Question 1

Figure 4-22
 
-Refer to Figure 4-22.Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) A) and B)
F) A) and C)

Question 2

Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure.We could expect the current demand for

Accepted Answer

A)   hair gel to increase.
B)   razors to increase.
C)   combs to increase.
D)   shampoo to increase.E) B) and C)
F) None of the above

Question 3

An increase in supply will cause a decrease in price,which will cause an increase in demand.

Accepted Answer

A) True 
 B)False

Question 4

Figure 4-5  
-Refer to Figure 4-5.Suppose that the federal government is concerned about obesity in the United States.Congress is considering two plans.One would require "junk food" producers to include warning labels on all junk food.The other would impose a tax on all products considered to be junk food.We could illustrate the tax as producing a movement from

Accepted Answer

A)   Point A to Point B in Panel 1.
B)   Point B to Point A in Panel 1.
C)   Point A to Point C in Panel 2.
D)   Point C to Point A in Panel 2.E) A) and D)
F) A) and C)

Question 5

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

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

Question 6

The sum of all the individual supply curves for a product is called

Accepted Answer

A)   total supply.
B)   market supply.
C)   aggregate supply.
D)   total output.E) B) and C)
F) A) and D)

Question 7

Whenever a determinant of supply other than price changes,the supply curve shifts.

Accepted Answer

A) True 
 B)False

Question 8

An increase in quantity supplied

Accepted Answer

A)   results in a movement downward and to the left along a fixed supply curve.
B)   results in a movement upward and to the right along a fixed supply curve.
C)   shifts the supply curve to the left.
D)   shifts the supply curve to the right.E) A) and B)
F) A) and C)

Question 9

Figure 4-6 
-Refer to Figure 4-6.The movement from D to D' could be caused by

Accepted Answer

A)   an increase in price.
B)   a decrease in the price of a complement.
C)   a technological advance.
D)   a decrease in the price of a substitute.E) B) and C)
F) None of the above

Question 10

Which of these statements does not apply to market economies?

Accepted Answer

A)   Prices prevent decentralized decision making from degenerating into chaos.
B)   Prices coordinate the actions of millions of people with varying abilities and desires.
C)   Prices ensure that anyone who wants a product can get it.
D)   Prices ensure that what needs to get done does in fact get done.E) C) and D)
F) All of the above

Question 11

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Accepted Answer

A) True 
 B)False

Question 12

If,at the current price,there is a surplus of a good,then

Accepted Answer

A)   sellers are producing more than buyers wish to buy.
B)   the market must be in equilibrium.
C)   the price is below the equilibrium price.
D)   quantity demanded equals quantity supplied.E) A) and B)
F) A) and C)

Question 13

There is no shortage of scarce resources in a market economy because

Accepted Answer

A)   the government makes shortages illegal.
B)   resources are abundant in market economies.
C)   prices adjust to eliminate shortages.
D)   quantity supplied is always greater than quantity demanded in market economies.E) A) and B)
F) A) and C)

Question 14

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-9.Suppose Harry,Darby,and Jake are the only demanders of sandwiches.Also suppose x = 2.Then

Accepted Answer

A)   the slope of Jake's demand curve is -1/2,and the slope of the market demand curve is -5/2.
B)   the slope of Jake's demand curve is -1/2,and the slope of the market demand curve is -2/5.
C)   the slope of Jake's demand curve is -2,and the slope of the market demand curve is -5/2.
D)   the slope of Jake's demand curve is -2,and the slope of the market demand curve is -2/5.E) B) and C)
F) A) and B)

Question 15

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

Question 16

The law of demand is true for most goods in the economy.

Accepted Answer

A) True 
 B)False

Question 17

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 18

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?

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

Question 19

Figure 4-1 
-Refer to Figure 4-1.It is apparent from the figure that the

Accepted Answer

A)   good is inferior.
B)   demand for the good decreases as income increases.
C)   demand for the good conforms to the law of demand.
D)   All of the above are correct.E) B) and D)
F) A) and B)

Question 20

A decrease in supply is represented by a

Accepted Answer

A)   movement downward and to the left along a supply curve.
B)   movement upward and to the right along a supply curve.
C)   rightward shift of a supply curve.
D)   leftward shift of a supply curve.E) B) and C)
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

The sum of all the individual supply curves for a product is called

Correct Answer
verified

If,at the current price,there is a surplus of a good,then

Correct Answer
verified

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

Correct Answer
verified

There is no shortage of scarce resources in a market economy because

Correct Answer
verified

A decrease in supply is represented by a

Correct Answer
verified

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Suppose Harry,Darby,and Jake are the only demanders of sandwiches.Also suppose x = 2.Then

Correct Answer
verified

An increase in quantity supplied

Correct Answer
verified

Figure 4-6 -Refer to Figure 4-6.The movement from D to D' could be caused by

Correct Answer
verified

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?

Correct Answer
verified

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Correct Answer
verified

Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure.We could expect the current demand for

Correct Answer
verified

The law of demand is true for most goods in the economy.

Correct Answer
verified

Which of these statements does not apply to market economies?

Correct Answer
verified

Figure 4-1 -Refer to Figure 4-1.It is apparent from the figure that the

Correct Answer
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Correct Answer
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Figure 4-22 -Refer to Figure 4-22.Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Correct Answer
verified

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 Answer
verified

Whenever a determinant of supply other than price changes,the supply curve shifts.

Correct Answer
verified

Correct Answer
verified

An increase in supply will cause a decrease in price,which will cause an increase in demand.

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

The sum of all the individual supply curves for a product is called

Correct AnswerverifiedShow Answer

If,at the current price,there is a surplus of a good,then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

There is no shortage of scarce resources in a market economy because

Correct AnswerverifiedShow Answer

A decrease in supply is represented by a

Correct AnswerverifiedShow Answer

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Suppose Harry,Darby,and Jake are the only demanders of sandwiches.Also suppose x = 2.Then

Correct AnswerverifiedShow Answer

An increase in quantity supplied

Correct AnswerverifiedShow Answer

Figure 4-6 -Refer to Figure 4-6.The movement from D to D' could be caused by

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?

Correct AnswerverifiedShow Answer

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Correct AnswerverifiedShow Answer

Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure.We could expect the current demand for

Correct AnswerverifiedShow Answer

The law of demand is true for most goods in the economy.

Correct AnswerverifiedShow Answer

Which of these statements does not apply to market economies?

Correct AnswerverifiedShow Answer

Figure 4-1 -Refer to Figure 4-1.It is apparent from the figure that the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22.Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

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

Whenever a determinant of supply other than price changes,the supply curve shifts.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in supply will cause a decrease in price,which will cause an increase in demand.

Correct AnswerverifiedShow Answer

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