Question 1

The term market refers to the:

Accepted Answer

A)   physical location where buyers and sellers meet to exchange goods for money.
B)   buyers and sellers who trade a particular good or service, not to a physical location.
C)   location where buyers go to fulfill their wants and needs.
D)   physical or virtual place of exchange.E) A) and D)
F) B) and C)

Question 2

According to the graph shown,if the price were $5 a:

Accepted Answer

A)   shortage would exist, signaling sellers to leave the market.
B)   shortage would exist, signaling buyers to bid up the price.
C)   surplus would exist, signaling sellers to drop their price.
D)   surplus would exist, signaling buyers to bid up the price.E) C) and D)
F) A) and D)

Question 3

The law of supply can be stated as all else equal:

Accepted Answer

A)   quantity supplied rises as price falls.
B)   quantity supplied rises as price rises.
C)   quantity supplied rises as income rises.
D)   quantity supplied rises as income falls.E) C) and D)
F) All of the above

Question 4

The best example of a perfectly competitive market would be the market for:

Accepted Answer

A)   grain.
B)   shoes.
C)   computers.
D)   cameras.E) None of the above
F) A) and B)

Question 5

The buyers and sellers who trade a particular good or service make up what we call a:

Accepted Answer

A)   market.
B)   store.
C)   mall.
D)   negotiators.E) All of the above
F) C) and D)

Question 6

An expectation of increased prices of a good in the future is likely to:

Accepted Answer

A)   increase current demand.
B)   decrease current demand.
C)   have no impact on current demand.
D)   only affect seller's decisions.E) A) and B)
F) A) and C)

Question 7

Assume the graph shown represents the market for pizzas sold in an hour.If the original equilibrium was D and S1.Which of the following could be a reason S1 shifted to S2?

Accepted Answer

A)   The price of pizza sauce has increased.
B)   The price of pizza went down.
C)   The price of labor for pizza shops went down.
D)   None of these things would cause such a shift.E) C) and D)
F) A) and D)

Question 8

Demand describes how much of something people:

Accepted Answer

A)   are willing and able to buy at alternative prices under certain circumstances.
B)   want, but may not necessarily be able, to buy under certain circumstances.
C)   are willing and able to sell under certain circumstances.
D)   be able to buy, but might not want to buy under certain circumstances.E) A) and B)
F) A) and D)

Question 9

The term "shortage" refers to a:

Accepted Answer

A)   situation in which the quantity supplied is less than the quantity demanded.
B)   situation in which the quantity demanded is less than the quantity supplied.
C)   market in which goods have to be sold quickly or the goods tend to rot or otherwise expire.
D)   signal that producers need to decrease the price of the good.E) None of the above
F) A) and D)

Question 10

The term "surplus" refers to a:

Accepted Answer

A)   situation in which the quantity supplied is less than the quantity demanded.
B)   situation in which the quantity demanded is less than the quantity supplied.
C)   market that sells secondary goods.
D)   signal that producers need to increase the price of the good.E) C) and D)
F) A) and C)

Question 11

According to the graph shown,the equilibrium price is:

Accepted Answer

A)   $5
B)   $10
C)   $15
D)   $20E) B) and C)
F) A) and B)

Question 12

The most likely complementary good for cereal would be:

Accepted Answer

A)   a bagel.
B)   milk.
C)   pizza.
D)   a sub sandwich.E) A) and D)
F) None of the above

Question 13

Assume the market in the graph shown was originally at an equilibrium with demand D and supply S.The original equilibrium price and quantity were,respectively:

Accepted Answer

A)   $5 and 30.
B)   $5 and 20.
C)   $10 and 20.
D)   $20 and 10.E) None of the above
F) A) and C)

Question 14

Consider the market for ride-on lawn mowers and the recent increases in the price of oil.The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers.An increase in the price of oil also makes it more expensive to run a ride-on mower.What factors of demand and/or supply are affected by the changing price of oil?

Accepted Answer

A)   Price of related good, expectations of future
B)   Price of related good, price of input
C)   Price of input, income
D)   Price of input, number of buyersE) A) and B)
F) None of the above

Question 15

A paper mill discovers that burning old tires is a cheaper way to get power rather than using coal,and they adopt the new technology.Which of the following will likely happen in the market for paper?

Accepted Answer

A)   The demand for paper will increase.
B)   The supply of paper will increase.
C)   The supplyfor paper will remain constant.
D)   The supply for paper will decrease.E) None of the above
F) B) and C)

Question 16

This table shows individual demand schedules for a market.  According to the table shown,at a price of $1.00,how much of the good will be demanded by Betty?

Accepted Answer

A)   16
B)   11
C)   46
D)   30E) All of the above
F) A) and C)

Question 17

Roy just got a big promotion at work which includes a sizable pay increase.Roy's demand for Ramen Noodles,an inferior good,will likely:

Accepted Answer

A)   decrease, and his demand curve will shift to the right.
B)   decrease, and his demand curve will shift to the left.
C)   increase, and his demand curve will shift to the right.
D)   decrease, causing a movement down along his demand curve.E) A) and B)
F) A) and D)

Question 18

Junie is shopping for dinner.She picks up a package of hot dogs on sale,instead of the burgers she was intending to buy.She then heads over to buy a package of hot dog buns.Junie's change in the demand for hot dog is due to a change in:

Accepted Answer

A)   the price of related goods.
B)   Junie's income.
C)   Junie's preferences.
D)   Junie's expectation of future prices.E) B) and D)
F) A) and D)

Question 19

The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:

Accepted Answer

A)   quantity demanded.
B)   quantity supplied.
C)   demand.
D)   supply.E) None of the above
F) B) and D)

Question 20

A standardized good or service is one:

Accepted Answer

A)   for which any two units of it have the same features and are interchangeable.
B)   for which any two units of it have similar features that could be considered close substitutes.
C)   for which any two units of it have different, unique features.
D)   that has very distinguishable characteristics, with each unit being economically unique.E) C) and D)
F) None of the above

Exam 3: Markets

A standardized good or service is one:

Correct Answer
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The best example of a perfectly competitive market would be the market for:

Correct Answer
verified

The term "shortage" refers to a:

Correct Answer
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According to the graph shown,the equilibrium price is:

Correct Answer
verified

An expectation of increased prices of a good in the future is likely to:

Correct Answer
verified

The law of supply can be stated as all else equal:

Correct Answer
verified

Demand describes how much of something people:

Correct Answer
verified

Assume the market in the graph shown was originally at an equilibrium with demand D and supply S.The original equilibrium price and quantity were,respectively:

Correct Answer
verified

The buyers and sellers who trade a particular good or service make up what we call a:

Correct Answer
verified

This table shows individual demand schedules for a market. According to the table shown,at a price of $1.00,how much of the good will be demanded by Betty?

Correct Answer
verified

Assume the graph shown represents the market for pizzas sold in an hour.If the original equilibrium was D and S1.Which of the following could be a reason S1 shifted to S2?

Correct Answer
verified

A paper mill discovers that burning old tires is a cheaper way to get power rather than using coal,and they adopt the new technology.Which of the following will likely happen in the market for paper?

Correct Answer
verified

The most likely complementary good for cereal would be:

Correct Answer
verified

The term market refers to the:

Correct Answer
verified

Correct Answer
verified

The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:

Correct Answer
verified

Junie is shopping for dinner.She picks up a package of hot dogs on sale,instead of the burgers she was intending to buy.She then heads over to buy a package of hot dog buns.Junie's change in the demand for hot dog is due to a change in:

Correct Answer
verified

Roy just got a big promotion at work which includes a sizable pay increase.Roy's demand for Ramen Noodles,an inferior good,will likely:

Correct Answer
verified

According to the graph shown,if the price were $5 a:

Correct Answer
verified

The term "surplus" refers to a:

Correct Answer
verified

Exam 3: Markets

A standardized good or service is one:

Correct AnswerverifiedShow Answer

The best example of a perfectly competitive market would be the market for:

Correct AnswerverifiedShow Answer

The term "shortage" refers to a:

Correct AnswerverifiedShow Answer

According to the graph shown,the equilibrium price is:

Correct AnswerverifiedShow Answer

An expectation of increased prices of a good in the future is likely to:

Correct AnswerverifiedShow Answer

The law of supply can be stated as all else equal:

Correct AnswerverifiedShow Answer

Demand describes how much of something people:

Correct AnswerverifiedShow Answer

Assume the market in the graph shown was originally at an equilibrium with demand D and supply S.The original equilibrium price and quantity were,respectively:

Correct AnswerverifiedShow Answer

The buyers and sellers who trade a particular good or service make up what we call a:

Correct AnswerverifiedShow Answer

This table shows individual demand schedules for a market. According to the table shown,at a price of $1.00,how much of the good will be demanded by Betty?

Correct AnswerverifiedShow Answer

Assume the graph shown represents the market for pizzas sold in an hour.If the original equilibrium was D and S1.Which of the following could be a reason S1 shifted to S2?

Correct AnswerverifiedShow Answer

A paper mill discovers that burning old tires is a cheaper way to get power rather than using coal,and they adopt the new technology.Which of the following will likely happen in the market for paper?

Correct AnswerverifiedShow Answer

The most likely complementary good for cereal would be:

Correct AnswerverifiedShow Answer

The term market refers to the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:

Correct AnswerverifiedShow Answer

Junie is shopping for dinner.She picks up a package of hot dogs on sale,instead of the burgers she was intending to buy.She then heads over to buy a package of hot dog buns.Junie's change in the demand for hot dog is due to a change in:

Correct AnswerverifiedShow Answer

Roy just got a big promotion at work which includes a sizable pay increase.Roy's demand for Ramen Noodles,an inferior good,will likely:

Correct AnswerverifiedShow Answer

According to the graph shown,if the price were $5 a:

Correct AnswerverifiedShow Answer

The term "surplus" refers to a:

Correct AnswerverifiedShow Answer

Correct Answer
verified

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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Correct Answer
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Correct Answer
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