Econ - Chapter 4

The United States has approximately ___________ credit card holders. a. 1.8 million b. 18 million c. 180 million d. 80 million

c. 180 million

The imposition of a price ceiling on a market often results in: a. an increase in investment in the industry. b. a surplus c. a decrease in discrimination on the part of sellers. d. a shortage

d. a shortage

schedules in a particular market, then the equilibrium price and quantity are __________ and __________, respectively.PriceD 1D 2S 1S 2$12 5 91914$10 8121712$811151510$6131813 8$4162111 6$21824 9 4 a. $10; 12 b. $6; 18 c. $8; 15 d. $12; 12

a. $10; 12

Are markets always in equilibrium? a. Yes, they are always at the equilibrium point, or very close to it. b. No, but if there is no outside interference, they tend to move toward equilibrium. c. Yes, because very few things tend to alter supply and demand. d. No, they never "settle down" into a stable price and quantity.

b. No, but if there is no outside interference, they tend to move toward equilibrium.

Whenever there is a surplus at a particular price, the quantity sold at that price will equal: a. (quantity demanded plus quantity supplied)/2. b. the quantity demanded at that price. c. the quantity supplied at that price. d. the quantity supplied minus the quantity demanded.

b. the quantity demanded at that price

Refer to the table below. If D1 and S1 represent the demand and supply schedules in a particular market, then the equilibrium price and quantity are __________ and __________, respectively.PriceD 1D 2S 1S 2$12 5 91914$10 8121712$811151510$6131813 8$4162111 6$21824 9 4 a. $6; 13 b. $4; 16 c. $4; 11 d. $8; 15

a. $6; 13

Refer to the figure below. The movement from __________ to __________ is consistent with a successful advertising campaign that claims wool keeps you warm. a. Point A; Point F b. Point A; Point H c. Point A; Point B d. Point A; Point D

a. Point A; Point F

The supply curve of textbooks (which are produced using paper made from trees) will shift to the left in response to: a. a sharp increase in the demand for and construction of wood-frame homes. b. an increase in the supply of lumberjacks. c. an end to government regulations that limit timber harvesting in national forests. d. a decline in college tuition.

a. a sharp increase in the demand for and construction of wood-frame homes.

Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine: a. both the equilibrium price and quantity will rise. Correct b. the equilibrium price will fall and the equilibrium quantity will fall. c. the equilibrium price will rise and the equilibrium quantity will decrease. d. the equilibrium price will rise, while the change to equilibrium quantity is indeterminate.

a. both the equilibrium price and quantity will rise.

The labor ____________ curve(s) will shift _______________ if there is an increase in productivity or an increase in the demand for the final product. a. demand; right b. supply; right c. demand; left d. supply; left

a. demand; right

A more efficient means of processing algae to produce an anticancer drug is discovered. As a result, the supply curve for the drug will: a. shift to the right, decreasing the price of the drug b. shift to the left, decreasing the price of the drug. c. shift to the right, increasing the price of the drug. d. shift to the left, increasing the price of the drug.

a. shift to the right, decreasing the price of the drug

Whenever there is a shortage at a particular price, the quantity sold at that price will equal: a. the quantity supplied at that price. b. (quantity demanded plus quantity supplied)/2. c. the quantity demanded at that price. d. the quantity supplied minus the quantity demanded.

a. the quantity supplied at that price.

In 2010, Americans had about _____________ outstanding in credit card debts not paid on time. a. $90 million b. $900 billion c. $90 billion d. $900 million

b. $900 billion

Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by _____________. a. the rise of global markets b. new technologies c. the recession d. inflation

b. new technologies

On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be? a. The higher wage will increase the supply of labor offsetting the effects of the recession. b. Low income workers will be better able to survive the recession at the new, higher wage rate. c. Both the leftward shift in the labor demand curve and the higher minimum wage will lead to an increase in the unemployment rate. d. More people will be hired at the higher wage rate offsetting the effects of the recession.

c. Both the leftward shift in the labor demand curve and the higher minimum wage will lead to an increase in the unemployment rate.

Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel? a. There is a decrease in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel. b. The increase in wage costs will shift the demand curve for steel to the left, increasing the cost of steel. c. There is an increase in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel. d. There is an increase in the cost of producing steel, which shifts the supply curve of steel to the right, thereby increasing the price of steel.

c. There is an increase in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel.

As the _____________ complement for high-skill labor becomes cheaper, the demand curve for high-skill labor will shift to the right. a. low-skill labor b. market c. technology d. lower wage

c. technology

How do apple growers react to the news of medical research findings that suggest that eating apples leads to greater health benefits than were previously known? a. They decrease the supply of apples. b. They increase the supply of apples. c. They increase the quantity of apples supplied. d. They decrease the quantity of apples supplied.

c. they increase the quantity of apples supplied

Refer to the figure below. The movement from __________ to __________ is consistent with a decrease in the price of cotton (a substitute). a. Point A; Point B b. Point A; Point D c. Point A; Point F d. Point A; Point H

d. Point A; Point H

A straightforward example of a _______________, often used for simplicity, is the interest rate. a. financial investment b. price floor c. price ceiling d. rate of return

d. rate of return