Question 1

Which of the following would not lead to a change in the supply of chocolate ice cream?

Accepted Answer

A)   a change in productive capacity
B)   a change in the price of strawberry ice cream
C)   a change in the price of milk
D)   a change in the price of chocolate ice cream
E)   a change in the expected future price of chocolate ice cream

Question 2

Defining a market involves deciding how to view

Accepted Answer

A)   equilibrium supply and demand
B)   normative economic analysis
C)   the thing being traded,the decision makers,and the trading environment
D)   suppliers,demanders,shortages,and surpluses
E)   excess demand and excess supply

Question 3

If Greg uses a special glue to make model planes that he sells and the price of his model planes increases,then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________.

Accepted Answer

A)   increase;decrease
B)   decrease;increase
C)   increase;increase
D)   decrease;decrease
E)   increase;indeterminant

Question 4

If the supply of coffee falls due to bad weather conditions in coffee-exporting countries,then the

Accepted Answer

A)   price and quantity will rise
B)   price and quantity will fall
C)   price will fall and quantity will rise
D)   price will rise and quantity will fall
E)   quantity will fall,but price may rise or fall

Question 5

If both the demand and supply curves for computers shift to the right,the price of computers may rise,fall,or remain unchanged.

Accepted Answer

A) True 
 B)False

Question 6

An increase in the number of buyers in the market causes

Accepted Answer

A)   a decrease in equilibrium quantity
B)   a decrease in equilibrium price
C)   an increase in demand
D)   a decrease in production
E)   an increase in supply

Question 7

At the market equilibrium

Accepted Answer

A)   quantity exceeds price
B)   excess demand equals excess supply (and both are zero) 
C)   price and quantity are equal
D)   each seller produces at full capacity
E)   everyone who is represented along the demand curve buys the good

Question 8

All of the following,except one,would increase the demand for a particular model of a Ford automobile.Assume that this model is a normal good.Which is the exception?

Accepted Answer

A)   an increase in buyers' incomes
B)   increased prices of other Ford models
C)   an expected future increase in the price
D)   an increase in the U.S.population
E)   a decrease in the price of steel

Question 9

If the supply curve does not shift,an increase in demand results in a(n)

Accepted Answer

A)   increase in equilibrium price and a decrease in equilibrium quantity
B)   decrease in equilibrium price and a decrease in equilibrium quantity
C)   increase in equilibrium price and an increase in equilibrium quantity
D)   decrease in equilibrium price and an increase in equilibrium quantity
E)   increase in supply

Question 10

If there is an increase in the demand for automobiles,and at the same time auto workers receive a substantial raise,what will happen to equilibrium price and quantity in the automobile market?

Accepted Answer

A)   Price and quantity will rise.
B)   Price and quantity will fall.
C)   Price will rise;quantity will fall.
D)   Quantity will rise;price change cannot be determined.
E)   Price will rise;quantity change cannot be determined.

Question 11

Which of the following statements about demand is correct?

Accepted Answer

A)   A change in the price of bicycles will not lead to a shift of the demand curve for bicycles.
B)   A change in the price of automobiles will lead to a shift of the demand curve for motorcycles.
C)   A change in demand is equivalent to a movement along a given demand curve.
D)   When price falls,so does the quantity demanded.
E)   When the demand curve shifts to the right,so will the supply curve.

Question 12

Complementary goods

Accepted Answer

A)   are usually used in conjunction with each other
B)   are usually used in place of one another
C)   do not adhere to the law of demand
D)   are goods whose demand rises as incomes rise
E)   are goods whose demand falls as wealth falls

Question 13

According to the law of demand,

Accepted Answer

A)   there is a positive relationship between quantity demanded and price
B)   as the price rises,demand will shift to the left
C)   there is a negative relationship between quantity demanded and price
D)   as the price rises,demand will shift to the right
E)   as the price rises,consumers will continue to purchase the same quantity of the good

Question 14

If automobiles are like most goods and the price of automobiles rises,then holding all else constant,the

Accepted Answer

A)   demand for automobiles will rise
B)   quantity demanded of automobiles will fall
C)   demand for automobiles will fall
D)   quantity demanded of automobiles will rise
E)   supply of automobiles will fall

Question 15

In a competitive market,excess demand for a good exists whenever

Accepted Answer

A)   the current price is below the equilibrium price
B)   resources are scarce
C)   the quantity supplied at the current price exceeds the quantity demanded
D)   sellers are subject to the constraints imposed by input prices and technology
E)   the current price is above the equilibrium price

Question 16

Which of the following sets of goods are most likely to be complementary goods?

Accepted Answer

A)   shoes and pizza
B)   automobiles and computers
C)   baseballs and baseball gloves
D)   football tickets and baseball tickets
E)   Dell and Gateway computers

Question 17

If the price of ground beef falls,the demand for hamburger buns will

Accepted Answer

A)   increase because the two goods are substitutes
B)   decrease because the two goods are complements
C)   decrease because the two goods are substitutes
D)   increase because the two goods are complements
E)   not change unless the price of hamburger buns also changes

Question 18

The law of demand says that

Accepted Answer

A)   the customer is always right
B)   quantity supplied equals quantity demanded
C)   price and quantity supplied are inversely related
D)   price and quantity demanded are inversely related
E)   income and quantity demanded are directly related

Question 19

The most likely reason that oil prices spiked during 2007-2008 was because

Accepted Answer

A)   suppliers drastically cut back on production
B)   speculators heavily invested in the futures market
C)   there was an increase in demand due to an increase in usage
D)   there was an increase in demand as buyers began to hoard oil for future use
E)   suppliers increased their production to match the increase in demand

Question 20

When the price of gasoline is such that the quantity of gasoline demanded just equals the quantity of gasoline supplied,we say that the market is

Accepted Answer

A)   in equilibrium
B)   in distress
C)   in disequilibrium
D)   in need of change
E)   in dire straits

Exam 2: Scarcity, choice, and Economic Systems: Part A

If the price of ground beef falls,the demand for hamburger buns will

Correct AnswerverifiedShow Answer

If Greg uses a special glue to make model planes that he sells and the price of his model planes increases,then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________.

Correct AnswerverifiedShow Answer

If there is an increase in the demand for automobiles,and at the same time auto workers receive a substantial raise,what will happen to equilibrium price and quantity in the automobile market?

Correct AnswerverifiedShow Answer

Which of the following statements about demand is correct?

Correct AnswerverifiedShow Answer

In a competitive market,excess demand for a good exists whenever

Correct AnswerverifiedShow Answer

If automobiles are like most goods and the price of automobiles rises,then holding all else constant,the

Correct AnswerverifiedShow Answer

Complementary goods

Correct AnswerverifiedShow Answer

If the supply of coffee falls due to bad weather conditions in coffee-exporting countries,then the

Correct AnswerverifiedShow Answer

The law of demand says that

Correct AnswerverifiedShow Answer

At the market equilibrium

Correct AnswerverifiedShow Answer

According to the law of demand,

Correct AnswerverifiedShow Answer

The most likely reason that oil prices spiked during 2007-2008 was because

Correct AnswerverifiedShow Answer

If both the demand and supply curves for computers shift to the right,the price of computers may rise,fall,or remain unchanged.

Correct AnswerverifiedShow Answer

Which of the following sets of goods are most likely to be complementary goods?

Correct AnswerverifiedShow Answer

All of the following,except one,would increase the demand for a particular model of a Ford automobile.Assume that this model is a normal good.Which is the exception?

Correct AnswerverifiedShow Answer

Which of the following would not lead to a change in the supply of chocolate ice cream?

Correct AnswerverifiedShow Answer

An increase in the number of buyers in the market causes

Correct AnswerverifiedShow Answer

Defining a market involves deciding how to view

Correct AnswerverifiedShow Answer

If the supply curve does not shift,an increase in demand results in a(n)

Correct AnswerverifiedShow Answer

When the price of gasoline is such that the quantity of gasoline demanded just equals the quantity of gasoline supplied,we say that the market is

Correct AnswerverifiedShow Answer

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If Greg uses a special glue to make model planes that he sells and the price of his model planes increases,then one would expect that the equilibrium price of the special glue would _ and the equilibrium quantity would ___.

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