Question 1

In a competitive market,the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)   buyers.
B)   sellers.
C)   both buyers and sellers.
D)   None of the above is correct.E) A) and C)
F) B) and C)

Question 2

Figure 4-13 
-Refer to Figure 4-13.The shift from S' to S in the market for chocolate cake could be caused by a(n)

Accepted Answer

A)   decrease in the number of commercial bakers.
B)   improvement in oven technology.
C)   decrease in the price of butter.
D)   decrease in the price of chocolate cake.E) None of the above
F) A) and D)

Question 3

Table 4-8
A country club usually only allows members to purchase tickets for its celebrity golf tournament,but the club is considering allowing non-members to purchase tickets this year.The demand and supply schedules are as follows:
 
-Refer to Table 4-8.If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $20,then there will be

Accepted Answer

A)   a shortage of 300 tickets.
B)   a surplus of 300 tickets.
C)   300 tickets sold.
D)   600 tickets unsold.E) None of the above
F) B) and C)

Question 4

Adam Smith suggested that an invisible had guides market economies.In this analogy,what is the baton that the invisible hand uses to conduct the economic orchestra?

Accepted Answer

A)   the government
B)   prices
C)   subsidies
D)   the Federal ReserveE) B) and C)
F) None of the above

Question 5

If the demand for a product decreases,then we would expect equilibrium price

Accepted Answer

A)   to increase and equilibrium quantity to decrease.
B)   to decrease and equilibrium quantity to increase.
C)   and equilibrium quantity to both increase.
D)   and equilibrium quantity to both decrease.E) All of the above
F) B) and D)

Question 6

Two goods are complements when a decrease in the price of one good

Accepted Answer

A)   decreases the quantity demanded of the other good.
B)   decreases the demand for the other good.
C)   increases the quantity demanded of the other good.
D)   increases the demand for the other good.E) A) and C)
F) A) and B)

Question 7

Figure 4-2  
-Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $10 is

Accepted Answer

A)   0 units.
B)   4 units.
C)   10 units.
D)   12 units.E) All of the above
F) B) and D)

Question 8

Who gets scarce resources in a market economy?

Accepted Answer

A)   the government
B)   whoever the government decides gets them
C)   whoever wants them
D)   whoever is willing and able to pay the priceE) B) and C)
F) A) and D)

Question 9

Suppose the number of buyers in a market increases and a technological advancement occurs also.What would we expect to happen in the market?

Accepted Answer

A)   Equilibrium price would decrease,but the impact on equilibrium quantity would be ambiguous.
B)   Equilibrium price would increase,but the impact on equilibrium quantity would be ambiguous.
C)   Equilibrium quantity would decrease,but the impact on equilibrium price would be ambiguous.
D)   Equilibrium quantity would increase,but the impact on equilibrium price would be ambiguous.E) A) and D)
F) None of the above

Question 10

Figure 4-16 
-Refer to Figure 4-16.If there is currently a shortage of 20 units of the good,then the law of

Accepted Answer

A)   demand predicts that the price will rise by $2 to eliminate the shortage.
B)   supply predicts that the price will rise by $2 to eliminate the shortage.
C)   supply and demand predicts that the price will rise by $2 to eliminate the shortage.
D)   supply and demand predicts that the price will fall by $2 to eliminate the shortage.E) B) and C)
F) None of the above

Question 11

Figure 4-22

-Refer to Figure 4-22.Panel (b) shows which of the following?

Accepted Answer

A)   a decrease in demand and a decrease in quantity supplied
B)   a decrease in demand and a decrease in supply
C)   a decrease in quantity demanded and a decrease in quantity supplied
D)   a decrease in quantity demanded and a decrease in supplyE) A) and B)
F) None of the above

Question 12

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

Question 13

A decrease in the price of a good will

Accepted Answer

A)   increase supply.
B)   decrease supply.
C)   increase quantity supplied.
D)   decrease quantity supplied.E) A) and B)
F) A) and C)

Question 14

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Accepted Answer

A)   increases.
B)   decreases.
C)   remains constant,but we observe a movement downward and to the right along the demand curve.
D)   remains constant,but we observe a movement upward and to the left along the demand curve.E) B) and C)
F) All of the above

Question 15

If a higher price means a greater quantity supplied,then the supply curve slopes upward.

Accepted Answer

A) True 
 B)False

Question 16

When the price of a good or service changes,

Accepted Answer

A)   the demand curve shifts in the opposite direction.
B)   the supply curve shifts in the opposite direction.
C)   the supply curve shifts in the same direction.
D)   there is a movement along a given supply curve.E) All of the above
F) A) and D)

Question 17

When the price of hot dogs changes,the demand curve for hot dogs

Accepted Answer

A)   shifts because the price of hot dogs is measured on the vertical axis of the graph.
B)   shifts because the quantity demanded of hot dogs is measured on the horizontal axis of the graph.
C)   does not shift because the price of hot dogs is measured on the vertical axis of the graph.
D)   does not shift because the price of hot dogs is measured on the horizontal axis of the graph.E) A) and D)
F) None of the above

Question 18

If macaroni and cheese is an inferior good,then an increase in

Accepted Answer

A)   the price will cause the demand curve for macaroni and cheese to shift to the left.
B)   the price will cause the demand curve for macaroni and cheese to shift to the right.
C)   a consumer's income will cause the demand curve for macaroni and cheese to shift to the left.
D)   a consumer's income will cause the demand curve for macaroni and cheese to shift to the right.E) B) and D)
F) None of the above

Question 19

In a competitive market,each seller has limited control over the price of his product because

Accepted Answer

A)   other sellers are offering similar products.
B)   buyers exert more control over the price than do sellers.
C)   these markets are highly regulated by the government.
D)   sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.E) All of the above
F) C) and D)

Question 20

When the price of a good is higher than the equilibrium price,

Accepted Answer

A)   a shortage will exist.
B)   buyers desire to purchase more than is produced.
C)   sellers desire to produce and sell more than buyers wish to purchase.
D)   quantity demanded exceeds quantity supplied.E) None of the above
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

Figure 4-16 -Refer to Figure 4-16.If there is currently a shortage of 20 units of the good,then the law of

Correct Answer
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Figure 4-2 -Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $10 is

Correct Answer
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Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Correct Answer
verified

When the price of hot dogs changes,the demand curve for hot dogs

Correct Answer
verified

When the price of a good or service changes,

Correct Answer
verified

When the price of a good is higher than the equilibrium price,

Correct Answer
verified

In a competitive market,each seller has limited control over the price of his product because

Correct Answer
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Two goods are complements when a decrease in the price of one good

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

Correct Answer
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Figure 4-13 -Refer to Figure 4-13.The shift from S' to S in the market for chocolate cake could be caused by a(n)

Correct Answer
verified

If the demand for a product decreases,then we would expect equilibrium price

Correct Answer
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Correct Answer
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Figure 4-22 -Refer to Figure 4-22.Panel (b) shows which of the following?

Correct Answer
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A decrease in the price of a good will

Correct Answer
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Who gets scarce resources in a market economy?

Correct Answer
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In a competitive market,the quantity of a product produced and the price of the product are determined by

Correct Answer
verified

If macaroni and cheese is an inferior good,then an increase in

Correct Answer
verified

Suppose the number of buyers in a market increases and a technological advancement occurs also.What would we expect to happen in the market?

Correct Answer
verified

If a higher price means a greater quantity supplied,then the supply curve slopes upward.

Correct Answer
verified

Adam Smith suggested that an invisible had guides market economies.In this analogy,what is the baton that the invisible hand uses to conduct the economic orchestra?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-16 -Refer to Figure 4-16.If there is currently a shortage of 20 units of the good,then the law of

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $10 is

Correct AnswerverifiedShow Answer

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Correct AnswerverifiedShow Answer

When the price of hot dogs changes,the demand curve for hot dogs

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

Correct AnswerverifiedShow Answer

When the price of a good is higher than the equilibrium price,

Correct AnswerverifiedShow Answer

In a competitive market,each seller has limited control over the price of his product because

Correct AnswerverifiedShow Answer

Two goods are complements when a decrease in the price of one good

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-13 -Refer to Figure 4-13.The shift from S' to S in the market for chocolate cake could be caused by a(n)

Correct AnswerverifiedShow Answer

If the demand for a product decreases,then we would expect equilibrium price

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22.Panel (b) shows which of the following?

Correct AnswerverifiedShow Answer

A decrease in the price of a good will

Correct AnswerverifiedShow Answer

Who gets scarce resources in a market economy?

Correct AnswerverifiedShow Answer

In a competitive market,the quantity of a product produced and the price of the product are determined by

Correct AnswerverifiedShow Answer

If macaroni and cheese is an inferior good,then an increase in

Correct AnswerverifiedShow Answer

Suppose the number of buyers in a market increases and a technological advancement occurs also.What would we expect to happen in the market?

Correct AnswerverifiedShow Answer

If a higher price means a greater quantity supplied,then the supply curve slopes upward.

Correct AnswerverifiedShow Answer

Adam Smith suggested that an invisible had guides market economies.In this analogy,what is the baton that the invisible hand uses to conduct the economic orchestra?

Correct AnswerverifiedShow Answer

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