Question 1

Who gets scarce resources in a market economy?

Accepted Answer

A)  the government
B)  whoever the government decides gets them
C)  whoever wants them
D)  whoever is willing and able to pay the priceE) C) and D)
F) B) and D)

Question 2

Figure 4-8 
-Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless keyboards, a complementary good, increases. Which of the following changes would occur?

Accepted Answer

A)  a movement along D2 from point A to point B
B)  a movement along D2 from point B to point A
C)  a shift from D1 to D2
D)  a shift from D2 to D1E) A) and D)
F) All of the above

Question 3

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Accepted Answer

A)  will increase but not until the end of the year.
B)  increases today.
C)  decreases as she looks for a substitute good.
D)  shifts left today.E) None of the above
F) B) and C)

Question 4

Figure 4-6  
-Refer to Figure 4-6. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. We could illustrate the tax as producing a movement from

Accepted Answer

A)  Point A to Point B in Panel 1.
B)  Point B to Point A in Panel 1.
C)  Point A to Point C in Panel 2.
D)  Point C to Point A in Panel 2.E) A) and C)
F) C) and D)

Question 5

In competitive markets,

Accepted Answer

A)  firms produce identical products.
B)  buyers can influence the market price more easily than sellers.
C)  markets are more likely to be in equilibrium.
D)  sellers are price setters.E) A) and D)
F) B) and C)

Question 6

Figure 4-11 
-Refer to Figure 4-11. The movement from point A to point B on the graph represents

Accepted Answer

A)  an increased willingness and ability on the part of suppliers to supply the good at each possible price.
B)  an increase in the number of suppliers.
C)  a decrease in the price of a relevant input.
D)  an increase in the price of the good that is being supplied and the suppliers' responses to that price change.E) All of the above
F) A) and B)

Question 7

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Accepted Answer

A)  The number of people who purchase olives decreases.
B)  Consumer income decreases, and olives are a normal good.
C)  The price of pickles decreases, and pickles are a substitute for olives.
D)  The price of olives rises.E) B) and C)
F) C) and D)

Question 8

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Accepted Answer

The demand...

Question 9

The following table contains a supply schedule for a good.  If the law of supply applies to this good, then Q1 could be

Accepted Answer

A)  0.
B)  50.
C)  100.
D)  150.E) B) and C)
F) None of the above

Question 10

Table 4-6 
-Refer to Table 4-6. If these are the only four sellers in the market, then when the price increases from $6 to $8, the market quantity supplied

Accepted Answer

A)  increases by 0.5 units.
B)  increases by 2 units.
C)  decreases by 4 units.
D)  increases by 42 units.E) B) and D)
F) B) and C)

Question 11

Which of the following events must result in a higher price in the market for cigars?

Accepted Answer

A)  Demand for cigars increases, and supply of cigars decreases.
B)  Demand for cigars and supply of cigars both decrease.
C)  Demand for cigars decreases, and supply of cigars increases.
D)  Demand for cigars and supply of cigars both increaseE) A) and C)
F) A) and D)

Question 12

Figure 4-22 
-Refer to Figure 4-22. What is the equilibrium price in this market?

Accepted Answer

A)  $8
B)  $12
C)  $16
D)  $20E) B) and C)
F) All of the above

Question 13

Figure 4-27
Panel (a) 
Panel (b)    Panel (c) 
Panel (d)   
-Refer to Figure 4-27. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) E) B) and C)
F) C) and D)

Exam 4: The Market Forces of Supply and Demand

Who gets scarce resources in a market economy?

Correct Answer
verified

In competitive markets,

Correct Answer
verified

Correct Answer
verified

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct Answer
verified

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Correct Answer
verified

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Correct Answer
verified
The demand...
View Answer

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Correct Answer
verified

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph represents

Correct Answer
verified

The following table contains a supply schedule for a good. If the law of supply applies to this good, then Q1 could be

Correct Answer
verified

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then when the price increases from $6 to $8, the market quantity supplied

Correct Answer
verified

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless keyboards, a complementary good, increases. Which of the following changes would occur?

Correct Answer
verified

Figure 4-22 -Refer to Figure 4-22. What is the equilibrium price in this market?

Correct Answer
verified

Which of the following events must result in a higher price in the market for cigars?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Who gets scarce resources in a market economy?

Correct AnswerverifiedShow Answer

In competitive markets,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct AnswerverifiedShow Answer

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Correct AnswerverifiedShow Answer

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Correct AnswerverifiedShow Answer

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph represents

Correct AnswerverifiedShow Answer

The following table contains a supply schedule for a good. If the law of supply applies to this good, then Q1 could be

Correct AnswerverifiedShow Answer

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then when the price increases from $6 to $8, the market quantity supplied

Correct AnswerverifiedShow Answer

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless keyboards, a complementary good, increases. Which of the following changes would occur?

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. What is the equilibrium price in this market?

Correct AnswerverifiedShow Answer

Which of the following events must result in a higher price in the market for cigars?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The demand...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified