Question 1

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Accepted Answer

A) True 
 B)False

Question 2

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

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 DE) C) and D)
F) B) and C)

Question 3

Assume Diana buys computers in a competitive market.It follows that

Accepted Answer

A)   Diana has a limited number of sellers to turn to when she buys a computer.
B)   Diana will find herself negotiating with sellers whenever she buys a computer.
C)   if Diana buys a large number of computers,the price of computers will rise noticeably.
D)   None of the above is correct.E) All of the above
F) B) and D)

Question 4

Most markets in the economy are

Accepted Answer

A)   markets in which sellers,rather than buyers,control the price of the product.
B)   markets in which buyers,rather than sellers,control the price of the product.
C)   perfectly competitive.
D)   highly competitive.E) B) and C)
F) A) and D)

Question 5

Which of the following events must result in a higher price in the market for Snickers?

Accepted Answer

A)   Demand for Snickers increases,and supply of Snickers decreases.
B)   Demand for Snickers and supply of Snickers both decrease.
C)   Demand for Snickers decreases,and supply of Snickers increases.
D)   Demand for Snickers and supply of Snickers both increaseE) B) and C)
F) None of the above

Question 6

In a market economy,who or what determines who produces each good and how much is produced?

Accepted Answer

A)   the government
B)   lawyers
C)   lotteries
D)   pricesE) C) and D)
F) A) and B)

Question 7

In a competitive market,the price of a product

Accepted Answer

A)   is determined by buyers,and the quantity of the product produced is determined by sellers.
B)   is determined by sellers,and the quantity of the product produced is determined by buyers.
C)   and the quantity of the product produced are both determined by sellers.
D)   None of the above is correct.E) All of the above
F) A) and C)

Question 8

Figure 4-22
 
-Refer to Figure 4-22.Which of the four panels illustrates an increase in quantity demanded?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) A) and C)
F) None of the above

Question 9

If there is a shortage of farm laborers,we would expect

Accepted Answer

A)   the wage of farm laborers to increase.
B)   the wage of farm laborers to decrease.
C)   the price of farm commodities to decrease.
D)   a decrease in the demand for substitutes for farm labor.E) A) and D)
F) All of the above

Question 10

When the price of a good or service changes,

Accepted Answer

A)   the supply curve shifts in the opposite direction.
B)   the demand curve shifts in the opposite direction.
C)   the demand curve shifts in the same direction.
D)   there is a movement along a given demand curve.E) B) and D)
F) None of the above

Question 11

When the market price is below the equilibrium price,suppliers are unable to sell all they want to sell.

Accepted Answer

A) True 
 B)False

Question 12

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Accepted Answer

A) True 
 B)False

Question 13

A decrease in income will shift the demand curve for an inferior good to the right.

Accepted Answer

A) True 
 B)False

Question 14

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Accepted Answer

A) True 
 B)False

Question 15

Years ago,thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall.This behavior indicates

Accepted Answer

A)   the ticket price was above the equilibrium price.
B)   the ticket price was below the equilibrium price.
C)   the ticket price was at the equilibrium price.
D)   nothing about the equilibrium price.E) A) and B)
F) None of the above

Question 16

If a increase in income decreases the demand for a good,then the good is a(n)

Accepted Answer

A)   substitute good.
B)   complementary good.
C)   normal good.
D)   inferior good.E) None of the above
F) C) and D)

Question 17

A shortage is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 18

Price will rise to eliminate a shortage.

Accepted Answer

A) True 
 B)False

Question 19

Figure 4-22
 
-Refer to Figure 4-22 Which of the four panels represents the market for winter coats as we progress from winter to spring?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) All of the above
F) A) and D)

Question 20

The supply curve for a good is a line that relates

Accepted Answer

A)   profit and quantity supplied.
B)   quantity supplied and quantity demanded.
C)   price and quantity supplied.
D)   price and profit.E) A) and B)
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

Most studies have found that tobacco and marijuana are substitutes rather than complements.

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Figure 4-22 -Refer to Figure 4-22.Which of the four panels illustrates an increase in quantity demanded?

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Years ago,thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall.This behavior indicates

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Price will rise to eliminate a shortage.

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If there is a shortage of farm laborers,we would expect

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If a increase in income decreases the demand for a good,then the good is a(n)

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22 Which of the four panels represents the market for winter coats as we progress from winter to spring?

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Which of the following events must result in a higher price in the market for Snickers?

Correct AnswerverifiedShow Answer

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

Correct AnswerverifiedShow Answer

A decrease in income will shift the demand curve for an inferior good to the right.

Correct AnswerverifiedShow Answer

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Correct AnswerverifiedShow Answer

Most markets in the economy are

Correct AnswerverifiedShow Answer

In a competitive market,the price of a product

Correct AnswerverifiedShow Answer

In a market economy,who or what determines who produces each good and how much is produced?

Correct AnswerverifiedShow Answer

The supply curve for a good is a line that relates

Correct AnswerverifiedShow Answer

A shortage is the same as an excess demand.

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

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When the market price is below the equilibrium price,suppliers are unable to sell all they want to sell.

Correct AnswerverifiedShow Answer

Assume Diana buys computers in a competitive market.It follows that

Correct AnswerverifiedShow Answer

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