econ quizzes answers
Refer to the above graph with three demand curves. A "decrease in demand" would be illustrated as a change from
point 1 topoint 4.
point 1 to point 3.
line C toB.
D. line Ato C.
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
251.
Refer to the above graph with three demand curves. An increase in price, other factors constant,would cause a change from
A. point 4 topoint 5.
B. point 3 to point 6.
point 1 to point 5.
point 2 topoint 4.
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
Which would be a likely cause of an increase in the demand for pizza?
a reduced desire for take-out andfast-food dining
a decrease in the price ofhamburger sandwiches
a decrease in the prices of cheese, pepperoni, and mushrooms
D. ahealth report statingthat eating pizza reduces stress
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
Which of the following will not cause a change in the demand for productA?
A. a change in the number of buyers
B. a change in the price ofA
a declinein consumer incomes
a decrease in theprice of close-substitute product B
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Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
Which of the following goods wouldmostprobably be an inferior good?
A. French wines
B. generic beer
theater tickets
steak
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Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
If product Y is an inferior good, a decrease in consumerincomes will
make buyers want to buy less of ProductY.
not affect the sales ofproduct Y.
shift thedemand curve for product Y to the left.
D. shift the demand curveforproduct Y to theright.
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Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
For most products, purchases tend to fall with decreases in buyers' incomes.Such products are known as
inferior goods.
direct goods.
average goods.
D. normal goods.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
257.
The figure below shows three demandcurves for coffee.
Which of the following would cause a shift in coffee demand from D1 to D2?
A. a decrease in the price oftea
B. anincrease in consumer incomes
an increasein the prices ofcream and sugar
a decrease in the price ofcoffee
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
258.
The figure below shows three demandcurves for coffee.
Which of the following would cause a shift in coffee demand from D1 to D3?
a decrease in the cost of producing coffee
a scientific report statingthat coffee improves memory
a decrease in the prices of creamand sugar
D. adecrease in the price of tea
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
259.
The figure below shows three demandcurves for coffee.
An increase in the price of coffee,other factors constant,would cause a
shift from D1 to D3.
shift from D1 toD2.
movement from point a to point b.
D. movement from point b to point a.
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
Suppose that goods A and B are closesubstitutes. If the price of good A falls,then we would expect an
increase in thedemand for A and anincrease in thequantity of B demanded.
increase in the demandforA and a decreasein the quantityof B demanded.
C. increase in thequantity of A demanded and a decrease in the demandforB.
D. increase in thedemand for good A as well as for good B.
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Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
Which of the following factors will decrease thecurrent demand for a product?
A. an expectedincrease in the future price of the product
B. a decrease in the current price ofa substitute product
a decrease in the current price of a complementary product
an increase in the current price of a substitute product
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Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
Which of the following pairs are not considered to be complementary goods?
A. steel and cars
digital cameras and memory cards
gasoline and motor oil
fertilizer and irrigation systems
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
If the price ofgasoline increasessignificantly, then we'd expect the demand curve for largetrucks and SUVs to
A. shift to the right.
B. shift totheleft.
become upward-sloping.
not shift,butthere will be a movement along that demandcurve.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
An increase in the price of product B leads to an increasein the demandforproduct C. This indicatesthat products B and C are
A. complementary goods.
B. substitute goods.
inferior goods.
normal goods.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
Which of the following would best be classified as acomplement for new houses/homes?
lumber or steel
construction equipment
C. mortgage loans
D. rental apartments
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
If the price ofPepsi decreases, other factors constant, then we'dexpect to see a consequent shift of the demand curvefor
A. Coke totheleft.
Coke to the right.
Pepsi totheleft.
Pepsi to the right.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-02 Describedemand and explain how it can change.
Test Bank: II Topic: Demand
Which statement is true about supply?
There is an inverse relationship between price and quantitysupplied.
Supply refersto the amount of inventorythat sellers have in their warehouses.
As price decreases, producers are willing to put more of the good onthe market for sale.
D. To entice producers tooffer more of a good on the market for sale, price must rise.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
If the price ofa product decreases, we wouldexpect
A. demandto increase.
B. quantity suppliedtodecrease.
supply to decrease.
quantity supplied to increase.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
"Price" in the statement of the Law of Supply refersto
A. the dollar amount necessaryto induce a change in the quantityof a good supplied tothemarket.
the cost of producing each unit of the product.
the total revenues that sellers receive for selling a given quantity of the product.
the total amount that buyers pay in order to acquire a given quantityof the product.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
An "increaseinthe quantity supplied" suggests a
rightward shift of thesupply curve.
movement down along the supplycurve.
C. movement up along the supply curve.
D. leftward shift of the supplycurve.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
All of the following are assumedto be constant when thesupply curve for a product is drawn, except the
A. price of the product.
production technology usedbythe firm.
number of producers.
price of inputs used tomakethe product.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
In order to derive themarket supply curvefromindividual supply curves, we add up the
A. various prices that individual sellers are chargingfor the product.
B. various quantities that individual sellers want to sell at specific price levels.
total number of sellers inthe market at a given time.
costs that all individual sellers incur in producingthe product.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
Which of the following is a determinant of supply?
tastes andpreferences of buyers
price of a complementary good
consumer income
D. product taxes and subsidies
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for thegood. This will cause a(n)
A. increase in supply.
decrease in supply.
increase in quantity supplied.
decrease in quantitysupplied.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
If farmers withhold some of their currentcorn harvest from the market becausetheyanticipate a higher price ofcorn in the near future, then this would cause a(n)
rightward shift in the current supplyof corn.
movement up alongthe current supplycurve of corn.
C. leftward shift in the currentsupply of corn.
D. movement down along thecurrent supply curve of corn.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
Which of the following will not cause the supply curve to shift?
a change in the costs of resources needed to producethe good
a technological change in theproduction of the good
C. achange in theprice of the good
D. a change in the prices of other goods that producerscould be producing
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
Which wouldcause an increase in thesupply curve of cell-phone services?
A. adecrease in the wages of cell-phone company workers
an increase in the price of cell-phone services
an increase in the taxes paid by cell-phone service providers
a decrease in a subsidy given to cell-phone service providers
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
All of the following would affectthe position of the supplycurve for cranberries, except the
A. popularity of cranberry drinks.
price of agricultural land for cranberries.
cost of fertilizers for cranberry production.
development of a newpest control for cranberries.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
A leftward shift of the supply curve for oil in the UnitedStates is most likely to resultfrom
a decrease in the fees that oil companies must pay for drilling licenses.
an increase in the subsidyfor oil exploration anddrilling.
a decrease in the world price of oil.
D. anincrease in the costs of exploration anddrilling for oil.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
280.
Refer to thefigure above, which shows three supply curves for corn. Which of the following wouldcause the supplyof corn to shift from S1 to
S2?
an increase in the price offertilizer
a change in consumertastes away from cornbread
a decrease in consumerincomes, assumingcorn is a normal good
D. the development of a more effective insecticide against corn rootworm
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
281.
Refer to thediagram above, which shows three supply curves for corn. Which of the following would cause the supplyof corn to shift from S1
to S3?
A. a decrease in the cost of equipment usedincorn farming
B. anincrease in the price ofsoybeans
a decrease in the price ofcorn
an increase in the number of acres of farmland allocated to corn
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
282.
Refer to thediagram above, which shows three supply curves for corn. A movementfrom point a to point b is causedbya change in the
price of resources used to producecorn.
number of corn farmers.
C. price of corn in themarket.
D. technology of corn farming.
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
Which of the following would cause a leftward shift in thesupply curve for car washes?
an increase in the number of cars in the city
a decrease in taxes on car washes
C. anincrease in the price of car washing equipment
D. a decrease in the price ofwater
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
A fall in the price of milk, used in the production of ice cream, will
A. decreasethe supply of icecream.
B. increase the supplyof ice cream.
cause a movementalong the supply curve of ice cream.
have no effect on the supply of ice cream.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
Plastics manufacturers can make either toys or plasticcontainers. If the prices and profitability of plastic toys increase,thenthe
demand for plastic containers will decrease.
supply of plastic containers will increase.
demand for plasticcontainers will increase.
D. supply of plastic containers will decrease.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
286.
Refer to the above graph. An increasein price, other factors constant,would cause a change from
point 5 topoint 1.
point 4 to point 5.
point 1 to point 6.
D. point 3 topoint 4.
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
287.
Refer to the above graph. A decreasein supply would best be reflected by a change from
A. point 2 topoint 1.
point 5 to point 1.
point 5 to point 2.
point 3 topoint 6.
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-03 Describesupply and explain how it can change.
Test Bank: II Topic: Supply
There is a shortage in a market for a productwhen
the current price is higher than the equilibrium price.
supply is less than demand.
quantity demandedis less than quantitysupplied.
D. quantity demanded is greater than quantity supplied.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-04 Relate how supply and demand interactto determine market equilibrium.
Test Bank: II Topic: Market Equilibrium
There is a surplus of tomatoesin the market. This implies that
A. the current price is set above the equilibrium level.
the price will be rising, as aresult.
supply of tomatoesis more than the demand.
quantity demanded is more than quantity supplied.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-04 Relate how supply and demand interactto determine market equilibrium.
Test Bank: II Topic: Market Equilibrium
A market for a product reaches equilibrium when
the actual quantity bought by buyers equals actual quantitysold by sellers.
the price rises further after there is a surplus.
C. buyers intend to buy a quantityequal to the quantitythat sellers intend to sell.
D. price falls further after there is a shortage.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-04 Relate how supply and demand interactto determine market equilibrium.
Test Bank: II Topic: Market Equilibrium
If there was initially a shortagein the market for a product,then
sellers will drive the price down.
sellers will drive the price up.
buyers will drive the price down.
D. buyers will drive the price up.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-04 Relate how supply and demand interactto determine market equilibrium.
Test Bank: II Topic: Market Equilibrium
In competitive markets, a surplus or shortage will
A. never exist because the markets are always at equilibrium.
B. causechanges in the quantities demanded and suppliedthat tend to eliminatethesurplus or shortage.
cause shifts in the demand and supplycurves that tend to eliminatethesurplus or shortage.
cause changes in the quantities demandedand supplied that tendto intensify the surplus or shortage.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-04 Relate how supply and demand interactto determine market equilibrium.
Test Bank: II Topic: Market Equilibrium
If the market price is above the equilibrium price,
A. a shortagewill occur and producers will produce more andlower prices.
B. asurplus will occur and producers will produce less and lower prices.
a surplus will result and consumerswill bid prices up.
producers will make extremelyhigh profits.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-04 Relate how supply and demand interactto determine market equilibrium.
Test Bank: II Topic: Market Equilibrium
The "dynamic pricing" model used by theride-sharing firm Uber, along with a few other firms, illustrates which of the following?
A. When there is shortagein a market, the equilibrium price will rise.
Once the equilibrium price is reached, it will remain there for at least several days.
Since actual quantity bought always equals actual quantitysold, the market is always at equilibrium.
When there is surplus in a market,theequilibrium price will rise.
AACSB: KnowledgeApplication Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-04 Relate how supply and demand interactto determine market equilibrium.
Test Bank: II Topic: Market Equilibrium
295.
Refer to the above diagram for themilkmarket. In this market, the equilibrium price is and equilibrium quantity is .
A. $1.50 per gallon; 28 million gallons
$1.50 per gallon; 30 million gallons
$28 per gallon; 150 million gallons
$1.00 per gallon; 35 million gallons
AACSB: KnowledgeApplication
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 03-04 Relate how supply and demand interactto determine market equilibrium.
Test Bank: II Topic: Market Equilibrium