Question 1

After graduation many students' demand for used cars decreases.This may be because used cars are considered a normal good to university graduates.

Accepted Answer

A) True 
 B)False

Question 2

In much of the country,homeowners choose to heat their houses with either natural gas or heating oil,both of which are normal goods.Which factor would cause an increase in the demand for natural gas?

Accepted Answer

A)   an increase in the price of natural gas
B)   a decrease in the price of natural gas
C)   a decrease in the price of heating oil
D)   an increase in consumer incomes

Question 3

A technological advance in the production of automobiles will _____ the _____ automobiles.

Accepted Answer

A)   decrease;demand for
B)   increase;supply of
C)   decrease;demand
D)   decrease;supply of

Question 4

Raclette is a popular wintertime dish in Switzerland.It is essentially melted Raclette cheese over boiled new potatoes.If the price of Raclette cheese decreased,we would expect to see:

Accepted Answer

A)   an increase in demand for Raclette cheese.
B)   an increase in demand for new potatoes.
C)   no effect on the demand for either of the Raclette ingredients since this is a traditional dish and its consumption does not depend on the prices of the ingredients.
D)   an increase in demand for both Raclette cheese and new potatoes.

Question 5

A decrease in the price of a good will generally result in an:

Accepted Answer

A)   increase in demand.
B)   increase in supply.
C)   increase in the quantity demanded.
D)   increase in the quantity supplied.

Question 6

After graduation from university,you might have an increase in your income from a new job.If as a result you decide that you will purchase more T-bone steak and less hamburger,then for you hamburger is a(n) _____ good.

Accepted Answer

A)   normal
B)   substitute
C)   complementary
D)   inferior

Question 7

When the economy suffers a downturn and the incomes of many people decrease,vacationers are more likely to take car trips than to fly.Which statement provides one possible explanation for this phenomenon?

Accepted Answer

A)   Air travel and travel by car are complementary goods.
B)   Air travel and travel by car are both normal goods.
C)   Air travel is a normal good and travel by car is an inferior good.
D)   Air travel is an inferior good and travel by car is a normal good.

Question 8

Gasoline,a derivative of oil,is a large part of transportation costs for many producers.If the price of oil increases at the same time that incomes fall for many consumers,one would expect the equilibrium price of many normal goods to _____,while their equilibrium quantities would _____.

Accepted Answer

A)   fall;rise
B)   fall,rise,or stay the same;decrease
C)   decrease;fall,rise,or stay the same
D)   fall;fall

Question 9

An increase in income will always shift the demand curve to the right.

Accepted Answer

A) True 
 B)False

Question 10

The primary difference between a change in supply and a change in the quantity supplied is that:

Accepted Answer

A)   a change in quantity supplied is a movement along the supply curve,while a change in supply is a shift in the supply curve.
B)   both a change in quantity supplied and a change in supply are movements along the supply curve,only in different directions.
C)   a change in supply is related to the supply curve,while a change in quantity supplied is related to shifts in the demand curve that shift the supply curve.
D)   a change in supply is a movement along the supply curve,while a change in quantity supplied is a shift in the supply curve.

Question 11

Use the following to answer questions:
Figure: The Demand and Supply of Wheat 
-(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat.If a price of $8 temporarily exists in this market,a _____ of _____ bushels per period will result.

Accepted Answer

A)   shortage;2 000
B)   surplus;4 000
C)   shortage;4 000
D)   surplus;6 000

Question 12

A decrease in the price of eggs will result in an increase in the:

Accepted Answer

A)   demand for eggs.
B)   supply of eggs.
C)   quantity of eggs supplied.
D)   quantity of eggs demanded.

Question 13

Use the following to answer questions: 
-(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts.A surplus of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

Accepted Answer

A)   $0.90
B)   $0.80
C)   $0.60
D)   $0.40

Question 14

A decrease in the price of eggs will result in a(n) :

Accepted Answer

A)   increase in the demand for eggs.
B)   increase in the supply of eggs.
C)   shift in the supply curve for eggs.
D)   movement along the demand curve for eggs.

Question 15

Use the following to answer questions:
Figure: Shifts in Demand and Supply 
-(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply.The figure shows how supply and demand might shift in response to specific events.Suppose a fall frost destroys one-third of the nation's apple crop.Which panel BEST describes how this will affect the market for apples?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d)

Question 16

If chicken and beef are substitutes,then a fall in the price of chicken will bring about:

Accepted Answer

A)   an increase in the demand for beef.
B)   a decrease in the demand for beef.
C)   an increase in the quantity demanded of beef.
D)   no change in the demand for beef.

Question 17

In the local market for coffee,a normal good,the price will _____ and the quantity will _____ if new coffee shops open and consumers' incomes decrease because of a recession.

Accepted Answer

A)   increase;be indeterminate
B)   decrease;be indeterminate
C)   be indeterminate;increase
D)   be indeterminate;decrease

Question 18

Use the following to answer questions: 
-(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts.If the price of chocolate-covered peanuts is $0.60,the price will:

Accepted Answer

A)   not change.
B)   fall to $0.30.
C)   fall to $0.50.
D)   rise to $0.70.

Question 19

When a market is in equilibrium,the quantity:

Accepted Answer

A)   demanded is equal to zero.
B)   demanded is equal to the quantity supplied.
C)   demanded is greater than the quantity supplied.
D)   supplied is zero.

Question 20

A decrease in supply of good X means:

Accepted Answer

A)   a shift to the left of the entire supply curve for good X.
B)   a movement down the supply curve as prices of good X go down.
C)   that less of good X will be demanded at every price.
D)   that more of good X will be supplied at every price.

Exam 3: Supply and Demand

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts.If the price of chocolate-covered peanuts is $0.60,the price will:

Correct Answer
verified

Gasoline,a derivative of oil,is a large part of transportation costs for many producers.If the price of oil increases at the same time that incomes fall for many consumers,one would expect the equilibrium price of many normal goods to _,while their equilibrium quantities would _.

Correct Answer
verified

A technological advance in the production of automobiles will _ the _ automobiles.

Correct Answer
verified

The primary difference between a change in supply and a change in the quantity supplied is that:

Correct Answer
verified

An increase in income will always shift the demand curve to the right.

Correct Answer
verified

Raclette is a popular wintertime dish in Switzerland.It is essentially melted Raclette cheese over boiled new potatoes.If the price of Raclette cheese decreased,we would expect to see:

Correct Answer
verified

In the local market for coffee,a normal good,the price will _ and the quantity will _ if new coffee shops open and consumers' incomes decrease because of a recession.

Correct Answer
verified

A decrease in the price of eggs will result in an increase in the:

Correct Answer
verified

After graduation from university,you might have an increase in your income from a new job.If as a result you decide that you will purchase more T-bone steak and less hamburger,then for you hamburger is a(n) _____ good.

Correct Answer
verified

In much of the country,homeowners choose to heat their houses with either natural gas or heating oil,both of which are normal goods.Which factor would cause an increase in the demand for natural gas?

Correct Answer
verified

When a market is in equilibrium,the quantity:

Correct Answer
verified

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts.A surplus of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

Correct Answer
verified

After graduation many students' demand for used cars decreases.This may be because used cars are considered a normal good to university graduates.

Correct Answer
verified

If chicken and beef are substitutes,then a fall in the price of chicken will bring about:

Correct Answer
verified

When the economy suffers a downturn and the incomes of many people decrease,vacationers are more likely to take car trips than to fly.Which statement provides one possible explanation for this phenomenon?

Correct Answer
verified

A decrease in the price of eggs will result in a(n) :

Correct Answer
verified

Use the following to answer questions: Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat.If a price of $8 temporarily exists in this market,a _ of _ bushels per period will result.

Correct Answer
verified

A decrease in supply of good X means:

Correct Answer
verified

Correct Answer
verified

A decrease in the price of a good will generally result in an:

Correct Answer
verified

Exam 3: Supply and Demand

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts.If the price of chocolate-covered peanuts is $0.60,the price will:

Correct AnswerverifiedShow Answer

Gasoline,a derivative of oil,is a large part of transportation costs for many producers.If the price of oil increases at the same time that incomes fall for many consumers,one would expect the equilibrium price of many normal goods to _____,while their equilibrium quantities would _____.

Correct AnswerverifiedShow Answer

A technological advance in the production of automobiles will _____ the _____ automobiles.

Correct AnswerverifiedShow Answer

The primary difference between a change in supply and a change in the quantity supplied is that:

Correct AnswerverifiedShow Answer

An increase in income will always shift the demand curve to the right.

Correct AnswerverifiedShow Answer

Raclette is a popular wintertime dish in Switzerland.It is essentially melted Raclette cheese over boiled new potatoes.If the price of Raclette cheese decreased,we would expect to see:

Correct AnswerverifiedShow Answer

In the local market for coffee,a normal good,the price will _____ and the quantity will _____ if new coffee shops open and consumers' incomes decrease because of a recession.

Correct AnswerverifiedShow Answer

A decrease in the price of eggs will result in an increase in the:

Correct AnswerverifiedShow Answer

After graduation from university,you might have an increase in your income from a new job.If as a result you decide that you will purchase more T-bone steak and less hamburger,then for you hamburger is a(n) _____ good.

Correct AnswerverifiedShow Answer

In much of the country,homeowners choose to heat their houses with either natural gas or heating oil,both of which are normal goods.Which factor would cause an increase in the demand for natural gas?

Correct AnswerverifiedShow Answer

When a market is in equilibrium,the quantity:

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts.A surplus of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

Correct AnswerverifiedShow Answer

After graduation many students' demand for used cars decreases.This may be because used cars are considered a normal good to university graduates.

Correct AnswerverifiedShow Answer

If chicken and beef are substitutes,then a fall in the price of chicken will bring about:

Correct AnswerverifiedShow Answer

When the economy suffers a downturn and the incomes of many people decrease,vacationers are more likely to take car trips than to fly.Which statement provides one possible explanation for this phenomenon?

Correct AnswerverifiedShow Answer

A decrease in the price of eggs will result in a(n) :

Correct AnswerverifiedShow Answer

Use the following to answer questions: Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat.If a price of $8 temporarily exists in this market,a _____ of _____ bushels per period will result.

Correct AnswerverifiedShow Answer

A decrease in supply of good X means:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A decrease in the price of a good will generally result in an:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Gasoline,a derivative of oil,is a large part of transportation costs for many producers.If the price of oil increases at the same time that incomes fall for many consumers,one would expect the equilibrium price of many normal goods to _,while their equilibrium quantities would _.

Correct Answer
verified

A technological advance in the production of automobiles will _ the _ automobiles.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

In the local market for coffee,a normal good,the price will _ and the quantity will _ if new coffee shops open and consumers' incomes decrease because of a recession.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Use the following to answer questions: Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat.If a price of $8 temporarily exists in this market,a _ of _ bushels per period will result.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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