Question 1

If,at the current price,there is a shortage of a good,then

Accepted Answer

A)   sellers are producing more than buyers wish to buy.
B)   the market must be in equilibrium.
C)   the price is below the equilibrium price.
D)   quantity demanded equals quantity supplied.

Question 2

Ashley bakes bread that she sells at the local farmer's market.If she purchases a new convection oven that reduces the costs of baking bread,the

Accepted Answer

A)   supply curve for Ashley's bread will increase.
B)   supply curve for Ashley's bread will decrease.
C)   demand curve for Ashley's bread will increase.
D)   demand curve for Ashley's bread will decrease.

Question 3

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Accepted Answer

A)   Point A to Point B
B)   Point C to Point B
C)   Point C to Point D
D)   Point A to Point D

Question 4

An example of a perfectly competitive market would be the market for

Accepted Answer

A)   tennis racquets.
B)   pizza.
C)   garbage collection.
D)   wheat.

Question 5

If a good is inferior,then an increase in income will result in

Accepted Answer

A)   an increase in the demand for the good.
B)   a decrease in the demand for the good.
C)   a movement down and to the right along the demand curve for the good.
D)   a movement up and to the left along the demand curve for the good.

Question 6

If Miguel expects to earn a higher income next month,he may choose to

Accepted Answer

A)   save more now and spend less of his current income on goods and services.
B)   save less now and spend more of his current income on goods and services.
C)   decrease his current demand for goods and services.
D)   move along his current demand curves for goods and services.

Question 7

Suppose the demand for calendars increases in November.At the same time,the price of the ink used in the production of calendars increases.In the market for calendars,the equilibrium price rises,but the effect on the equilibrium quantity is ambiguous.

Accepted Answer

A) True 
 B)False

Question 8

If the price of a good is low,

Accepted Answer

A)   firms would increase profit by increasing output.
B)   the quantity supplied of the good could be zero.
C)   the supply curve for the good will shift to the left.
D)   firms can and should raise the price of the product.

Question 9

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

A)   a decrease in the price of gasoline
B)   an increase in consumer income,assuming gasoline is a normal good
C)   an increase in the price of cars,a complement for gasoline
D)   a decrease in the expected future price of gasoline

Question 10

Table 4-8
A country club usually only allows members to purchase tickets for its celebrity golf tournament,but the club is considering allowing non-members to purchase tickets this year.The demand and supply schedules are as follows:
 
-Refer to Table 4-8.If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $20,then there will be

Accepted Answer

A)   a shortage of 300 tickets.
B)   a surplus of 300 tickets.
C)   300 tickets sold.
D)   600 tickets unsold.

Question 11

Figure 4-6 
-Refer to Figure 4-6.The shift from D to D' is called

Accepted Answer

A)   an increase in demand.
B)   a decrease in demand.
C)   a decrease in quantity demanded.
D)   an increase in quantity demanded.

Question 12

Which of the following statements is correct?

Accepted Answer

A)   Buyers determine supply,and sellers determine demand.
B)   Buyers determine demand,and sellers determine supply.
C)   Buyers determine both demand and supply.
D)   Sellers determine both demand and supply.

Question 13

Figure 4-18 
-Refer to Figure 4-18.At a price of $4,there is a

Accepted Answer

A)   surplus of 3 units.
B)   surplus of 6 units.
C)   shortage of 3 units.
D)   shortage of 6 units.

Question 14

The two words most often used by economists are

Accepted Answer

A)   prices and quantities.
B)   resources and allocation.
C)   supply and demand.
D)   efficiency and equity.

Question 15

If the number of buyers in a market decreases,then

Accepted Answer

A)   demand will increase.
B)   demand will decrease.
C)   supply will increase.
D)   supply will decrease.

Question 16

Other things equal,when the price of a good falls,the

Accepted Answer

A)   quantity supplied of the good increases.
B)   supply decreases.
C)   quantity supplied of the good decreases.
D)   demand increases.

Question 17

Table 4-8
A country club usually only allows members to purchase tickets for its celebrity golf tournament,but the club is considering allowing non-members to purchase tickets this year.The demand and supply schedules are as follows:
 
-Refer to Table 4-8.If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $30,then there will be

Accepted Answer

A)   a shortage of 300 tickets.
B)   a surplus of 300 tickets.
C)   600 tickets sold.
D)   600 tickets unsold.

Question 18

The demand curve for a good is a line that relates

Accepted Answer

A)   price and quantity demanded.
B)   income and quantity demanded.
C)   quantity demanded and quantity supplied.
D)   price and income.

Question 19

A dress manufacturer recently has come to expect higher prices for dresses in the near future.We would expect

Accepted Answer

A)   the dress manufacturer to supply more dresses now than it was supplying previously.
B)   the dress manufacturer to supply fewer dresses now than it was supplying previously.
C)   the demand for this manufacturer's dresses to fall.
D)   no change in the dress manufacturer's current supply; instead,future supply will be affected.

Question 20

A decrease in supply shifts the supply curve to the left.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

If the price of a good is low,

Correct Answer
verified

Figure 4-6 -Refer to Figure 4-6.The shift from D to D' is called

Correct Answer
verified

Other things equal,when the price of a good falls,the

Correct Answer
verified

If the number of buyers in a market decreases,then

Correct Answer
verified

Suppose the demand for calendars increases in November.At the same time,the price of the ink used in the production of calendars increases.In the market for calendars,the equilibrium price rises,but the effect on the equilibrium quantity is ambiguous.

Correct Answer
verified

The two words most often used by economists are

Correct Answer
verified

Figure 4-18 -Refer to Figure 4-18.At a price of $4,there is a

Correct Answer
verified

The demand curve for a good is a line that relates

Correct Answer
verified

Ashley bakes bread that she sells at the local farmer's market.If she purchases a new convection oven that reduces the costs of baking bread,the

Correct Answer
verified

Correct Answer
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Which of the following statements is correct?

Correct Answer
verified

A dress manufacturer recently has come to expect higher prices for dresses in the near future.We would expect

Correct Answer
verified

Correct Answer
verified

If a good is inferior,then an increase in income will result in

Correct Answer
verified

Which of the following would shift the demand curve for gasoline to the right?

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct Answer
verified

An example of a perfectly competitive market would be the market for

Correct Answer
verified

A decrease in supply shifts the supply curve to the left.

Correct Answer
verified

If Miguel expects to earn a higher income next month,he may choose to

Correct Answer
verified

If,at the current price,there is a shortage of a good,then

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

If the price of a good is low,

Correct AnswerverifiedShow Answer

Figure 4-6 -Refer to Figure 4-6.The shift from D to D' is called

Correct AnswerverifiedShow Answer

Other things equal,when the price of a good falls,the

Correct AnswerverifiedShow Answer

If the number of buyers in a market decreases,then

Correct AnswerverifiedShow Answer

Suppose the demand for calendars increases in November.At the same time,the price of the ink used in the production of calendars increases.In the market for calendars,the equilibrium price rises,but the effect on the equilibrium quantity is ambiguous.

Correct AnswerverifiedShow Answer

The two words most often used by economists are

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18.At a price of $4,there is a

Correct AnswerverifiedShow Answer

The demand curve for a good is a line that relates

Correct AnswerverifiedShow Answer

Ashley bakes bread that she sells at the local farmer's market.If she purchases a new convection oven that reduces the costs of baking bread,the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

A dress manufacturer recently has come to expect higher prices for dresses in the near future.We would expect

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a good is inferior,then an increase in income will result in

Correct AnswerverifiedShow Answer

Which of the following would shift the demand curve for gasoline to the right?

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct AnswerverifiedShow Answer

An example of a perfectly competitive market would be the market for

Correct AnswerverifiedShow Answer

A decrease in supply shifts the supply curve to the left.

Correct AnswerverifiedShow Answer

If Miguel expects to earn a higher income next month,he may choose to

Correct AnswerverifiedShow Answer

If,at the current price,there is a shortage of a good,then

Correct AnswerverifiedShow Answer

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