Question 1

Which of the following participates in the product market?

Accepted Answer

A)   Consumers only.
B)   Consumers,governments and foreigners.
C)   Governments and consumers only.
D)   Foreigners only.

Question 2

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

Accepted Answer

A)   Telecommunications are deregulated,and anyone can produce and sell cell phones.
B)   A cheaper technology for 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. C

Question 3

A decrease in price leads to a decrease in quantity supplied.

Accepted Answer

A) True 
 B)False

Question 4

Barter is the direct exchange of one good for another.

Accepted Answer

A) True 
 B)False

Question 5

One HEADLINE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.What will happen to the equilibrium quantity of used cars if the supply decreases?

Accepted Answer

A)   Increase.
B)   Decrease.
C)   Remain unchanged.
D)   Either increase or decrease based on the slope of the supply curve.

Question 6

Which of the following will cause a leftward shift of the supply curve for houses?

Accepted Answer

A)   A decrease in consumer incomes.
B)   An improvement in the technology used to build houses.
C)   Consumer expectations that the price of houses will increase next year.
D)   An increase in the cost of construction materials. D

Question 7

In a market economy prices are determined by the interactions of buyers and sellers,this is referred to as the market mechanism.

Accepted Answer

A) True 
 B)False

Question 8

In a market,the equilibrium price is determined by:

Accepted Answer

A)   Only what buyers are willing and able to purchase.
B)   Only what sellers are willing and able to offer for sale.
C)   The interaction of both demand and supply.
D)   The government.

Question 9

If supply is unchanged,a rightward shift in the demand curve for gourmet ice cream will result in:

Accepted Answer

A)   A decrease in equilibrium quantity and a higher equilibrium price.
B)   An increase in equilibrium quantity and a higher equilibrium price.
C)   A decrease in equilibrium quantity and a lower equilibrium price.
D)   An increase in equilibrium quantity and a lower equilibrium price.

Question 10

Consumers _______ factors of production in the _______ market.

Accepted Answer

A)   Sell;product
B)   Sell;factor
C)   Buy;product
D)   Buy;factor

Question 11

Figure 3.4: 
-Which panel of Figure 3.4 represents the changes in the market for parking spaces when the student population increases on a college campus and one parking lot has been destroyed to build a new building?

Accepted Answer

A)   A
B)   B
C)   C
D)   D

Question 12

The market demand for a particular good indicates:

Accepted Answer

A)   That consumers will purchase more of the good at higher prices,ceteris paribus.
B)   That sellers will offer more of the good only at higher prices,ceteris paribus.
C)   The total quantities buyers are willing and able to purchase at alternative prices,ceteris paribus.
D)   How much of the good is actually purchased in a given period of time.

Question 13

Which of the following is a constraint that motivates economic interactions?

Accepted Answer

A)   The outsourcing of jobs.
B)   The limited resources that individuals have.
C)   The limited profit margin for individuals.
D)   The inability of individuals to take on risk.

Question 14

One NEWSWIRE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.This is an example of:

Accepted Answer

A)   An increase in supply.
B)   A decrease in supply.
C)   An increase in demand.
D)   A decrease in demanD.

Question 15

If demand is constant,a leftward shift in the supply curve will result in:

Accepted Answer

A)   A decrease in equilibrium quantity and a lower equilibrium price.
B)   An increase in equilibrium quantity and a lower equilibrium price.
C)   A decrease in equilibrium quantity and a higher equilibrium price.
D)   An increase in equilibrium quantity and a higher equilibrium price.

Question 16

Market participants include:

Accepted Answer

A)   Business firms and consumers but not foreigners.
B)   Consumers only.
C)   Consumers,business firms,governments and foreigners.
D)   Foreigners but not business firms.

Question 17

If supply is constant,a decrease in the demand for potato chips will cause:

Accepted Answer

A)   A decrease in equilibrium price and a decrease in equilibrium quantity.
B)   An increase in equilibrium price and an increase in equilibrium quantity.
C)   A decrease in equilibrium price and an increase in equilibrium quantity.
D)   An increase in equilibrium price and a decrease in equilibrium quantity.

Question 18

Figure 3.1
Answer the indicated question(s) by selecting the letter of the following diagrams showing supply and demand shifts that best represent the effect of each event on the relevant market,ceteris paribus. 
-Refer to Figure 3.1.Consider the market for DVD players.People prefer watching movies on DVDs at home instead of going to the movie theater.

Accepted Answer

A)   A
B)   B
C)   C
D)   D

Question 19

A market shortage is:

Accepted Answer

A)   Equal to the quantity supplied.
B)   Caused by a price ceiling.
C)   Caused by scarce resources.
D)   Caused by a price floor. B

Question 20

A market exists for the sale and purchase of:

Accepted Answer

A)   Computer services but not nuclear warheads.
B)   Nuclear warheads but not illegal drugs.
C)   Illegal drugs but not medical services.
D)   Illegal drugs,computer services,and nuclear warheads.

Exam 3: Supply and Demand

Which of the following participates in the product market?

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

Correct Answer
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C

A decrease in price leads to a decrease in quantity supplied.

Correct Answer
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Barter is the direct exchange of one good for another.

Correct Answer
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One HEADLINE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.What will happen to the equilibrium quantity of used cars if the supply decreases?

Correct Answer
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Which of the following will cause a leftward shift of the supply curve for houses?

Correct Answer
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D

In a market economy prices are determined by the interactions of buyers and sellers,this is referred to as the market mechanism.

Correct Answer
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In a market,the equilibrium price is determined by:

Correct Answer
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If supply is unchanged,a rightward shift in the demand curve for gourmet ice cream will result in:

Correct Answer
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Consumers _ factors of production in the _ market.

Correct Answer
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Figure 3.4: -Which panel of Figure 3.4 represents the changes in the market for parking spaces when the student population increases on a college campus and one parking lot has been destroyed to build a new building?

Correct Answer
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The market demand for a particular good indicates:

Correct Answer
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Which of the following is a constraint that motivates economic interactions?

Correct Answer
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One NEWSWIRE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.This is an example of:

Correct Answer
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If demand is constant,a leftward shift in the supply curve will result in:

Correct Answer
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Market participants include:

Correct Answer
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If supply is constant,a decrease in the demand for potato chips will cause:

Correct Answer
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Correct Answer
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A market shortage is:

Correct Answer
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B

A market exists for the sale and purchase of:

Correct Answer
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Exam 3: Supply and Demand

Which of the following participates in the product market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

A decrease in price leads to a decrease in quantity supplied.

Correct AnswerverifiedShow Answer

Barter is the direct exchange of one good for another.

Correct AnswerverifiedShow Answer

One HEADLINE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.What will happen to the equilibrium quantity of used cars if the supply decreases?

Correct AnswerverifiedShow Answer

Which of the following will cause a leftward shift of the supply curve for houses?

Correct AnswerverifiedD

In a market economy prices are determined by the interactions of buyers and sellers,this is referred to as the market mechanism.

Correct AnswerverifiedShow Answer

In a market,the equilibrium price is determined by:

Correct AnswerverifiedShow Answer

If supply is unchanged,a rightward shift in the demand curve for gourmet ice cream will result in:

Correct AnswerverifiedShow Answer

Consumers _______ factors of production in the _______ market.

Correct AnswerverifiedShow Answer

Figure 3.4: -Which panel of Figure 3.4 represents the changes in the market for parking spaces when the student population increases on a college campus and one parking lot has been destroyed to build a new building?

Correct AnswerverifiedShow Answer

The market demand for a particular good indicates:

Correct AnswerverifiedShow Answer

Which of the following is a constraint that motivates economic interactions?

Correct AnswerverifiedShow Answer

One NEWSWIRE article in the text,"Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm.This is an example of:

Correct AnswerverifiedShow Answer

If demand is constant,a leftward shift in the supply curve will result in:

Correct AnswerverifiedShow Answer

Market participants include:

Correct AnswerverifiedShow Answer

If supply is constant,a decrease in the demand for potato chips will cause:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A market shortage is:

Correct AnswerverifiedB

A market exists for the sale and purchase of:

Correct AnswerverifiedShow Answer

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C

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D

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Consumers _ factors of production in the _ market.

Correct Answer
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B

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