Question 1

Narrbegin Exhibit 3.1 Market demand  
-Suppose there are only three people in the economy: Jane, Harry and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3.1. The total quantity of corn demanded if the market price is $5 is _____.

Accepted Answer

A)   three
B)   25
C)   17
D)   eight
E)   26F) A) and B)
G) A) and E)

Question 2

An increase in income increases the supply of all goods.

Accepted Answer

A) True 
 B)False

Question 3

Demand for goods and services reflects:

Accepted Answer

A)   the principle that there is a positive relationship between the price and the quantity.
B)   the government's choices of taxes.
C)   the freedom of consumers to make their own choices about which goods and services to buy for a given price.
D)   the uncertainty of the need for a good as the price of the good increases.E) B) and D)
F) None of the above

Question 4

If a shortage exists in a market then:

Accepted Answer

A)   the price cannot be determined.
B)   the quantity demanded is less than the quantity supplied.
C)   the price will fall in the near future.
D)   the price will increase in the near future.E) All of the above
F) A) and C)

Question 5

Narrbegin Exhibit 3.3 Supply curves
1 to S2 represents a/an: A)  decrease in supply. B)  decrease in the quantity supplied. C)  increase in supply. D)  increase in the quantity supplied. E)  increase in demand." class="answers-bank-image d-inline" rel="preload" >
-In Exhibit 3.3, a shift in the supply curve from S1 to S2 represents a/an:

Accepted Answer

A)   decrease in supply.
B)   decrease in the quantity supplied.
C)   increase in supply.
D)   increase in the quantity supplied.
E)   increase in demand.F) C) and D)
G) C) and E)

Question 6

Narrbegin Exhibit 3.5 Demand and supply data for radios
   Price ($)   Quantity demanded  of radios  Quantity supplied  of radios 7540080070450750655007006055065055600600506505504570050040750450\begin{array} { | c | c | c | } \hline 	ext { Price (\$)  } & \begin{array} { c } 	ext { Quantity demanded } \	ext { of radios }\end{array} & \begin{array} { c } 	ext { Quantity supplied } \	ext { of radios }\end{array} \\hline 75 & 400 & 800 \\hline 70 & 450 & 750 \\hline 65 & 500 & 700 \\hline 60 & 550 & 650 \\hline 55 & 600 & 600 \\hline 50 & 650 & 550 \\hline 45& 700 & 500 \\hline 40 & 750 & 450 \\hline\end{array} Price ($)  7570656055504540​ Quantity demanded  of radios ​400450500550600650700750​ Quantity supplied  of radios ​800750700650600550500450​​  
-In Exhibit 3.5, if there is a surplus of radios of 300 units, the current price of radios must be:

Accepted Answer

A)   $60.
B)   $55.
C)   $70.
D)   $45. E) A) and C)
F) B) and C)

Question 7

If more people enter medical school, we can expect:

Accepted Answer

A)   the demand for doctors to increase.
B)   the supply of doctors to increase.
C)   the demand for doctors to decrease.
D)   the supply of doctors to decrease.E) A) and B)
F) A) and C)

Question 8

If physical fitness becomes fashionable, what will happen in the market for sport outfits?

Accepted Answer

A)   Demand will increase.
B)   Quantity demanded will increase.
C)   Demand will decrease.
D)   Quantity demanded will decrease.E) All of the above
F) None of the above

Question 9

Assume that the equilibrium price for a good is $5. If the market price is $10, a:

Accepted Answer

A)   shortage causes the price to decline towards $5.
B)   surplus causes the price to rise above $10.
C)   shortage causes the price to rise above $10.
D)   surplus causes the price to decline towards $5.E) A) and D)
F) C) and D)

Question 10

If the current price of a good is the same as that found at the intersection of the market supply and demand curves, then:

Accepted Answer

A)   excess demand exists.
B)   excess supply exists.
C)   the price will tend to rise.
D)   the market is in equilibrium.E) B) and C)
F) A) and B)

Question 11

Which of the following factors do not shift supply curves?

Accepted Answer

A)   Number of sellers.
B)   Number of buyers.
C)   Technology.
D)   Input prices.E) None of the above
F) A) and D)

Question 12

An increase in supply is reflected as a rightward (outward) shift of the supply curve and is caused by an increase in price.

Accepted Answer

A) True 
 B)False

Question 13

Innisfail banana farmers said that they lost up to 15 per cent of their crop because of wild weather. This indicates that the:

Accepted Answer

A)   price of bananas will fall.
B)   quantity of bananas that will be available at any given price has decreased.
C)   demand for bananas will shift to the left.
D)   quantity of bananas that will be available at any given price has increased.E) B) and C)
F) C) and D)

Question 14

A market:

Accepted Answer

A)   is defined as a local market such as a farmers market .
B)   is any arrangement in which buyers and sellers determine the prices of goods and services exchanged.
C)   is a hypothetical arrangement in which buyers and sellers determine the prices of goods and services exchanged.
D)   can only be for goods but not for services.E) A) and B)
F) B) and D)

Question 15

Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:

Accepted Answer

A)   cause an upward movement along the demand curve for computers.
B)   cause a downward movement along the demand curve for computers.
C)   shift the demand curve for computers to the left.
D)   shift the demand curve for computers to the right.E) A) and B)
F) None of the above

Question 16

Assuming that day-old bread is an inferior good, an increase in consumer income, other things being equal, will cause a/an:

Accepted Answer

A)   rightward shift in the demand curve for day-old bread.
B)   downward movement along the demand curve for day-old bread.
C)   leftward shift in the demand curve for day-old bread.
D)   upward movement along the demand curve for day-old bread.E) A) and B)
F) B) and C)

Question 17

Narrbegin Exhibit 3.6 Demand and supply curves  
-In Exhibit 3.6, Panel A, the movement from A to C describes a/an:

Accepted Answer

A)   ambiguous change in price and a decrease in quantity.
B)   increase in price and an ambiguous change in quantity.
C)   increase in both price and quantity.
D)   decrease in both price and quantity.E) C) and D)
F) All of the above

Question 18

In a market, competitive forces guarantee that any price other than the equilibrium price is:

Accepted Answer

A)   market-clearing.
B)   stable.
C)   temporary.
D)   unaffordable.E) A) and B)
F) A) and C)

Question 19

If X is a normal good, an increase in consumers' income will result in an increase in the demand for good X.

Accepted Answer

A) True 
 B)False

Question 20

If the government introduces a new subsidy to poultry farmers, we can expect:

Accepted Answer

A)   no effect on the supply or demand of poultry - just a movement along the curves.
B)   the demand for poultry to decrease.
C)   the demand for poultry to increase.
D)   the supply of poultry to increase.E) All of the above
F) B) and D)

Exam 4: Market Demand and Supply

Correct Answer
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If more people enter medical school, we can expect:

Correct Answer
verified

If physical fitness becomes fashionable, what will happen in the market for sport outfits?

Correct Answer
verified

Assuming that day-old bread is an inferior good, an increase in consumer income, other things being equal, will cause a/an:

Correct Answer
verified

Narrbegin Exhibit 3.6 Demand and supply curves -In Exhibit 3.6, Panel A, the movement from A to C describes a/an:

Correct Answer
verified

Innisfail banana farmers said that they lost up to 15 per cent of their crop because of wild weather. This indicates that the:

Correct Answer
verified

If X is a normal good, an increase in consumers' income will result in an increase in the demand for good X.

Correct Answer
verified

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, a shift in the supply curve from S₁ to S₂ represents a/an:

Correct Answer
verified

Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:

Correct Answer
verified

If the current price of a good is the same as that found at the intersection of the market supply and demand curves, then:

Correct Answer
verified

If a shortage exists in a market then:

Correct Answer
verified

Demand for goods and services reflects:

Correct Answer
verified

If the government introduces a new subsidy to poultry farmers, we can expect:

Correct Answer
verified

Which of the following factors do not shift supply curves?

Correct Answer
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Assume that the equilibrium price for a good is $5. If the market price is $10, a:

Correct Answer
verified

Narrbegin Exhibit 3.1 Market demand -Suppose there are only three people in the economy: Jane, Harry and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3.1. The total quantity of corn demanded if the market price is $5 is _____.

Correct Answer
verified

In a market, competitive forces guarantee that any price other than the equilibrium price is:

Correct Answer
verified

An increase in income increases the supply of all goods.

Correct Answer
verified

An increase in supply is reflected as a rightward (outward) shift of the supply curve and is caused by an increase in price.

Correct Answer
verified

A market:

Correct Answer
verified

Exam 4: Market Demand and Supply

Correct AnswerverifiedShow Answer

If more people enter medical school, we can expect:

Correct AnswerverifiedShow Answer

If physical fitness becomes fashionable, what will happen in the market for sport outfits?

Correct AnswerverifiedShow Answer

Assuming that day-old bread is an inferior good, an increase in consumer income, other things being equal, will cause a/an:

Correct AnswerverifiedShow Answer

Narrbegin Exhibit 3.6 Demand and supply curves -In Exhibit 3.6, Panel A, the movement from A to C describes a/an:

Correct AnswerverifiedShow Answer

Innisfail banana farmers said that they lost up to 15 per cent of their crop because of wild weather. This indicates that the:

Correct AnswerverifiedShow Answer

If X is a normal good, an increase in consumers' income will result in an increase in the demand for good X.

Correct AnswerverifiedShow Answer

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, a shift in the supply curve from S1 to S2 represents a/an:

Correct AnswerverifiedShow Answer

Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:

Correct AnswerverifiedShow Answer

If the current price of a good is the same as that found at the intersection of the market supply and demand curves, then:

Correct AnswerverifiedShow Answer

If a shortage exists in a market then:

Correct AnswerverifiedShow Answer

Demand for goods and services reflects:

Correct AnswerverifiedShow Answer

If the government introduces a new subsidy to poultry farmers, we can expect:

Correct AnswerverifiedShow Answer

Which of the following factors do not shift supply curves?

Correct AnswerverifiedShow Answer

Assume that the equilibrium price for a good is $5. If the market price is $10, a:

Correct AnswerverifiedShow Answer

Narrbegin Exhibit 3.1 Market demand -Suppose there are only three people in the economy: Jane, Harry and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3.1. The total quantity of corn demanded if the market price is $5 is _____.

Correct AnswerverifiedShow Answer

In a market, competitive forces guarantee that any price other than the equilibrium price is:

Correct AnswerverifiedShow Answer

An increase in income increases the supply of all goods.

Correct AnswerverifiedShow Answer

An increase in supply is reflected as a rightward (outward) shift of the supply curve and is caused by an increase in price.

Correct AnswerverifiedShow Answer

A market:

Correct AnswerverifiedShow Answer

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Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, a shift in the supply curve from S₁ to S₂ represents a/an:

Correct Answer
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