Question 1

The two words economists use most often are

Accepted Answer

A)   inflation and trade.
B)   supply and demand.
C)   competition and prices.
D)   markets and equilibrium.E) A) and C)
F) A) and B)

Question 2

The two words most often used by economists are

Accepted Answer

A)   prices and quantities.
B)   resources and allocation.
C)   supply and demand.
D)   efficiency and equity.E) All of the above
F) A) and B)

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) B) and C)
F) A) and C)

Question 4

Which of the following events must cause equilibrium quantity to fall?

Accepted Answer

A)   demand increases and supply decreases
B)   demand and supply both decrease
C)   demand decreases and supply increases
D)   demand and supply both increaseE) B) and C)
F) A) and B)

Question 5

Figure 4-18 
-Refer to Figure 4-18.What is the equilibrium price in this market?

Accepted Answer

A)   $0
B)   $5
C)   $7.50
D)   $10E) A) and C)
F) C) and D)

Question 6

You love peanut butter.You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought and that this will cause the price of peanuts to double by the end of the year.As a result,your demand for peanut butter

Accepted Answer

A)   will increase but not until the end of the year.
B)   increases today.
C)   decreases as you look for a substitute good.
D)   shifts left today.E) A) and D)
F) B) and D)

Question 7

If a shortage 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) C) and D)
F) A) and C)

Question 8

The market demand curve

Accepted Answer

A)   is found by vertically adding the individual demand curves.
B)   slopes upward.
C)   represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.
D)   represents the sum of the quantities demanded by all the buyers at each price of the good.E) None of the above
F) B) and C)

Question 9

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk,which is used to make lattés,rises?

Accepted Answer

A)   Both the equilibrium price and quantity would increase.
B)   Both the equilibrium price and quantity would decrease.
C)   The equilibrium price would increase,and the equilibrium quantity would decrease.
D)   The equilibrium price would decrease,and the equilibrium quantity would increase.E) All of the above
F) A) and C)

Question 10

Since individual buyers and individual sellers in a competitive market have no influence on the market price,what do we call the buyers and sellers in a competitive market?

Accepted Answer

The answer of Since individual buyers and individual sellers in...

Question 11

Pens are normal goods.What will happen to the equilibrium price of pens if the price of pencils rises,consumers experience an increase in income,writing in ink becomes fashionable,people expect the price of pens to rise in the near future,the population increases,fewer firms manufacture pens,and the wages of pen-makers increase?

Accepted Answer

A)   Price will rise.
B)   Price will fall.
C)   Price will stay exactly the same.
D)   The price change will be ambiguous.E) All of the above
F) A) and D)

Question 12

Suppose the demand for calendars increases in November.At the same time,the price of the ink used in the production of calendars increases.In the market for calendars,if the size of the shift of the demand curve is larger than the size of the shift of the supply curve,then the equilibrium quantity rises.

Accepted Answer

A) True 
 B)False

Question 13

In a perfectly competitive market,buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Question 14

Refer to Table 4-1.If the market consists of Barb and Carl only and the price falls by $2,the quantity demanded in the market increases by

Accepted Answer

A)   4 units.
B)   6 units.
C)   8 units.
D)   10 units.E) A) and C)
F) All of the above

Question 15

Scenario 4-1
The following table shows the supply and demand schedules in a market.
 
-Refer to Scenario 4-1.At a price of $8,how large of a surplus will there be in this market?

Accepted Answer

The answer of Scenario 4-1
The following table shows the supply...

Question 16

In a market economy,supply and demand determine

Accepted Answer

A)   both the quantity of each good produced and the price at which it is sold.
B)   the quantity of each good produced but not the price at which it is sold.
C)   the price at which each good is sold but not the quantity of each good produced.
D)   neither the quantity of each good produced nor the price at which it is sold.E) B) and C)
F) B) and D)

Question 17

A yard sale is an example of a market.

Accepted Answer

A) True 
 B)False

Question 18

Figure 4-9 
-Refer to Figure 4-9.The movement from point A to point B on the graph is caused by

Accepted Answer

A)   a decrease in the price of the good.
B)   an increase in the price of the good.
C)   an advance in production technology.
D)   a decrease in input prices.E) B) and D)
F) B) and C)

Question 19

When drawing a demand curve,

Accepted Answer

A)   demand is measured along the vertical axis,and price is measured along the horizontal axis.
B)   quantity demanded is measured along the vertical axis,and price is measured along the horizontal axis.
C)   price is measured along the vertical axis,and demand is measured along the horizontal axis.
D)   price is measured along the vertical axis,and quantity demanded is measured along the horizontal axis.E) A) and D)
F) A) and B)

Question 20

In a market,to find the total amount supplied at a particular price,we must

Accepted Answer

A)   sum the quantities that individual firms are willing and able to supply at that price.
B)   calculate the average of the quantities that individual firms are willing and able to supply at that price.
C)   sum the costs that individual firms incur to supply the product at that price.
D)   account for all determinants of demand.E) B) and C)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

When drawing a demand curve,

Correct Answer
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Refer to Table 4-1.If the market consists of Barb and Carl only and the price falls by $2,the quantity demanded in the market increases by

Correct Answer
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Figure 4-9 -Refer to Figure 4-9.The movement from point A to point B on the graph is caused by

Correct Answer
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Since individual buyers and individual sellers in a competitive market have no influence on the market price,what do we call the buyers and sellers in a competitive market?

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

Correct Answer
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What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk,which is used to make lattés,rises?

Correct Answer
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The two words most often used by economists are

Correct Answer
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Figure 4-18 -Refer to Figure 4-18.What is the equilibrium price in this market?

Correct Answer
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If a shortage exists in a market,then we know that the actual price is

Correct Answer
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Which of the following events must cause equilibrium quantity to fall?

Correct Answer
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The two words economists use most often are

Correct Answer
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In a market,to find the total amount supplied at a particular price,we must

Correct Answer
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Scenario 4-1 The following table shows the supply and demand schedules in a market. -Refer to Scenario 4-1.At a price of $8,how large of a surplus will there be in this market?

Correct Answer
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In a market economy,supply and demand determine

Correct Answer
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You love peanut butter.You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought and that this will cause the price of peanuts to double by the end of the year.As a result,your demand for peanut butter

Correct Answer
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The market demand curve

Correct Answer
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In a perfectly competitive market,buyers and sellers are price setters.

Correct Answer
verified

A yard sale is an example of a market.

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

When drawing a demand curve,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to Table 4-1.If the market consists of Barb and Carl only and the price falls by $2,the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

Figure 4-9 -Refer to Figure 4-9.The movement from point A to point B on the graph is caused by

Correct AnswerverifiedShow Answer

Since individual buyers and individual sellers in a competitive market have no influence on the market price,what do we call the buyers and sellers in a competitive market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk,which is used to make lattés,rises?

Correct AnswerverifiedShow Answer

The two words most often used by economists are

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18.What is the equilibrium price in this market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following events must cause equilibrium quantity to fall?

Correct AnswerverifiedShow Answer

The two words economists use most often are

Correct AnswerverifiedShow Answer

In a market,to find the total amount supplied at a particular price,we must

Correct AnswerverifiedShow Answer

Scenario 4-1 The following table shows the supply and demand schedules in a market. -Refer to Scenario 4-1.At a price of $8,how large of a surplus will there be in this market?

Correct AnswerverifiedShow Answer

In a market economy,supply and demand determine

Correct AnswerverifiedShow Answer

You love peanut butter.You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought and that this will cause the price of peanuts to double by the end of the year.As a result,your demand for peanut butter

Correct AnswerverifiedShow Answer

The market demand curve

Correct AnswerverifiedShow Answer

In a perfectly competitive market,buyers and sellers are price setters.

Correct AnswerverifiedShow Answer

A yard sale is an example of a market.

Correct AnswerverifiedShow Answer

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