equilibrium quantity will be indeterminate.
C)  The equilibrium price will be indeterminate and equilibrium quantity will go up.
D)  The equilibrium price will go up and equilibrium quantity will be indeterminate.
E)  The equilibrium price will be indeterminate and equilibrium quantity will go down.

Question 15

When the demand curve shifts to the left and all else is held constant,the

Accepted Answer

A)  equilibrium price falls and the equilibrium quantity rises.
B)  equilibrium price rises and the equilibrium quantity falls.
C)  equilibrium price falls and the equilibrium quantity falls.
D)  equilibrium price rises and the equilibrium quantity rises.
E)  equilibrium price falls and the equilibrium quantity remains constant.

Question 16

Refer to the accompanying figure.What event would cause the supply curve to shift out?

Accepted Answer

A)  Consumers earn higher incomes.
B)  Consumers earn lower incomes.
C)  The price of an input increased.
D)  Firms entered the market.
E)  Firms expected the price to rise in the future.

Question 17

Which of the following situations would cause the demand curve to shift to the right?

Accepted Answer

A)  a decrease in the number of consumers
B)  a decrease in the number of producers
C)  an increase in the price of a complement
D)  an increase in the price of a substitute
E)  a change in tastes and preferences

Question 18

When firms in a market expect the price of their product to rise,the supply curve of their good:

Accepted Answer

A)  decreases,causing the equilibrium price to rise.
B)  decreases,causing the equilibrium price to fall.
C)  increases,causing the equilibrium price to fall.
D)  increases,causing the equilibrium price to rise.
E)  increases,causing the equilibrium price to rise and the equilibrium quantity to fall.

Question 19

When the price of an hour of tutoring increases,

Accepted Answer

A)  the demand for tutoring decreases.
B)  the demand for tutoring increases.
C)  the demand curve for tutoring shifts.
D)  the quantity demanded for tutoring increases.
E)  the quantity demanded for tutoring decreases. E

Question 20

When both supply and demand shift to the left,the:

Accepted Answer

A)  equilibrium price always rises.
B)  equilibrium price always falls.
C)  equilibrium quantity always falls.
D)  equilibrium quantity always rises.
E)  equilibrium quantity is indeterminate.

Exam 3: The Market at Work: Supply and Demand

The government offers numerous educational subsidies through grants and low-cost equipment to schools.They also provide a lot of incentives to go to school.Because of this,we expect that:

Correct Answer
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According to the figure below,at the price of $5:

Correct Answer
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Correct Answer
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When the price of ground beef increases and all else is held constant,we would expect the supply of hamburgers to _,causing the price to _.

Correct Answer
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Correct Answer
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Something is a normal good if the demand for the good:

Correct Answer
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Assume there are 100 suppliers of widgets in the widget market.Half of these suppliers supply 35 widgets to the market each,a quarter of these suppliers supply 40 widgets to the market each,and a quarter of these suppliers supply 50 widgets to the market each.What is the market supply for widgets?

Correct Answer
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D

Using a supply and demand model,show what happens to the equilibrium price and equilibrium quantity in the market for cigarettes when the government imposes a tax on their production.

Correct Answer
verified

Oil is a main component in the manufacture of plastic bags.If the price of oil were to increase,the price of plastics bags would:

Correct Answer
verified

According to the supply and demand model,when the cotton gin was invented and if all else was held constant,we would expect the equilibrium price of cotton to _ and the equilibrium quantity of cotton to _.

Correct Answer
verified

Compare and contrast the differences between a competitive market and an imperfect market,and give an example of an imperfect market.

Correct Answer
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A competitive market is where there are ...
View Answer

Which of the following would cause the demand curve to shift to the right?

Correct Answer
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A change in quantity supplied:

Correct Answer
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B

What would happen in the market for SUVs if the government started to subsidize the production of SUVs that get very few miles per gallon and the price of gasoline went up?

Correct Answer
verified

When the demand curve shifts to the left and all else is held constant,the

Correct Answer
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Refer to the accompanying figure.What event would cause the supply curve to shift out?

Correct Answer
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Which of the following situations would cause the demand curve to shift to the right?

Correct Answer
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When firms in a market expect the price of their product to rise,the supply curve of their good:

Correct Answer
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When the price of an hour of tutoring increases,

Correct Answer
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E

When both supply and demand shift to the left,the:

Correct Answer
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Exam 3: The Market at Work: Supply and Demand

The government offers numerous educational subsidies through grants and low-cost equipment to schools.They also provide a lot of incentives to go to school.Because of this,we expect that:

Correct AnswerverifiedShow Answer

According to the figure below,at the price of $5:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the price of ground beef increases and all else is held constant,we would expect the supply of hamburgers to _________,causing the price to _________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Something is a normal good if the demand for the good:

Correct AnswerverifiedShow Answer

Assume there are 100 suppliers of widgets in the widget market.Half of these suppliers supply 35 widgets to the market each,a quarter of these suppliers supply 40 widgets to the market each,and a quarter of these suppliers supply 50 widgets to the market each.What is the market supply for widgets?

Correct AnswerverifiedD

Using a supply and demand model,show what happens to the equilibrium price and equilibrium quantity in the market for cigarettes when the government imposes a tax on their production.

Correct AnswerverifiedShow Answer

Oil is a main component in the manufacture of plastic bags.If the price of oil were to increase,the price of plastics bags would:

Correct AnswerverifiedShow Answer

According to the supply and demand model,when the cotton gin was invented and if all else was held constant,we would expect the equilibrium price of cotton to _________ and the equilibrium quantity of cotton to _________.

Correct AnswerverifiedShow Answer

Compare and contrast the differences between a competitive market and an imperfect market,and give an example of an imperfect market.

Correct AnswerverifiedA competitive market is where there are ...View AnswerShow Answer

Which of the following would cause the demand curve to shift to the right?

Correct AnswerverifiedShow Answer

A change in quantity supplied:

Correct AnswerverifiedB

What would happen in the market for SUVs if the government started to subsidize the production of SUVs that get very few miles per gallon and the price of gasoline went up?

Correct AnswerverifiedShow Answer

When the demand curve shifts to the left and all else is held constant,the

Correct AnswerverifiedShow Answer

Refer to the accompanying figure.What event would cause the supply curve to shift out?

Correct AnswerverifiedShow Answer

Which of the following situations would cause the demand curve to shift to the right?

Correct AnswerverifiedShow Answer

When firms in a market expect the price of their product to rise,the supply curve of their good:

Correct AnswerverifiedShow Answer

When the price of an hour of tutoring increases,

Correct AnswerverifiedE

When both supply and demand shift to the left,the:

Correct AnswerverifiedShow Answer

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When the price of ground beef increases and all else is held constant,we would expect the supply of hamburgers to _,causing the price to _.

Correct Answer
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D

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According to the supply and demand model,when the cotton gin was invented and if all else was held constant,we would expect the equilibrium price of cotton to _ and the equilibrium quantity of cotton to _.

Correct Answer
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Correct Answer
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A competitive market is where there are ...
View Answer

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Correct Answer
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B

Correct Answer
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E

Correct Answer
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