Question 1

The supply of a good or service is determined by

Accepted Answer

A)  those who buy the good or service.
B)  the government.
C)  those who sell the good or service.
D)  both those who buy and those who sell the good or service.E) A) and B)
F) A) and C)

Question 2

A monopoly is a market with one

Accepted Answer

A)  seller,and that seller is a price taker.
B)  seller,and that seller sets the price.
C)  buyer,and that buyer is a price taker.
D)  buyer,and that buyer sets the price.E) B) and D)
F) None of the above

Question 3

In a competitive market,the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)  buyers.
B)  sellers.
C)  both buyers and sellers.
D)  None of the above is correct.E) A) and B)
F) A) and C)

Question 4

Prices allocate a market economy's scarce resources.

Accepted Answer

A) True 
 B)False

Question 5

At the equilibrium price,the quantity of the good that buyers are willing and able to buy

Accepted Answer

A)  is greater than the quantity that sellers are willing and able to sell.
B)  exactly equals the quantity that sellers are willing and able to sell.
C)  is less than the quantity that sellers are willing and able to sell.
D)  Either a) or c) could be correct.E) None of the above
F) C) and D)

Question 6

Which of the following is an example of a market?

Accepted Answer

A)  a gas station
B)  a garage sale
C)  a barber shop
D)  All of the above are examples of markets.E) All of the above
F) B) and D)

Question 7

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)  willing to purchase.
B)  willing and able to purchase.
C)  willing,able,and need to purchase.
D)  able to purchase.E) All of the above
F) A) and D) B

Question 8

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Accepted Answer

A) True 
 B)False

Question 9

If a seller in a competitive market chooses to charge more than the going price,then

Accepted Answer

A)  the sellers' profits must increase.
B)  the owners of the raw materials used in production would raise the prices for the raw materials.
C)  other sellers would also raise their prices.
D)  buyers will make purchases from other sellers.E) A) and D)
F) None of the above

Question 10

The demand for a good or service is determined by

Accepted Answer

A)  those who buy the good or service.
B)  the government.
C)  those who sell the good or service.
D)  both those who buy and those who sell the good or service.E) A) and C)
F) B) and C)

Question 11

The signals that guide the allocation of resources in a market economy are

Accepted Answer

A)  surpluses and shortages.
B)  quantities.
C)  government policies.
D)  prices.E) B) and C)
F) A) and D)

Question 12

Figure 4-2
The graph below pertains to the supply of paper to colleges and universities. 
A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-2.All else equal,the return of college students to campus in the fall would cause a move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  SA to SB.
D)  SB to SA.E) C) and D)
F) A) and D)

Question 13

If the price of a good is low,

Accepted Answer

A)  firms would increase profit by increasing output.
B)  the quantity supplied of the good could be zero.
C)  the supply curve for the good will shift to the left.
D)  firms can and should raise the price of the product.E) B) and C)
F) A) and B) B

Question 14

Figure 4-2
The graph below pertains to the supply of paper to colleges and universities. 
A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-2.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  SA to SB.
D)  SB to SA.E) None of the above
F) B) and C)

Question 15

Figure 4-1 
-Refer to Figure 4-1.The movement from point A to point B on the graph shows

Accepted Answer

A)  a decrease in demand.
B)  an increase in demand.
C)  a decrease in quantity demanded.
D)  an increase in quantity demanded.E) A) and D)
F) B) and C)

Question 16

In a market economy,supply and demand determine both the quantity of each good produced and the price at which it is sold.

Accepted Answer

A) True 
 B)False

Question 17

A decrease in the price of a good will

Accepted Answer

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

Question 18

Fill in the table below,showing whether equilibrium price and equilibrium quantity go up,go down,stay the same,or change ambiguously. $$\begin{array} { | l | l | l | l | } 
\hline & \text { No Change in Supply } & \text { An Increase in Supply } & \text { A Decrease in Supply } \
\hline \begin{array} { l } 
\text { No Change in } \
\text { Demand }
\end{array} & & & \
\hline \begin{array} { l } 
\text { An Increase in } \
\text { Demand }
\end{array} & & & \
\hline \begin{array} { l } 
\text { A Decrease in } \
\text { Demand }
\end{array} & & & \
\hline
\end{array}$$

Accepted Answer

$$\begin{array} { | l | c | c | c | } 
\hline & \text { No Change in Supply } & \text { An Increase in Supply } & \text { A Decrease in Supply } \
\hline \text { No Change in } & \text { P same } & \text { P down } & \text { P up } \
\text { Demand } & \text { Q same } & \text { Qup } & \text { Q down } \
\hline \text { An Increase in } & \text { P up } & \text { P ambiguous } & \text { Pup } \
\text { Demand } & \text { Q up } & \text { Q up } & \text { Qambiguous } \
\hline \text { A Decrease in } & \text { P down } & \text { P down } & \text { Pambiguous } \
\text { Demand } & \text { Q down } & \text { Qambiguous } & \text { Q down } \
\hline
\end{array}$$

Question 19

When quantity supplied increases at every possible price,we know that the supply curve has

Accepted Answer

A)  shifted to the left.
B)  shifted to the right.
C)  not shifted; rather,we have moved along the supply curve to a new point on the same curve.
D)  not shifted; rather,the supply curve has become flatter.E) A) and D)
F) None of the above

Question 20

Most markets in the economy are

Accepted Answer

A)  markets in which sellers,rather than buyers,control the price of the product.
B)  markets in which buyers,rather than sellers,control the price of the product.
C)  perfectly competitive.
D)  highly competitive.E) C) and D)
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

The supply of a good or service is determined by

Correct Answer
verified

A monopoly is a market with one

Correct Answer
verified

In a competitive market,the quantity of a product produced and the price of the product are determined by

Correct Answer
verified

Prices allocate a market economy's scarce resources.

Correct Answer
verified

At the equilibrium price,the quantity of the good that buyers are willing and able to buy

Correct Answer
verified

Which of the following is an example of a market?

Correct Answer
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The quantity demanded of a good is the amount that buyers are

Correct Answer
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B

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct Answer
verified

If a seller in a competitive market chooses to charge more than the going price,then

Correct Answer
verified

The demand for a good or service is determined by

Correct Answer
verified

The signals that guide the allocation of resources in a market economy are

Correct Answer
verified

Figure 4-2 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-2.All else equal,the return of college students to campus in the fall would cause a move from

Correct Answer
verified

If the price of a good is low,

Correct Answer
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B

Figure 4-2 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-2.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Correct Answer
verified

Figure 4-1 -Refer to Figure 4-1.The movement from point A to point B on the graph shows

Correct Answer
verified

In a market economy,supply and demand determine both the quantity of each good produced and the price at which it is sold.

Correct Answer
verified

A decrease in the price of a good will

Correct Answer
verified

When quantity supplied increases at every possible price,we know that the supply curve has

Correct Answer
verified

Most markets in the economy are

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

The supply of a good or service is determined by

Correct AnswerverifiedShow Answer

A monopoly is a market with one

Correct AnswerverifiedShow Answer

In a competitive market,the quantity of a product produced and the price of the product are determined by

Correct AnswerverifiedShow Answer

Prices allocate a market economy's scarce resources.

Correct AnswerverifiedShow Answer

At the equilibrium price,the quantity of the good that buyers are willing and able to buy

Correct AnswerverifiedShow Answer

Which of the following is an example of a market?

Correct AnswerverifiedShow Answer

The quantity demanded of a good is the amount that buyers are

Correct AnswerverifiedB

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct AnswerverifiedShow Answer

If a seller in a competitive market chooses to charge more than the going price,then

Correct AnswerverifiedShow Answer

The demand for a good or service is determined by

Correct AnswerverifiedShow Answer

The signals that guide the allocation of resources in a market economy are

Correct AnswerverifiedShow Answer

Figure 4-2 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-2.All else equal,the return of college students to campus in the fall would cause a move from

Correct AnswerverifiedShow Answer

If the price of a good is low,

Correct AnswerverifiedB

Figure 4-2 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-2.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Correct AnswerverifiedShow Answer

Figure 4-1 -Refer to Figure 4-1.The movement from point A to point B on the graph shows

Correct AnswerverifiedShow Answer

In a market economy,supply and demand determine both the quantity of each good produced and the price at which it is sold.

Correct AnswerverifiedShow Answer

A decrease in the price of a good will

Correct AnswerverifiedShow Answer

When quantity supplied increases at every possible price,we know that the supply curve has

Correct AnswerverifiedShow Answer

Most markets in the economy are

Correct AnswerverifiedShow Answer

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B

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B

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