Econ 2020 Macro quiz 1

Assume there is a surplus in the market for hybrid automobiles. Which of the following statements correctly describes this situation?

A. The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease. B. Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price. C. the surplus will cause an increase in the equilibrium price of hybrid automobiles. D. The supply of hybrid automobiles is greater than the demand for hybrid automobiles. A. The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease.

If the price of gasoline increases, what will be the impact in the market for public transportation?

A. The quantity of public transportation demanded decreases. B. The demand curve for public transportation shifts to the right. C. The demand curve for public transportation shifts to the left. D. The quantity of public transportation demanded increases. B. The demand curve for public transportation shifts to the right.

If the United States lifts the embargo on Cuban products, what will happen in the U.S. market for Cuban cigars?

A. The supply curve will shift to the left. B. The demand curve will shift to the right. C. The demand curve will shift to the left. D. The supply curve will shift to the right. C. The supply curve will shift to the right.

Which of the following would shift the supply curve for energy drinks to the left

A. a decrease in the number of firms that produce energy drinks B. a decrease in the price of an input used to produce energy drinks C. a decrease in the expected future price of energy drinks D. an increase in consumer income (assuming that energy drinks are normal goods) A. a decrease in the number of firms that produce energy drinks

Holding everything else constant, a decrease in the price of GPS systems will result in

A. an increase in the demand for GPS systems. B. a decrease in the supply of GPS systems. C. an decrease in the quantity of GPS systems demanded. D. an increase in the quantity of GPS systems demanded. D. an increase in the quantity of GPS systems demanded.

A(n) ________ is represented by a rightward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve

A. decrease in demand; decrease in quantity demanded B. increase in demand; decrease in demand C. increase in quantity demanded; increase in demand D. increase in demand; increase in quantity demanded D. increase in demand; increase in quantity demanded

The supply curve for umbrellas:

A. shows the relationship between the quantity of umbrellas firms are willing and able to supply and the quantity of umbrellas consumers are willing and able to purchase. B. shows the relationship between the price of umbrellas and the quantity of umbrellas supplied. C. is downward sloping. D. shows the supply of umbrellas consumers are willing and able to buy at any given price. B. shows the relationship between the price of umbrellas and the quantity of umbrellas supplied.

The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power.

A. substitution B. ceteris paribus C. demographics D. income D. income

At a product's equilibrium price

A. the federal government will provide the product to anyone who cannot afford it. B. not all sellers who are willing to accept the price will find buyers for their products. C. anyone who needs the product will be able to buy the product, regardless of ability to pay. D. any buyer who is willing and able to pay the price will find a seller for the product. D. any buyer who is willing and able to pay the price will find a seller for the product.

The substitution effect of a price change refers to

A. the shift in the demand curve due to a change in purchasing power brought about by the price change. B. the shift of a demand curve when the price of a substitute good changes. C. the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are substitutes. D. the movement along the demand curve due to a change in purchasing power brought about by the price change. C. the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are substitutes.