Question 1

If corn and wheat are alternative pursuits for a farmer,a change in the supply of corn will take place when,ceteris paribus,

Accepted Answer

A)  The price of corn changes.
B)  The price of wheat changes.
C)  The demand for corn changes.
D)  Consumers want to buy more corn at the same price.

Question 2

A buyer is said to have a demand for a good only when

Accepted Answer

A)  The buyer is not willing to buy the good and does not have enough income to purchase the good.
B)  The buyer is both willing and able to purchase the good.
C)  The buyer has the income but the good is not preferred.
D)  An adequate supply of the good is available for purchase.

Question 3

In a market economy,the people who receive the goods and services produced are those who

Accepted Answer

A)  Need the goods and services the most.
B)  Want the goods and services the most.
C)  Have the most political power.
D)  Are willing and able to pay the market price.

Question 4

The desire for carrots changes as one moves down the demand curve for carrots.

Accepted Answer

A) True 
 B)False

Question 5

Business firms supply goods and services to ________ and purchase factors of production in ________.

Accepted Answer

A)  factor markets;product markets
B)  national markets;factor markets
C)  product markets;factor markets
D)  factor markets;national markets

Question 6

Refer to Table 3.1 to answer the following question Table 3.1 Individual Demand and Supply Schedules
  Quartity Dernarded by  Price  Alejandro  Ben  Carl  Market $8.008426.0012444.0020462.002246\begin{array}{l}\quad\quad\quad\quad\quad\quad	ext { Quartity Dernarded by }\\begin{array} { | r | r | r | r | c | } \hline { 	ext { Price } } &  { 	ext { Alejandro } } & { 	ext { Ben } } & 	ext { Carl } & 	ext { Market } \\hline \$ 8.00 & 8 & 4 & 2 & \\hline 6.00 & 12 & 4 & 4 & \\hline 4.00 & 20 & 4 & 6 & \\hline 2.00 & 22 & 4 & 6 & \\hline\end{array}\end{array} Quartity Dernarded by  Price $8.006.004.002.00​ Alejandro 8122022​ Ben 4444​ Carl 2466​ Market ​​​    Quartity Supplied by  Price  Avery  Brandon  Cassandra$8.006046$6.004244$4.002442$2.00640\begin{array}{l}\quad\quad\quad\quad\quad\quad	ext { Quartity Supplied by }\\begin{array} { | r | r | r | r | c | } \hline { 	ext { Price } } &  { 	ext { Avery } } & { 	ext { Brandon } } & 	ext { Cassandra} &\quad\quad\quad\quad \\hline \$ 8.00 & 60 & 4 &6 & \\hline \$6.00 & 42 & 4 & 4 & \\hline \$4.00 & 24 & 4 & 2 & \\hline\$ 2.00 &6 & 4 & 0 & \\hline\end{array}\end{array} Quartity Supplied by  Price $8.00$6.00$4.00$2.00​ Avery 6042246​ Brandon 4444​ Cassandra6420​​​​ 
 In Table 3.1,if the price is $4,the market will

Accepted Answer

A)  Be in equilibrium.
B)  Experience a surplus of 30 units.
C)  Experience a shortage of 22 units.
D)  Experience a surplus of 56 units.

Question 7

Which determinant of demand changes in the personal computer market as more individuals become interested in "surfing the Internet"?

Accepted Answer

A)  Cost of factors of production.
B)  Income.
C)  Expectations.
D)  Number of buyers.

Question 8

The price ceiling that the federal government placed on human organs caused

Accepted Answer

A)  An increase in demand.
B)  An increase in supply.
C)  A shortage.
D)  A surplus.

Question 9

Ceteris paribus,which of the following is most likely to cause a decrease in the supply of skateboards?

Accepted Answer

A)  An increase in the price of skateboards.
B)  An increase in the cost of materials used to produce skateboards.
C)  An improvement in skateboard-making technology.
D)  All of the choices are correct.

Question 10

The goal of the business firms in a market economy is to maximize

Accepted Answer

A)  Total profits.
B)  Total sales.
C)  Total utility.
D)  Total welfare.

Question 11

As a result of a shortage,

Accepted Answer

A)  Consumers increase demand for the product.
B)  Producers reduce supply.
C)  Producers increase output and raise price.
D)  Government purchases decrease.

Question 12

There are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market.

Accepted Answer

A) True 
 B)False

Question 13

If a price is above equilibrium,

Accepted Answer

A)  A shortage will cause the price to fall and the quantity supplied to decrease.
B)  A shortage will cause the price to rise and the quantity supplied to increase.
C)  A surplus will cause the price to fall and the quantity supplied to decrease.
D)  A surplus will cause the price to fall and the quantity supplied to increase.

Question 14

The market price equals the equilibrium price if quantity demanded equals quantity supplied at the market price.

Accepted Answer

A) True 
 B)False

Question 15

In a market economy,which of the following is an incentive for producers to produce efficiently?

Accepted Answer

A)  Government laws and regulations.
B)  Profits.
C)  The production possibilities curve.
D)  The public's welfare.

Question 16

Ceteris paribus,which of the following is most likely to cause an increase in the quantity demanded of perfume?

Accepted Answer

A)  A decrease in the price of perfume.
B)  A decrease in tastes for perfume.
C)  An increase in income.
D)  An increase in the price of electricity.

Question 17

Which of the following would not cause the market supply of cell phones to change?

Accepted Answer

A)  Telecommunications are deregulated,and anyone who wants to can produce and sell cell phones.
B)  A cheaper technology for producing plastics used in producing cell phones is developed.
C)  A reduction in the demand for cell phones causes the price to fall.
D)  Taxes levied on cell phone production are reduced.

Question 18

An increase in the price of one good can cause the demand for another good to increase if the goods are substitutes.

Accepted Answer

A) True 
 B)False

Question 19

To calculate market supply,we

Accepted Answer

A)  Add the quantities supplied for each individual supply schedule horizontally.
B)  Add the quantities supplied for each individual supply schedule vertically.
C)  Find the average quantity supplied at each price.
D)  Find the difference between the quantity supplied and the quantity demanded at each price.

Question 20

If the price of "X" increases and you buy more "Y," then

Accepted Answer

A)  "X" and "Y" are complements,and the price of "Y" will increase.
B)  "X" and "Y" are complements,and the price of "Y" will decrease.
C)  "X" and "Y" are substitutes,and the price of "Y" will increase.
D)  "X" and "Y" are substitutes,and the price of "Y" will decrease.

Exam 3: Supply and Demand

As a result of a shortage,

Correct Answer
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The goal of the business firms in a market economy is to maximize

Correct Answer
verified

Ceteris paribus,which of the following is most likely to cause a decrease in the supply of skateboards?

Correct Answer
verified

If corn and wheat are alternative pursuits for a farmer,a change in the supply of corn will take place when,ceteris paribus,

Correct Answer
verified

Business firms supply goods and services to and purchase factors of production in .

Correct Answer
verified

In a market economy,which of the following is an incentive for producers to produce efficiently?

Correct Answer
verified

The price ceiling that the federal government placed on human organs caused

Correct Answer
verified

Correct Answer
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If the price of "X" increases and you buy more "Y," then

Correct Answer
verified

Which determinant of demand changes in the personal computer market as more individuals become interested in "surfing the Internet"?

Correct Answer
verified

To calculate market supply,we

Correct Answer
verified

The market price equals the equilibrium price if quantity demanded equals quantity supplied at the market price.

Correct Answer
verified

There are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market.

Correct Answer
verified

If a price is above equilibrium,

Correct Answer
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An increase in the price of one good can cause the demand for another good to increase if the goods are substitutes.

Correct Answer
verified

In a market economy,the people who receive the goods and services produced are those who

Correct Answer
verified

The desire for carrots changes as one moves down the demand curve for carrots.

Correct Answer
verified

Which of the following would not cause the market supply of cell phones to change?

Correct Answer
verified

A buyer is said to have a demand for a good only when

Correct Answer
verified

Ceteris paribus,which of the following is most likely to cause an increase in the quantity demanded of perfume?

Correct Answer
verified

Exam 3: Supply and Demand

As a result of a shortage,

Correct AnswerverifiedShow Answer

The goal of the business firms in a market economy is to maximize

Correct AnswerverifiedShow Answer

Ceteris paribus,which of the following is most likely to cause a decrease in the supply of skateboards?

Correct AnswerverifiedShow Answer

If corn and wheat are alternative pursuits for a farmer,a change in the supply of corn will take place when,ceteris paribus,

Correct AnswerverifiedShow Answer

Business firms supply goods and services to ________ and purchase factors of production in ________.

Correct AnswerverifiedShow Answer

In a market economy,which of the following is an incentive for producers to produce efficiently?

Correct AnswerverifiedShow Answer

The price ceiling that the federal government placed on human organs caused

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the price of "X" increases and you buy more "Y," then

Correct AnswerverifiedShow Answer

Which determinant of demand changes in the personal computer market as more individuals become interested in "surfing the Internet"?

Correct AnswerverifiedShow Answer

To calculate market supply,we

Correct AnswerverifiedShow Answer

The market price equals the equilibrium price if quantity demanded equals quantity supplied at the market price.

Correct AnswerverifiedShow Answer

There are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market.

Correct AnswerverifiedShow Answer

If a price is above equilibrium,

Correct AnswerverifiedShow Answer

An increase in the price of one good can cause the demand for another good to increase if the goods are substitutes.

Correct AnswerverifiedShow Answer

In a market economy,the people who receive the goods and services produced are those who

Correct AnswerverifiedShow Answer

The desire for carrots changes as one moves down the demand curve for carrots.

Correct AnswerverifiedShow Answer

Which of the following would not cause the market supply of cell phones to change?

Correct AnswerverifiedShow Answer

A buyer is said to have a demand for a good only when

Correct AnswerverifiedShow Answer

Ceteris paribus,which of the following is most likely to cause an increase in the quantity demanded of perfume?

Correct AnswerverifiedShow Answer

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Business firms supply goods and services to and purchase factors of production in .

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