Question 1

Which of the following would cause a change in the quantity demanded of a product?

Accepted Answer

A)   a higher price
B)   a higher income
C)   expectations of future price increases
D)   All of the above are correct.E) B) and C)
F) A) and C)

Question 2

A shift in the demand curve to the right represents

Accepted Answer

A)   an increase in demand.
B)   a decrease in demand.
C)   an increase in quantity demanded.
D)   a decrease in quantity demanded.E) B) and D)
F) B) and C)

Question 3

Which one of the following statements is true?

Accepted Answer

A)   If the money price of a good increases, its relative price necessarily increases.
B)   If the money price of a good increases, its relative price necessarily decreases.
C)   The relative price of a good refers to the opportunity cost of purchasing it.
D)   Rational consumers always ignore the monetary price of a good when deciding whether to buy it.E) A) and D)
F) B) and D)

Question 4

A shift in the demand curve will occur when

Accepted Answer

A)   supply shifts.
B)   the price of an input used to produce the good changes.
C)   consumers' income changes.
D)   the price of the product changes.E) None of the above
F) B) and D) C

Question 5

A demand schedule provides

Accepted Answer

A)   the quantities of a good people are willing to sell every year.
B)   the amount of a good a person wants to sell during a given time period.
C)   the alternative quantities demanded for a given time period at different possible prices.
D)   the amount of a good a person wants at different times of the day.E) A) and C)
F) A) and B)

Question 6

Which one of the following would cause an increase in the supply of cardboard?

Accepted Answer

A)   a decrease in the demand for cardboard
B)   an increase in the price of cardboard
C)   an increase in taxes applied to cardboard producers
D)   an improvement in the technology used to produce cardboardE) A) and B)
F) B) and C)

Question 7

A demand curve is a graphical representation of

Accepted Answer

A)   consumer tastes.
B)   national income.
C)   the demand schedule.
D)   relative prices.E) A) and B)
F) All of the above C

Question 8

When there is a shortage, I. there is a tendency for price to increase.
II)  there is an excess quantity demanded.

Accepted Answer

A)   I only
B)   II only
C)   Both I and II
D)   Neither I nor IIE) A) and B)
F) B) and C)

Question 9

If two goods are substitutes, then

Accepted Answer

A)   an increase in the price of one causes the demand for the other to fall.
B)   there is an inverse relationship between changes in the price of one good and changes in the demand for the other.
C)   if the price of one good falls, the demand for the other good falls also.
D)   changes in the quantity demanded of one good will not affect the demand for the other.E) A) and B)
F) B) and C)

Question 10

The quantity supplied of a particular good is the amount of the good that

Accepted Answer

A)   households are willing to consume at each particular price.
B)   firms will actually end up buying at a particular price during a given time period.
C)   firms are willing to sell at each price during a particular time period.
D)   households want firms to sell at each price during a particular time period.E) C) and D)
F) All of the above C

Question 11

If the price of a product increases,

Accepted Answer

A)   there is an increase in quantity supplied and a decrease in demand.
B)   there is an increase in supply and a decrease in quantity demanded.
C)   there is an increase in supply and a decrease in demand.
D)   there is an increase in quantity supplied and a decrease in quantity demanded.E) A) and B)
F) B) and D)

Question 12

All of the following will affect the position of the demand curve EXCEPT

Accepted Answer

A)   income.
B)   taste and preference.
C)   changes in expectations of future relative prices.
D)   prices of resources used to produce the product.E) B) and D)
F) B) and C)

Question 13

-According to the above figure, a shortage is shown between which two points?

Accepted Answer

A)   A and E
B)   C and B
C)   A and B
D)   E and FE) A) and B)
F) C) and D)

Question 14

-Refer to the above figure. Which of the following statements is true?

Accepted Answer

A)   Panel A shows a decrease in demand and Panel B shows an increase in demand.
B)   Both Panels A and B show an increase in demand.
C)   Panel A shows a change in demand and Panel B shows a change in quantity demanded.
D)   Panel A shows a change in quantity demanded and Panel B shows a change in demand.E) All of the above
F) A) and B)

Question 15

The law of demand states that there is

Accepted Answer

A)   an inverse relationship between income and quantity demanded, ceteris paribus.
B)   a direct relationship between income and quantity demanded, ceteris paribus.
C)   no relationship between taste and quantity demanded, ceteris paribus.
D)   an inverse relationship between price and quantity demanded, ceteris paribus.E) A) and B)
F) B) and D)

Question 16

-According to the above table, there is an excess quantity demanded of 1500 DVDs at the price

Accepted Answer

A)   $14.
B)   $12.
C)   $10.
D)   $8.E) C) and D)
F) A) and B)

Question 17

-Refer to the above figure. At a price of $10, excess quantity supplied equals

Accepted Answer

A)   0.
B)   12.
C)   15.
D)   infinity.E) None of the above
F) All of the above

Question 18

Which of the following will cause a movement along the demand curve for shoes?

Accepted Answer

A)   An increase in the price of socks
B)   An increase in income
C)   An increase in the price of shoes
D)   All of the aboveE) None of the above
F) C) and D)

Question 19

Any improvement in overall production technology that permits more output to be produced with the same level of inputs causes

Accepted Answer

A)   a movement up the supply curve resulting in both a higher equilibrium price and quantity.
B)   a rightward shift of the supply curve so that more is offered at each price.
C)   no movement of the supply curve, but a fall in price and a decrease in quantity supplied.
D)   a leftward shift of the supply curve so that less is offered for sale at each price.E) None of the above
F) A) and C)

Question 20

If the price of oil rises, producers of oil will

Accepted Answer

A)   increase the quantity of oil supplied.
B)   supply less oil.
C)   leave the amount of oil supplied unchanged.
D)   cut the price.E) A) and B)
F) All of the above

Exam 3: Demand and Supply

Which of the following would cause a change in the quantity demanded of a product?

Correct AnswerverifiedShow Answer

A shift in the demand curve to the right represents

Correct AnswerverifiedShow Answer

Which one of the following statements is true?

Correct AnswerverifiedShow Answer

A shift in the demand curve will occur when

Correct AnswerverifiedC

A demand schedule provides

Correct AnswerverifiedShow Answer

Which one of the following would cause an increase in the supply of cardboard?

Correct AnswerverifiedShow Answer

A demand curve is a graphical representation of

Correct AnswerverifiedC

When there is a shortage, I. there is a tendency for price to increase. II) there is an excess quantity demanded.

Correct AnswerverifiedShow Answer

If two goods are substitutes, then

Correct AnswerverifiedShow Answer

The quantity supplied of a particular good is the amount of the good that

Correct AnswerverifiedC

If the price of a product increases,

Correct AnswerverifiedShow Answer

All of the following will affect the position of the demand curve EXCEPT

Correct AnswerverifiedShow Answer

-According to the above figure, a shortage is shown between which two points?

Correct AnswerverifiedShow Answer

-Refer to the above figure. Which of the following statements is true?

Correct AnswerverifiedShow Answer

The law of demand states that there is

Correct AnswerverifiedShow Answer

-According to the above table, there is an excess quantity demanded of 1500 DVDs at the price

Correct AnswerverifiedShow Answer

-Refer to the above figure. At a price of $10, excess quantity supplied equals

Correct AnswerverifiedShow Answer

Which of the following will cause a movement along the demand curve for shoes?

Correct AnswerverifiedShow Answer

Any improvement in overall production technology that permits more output to be produced with the same level of inputs causes

Correct AnswerverifiedShow Answer

If the price of oil rises, producers of oil will

Correct AnswerverifiedShow Answer

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C

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C

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C

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