Question 1

The graph shown depicts the market for a good. At a price of $12, there is:

Accepted Answer

A)   a surplus (excess supply)  of 10,000 units.
B)   a shortage (excess demand)  of 10,000 units.
C)   a shortage (excess demand)  of 7,000 units.
D)   a surplus (excess supply)  of 3,000 units.E) A) and C)
F) B) and C)

Question 2

Suppose the advancement of computers has decreased the productivity of a paper mill. This will likely cause _______ the supply curve for paper.

Accepted Answer

A)   a rightward shift of
B)   a leftward shift of
C)   a shift straight up of
D)   a movement alongE) A) and D)
F) B) and C)

Question 3

On the first day of school, Jackie notices many of her classmates are wearing Converse sneakers. Ever the fashionista, this will likely affect:

Accepted Answer

A)   Jackie's income, as she will now buy Converse sneakers and will have less to spend on other goods.
B)   Jackie's preferences for Converse sneakers, since she feels as though she needs them now.
C)   Jackie's expectations of future prices, since the price of Converse sneakers will likely increase due to their popularity.
D)   the prices of related goods, since other sneakers will be less popular and thus their prices will decrease.E) A) and D)
F) C) and D)

Question 4

The point at which buyers and sellers "agree" on the quantity of a good they are willing to exchange at a given price is called:

Accepted Answer

A)   equilibrium.
B)   optimization.
C)   maximization.
D)   market collapse.E) B) and D)
F) B) and C)

Question 5

The city of Provincetown is a very popular spot for tourism during the summer months. What would we expect to occur in this town?

Accepted Answer

A)   The demand for normal goods would increase each summer.
B)   The demand for normal goods would decrease each summer.
C)   The prices of all normal goods would decrease each summer.
D)   The demand curve for normal goods would shift to the left.E) A) and B)
F) All of the above

Question 6

Consider the market for cupcakes, which is currently in equilibrium. Now, suppose that two events happen simultaneously: (1)  the price of sugar, used in the production of cupcakes, decreases and (2)  the American Heart Association announces that consumption of excess sugar is extremely dangerous to one's health, reducing the popularity of cupcakes. What effect might these events have on the market for cupcakes?

Accepted Answer

A)   The equilibrium price will fall and the equilibrium quantity will rise.
B)   The equilibrium quantity will fall, but the change in the equilibrium price cannot be determined.
C)   The equilibrium price will rise and the equilibrium quantity will fall.
D)   The equilibrium price will fall, but the change in the equilibrium quantity cannot be determined.E) A) and B)
F) B) and D)

Question 7

Which of the following statements describes a standardized good or service?

Accepted Answer

A)   Any two units have the same features and are interchangeable.
B)   Any two units have similar features and could be considered close substitutes.
C)   Any two units have different, unique features.
D)   Any two units are economically unique with distinguishable characteristics.E) None of the above
F) B) and D)

Question 8

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

Accepted Answer

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

Question 9

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 10

Suppose the graph shown depicts the demand for a normal good. A movement from A to C might be caused by:

Accepted Answer

A)   an increase in price.
B)   a decrease in price.
C)   an increase in income.
D)   a decrease in income.E) A) and B)
F) B) and C)

Question 11

The table shown depicts the demand and supply schedules of a good. Equilibrium in this market will occur at:

Accepted Answer

A)   a price of $1.50 and a quantity of 62.
B)   a price of $1.50 and a quantity of 31.
C)   a price of $0.00 and a quantity of 75.
D)   an indeterminate price and quantity.E) None of the above
F) All of the above

Question 12

Which of the following statements about the supply curve is not true?

Accepted Answer

A)   A supply curve represents a producer's willingness and ability to sell.
B)   A supply curve shows the minimum price a producer will accept for any given quantity.
C)   A supply curve visually displays the supply schedule.
D)   A supply curve illustrates how many consumers want to purchase goods and services.E) B) and D)
F) All of the above

Question 13

A perfectly competitive market is one in which _____ buyers and sellers easily trade a standardized good or service.

Accepted Answer

A)   fully informed, price-taking
B)   fully informed, price-making
C)   uninformed, price-taking
D)   uninformed, price-makingE) All of the above
F) C) and D)

Question 14

A table that shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Accepted Answer

A)   demand schedule.
B)   demand figure.
C)   demand curve.
D)   demand graph.E) A) and B)
F) A) and C)

Question 15

The most likely complementary good for hot dogs would be:

Accepted Answer

A)   ketchup.
B)   burgers.
C)   tacos.
D)   pizza.E) B) and D)
F) A) and B)

Question 16

When does a surplus occur?

Accepted Answer

A)   When the quantity supplied is less than the quantity demanded
B)   When the quantity demanded is less than the quantity supplied
C)   When a market only sells secondary goods
D)   When producers see a need to increase the price of the goodE) A) and C)
F) None of the above

Question 17

The demand curve:

Accepted Answer

A)   represents consumers' willingness, but not ability, to buy.
B)   shows the highest amount consumers are able to pay for a specific quantity.
C)   visually displays the demand schedule.
D)   represents consumers' ability, but not willingness, to buy.E) B) and C)
F) A) and D)

Question 18

The most likely substitute good for hot dogs would be:

Accepted Answer

A)   ketchup.
B)   burgers.
C)   potato chips.
D)   a plate.E) A) and B)
F) A) and C)

Question 19

The graph shown depicts the market for a good. What state is this market in if the price of the good is $15?

Accepted Answer

A)   There is a shortage (excess demand) , signaling that sellers should raise their price.
B)   There is a shortage (excess demand) , signaling that buyers should leave the market.
C)   There is a surplus (excess supply) , signaling that sellers should drop their price.
D)   There is a surplus (excess supply) , signaling that buyers should bid up the price.E) All of the above
F) A) and B)

Question 20

Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?

Accepted Answer

A)   The demand would increase, increasing both equilibrium price and quantity.
B)   The supply would increase, decreasing equilibrium price and increasing equilibrium quantity.
C)   The demand would decrease, decreasing both equilibrium price and quantity.
D)   The supply would decrease, increasing equilibrium price and decreasing equilibrium quantity.E) B) and C)
F) All of the above

Exam 3: Markets

The graph shown depicts the market for a good. What state is this market in if the price of the good is $15?

Correct Answer
verified

The most likely substitute good for hot dogs would be:

Correct Answer
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The table shown depicts the demand and supply schedules of a good. Equilibrium in this market will occur at:

Correct Answer
verified

On the first day of school, Jackie notices many of her classmates are wearing Converse sneakers. Ever the fashionista, this will likely affect:

Correct Answer
verified

Which of the following statements describes a standardized good or service?

Correct Answer
verified

A perfectly competitive market is one in which _____ buyers and sellers easily trade a standardized good or service.

Correct Answer
verified

A table that shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Correct Answer
verified

The graph shown depicts the market for a good. At a price of $12, there is:

Correct Answer
verified

Suppose the advancement of computers has decreased the productivity of a paper mill. This will likely cause _______ the supply curve for paper.

Correct Answer
verified

The point at which buyers and sellers "agree" on the quantity of a good they are willing to exchange at a given price is called:

Correct Answer
verified

Suppose the graph shown depicts the demand for a normal good. A movement from A to C might be caused by:

Correct Answer
verified

The demand curve:

Correct Answer
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When does a surplus occur?

Correct Answer
verified

The city of Provincetown is a very popular spot for tourism during the summer months. What would we expect to occur in this town?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Which of the following statements about the supply curve is not true?

Correct Answer
verified

Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?

Correct Answer
verified

The most likely complementary good for hot dogs would be:

Correct Answer
verified

Exam 3: Markets

The graph shown depicts the market for a good. What state is this market in if the price of the good is $15?

Correct AnswerverifiedShow Answer

The most likely substitute good for hot dogs would be:

Correct AnswerverifiedShow Answer

The table shown depicts the demand and supply schedules of a good. Equilibrium in this market will occur at:

Correct AnswerverifiedShow Answer

On the first day of school, Jackie notices many of her classmates are wearing Converse sneakers. Ever the fashionista, this will likely affect:

Correct AnswerverifiedShow Answer

Which of the following statements describes a standardized good or service?

Correct AnswerverifiedShow Answer

A perfectly competitive market is one in which _____ buyers and sellers easily trade a standardized good or service.

Correct AnswerverifiedShow Answer

A table that shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Correct AnswerverifiedShow Answer

The graph shown depicts the market for a good. At a price of $12, there is:

Correct AnswerverifiedShow Answer

Suppose the advancement of computers has decreased the productivity of a paper mill. This will likely cause _______ the supply curve for paper.

Correct AnswerverifiedShow Answer

The point at which buyers and sellers "agree" on the quantity of a good they are willing to exchange at a given price is called:

Correct AnswerverifiedShow Answer

Suppose the graph shown depicts the demand for a normal good. A movement from A to C might be caused by:

Correct AnswerverifiedShow Answer

The demand curve:

Correct AnswerverifiedShow Answer

When does a surplus occur?

Correct AnswerverifiedShow Answer

The city of Provincetown is a very popular spot for tourism during the summer months. What would we expect to occur in this town?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements about the supply curve is not true?

Correct AnswerverifiedShow Answer

Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?

Correct AnswerverifiedShow Answer

The most likely complementary good for hot dogs would be:

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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