Question 1

A shift in the supply curve of bicycles resulting from higher steel prices will lead to

Accepted Answer

A)  higher prices of bicycles.
B)  lower prices of bicycles.
C)  a shift in the demand curve for bicycles.
D)  larger output of bicycles.
E)  no change in the price of bicycles.F) A) and B)
G) B) and C)

Question 2

Why do price ceilings tend to cause persistent imbalances in the market?

Accepted Answer

A)  Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
B)  Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
C)  Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
D)  Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.E) All of the above
F) None of the above

Question 3

Demand shifts due to changes in price.

Accepted Answer

A) True 
 B)False

Question 4

Figure 4-21 3 in Figure 4-21, what will tend to happen? A) There will be a shortage, and the price will fall. B) There will be a shortage, and the price will rise. C) There will be a surplus, and the price will rise. D) There will be a surplus, and the price will fall. E) Equilibrium will occur in the market." class="answers-bank-image d-inline" rel="preload" >
-At price P3 in Figure 4-21, what will tend to happen?

Accepted Answer

A)  There will be a shortage, and the price will fall.
B)  There will be a shortage, and the price will rise.
C)  There will be a surplus, and the price will rise.
D)  There will be a surplus, and the price will fall.
E)  Equilibrium will occur in the market.F) A) and C)
G) B) and E)

Question 5

A shift in the demand curve occurs when

Accepted Answer

A)  suppliers place more goods on the market.
B)  the price of a good rises.
C)  consumers want to buy more or less than before at a given price.
D)  the price of the good falls.E) A) and D)
F) C) and D)

Question 6

The law of increasing relative costs, depicted by the concavity of the production opportunities frontier, is most closely related to the

Accepted Answer

A)  downward slope of the demand curve.
B)  upward slope of the demand curve.
C)  downward slope of the supply curve.
D)  upward slope of the supply curve.E) None of the above
F) B) and D)

Question 7

The supply curve of books (which are produced using paper made from trees)  will shift to the left in response to

Accepted Answer

A)  a decline in college tuition.
B)  an increase in home building.
C)  an increase in the supply of lumberjacks.
D)  an end to government regulations that limit timber harvesting in national forests.E) All of the above
F) B) and C)

Question 8

How will a decrease in price tend to affect supply?

Accepted Answer

A)  Supply will increase.
B)  Supply will decrease.
C)  Supply will not change.
D)  Uncertain.E) All of the above
F) None of the above

Question 9

Figure 4-2 
-If the government has stated that it will buy any amount of good X offered at $30, which demand curve in Figure 4-2 is appropriate?

Accepted Answer

A)  1
B)  2
C)  3
D)  4E) None of the above
F) A) and C)

Question 10

To construct a supply curve, an economist needs data on price and quantity.Each point on the supply curve is

Accepted Answer

A)  supply of the product.
B)  a quantity supplied at that price.
C)  the amount that people want to buy.
D)  the amount people want to sell to buyers of different incomes.
E)  All of the above are correct.F) A) and D)
G) D) and E)

Question 11

When GM advertises its cars, the company is trying to cause a

Accepted Answer

A)  rightward shift in the supply.
B)  rightward shift in the demand.
C)  leftward shift in the supply.
D)  leftward shift in the demand.E) C) and D)
F) A) and B)

Question 12

Any ​event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.

Accepted Answer

A) True 
 B)False

Question 13

Price controls usually enhance efficiency in the allocation of resources.

Accepted Answer

A) True 
 B)False

Question 14

A minimum wage law may cause unemployment among low-skill workers.

Accepted Answer

A) True 
 B)False

Question 15

An increase in consumer income will shift both the supply and demand curves.

Accepted Answer

A) True 
 B)False

Question 16

A report on the dangers of cholesterol would likely shift the demand curve for beef downward and to the left.

Accepted Answer

A) True 
 B)False

Question 17

From 2007 to 2008, the Federal Reserve System reduced interest rates, the price which borrowers pay.As a result, economists expected the quantity of money demanded to

Accepted Answer

A)  increase.
B)  decrease.
C)  not change.
D)  not change, although the demand schedule itself will shift outward.E) A) and B)
F) A) and C)

Question 18

Figure 4-4 1 to D2. B) D2 to D1. C) D2 to D3. D) D1 to D3." class="answers-bank-image d-inline" rel="preload" >
-Assume that Figure 4-4 shows demand for soda.A decrease in the price of apple juice will change demand from

Accepted Answer

A)  D1 to D2.
B)  D2 to D1.
C)  D2 to D3.
D)  D1 to D3.E) None of the above
F) A) and D)

Question 19

Figure 4-16 1 to S2. B) S2 to S1. C) S2 to S3. D) S1 to S3." class="answers-bank-image d-inline" rel="preload" >
-Assume that Figure 4-16 shows the supply of steak.An increase in the price of pork will change the supply from

Accepted Answer

A)  S1 to S2.
B)  S2 to S1.
C)  S2 to S3.
D)  S1 to S3.E) C) and D)
F) All of the above

Question 20

During the Revolutionary War, the Pennsylvania legislature attempted to help the Continental Army by enacting

Accepted Answer

A)  wage floors for soldiers in the army.
B)  bonuses for soldiers who re-enlisted.
C)  laws to buy food for the soldiers stationed in Pennsylvania.
D)  price controls on essential commodities.
E)  All of the above are correct.F) A) and D)
G) B) and D)

Exam 4: Supply and Demand an Initial Look

Figure 4-21 -At price P3 in Figure 4-21, what will tend to happen?

Correct AnswerverifiedShow Answer

To construct a supply curve, an economist needs data on price and quantity.Each point on the supply curve is

Correct AnswerverifiedShow Answer

Figure 4-4 -Assume that Figure 4-4 shows demand for soda.A decrease in the price of apple juice will change demand from

Correct AnswerverifiedShow Answer

Figure 4-2 -If the government has stated that it will buy any amount of good X offered at $30, which demand curve in Figure 4-2 is appropriate?

Correct AnswerverifiedShow Answer

Why do price ceilings tend to cause persistent imbalances in the market?

Correct AnswerverifiedShow Answer

Demand shifts due to changes in price.

Correct AnswerverifiedShow Answer

Figure 4-16 -Assume that Figure 4-16 shows the supply of steak.An increase in the price of pork will change the supply from

Correct AnswerverifiedShow Answer

A minimum wage law may cause unemployment among low-skill workers.

Correct AnswerverifiedShow Answer

During the Revolutionary War, the Pennsylvania legislature attempted to help the Continental Army by enacting

Correct AnswerverifiedShow Answer

An increase in consumer income will shift both the supply and demand curves.

Correct AnswerverifiedShow Answer

A shift in the supply curve of bicycles resulting from higher steel prices will lead to

Correct AnswerverifiedShow Answer

When GM advertises its cars, the company is trying to cause a

Correct AnswerverifiedShow Answer

Price controls usually enhance efficiency in the allocation of resources.

Correct AnswerverifiedShow Answer

A shift in the demand curve occurs when

Correct AnswerverifiedShow Answer

From 2007 to 2008, the Federal Reserve System reduced interest rates, the price which borrowers pay.As a result, economists expected the quantity of money demanded to

Correct AnswerverifiedShow Answer

How will a decrease in price tend to affect supply?

Correct AnswerverifiedShow Answer

A report on the dangers of cholesterol would likely shift the demand curve for beef downward and to the left.

Correct AnswerverifiedShow Answer

The supply curve of books (which are produced using paper made from trees) will shift to the left in response to

Correct AnswerverifiedShow Answer

The law of increasing relative costs, depicted by the concavity of the production opportunities frontier, is most closely related to the

Correct AnswerverifiedShow Answer

Any ​event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.

Correct AnswerverifiedShow Answer

Figure 4-21 -At price P₃ in Figure 4-21, what will tend to happen?

Correct Answer
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Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.

Correct Answer
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