Question 1

On the supply curve:

Accepted Answer

A)  quantity goes on the horizontal axis and price goes on the vertical axis.
B)  quantity goes on the vertical axis and price goes on the horizontal axis.
C)  Both quantity and price go on the horizontal axis.
D)  It doesn't matter which axis price and quantity are placed on.E) A) and C)
F) C) and D)

Question 2

For almost all goods,the:

Accepted Answer

A)  lower the price goes,the higher the quantity supplied.
B)  higher the price goes,the more luxurious it is.
C)  lower the price goes,the more luxurious it is.
D)  higher the price goes,the higher the quantity supplied.E) A) and B)
F) A) and C)

Question 3

The prices of related goods matters when determining supply because:

Accepted Answer

A)  it affects the opportunity cost of production.
B)  it affects whether or not your good will sell.
C)  it affects the competition.
D)  it affects the availability of substitute goods.E) B) and C)
F) None of the above

Question 4

A recent epidemic of mad cow disease caused the government to mandate that thousands of cows be completely destroyed.This will likely cause:

Accepted Answer

A)  the demand for leather shoes to increase.
B)  the supply of leather shoes to decrease.
C)  the demand and the supply of leather shoes to increase.
D)  It will not affect the market for leather shoes.E) All of the above
F) A) and D)

Question 5

Consider a market that is in equilibrium.If it experiences an increase in supply,what will happen?

Accepted Answer

A)  The supply curve will shift to the right and the equilibrium price and quantity will rise.
B)  The supply curve will shift to the right and the equilibrium price will decrease and the equilibrium quantity will increase.
C)  The supply curve will shift to the right and the equilibrium price and quantity will fall.
D)  The supply curve will shift to the left and the equilibrium price and quantity will fall.E) A) and B)
F) A) and C)

Question 6

We say that goods are substitutes when they:

Accepted Answer

A)  serve similar-enough purposes that a consumer might purchase one in place of the other.
B)  are related goods that are consumed together,so that purchasing one will make a consumer more likely to purchase the other.
C)  can replace something consumers typically purchase at a significantly lower price.
D)  change a consumer's preferences.E) B) and C)
F) A) and B)

Question 7

In economic terminology,a buyer or seller who cannot affect the market price is called a:

Accepted Answer

A)  price taker.
B)  price maker.
C)  price setter.
D)  price signaler.E) A) and B)
F) A) and C)

Question 8

An article about how coffee boosts critical thinking is likely to affect which determinant of demand?

Accepted Answer

A)  Incomes
B)  Preferences
C)  Number of sellers in the market
D)  PriceE) B) and C)
F) B) and D)

Question 9

Tom was out shopping for a sweater and learned that they will all go on sale tomorrow.We would expect Tom's demand for sweaters today to:

Accepted Answer

A)  increase.
B)  shift to the left.
C)  move down along his demand curve.
D)  move upward along his demand curve.E) A) and C)
F) C) and D)

Question 10

John just won the Megamillions jackpot.We can assume that:

Accepted Answer

A)  his demand for all normal goods will increase.
B)  his demand for all inferior goods will increase.
C)  his demand for all normal goods will decrease.
D)  his demand for all normal goods will stay the same.E) All of the above
F) None of the above A

Question 11

Which factor of supply would the introduction of e-mail into places of businesses be?

Accepted Answer

A)  Technology
B)  Price of input
C)  Number of sellers
D)  Expectation of the futureE) A) and D)
F) A) and C)

Question 12

The "Made in the USA" campaign was popularized by unions in an effort to influence which determinant of demand?

Accepted Answer

A)  Incomes
B)  Preferences
C)  Expectations of future prices
D)  Prices of related goodsE) C) and D)
F) B) and D)

Question 13

A nonprice determinant of demand refers to:

Accepted Answer

A)  something that affects the price other than demand.
B)  something that affects demand other than the price.
C)  something that determines how large a role prices play in the demand decision.
D)  something that determines how prices are affected by income.E) None of the above
F) All of the above B

Question 14

A nonprice determinant of supply refers to:

Accepted Answer

A)  something that affects the price other than supply.
B)  something that affects supply other than the price.
C)  something that determines how large a role prices play in the supply decision.
D)  something that determines how prices are affected by the seller's income.E) A) and D)
F) None of the above B

Question 15

We say that goods are complements when they:

Accepted Answer

A)  serve similar-enough purposes that a consumer might purchase one in place of the other.
B)  are related goods that are consumed together,so that purchasing one will make a consumer more likely to purchase the other.
C)  can replace something consumers typically purchase at a significantly lower price.
D)  change a consumer's preferences.E) B) and D)
F) B) and C)

Question 16

A demand curve:

Accepted Answer

A)  visually displays the demand schedule.
B)  is a graph depicting various price-quantity combinations of a good.
C)  is a graph that shows the quantities demanded by consumers of a particular good or service at various prices.
D)  All of these statements are true.E) A) and B)
F) A) and C)

Question 17

The latest news report stated that the housing market is making a comeback and that house prices are on the rise.This information is likely to:

Accepted Answer

A)  increase demand for houses now due to a change in expectations of future prices.
B)  decrease demand for houses now due to a change in expectations of future prices.
C)  have no effect on the current housing market,but will increase demand in the future.
D)  have no effect on the current demand for housing,but will decrease current supply.E) A) and D)
F) B) and D)

Question 18

An increase in the price of Nike sneakers will likely cause:

Accepted Answer

A)  a movement along the demand curve for Nike sneakers.
B)  an inward shift of the demand curve for Adidas sneakers.
C)  an outward shift of the demand curve for Nike sneakers.
D)  a rotation of the demand curve for Nike sneakers around the price-point change.E) B) and C)
F) A) and B)

Question 19

Which of the following would not affect an individual's demand?

Accepted Answer

A)  Prices of related goods
B)  An individual preferences
C)  An individual's income
D)  Number of buyersE) A) and B)
F) A) and C)

Question 20

A table which shows the quantities of a particular good or service that producers are willing to sell (supply) at various prices is known as:

Accepted Answer

A)  a supply schedule.
B)  a supply table.
C)  a supply curve.
D)  a supply graph.E) All of the above
F) B) and C)

Exam 3: Markets

On the supply curve:

Correct AnswerverifiedShow Answer

For almost all goods,the:

Correct AnswerverifiedShow Answer

The prices of related goods matters when determining supply because:

Correct AnswerverifiedShow Answer

A recent epidemic of mad cow disease caused the government to mandate that thousands of cows be completely destroyed.This will likely cause:

Correct AnswerverifiedShow Answer

Consider a market that is in equilibrium.If it experiences an increase in supply,what will happen?

Correct AnswerverifiedShow Answer

We say that goods are substitutes when they:

Correct AnswerverifiedShow Answer

In economic terminology,a buyer or seller who cannot affect the market price is called a:

Correct AnswerverifiedShow Answer

An article about how coffee boosts critical thinking is likely to affect which determinant of demand?

Correct AnswerverifiedShow Answer

Tom was out shopping for a sweater and learned that they will all go on sale tomorrow.We would expect Tom's demand for sweaters today to:

Correct AnswerverifiedShow Answer

John just won the Megamillions jackpot.We can assume that:

Correct AnswerverifiedA

Which factor of supply would the introduction of e-mail into places of businesses be?

Correct AnswerverifiedShow Answer

The "Made in the USA" campaign was popularized by unions in an effort to influence which determinant of demand?

Correct AnswerverifiedShow Answer

A nonprice determinant of demand refers to:

Correct AnswerverifiedB

A nonprice determinant of supply refers to:

Correct AnswerverifiedB

We say that goods are complements when they:

Correct AnswerverifiedShow Answer

A demand curve:

Correct AnswerverifiedShow Answer

The latest news report stated that the housing market is making a comeback and that house prices are on the rise.This information is likely to:

Correct AnswerverifiedShow Answer

An increase in the price of Nike sneakers will likely cause:

Correct AnswerverifiedShow Answer

Which of the following would not affect an individual's demand?

Correct AnswerverifiedShow Answer

A table which shows the quantities of a particular good or service that producers are willing to sell (supply) at various prices is known as:

Correct AnswerverifiedShow Answer

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A

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B

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B

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