Question 1

The most likely substitute good for cereal would be:

Accepted Answer

A)   a bagel.
B)   milk.
C)   pizza.
D)   a hot dog.E) B) and D)
F) All of the above

Question 2

The graph shown depicts the market for a good. At a price of $15, there is:

Accepted Answer

A)   a shortage (excess demand)  of 10 units.
B)   a shortage (excess demand)  of 20 units.
C)   a shortage (excess demand)  of 30 units.
D)   a surplus (excess supply)  of 20 units.E) All of the above
F) B) and C)

Question 3

The table shown depicts the demand and supply schedules of a good. At a price of $2.00, quantity demanded:

Accepted Answer

A)   exceeds quantity supplied, and a shortage (excess demand)  exists.
B)   is less than quantity supplied, and a shortage (excess demand)  exists.
C)   exceeds quantity supplied, and a surplus (excess supply)  exists.
D)   is less than quantity supplied, and a surplus (excess supply)  exists.E) C) and D)
F) A) and D)

Question 4

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

Accepted Answer

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

Question 5

Demand for Shell gasoline will increase if the price of:

Accepted Answer

A)   motor vehicles increases.
B)   BP gasoline increases.
C)   BP gasoline decreases.
D)   Shell gasoline decreases.E) A) and B)
F) B) and D)

Question 6

Consider the market for burritos, which is currently in equilibrium. Now, suppose that two events happen simultaneously: (1)  the price of tortillas, used in the production of burritos, increases and (2)  a new advertising campaign increases the popularity of burritos among consumers. What effect might these events have on the market for burritos?Supply will increase.Demand will increase.The equilibrium price will increase.The equilibrium quantity will decrease.

Accepted Answer

A)   I, II, and III only
B)   I and II only
C)   I and IV only
D)   II and III onlyE) A) and C)
F) B) and C)

Question 7

After getting a raise at work, Tiana now regularly buys steak instead of hamburger. Based on this behavior, what can we assume about these goods for Tiana?

Accepted Answer

A)   Steak is a normal good and hamburger is an inferior good.
B)   Steak is an inferior good and hamburger is a normal good.
C)   Steak and hamburger are complementary goods.
D)   Steak and hamburger are normal goods.E) A) and B)
F) All of the above

Question 8

Perfectly competitive markets are:

Accepted Answer

A)   the most common type of market in our economy.
B)   hard to find in a real-world setting.
C)   made up principally by consumer goods.
D)   typically found in industrial sectors of our economy.E) C) and D)
F) B) and D)

Question 9

2. Which of the following is true? A)  The equilibrium price will increase by $5. B)  The equilibrium quantity will increase by 20 units. C)  The equilibrium price will increase by $15. D)  The equilibrium quantity will increase by 30 units." class="answers-bank-image d-inline" rel="preload" > The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D)  and supply curve (S)  intersect. Something changes in the market, and the demand curve for the good shifts to D2. Which of the following is true?

Accepted Answer

A)   The equilibrium price will increase by $5.
B)   The equilibrium quantity will increase by 20 units.
C)   The equilibrium price will increase by $15.
D)   The equilibrium quantity will increase by 30 units.E) A) and B)
F) B) and C)

Question 10

Demand describes how much of something people:

Accepted Answer

A)   are willing and able to buy at alternative prices under certain circumstances.
B)   want, but may not necessarily be able, to buy under certain circumstances.
C)   are willing and able to sell under certain circumstances.
D)   are able to buy, but might not want to buy under certain circumstances.E) None of the above
F) A) and C)

Question 11

Suppose the price of chocolate chips increases. The producers of chocolate chip cookies will now supply _____ at each price because _____.

Accepted Answer

A)   more; some of their competitors will drop out of the market
B)   less; the price of a main input has gone up
C)   more; the price of a main input has gone up
D)   more; more competitors will enter the marketE) A) and D)
F) B) and D)

Question 12

What are transaction costs?

Accepted Answer

A)   The costs incurred by buyers and sellers in agreeing to and executing a sale of goods or services.
B)   The costs that the government must pay to allow for an exchange.
C)   The costs incurred by buyers and sellers in agreeing to and executing a purchase of goods or services, excluding transportation costs.
D)   The costs that the government incurs to create a structured market for the exchange of goods and services.E) A) and D)
F) A) and C)

Question 13

Consider the market for tacos. To figure out which buyers and sellers we should include in our description of this market, economists will consider:

Accepted Answer

A)   their physical proximity.
B)   the context.
C)   their preferences.
D)   the income levels.E) A) and C)
F) B) and D)

Question 14

In the market shown in the graph, the equilibrium price is:

Accepted Answer

A)   $6.
B)   $27.
C)   $36.
D)   $12.E) All of the above
F) A) and B)

Question 15

The table shows individual demand schedules for a market. What can be said of Betty and Barney's demands for this good?

Accepted Answer

A)   Both of their demands follow the law of demand.
B)   Barney's demand follows the law of demand, but Betty's does not.
C)   Betty's demand follows the law of demand, but Barney's does not.
D)   Neither of their demands follows the law of demand.E) A) and B)
F) None of the above

Question 16

Which of the following is not a non-price determinant of supply?

Accepted Answer

A)   Consumer preferences
B)   Technology
C)   Prices of inputs
D)   Prices of related goodsE) A) and C)
F) C) and D)

Question 17

The supply curve represents the relationship between _____, all else held constant.

Accepted Answer

A)   price and quantity supplied
B)   income and quantity supplied
C)   consumer preferences and quantity
D)   income and price suppliedE) A) and C)
F) A) and B)

Question 18

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D)  and supply curve (S1)  intersect. Something changes in the market, and the supply curve shifts to S2. What could have caused this shift?

Accepted Answer

A)   The price of pizza sauce increased.
B)   The price of pizza decreased.
C)   The price of labor for pizza shops decreased.
D)   None of these would cause the supply curve to shift to S2.E) A) and D)
F) None of the above

Question 19

Suppose a drought causes most fruit crops to fail, decreasing the amount of available fruit. What changes could we expect to see in the market for fruitcake?

Accepted Answer

A)   An increase in the supply of fruitcake
B)   A decrease in the supply of fruitcake
C)   An increase in the demand for fruitcake, but no change in the supply of fruitcake
D)   A decrease in the demand for fruitcake, but no change in the supply of fruitcakeE) None of the above
F) B) and C)

Question 20

A decrease in the price of ice cream is likely to cause a(n)  _____ in the demand for ice cream cones, due to a change in _____.

Accepted Answer

A)   increase; the price of a complementary good
B)   increase; the price of a substitute good
C)   increase; consumer preferences
D)   decrease; the price of a related goodE) None of the above
F) A) and B)

Exam 3: Markets

Demand describes how much of something people:

Correct Answer
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Suppose the price of chocolate chips increases. The producers of chocolate chip cookies will now supply _ at each price because _.

Correct Answer
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Perfectly competitive markets are:

Correct Answer
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The table shows individual demand schedules for a market. What can be said of Betty and Barney's demands for this good?

Correct Answer
verified

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S1) intersect. Something changes in the market, and the supply curve shifts to S2. What could have caused this shift?

Correct Answer
verified

In the market shown in the graph, the equilibrium price is:

Correct Answer
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Correct Answer
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The graph shown depicts the market for a good. At a price of $15, there is:

Correct Answer
verified

The supply curve represents the relationship between _____, all else held constant.

Correct Answer
verified

Consider the market for tacos. To figure out which buyers and sellers we should include in our description of this market, economists will consider:

Correct Answer
verified

A decrease in the price of ice cream is likely to cause a(n) _ in the demand for ice cream cones, due to a change in _.

Correct Answer
verified

Demand for Shell gasoline will increase if the price of:

Correct Answer
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The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S) intersect. Something changes in the market, and the demand curve for the good shifts to D₂. Which of the following is true?

Correct Answer
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Which of the following is not a non-price determinant of supply?

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

Correct Answer
verified

The table shown depicts the demand and supply schedules of a good. At a price of $2.00, quantity demanded:

Correct Answer
verified

Suppose a drought causes most fruit crops to fail, decreasing the amount of available fruit. What changes could we expect to see in the market for fruitcake?

Correct Answer
verified

The most likely substitute good for cereal would be:

Correct Answer
verified

After getting a raise at work, Tiana now regularly buys steak instead of hamburger. Based on this behavior, what can we assume about these goods for Tiana?

Correct Answer
verified

What are transaction costs?

Correct Answer
verified

Exam 3: Markets

Demand describes how much of something people:

Correct AnswerverifiedShow Answer

Suppose the price of chocolate chips increases. The producers of chocolate chip cookies will now supply _____ at each price because _____.

Correct AnswerverifiedShow Answer

Perfectly competitive markets are:

Correct AnswerverifiedShow Answer

The table shows individual demand schedules for a market. What can be said of Betty and Barney's demands for this good?

Correct AnswerverifiedShow Answer

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S1) intersect. Something changes in the market, and the supply curve shifts to S2. What could have caused this shift?

Correct AnswerverifiedShow Answer

In the market shown in the graph, the equilibrium price is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The graph shown depicts the market for a good. At a price of $15, there is:

Correct AnswerverifiedShow Answer

The supply curve represents the relationship between _____, all else held constant.

Correct AnswerverifiedShow Answer

Consider the market for tacos. To figure out which buyers and sellers we should include in our description of this market, economists will consider:

Correct AnswerverifiedShow Answer

A decrease in the price of ice cream is likely to cause a(n) _____ in the demand for ice cream cones, due to a change in _____.

Correct AnswerverifiedShow Answer

Demand for Shell gasoline will increase if the price of:

Correct AnswerverifiedShow Answer

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S) intersect. Something changes in the market, and the demand curve for the good shifts to D2. Which of the following is true?

Correct AnswerverifiedShow Answer

Which of the following is not a non-price determinant of supply?

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

The table shown depicts the demand and supply schedules of a good. At a price of $2.00, quantity demanded:

Correct AnswerverifiedShow Answer

Suppose a drought causes most fruit crops to fail, decreasing the amount of available fruit. What changes could we expect to see in the market for fruitcake?

Correct AnswerverifiedShow Answer

The most likely substitute good for cereal would be:

Correct AnswerverifiedShow Answer

After getting a raise at work, Tiana now regularly buys steak instead of hamburger. Based on this behavior, what can we assume about these goods for Tiana?

Correct AnswerverifiedShow Answer

What are transaction costs?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Suppose the price of chocolate chips increases. The producers of chocolate chip cookies will now supply _ at each price because _.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A decrease in the price of ice cream is likely to cause a(n) _ in the demand for ice cream cones, due to a change in _.

Correct Answer
verified

Correct Answer
verified

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S) intersect. Something changes in the market, and the demand curve for the good shifts to D₂. Which of the following is true?

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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