Question 1

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 2

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) A) and B)
F) All of the above

Question 3

The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:

Accepted Answer

A)  quantity demanded.
B)  quantity supplied.
C)  demand.
D)  supply.E) B) and D)
F) All of the above

Question 4

What effect would a rise in the price of gasoline have on automakers?

Accepted Answer

A)  Automakers would produce more gas-efficient cars.
B)  Automakers would decrease the price of gas-efficient vehicles.
C)  Automakers would spend more money to market large vehicles.
D)  A rise in the price of gasoline would not affect an automaker's supply decisions.E) B) and D)
F) B) and C)

Question 5

Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _____ and the supply of ride-on mowers _____.

Accepted Answer

A)  increases; increases
B)  decreases; decreases
C)  increases; decreases
D)  decreases; increasesE) A) and B)
F) A) and C)

Question 6

The most likely complementary good for cereal would be:

Accepted Answer

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

Question 7

Consider the market for wheat, which is currently in equilibrium. Now, suppose a pest destroys most of this year's wheat crop. How will the market for wheat change as a result of the destruction?Supply will shift to the right.The equilibrium price will increase.The equilibrium quantity will decrease.The equilibrium price may or may not change.

Accepted Answer

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

Question 8

The four important characteristics that define a perfectly competitive market are:

Accepted Answer

A)  a standardized good, full information, no transaction costs, and price-taking participants.
B)  standardized information, a finished good, no transaction costs, and price-making participants.
C)  a standardized good, the same information for buyers and sellers, low transaction costs, and price-taking participants.
D)  a standardized good, full information, no transaction costs, and price-making participants.E) C) and D)
F) B) and C)

Question 9

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

Accepted Answer

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

Question 10

Jan heads to the store to buy burgers for dinner. Seeing a sale on hot dogs, she buys those instead. The change in her demand for burgers is due to which factor?

Accepted Answer

A)  Consumer preferences
B)  Income
C)  Prices of related goods
D)  Number of buyersE) A) and C)
F) A) and D)

Question 11

Equilibrium exists at the point where:

Accepted Answer

A)  quantity supplied equals quantity demanded.
B)  buyers and sellers "agree" on the quantity of a good they are willing to exchange at all prices.
C)  willingness to pay is maximized.
D)  every buyer and seller achieve their best possible outcome.E) A) and B)
F) B) and D)

Question 12

The law of demand states that, all else held equal:

Accepted Answer

A)  quantity demanded rises as price falls.
B)  quantity demanded rises as price rises.
C)  quantity demanded rises as income rises.
D)  demand rises as price falls.E) All of the above
F) A) and D)

Question 13

A demand schedule is a _____ that shows the quantities of a particular good or service that consumers are willing to purchase at various _____.

Accepted Answer

A)  table; prices
B)  graph; prices
C)  table; income levels
D)  line; pricesE) A) and B)
F) B) and C)

Question 14

What is a supply curve?

Accepted Answer

A)  A graphical representation that visually displays the supply schedule.
B)  A graph depicting various price-quantity combinations of multiple goods.
C)  A graph that shows the quantities of a particular good or service that producers will sell at one price.
D)  A table that displays various price-quantity combinations of a good or service.E) B) and D)
F) B) and C)

Question 15

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 85.
B)  a price of $3.00 and a quantity of 45.
C)  a price of $3.00 and a quantity of 90.
D)  a price of $4.50 and a quantity of 91.E) None of the above
F) All of the above

Question 16

Suppose a tornado levels hundreds of homes. As rebuilding begins, how might you analyze the effect this would have on the market for lumber?

Accepted Answer

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

Question 17

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

Accepted Answer

A)  $5.
B)  $10.
C)  $15.
D)  $20.E) A) and B)
F) B) and C)

Question 18

The demand curve represents the relationship between _____, with everything else held constant.

Accepted Answer

A)  price and quantity demanded
B)  income and quantity demanded
C)  consumer preferences and quantity demanded
D)  income and price demandedE) A) and D)
F) A) and C)

Question 19

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) B) and C)
F) A) and D)

Question 20

An increase in the price of Heinz ketchup is likely to cause a(n) _____ in the demand for Hunt's ketchup, due to a change in _____.

Accepted Answer

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

Exam 3: Markets

Suppose a tornado levels hundreds of homes. As rebuilding begins, how might you analyze the effect this would have on the market for lumber?

Correct Answer
verified

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

Correct Answer
verified

What effect would a rise in the price of gasoline have on automakers?

Correct Answer
verified

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

Jan heads to the store to buy burgers for dinner. Seeing a sale on hot dogs, she buys those instead. The change in her demand for burgers is due to which factor?

Correct Answer
verified

Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _ and the supply of ride-on mowers _.

Correct Answer
verified

Correct Answer
verified

Equilibrium exists at the point where:

Correct Answer
verified

The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:

Correct Answer
verified

What is a supply curve?

Correct Answer
verified

The four important characteristics that define a perfectly competitive market are:

Correct Answer
verified

The demand curve represents the relationship between _____, with everything else held constant.

Correct Answer
verified

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

Correct Answer
verified

The law of demand states that, all else held equal:

Correct Answer
verified

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

Correct Answer
verified

An increase in the price of Heinz ketchup is likely to cause a(n) _ in the demand for Hunt's ketchup, due to a change in _.

Correct Answer
verified

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

Correct Answer
verified

A demand schedule is a _ that shows the quantities of a particular good or service that consumers are willing to purchase at various _.

Correct Answer
verified

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

Correct Answer
verified

The most likely complementary good for cereal would be:

Correct Answer
verified

Exam 3: Markets

Suppose a tornado levels hundreds of homes. As rebuilding begins, how might you analyze the effect this would have on the market for lumber?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What effect would a rise in the price of gasoline have on automakers?

Correct AnswerverifiedShow Answer

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

Jan heads to the store to buy burgers for dinner. Seeing a sale on hot dogs, she buys those instead. The change in her demand for burgers is due to which factor?

Correct AnswerverifiedShow Answer

Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _____ and the supply of ride-on mowers _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Equilibrium exists at the point where:

Correct AnswerverifiedShow Answer

The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:

Correct AnswerverifiedShow Answer

What is a supply curve?

Correct AnswerverifiedShow Answer

The four important characteristics that define a perfectly competitive market are:

Correct AnswerverifiedShow Answer

The demand curve represents the relationship between _____, with everything else held constant.

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

The law of demand states that, all else held equal:

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

An increase in the price of Heinz ketchup is likely to cause a(n) _____ in the demand for Hunt's ketchup, due to a change in _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A demand schedule is a _____ that shows the quantities of a particular good or service that consumers are willing to purchase at various _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The most likely complementary good for cereal would be:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _ and the supply of ride-on mowers _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

An increase in the price of Heinz ketchup is likely to cause a(n) _ in the demand for Hunt's ketchup, due to a change in _.

Correct Answer
verified

Correct Answer
verified

A demand schedule is a _ that shows the quantities of a particular good or service that consumers are willing to purchase at various _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified