Question 1

The supply curve for portable charcoal grills shifts

Accepted Answer

A)   only when production technology changes.
B)   when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes.
C)   when any determinant of the supply of portable charcoal grills changes.
D)   only when the number of sellers of portable charcoal grills changes.E) A) and B)
F) None of the above

Question 2

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

Accepted Answer

A) True 
 B)False

Question 3

Figure 4-21
 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

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

Question 4

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Accepted Answer

A)   Price would fall, and the effect on quantity would be ambiguous.
B)   Price would rise, and the effect on quantity would be ambiguous.
C)   Quantity would fall, and the effect on price would be ambiguous.
D)   Quantity would rise, and the effect on price would be ambiguous.E) A) and B)
F) A) and C)

Question 5

Figure 4-21
 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for ballroom dancing lessons resulting from the introduction of a popular new television show called "Dancing with the Stars"?

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) None of the above
F) B) and D)

Question 6

Table 4-1
 
-Refer to Table 4-1.If the market consists of Michelle,Laura,and Hillary and the price falls by $1,the quantity demanded in the market increases by

Accepted Answer

A)   2 units.
B)   3 units.
C)   4 units.
D)   5 units.E) A) and B)
F) A) and C)

Question 7

The demand curve for a good is a line that relates

Accepted Answer

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

Question 8

An increase in quantity demanded

Accepted Answer

A)   results in a movement downward and to the right along a demand curve.
B)   results in a movement upward and to the left along a demand curve.
C)   shifts the demand curve to the left.
D)   shifts the demand curve to the right.E) A) and D)
F) All of the above

Question 9

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

Question 10

Which of the following would most likely serve as an example of a monopoly?

Accepted Answer

A)   a restaurant in a large city
B)   a dry cleaners in a large city
C)   a local gas station
D)   a local electrical companyE) C) and D)
F) A) and C)

Question 11

A competitive market is one in which there

Accepted Answer

A)   is only one seller, but there are many buyers.
B)   are many sellers, and each seller has the ability to set the price of his product.
C)   are many sellers, and they compete with one another in such a way that some sellers are always being forced out of the market.
D)   are so many buyers and so many sellers that each has a negligible impact on the price of the product.E) A) and B)
F) A) and C)

Question 12

In a perfectly competitive market,the goods offered for sale are all exactly the same.

Accepted Answer

A) True 
 B)False

Question 13

Surpluses drive price up,while shortages drive price down.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an example of a market?

Accepted Answer

A)   a gas station
B)   a garage sale
C)   a barber shop
D)   All of the above are examples of markets.E) B) and D)
F) B) and C)

Question 15

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 16

A market supply curve shows

Accepted Answer

A)   the total quantity supplied at all possible prices.
B)   the average quantity supplied by producers at all possible prices.
C)   how quantity supplied changes when consumer income changes.
D)   suppliers' responses, in terms of the amounts they will supply, to the demands of buyers.E) B) and C)
F) A) and D)

Question 17

If a good is inferior,then an increase in income will result in

Accepted Answer

A)   an increase in the demand for the good.
B)   a decrease in the demand for the good.
C)   a movement down and to the right along the demand curve for the good.
D)   a movement up and to the left along the demand curve for the good.E) B) and C)
F) A) and D)

Question 18

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops,what would happen to the equilibrium price and quantity of lattés if the price of muffins 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) B) and C)
F) None of the above

Question 19

Supply refers to the position of the supply curve,whereas the quantity supplied refers to the amount suppliers wish to sell.

Accepted Answer

A) True 
 B)False

Question 20

A likely example of substitute goods for most people would be

Accepted Answer

A)   peanut butter and jelly.
B)   tennis balls and tennis rackets.
C)   televisions and subscriptions to cable television services.
D)   pencils and pens.E) C) and D)
F) None of the above

Exam 4: The Market Forces of Supply and Demand.

An increase in quantity demanded

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Which of the following would most likely serve as an example of a monopoly?

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Supply refers to the position of the supply curve,whereas the quantity supplied refers to the amount suppliers wish to sell.

Correct AnswerverifiedShow Answer

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for ballroom dancing lessons resulting from the introduction of a popular new television show called "Dancing with the Stars"?

Correct AnswerverifiedShow Answer

Which of the following is an example of a market?

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A market supply curve shows

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The supply curve for portable charcoal grills shifts

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If a good is inferior,then an increase in income will result in

Correct AnswerverifiedShow Answer

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops,what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

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When the price of a good or service changes,

Correct AnswerverifiedShow Answer

A competitive market is one in which there

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The demand curve for a good is a line that relates

Correct AnswerverifiedShow Answer

Table 4-1 -Refer to Table 4-1.If the market consists of Michelle,Laura,and Hillary and the price falls by $1,the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

A likely example of substitute goods for most people would be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Correct AnswerverifiedShow Answer

Surpluses drive price up,while shortages drive price down.

Correct AnswerverifiedShow Answer

In a perfectly competitive market,the goods offered for sale are all exactly the same.

Correct AnswerverifiedShow Answer

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