Question 1

The price for labor is the wage rate.What happens to the quantity of labor supplied if wages increase?

Accepted Answer

A)  It increases.
B)  It decreases.
C)  It does not change.
D)  Uncertain-economic theory has no answer to this question.

Question 2

Rent controls encourage investment in housing because they bring stability to the market.

Accepted Answer

A) True 
 B)False

Question 3

An increase in price will increase supply.

Accepted Answer

A) True 
 B)False

Question 4

If orange juice prices double next year,there will be a

Accepted Answer

A)  rightward shift in the demand for grapefruit juice.
B)  rightward shift in the supply of grapefruit juice.
C)  leftward shift in the supply of grapefruit juice.
D)  leftward shift in the demand for grapefruit juice.

Question 5

An increase in price will decrease demand.

Accepted Answer

A) True 
 B)False

Question 6

Exhibit 4-1
The following are the equations for the supply and demand curves in the market for weezils:
   Demand Qd=20−2F Supply:Qs=5+3P\begin{array}{lccc}  	ext { Demand } & Q_{d}=20-2 F  \ 	ext { Supply:} &  \mathrm{Q}_{s}=5+3 \mathrm{P} \end{array} Demand  Supply:​Qd​=20−2FQs​=5+3P​

where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-Refer to Exhibit 4-1.If the government imposes a price floor of $4 a weezil,how many weezils will be sold?

Accepted Answer

A)  5
B)  10
C)  12
D)  14

Question 7

Figure 4-16
 1 to S2. B) S2 to S1. C) S3 to S2. D) S3 to S1." class="answers-bank-image d-inline" rel="preload" >
-Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from

Accepted Answer

A)  S1 to S2.
B)  S2 to S1.
C)  S3 to S2.
D)  S3 to S1.

Question 8

Price floors are typically accompanied by a standard series of symptoms.What are they?

Accepted Answer

Following are some of the symptoms assoc...

Question 9

The supply curve shows

Accepted Answer

A)  the same basic information as the demand curve.
B)  who will have an opportunity to produce or purchase an item.
C)  the quantity produced as a function of the price.
D)  plots of what quantities have been sold over the past few weeks or months.

Question 10

Sugar price supports ensure an abundance of sugar,and hence reasonable prices for consumers.

Accepted Answer

A) True 
 B)False

Question 11

Price controls are usually enacted in response to

Accepted Answer

A)  popular opinion.
B)  governmental studies.
C)  scholarly research on the effects of high prices.
D)  laws enacted in other countries.
E)  All of the above are correct.

Question 12

Figure 4-21
 3 in Figure 4-21,what will tend to happen? A) There will be a shortage, and the price will fall. B) There will be a shortage, and the price will rise. C) There will be a surplus, and the price will rise. D) There will be a surplus, and the price will fall. E) Equilibrium will occur in the market." class="answers-bank-image d-inline" rel="preload" >
-At price P3 in Figure 4-21,what will tend to happen?

Accepted Answer

A)  There will be a shortage, and the price will fall.
B)  There will be a shortage, and the price will rise.
C)  There will be a surplus, and the price will rise.
D)  There will be a surplus, and the price will fall.
E)  Equilibrium will occur in the market.

Question 13

Distinguish between scarcity and shortage.

Accepted Answer

Scarcity implies that people want more o...

Question 14

The invention of machinery that can double the amount of gold extracted from raw ore will likely lead mining companies to

Accepted Answer

A)  raise the world price of gold to pay for the new machinery.
B)  lower the world price of gold because any amount can now be produced more cheaply.
C)  raise the world price of gold because miners' wages must double as their productivity doubles.
D)  lower the world price of gold only if new mining companies are not allowed to enter the industry.

Question 15

Figure 4-20
 
-The presence of scalpers (people selling tickets at a price above the quoted price,P*) at a recent Super Bowl game suggests that the market for stadium seats could be represented by which graph in Figure 4-20?

Accepted Answer

A)  1
B)  2
C)  3
D)  4

Question 16

If new manufacturers enter the computer industry,then,holding all other things constant,

Accepted Answer

A)  each "old" manufacturer must sell fewer computers than before.
B)  some "old" manufacturers must exit the industry.
C)  the equilibrium price of computers must rise.
D)  the equilibrium quantity demanded of computers must rise.

Question 17

At an equilibrium price for gasoline,

Accepted Answer

A)  everyone with the desire and the income to buy gasoline at that price can do so.
B)  surpluses are inevitable.
C)  inherent market forces will eventually change the quantities demanded and supplied.
D)  suppliers must be using the most efficient oil-drilling equipment available.

Question 18

If price rises,what happens to demand for a product?

Accepted Answer

A)  It increases.
B)  It decreases.
C)  It does not change.
D)  Uncertain-economic theory has no answer to this question.

Question 19

How much the quantity of a good traded changes after a shift of the supply curve depends on

Accepted Answer

A)  the size of the shift.
B)  the slope of the demand curve.
C)  whether the market is subject to price controls.
D)  All of the above are correct.

Question 20

During the American Revolution,the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

Accepted Answer

A)  a large increase in the availability of those items, ending shortages.
B)  a severe shortage of those essential commodities.
C)  an increase in the price of those items, thus alleviating shortages.
D)  new efforts to increase production of those commodities.
E)  a minor inconvenience as persons adjusted to the new law.

Exam 4: Supply and Demand: An Initial Look

The price for labor is the wage rate.What happens to the quantity of labor supplied if wages increase?

Correct Answer
verified

The invention of machinery that can double the amount of gold extracted from raw ore will likely lead mining companies to

Correct Answer
verified

How much the quantity of a good traded changes after a shift of the supply curve depends on

Correct Answer
verified

If orange juice prices double next year,there will be a

Correct Answer
verified

Sugar price supports ensure an abundance of sugar,and hence reasonable prices for consumers.

Correct Answer
verified

If new manufacturers enter the computer industry,then,holding all other things constant,

Correct Answer
verified

Correct Answer
verified

During the American Revolution,the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

Correct Answer
verified

An increase in price will decrease demand.

Correct Answer
verified

Price controls are usually enacted in response to

Correct Answer
verified

The supply curve shows

Correct Answer
verified

Figure 4-20 -The presence of scalpers (people selling tickets at a price above the quoted price,P*) at a recent Super Bowl game suggests that the market for stadium seats could be represented by which graph in Figure 4-20?

Correct Answer
verified

If price rises,what happens to demand for a product?

Correct Answer
verified

Figure 4-16 -Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from

Correct Answer
verified

Figure 4-21 -At price P₃ in Figure 4-21,what will tend to happen?

Correct Answer
verified

Price floors are typically accompanied by a standard series of symptoms.What are they?

Correct Answer
verified
Following are some of the symptoms assoc...
View Answer

An increase in price will increase supply.

Correct Answer
verified

At an equilibrium price for gasoline,

Correct Answer
verified

Rent controls encourage investment in housing because they bring stability to the market.

Correct Answer
verified

Distinguish between scarcity and shortage.

Correct Answer
verified
Scarcity implies that people want more o...
View Answer

Exam 4: Supply and Demand: An Initial Look

The price for labor is the wage rate.What happens to the quantity of labor supplied if wages increase?

Correct AnswerverifiedShow Answer

The invention of machinery that can double the amount of gold extracted from raw ore will likely lead mining companies to

Correct AnswerverifiedShow Answer

How much the quantity of a good traded changes after a shift of the supply curve depends on

Correct AnswerverifiedShow Answer

If orange juice prices double next year,there will be a

Correct AnswerverifiedShow Answer

Sugar price supports ensure an abundance of sugar,and hence reasonable prices for consumers.

Correct AnswerverifiedShow Answer

If new manufacturers enter the computer industry,then,holding all other things constant,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

During the American Revolution,the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

Correct AnswerverifiedShow Answer

An increase in price will decrease demand.

Correct AnswerverifiedShow Answer

Price controls are usually enacted in response to

Correct AnswerverifiedShow Answer

The supply curve shows

Correct AnswerverifiedShow Answer

Figure 4-20 -The presence of scalpers (people selling tickets at a price above the quoted price,P*) at a recent Super Bowl game suggests that the market for stadium seats could be represented by which graph in Figure 4-20?

Correct AnswerverifiedShow Answer

If price rises,what happens to demand for a product?

Correct AnswerverifiedShow Answer

Figure 4-16 -Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from

Correct AnswerverifiedShow Answer

Figure 4-21 -At price P3 in Figure 4-21,what will tend to happen?

Correct AnswerverifiedShow Answer

Price floors are typically accompanied by a standard series of symptoms.What are they?

Correct AnswerverifiedFollowing are some of the symptoms assoc...View AnswerShow Answer

An increase in price will increase supply.

Correct AnswerverifiedShow Answer

At an equilibrium price for gasoline,

Correct AnswerverifiedShow Answer

Rent controls encourage investment in housing because they bring stability to the market.

Correct AnswerverifiedShow Answer

Distinguish between scarcity and shortage.

Correct AnswerverifiedScarcity implies that people want more o...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Figure 4-21 -At price P₃ in Figure 4-21,what will tend to happen?

Correct Answer
verified

Correct Answer
verified
Following are some of the symptoms assoc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Scarcity implies that people want more o...
View Answer