Question 1

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Accepted Answer

A) True 
 B)False

Question 2

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk,which is used to make lattés,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) None of the above
F) C) and D)

Question 3

An increase in demand will cause an increase in price,which will cause an increase in quantity supplied.

Accepted Answer

A) True 
 B)False

Question 4

A supply curve slopes upward because

Accepted Answer

A)   as more is produced, total cost of production falls.
B)   an increase in input prices increases supply.
C)   the quantity supplied of most goods and services increases over time.
D)   an increase in price gives producers an incentive to supply a larger quantity.E) None of the above
F) A) and B)

Question 5

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities.
 
-Refer to Figure 4-20.All else equal,an increase in the price of the pulp used in the paper production process would cause a move from

Accepted Answer

A)   x to y.
B)   y to x.
C)   SA to SB.
D)   SB to SA.E) A) and B)
F) C) and D)

Question 6

Table 4-2
 
-Refer to Table 4-2.Whose demand does not obey the law of demand?

Accepted Answer

A)   William's
B)   Fergie's
C)   Taboo's
D)   apl.de.ap'sE) A) and B)
F) A) and C)

Question 7

Figure 4-21
 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the price number of pastry chefs?

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

Question 8

When it comes to people's tastes,economists generally believe that

Accepted Answer

A)   tastes are based on forces that are well within the realm of economics.
B)   tastes are based on historical and psychological forces that are beyond the realm of economics.
C)   tastes can only be studied through well-constructed, real-life models.
D)   because tastes do not directly affect demand, there is little need to explain people's tastes.E) C) and D)
F) None of the above

Question 9

The demand curve is the upward-sloping line relating price and quantity demanded.

Accepted Answer

A) True 
 B)False

Question 10

During the last few decades in the United States,health officials have argued that eating too much beef might be harmful to human health.As a result,there has been a significant decrease in the amount of beef produced.Which of the following best explains the decrease in production?

Accepted Answer

A)   Beef producers, concerned about the health of their customers, decided to produce relatively less beef.
B)   Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef.
C)   Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce.
D)   Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace.E) A) and D)
F) A) and B)

Question 11

An increase in the number of college scholarships issued by private foundations would

Accepted Answer

A)   increase the supply of education.
B)   decrease the supply of education.
C)   increase the demand for education.
D)   decrease the demand for education.E) A) and D)
F) B) and D)

Question 12

Figure 4-19
The diagram below pertains to the demand for turkey in the United States.
 
-Refer to Figure 4-19.All else equal,the approach of Thanksgiving would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) All of the above
F) B) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Figure 4-17
 
-Refer to Figure 4-17.At a price of $15,

Accepted Answer

A)   quantity demanded exceeds quantity supplied.
B)   there is a shortage.
C)   there is an excess demand.
D)   All of the above are correct.E) A) and D)
F) B) and D)

Question 15

Monopolists are price takers.

Accepted Answer

A) True 
 B)False

Question 16

The unique point at which the supply and demand curves intersect is called

Accepted Answer

A)   market harmony.
B)   coincidence.
C)   equivalence.
D)   equilibrium.E) A) and C)
F) C) and D)

Question 17

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

Question 18

Figure 4-15
 
-Refer to Figure 4-15.At what price would there be an excess demand of 200 units of the good?

Accepted Answer

A)   $15
B)   $20
C)   $30
D)   $35E) A) and B)
F) None of the above

Question 19

Which of the following would not shift the supply curve for mp3 players?

Accepted Answer

A)   an increase in the price of mp3 players
B)   a decrease in the number of sellers of mp3 players
C)   an increase in the price of plastic, an input into the production of mp3 players
D)   an improvement in the technology used to produce mp3 playersE) A) and D)
F) A) and B)

Question 20

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

Exam 4: The Market Forces of Supply and Demand.

Table 4-2 -Refer to Table 4-2.Whose demand does not obey the law of demand?

Correct AnswerverifiedShow Answer

An increase in the number of college scholarships issued by private foundations would

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,the approach of Thanksgiving would cause a move from

Correct AnswerverifiedShow Answer

An increase in demand will cause an increase in price,which will cause an increase in quantity supplied.

Correct AnswerverifiedShow Answer

The unique point at which the supply and demand curves intersect is called

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk,which is used to make lattés,rises?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The demand curve is the upward-sloping line relating price and quantity demanded.

Correct AnswerverifiedShow Answer

Monopolists are price takers.

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15.At what price would there be an excess demand of 200 units of the good?

Correct AnswerverifiedShow Answer

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the price number of pastry chefs?

Correct AnswerverifiedShow Answer

Which of the following would not shift the supply curve for mp3 players?

Correct AnswerverifiedShow Answer

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,an increase in the price of the pulp used in the paper production process would cause a move from

Correct AnswerverifiedShow Answer

A supply curve slopes upward because

Correct AnswerverifiedShow Answer

During the last few decades in the United States,health officials have argued that eating too much beef might be harmful to human health.As a result,there has been a significant decrease in the amount of beef produced.Which of the following best explains the decrease in production?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When it comes to people's tastes,economists generally believe that

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17.At a price of $15,

Correct AnswerverifiedShow Answer

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