Question 1

According to the law of demand, a decrease in price leads to an increase in quantity demanded.

Accepted Answer

A) True 
 B)False

Question 2

If there is a surplus at a given price, then

Accepted Answer

A)   The market is in equilibrium at that price.
B)   That price is greater than the equilibrium price.
C)   That price is lower than the equilibrium price.
D)   The price is zero.

Question 3

If corn products are found to cause cancer, then the

Accepted Answer

A)   Supply curve for corn will shift right.
B)   Supply curve for corn will shift left.
C)   Demand curve for corn will shift left.
D)   None of the choices are correct.

Question 4

The market supply curve is a statement of actual sales by suppliers.

Accepted Answer

A) True 
 B)False

Question 5

Markets require a physical location to permit sellers to supply money to buyers for goods and services.

Accepted Answer

A) True 
 B)False

Question 6

If the wages of the workers that harvest corn each fall decreases, then the

Accepted Answer

A)   Supply curve for corn will shift right.
B)   Supply curve for corn will shift left.
C)  Demand curve for corn will shift right.
D)   None of the choices are correct.

Question 7

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 8

A lower quantity demanded of a good reflects, ceteris paribus,

Accepted Answer

A)   Lower income.
B)   A downward shift of the supply curve.
C)   A higher price of the good.
D)   Fewer units actually purchased.

Question 9

One of the two reasons why we are driven to buy and sell goods and services in the market is that most of us
are incapable of producing everything we want to consume.

Accepted Answer

A) True 
 B)False

Question 10

According to the law of demand, during a given period of time, the quantity of a good demanded

Accepted Answer

A)   Increases as its price rises, ceteris paribus.
B)   Increases as its price falls, ceteris paribus.
C)   Decreases as its price falls, ceteris paribus.
D)   Does not change when price changes.

Question 11

Individual consumers supply ____ and purchase ____.

Accepted Answer

A)   factors of production; final goods and services
B)   intermediate goods; final goods and services
C)   final goods and services; factors of production
D)   national goods and services; factors of production

Question 12

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 13

Restaurants like to give away free salty peanuts while you wait for your food in order to

Accepted Answer

A)   Encourage you to buy peanuts at the souvenir shop.
B)   Buy expensive salty food on the menu.
C)   Buy more beverages.
D)   None of the choices are correct.

Question 14

Which of the following is purchased in a product market?

Accepted Answer

A)   Cell phone service.
B)   Undeveloped farmland in Texas.
C)   Crude oil.
D)   The skills of an X-ray technician.

Question 15

Which of the following is not held constant along a given supply curve for a good?

Accepted Answer

A)   The cost of factors of production.
B)   Price.
C)   Technology.
D)   Taxes.

Question 16

Assume a series of forest fires reduces the supply of lumber, which is an input in the production of wooden bats.Baseballs and wooden bats are complements.If the price of wooden bats increases, we can expect the

Accepted Answer

A)   Demand for baseballs to decrease.
B)   Supply of baseballs to decrease.
C)   Demand for baseballs to increase.
D)   Supply of baseballs to increase.

Question 17

The supply curve shifts to the right when a seller sells a good.

Accepted Answer

A) True 
 B)False

Question 18

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. Market supply represents the combined supply quantities of all market participants.

Question 19

Which of the following is a determinant of supply?

Accepted Answer

A)   Consumer tastes or preferences.
B)   The prices of the factors of production.
C)   Income.
D)   Number of buyers.

Question 20

A rightward shift of the market demand curve for MP3 players, ceteris paribus, causes equilibrium

Accepted Answer

A)   Price to increase and equilibrium quantity to decrease.
B)   Price to decrease and equilibrium quantity to decrease.
C)   Price to increase and equilibrium quantity to increase.
D)   Price to decrease and equilibrium quantity to increase.

Exam 3: Supply and Demand

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

Correct AnswerverifiedShow Answer

Assume a series of forest fires reduces the supply of lumber, which is an input in the production of wooden bats.Baseballs and wooden bats are complements.If the price of wooden bats increases, we can expect the

Correct AnswerverifiedShow Answer

Restaurants like to give away free salty peanuts while you wait for your food in order to

Correct AnswerverifiedShow Answer

Individual consumers supply ____ and purchase ____.

Correct AnswerverifiedShow Answer

The market supply curve is a statement of actual sales by suppliers.

Correct AnswerverifiedShow Answer

A rightward shift of the market demand curve for MP3 players, ceteris paribus, causes equilibrium

Correct AnswerverifiedShow Answer

The supply curve shifts to the right when a seller sells a good.

Correct AnswerverifiedShow Answer

A lower quantity demanded of a good reflects, ceteris paribus,

Correct AnswerverifiedShow Answer

One of the two reasons why we are driven to buy and sell goods and services in the market is that most of us are incapable of producing everything we want to consume.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If there is a surplus at a given price, then

Correct AnswerverifiedShow Answer

If the wages of the workers that harvest corn each fall decreases, then the

Correct AnswerverifiedShow Answer

Which of the following is purchased in a product market?

Correct AnswerverifiedShow Answer

Markets require a physical location to permit sellers to supply money to buyers for goods and services.

Correct AnswerverifiedShow Answer

According to the law of demand, during a given period of time, the quantity of a good demanded

Correct AnswerverifiedShow Answer

According to the law of demand, a decrease in price leads to an increase in quantity demanded.

Correct AnswerverifiedShow Answer

If corn products are found to cause cancer, then the

Correct AnswerverifiedShow Answer

Which of the following is a determinant of supply?

Correct AnswerverifiedShow Answer

To calculate market supply, we

Correct AnswerverifiedShow Answer

Which of the following is not held constant along a given supply curve for a good?

Correct AnswerverifiedShow Answer

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Individual consumers supply and purchase .

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

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