Question 1

Figure 4-1 
-Refer to Figure 4-1.The movement from point A to point B on the graph shows

Accepted Answer

A)   a decrease in demand.
B)   an increase in demand.
C)   a decrease in quantity demanded.
D)   an increase in quantity demanded.E) A) and B)
F) A) and C)

Question 2

In any economic system,scarce resources have to be allocated among competing uses.Market economies harness the forces of

Accepted Answer

A)   government to allocate scarce resources.
B)   supply and demand to allocate scarce resources.
C)   credit cards to allocate scarce resources.
D)   nature to allocate scarce resources.E) B) and D)
F) B) and C)

Question 3

If something happens to alter the quantity demanded at any given price,then

Accepted Answer

A)   the demand curve becomes steeper.
B)   the demand curve becomes flatter.
C)   the demand curve shifts.
D)   we move along the demand curve.E) All of the above
F) C) and D)

Question 4

Which of the following is not a determinant of demand?

Accepted Answer

A)   the price of a resource that is used to produce the good
B)   the price of a complementary good
C)   the price of the good next month
D)   the price of a substitute goodE) A) and B)
F) None of the above

Question 5

Figure 4-22
 
-Refer to Figure 4-22.Panel (c) shows which of the following?

Accepted Answer

A)   an increase in demand and an increase in quantity supplied
B)   an increase in demand and an increase in supply
C)   an increase in quantity demanded and an increase in quantity supplied
D)   an increase in quantity demanded and an increase in supplyE) B) and D)
F) None of the above

Question 6

Public service announcements,mandatory health warnings on cigarette packages,and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right.

Accepted Answer

A) True 
 B)False

Question 7

If a surplus exists in a market,then we know that the actual price is

Accepted Answer

A)   above the equilibrium price,and quantity supplied is greater than quantity demanded.
B)   above the equilibrium price,and quantity demanded is greater than quantity supplied.
C)   below the equilibrium price,and quantity demanded is greater than quantity supplied.
D)   below the equilibrium price,and quantity supplied is greater than quantity demanded.E) B) and C)
F) B) and D)

Question 8

Table 4-7
 
-Refer to Table 4-7.The equilibrium price and quantity,respectively,are

Accepted Answer

A)   $2 and 50 units.
B)   $6 and 30 units.
C)   $6 and 60 units.
D)   $12 and 30 units.E) A) and B)
F) B) and C)

Question 9

Which of the following is not an example of a market?

Accepted Answer

A)   A small town has only one seller of electricity.
B)   In the United States,a sick person cannot legally purchase a kidney.
C)   In Florida,there are many buyers and sellers of key lime pie.
D)   The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.E) None of the above
F) B) and D)

Question 10

Figure 4-15 
-Refer to Figure 4-15.At the equilibrium price,

Accepted Answer

A)   200 units would be supplied and demanded.
B)   400 units would be supplied and demanded.
C)   600 units would be supplied and demanded.
D)   600 units would be supplied,but only 200 would be demanded.E) All of the above
F) A) and D)

Question 11

The law of supply and demand asserts that

Accepted Answer

A)   demand curves and supply curves tend to shift to the right as time goes by.
B)   the price of a good will eventually rise in response to an excess demand for that good.
C)   when the supply curve for a good shifts,the demand curve for that good shifts in response.
D)   the equilibrium price of a good will be rising more often than it will be falling.E) A) and B)
F) None of the above

Question 12

An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

Accepted Answer

A) True 
 B)False

Question 13

Figure 4-10 
-Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for tennis racquets?

Accepted Answer

A)   an increase in the price of tennis balls
B)   an expectation by firms that the price of tennis racquets will increase in the very near future
C)   a decrease in the price of tennis racquet strings
D)   a decrease in the number of firms selling tennis racquetsE) A) and B)
F) A) and C)

Question 14

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-9.Regarding Harry and Darby,whose demand for sandwiches conforms to the law of demand?

Accepted Answer

A)   only Harry's
B)   only Darby's
C)   both Harry's and Darby's
D)   neither Harry's nor Darby'sE) C) and D)
F) All of the above

Question 15

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

Accepted Answer

A) True 
 B)False

Question 16

When the price of a good is high,selling the good is profitable,and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 17

When a supply curve or a demand curve shifts,the equilibrium price and equilibrium quantity change.

Accepted Answer

A) True 
 B)False

Question 18

Demand refers to the amount buyers wish to buy,whereas the quantity demanded refers to the position of the demand curve.

Accepted Answer

A) True 
 B)False

Question 19

If car manufacturers begin using new labor-saving technology on their assembly lines,we would not expect

Accepted Answer

A)   a smaller quantity of labor to be used.
B)   the supply of cars to increase.
C)   the firms' costs to fall.
D)   individual car manufacturers to move up and to the right along their individual supply curves.E) B) and D)
F) A) and D)

Question 20

The actions of buyers and sellers naturally move markets toward equilibrium.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

If a surplus exists in a market,then we know that the actual price is

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Which of the following is not a determinant of demand?

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The actions of buyers and sellers naturally move markets toward equilibrium.

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In any economic system,scarce resources have to be allocated among competing uses.Market economies harness the forces of

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Figure 4-10 -Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for tennis racquets?

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Figure 4-15 -Refer to Figure 4-15.At the equilibrium price,

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When the price of a good is high,selling the good is profitable,and so the quantity supplied is large.

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Figure 4-22 -Refer to Figure 4-22.Panel (c) shows which of the following?

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Demand refers to the amount buyers wish to buy,whereas the quantity demanded refers to the position of the demand curve.

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Table 4-7 -Refer to Table 4-7.The equilibrium price and quantity,respectively,are

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Figure 4-1 -Refer to Figure 4-1.The movement from point A to point B on the graph shows

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Public service announcements,mandatory health warnings on cigarette packages,and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right.

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Which of the following is not an example of a market?

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When a supply curve or a demand curve shifts,the equilibrium price and equilibrium quantity change.

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If something happens to alter the quantity demanded at any given price,then

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An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

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The law of supply and demand asserts that

Correct AnswerverifiedShow Answer

If car manufacturers begin using new labor-saving technology on their assembly lines,we would not expect

Correct AnswerverifiedShow Answer

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Regarding Harry and Darby,whose demand for sandwiches conforms to the law of demand?

Correct AnswerverifiedShow Answer

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

Correct AnswerverifiedShow Answer

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