Ch 3/4

Improvements in the productivity of labor will tend to: a. decrease wages b. decrease the supply of labor c. increase wages d. increase the supply of labor

increase wages

In the United States, a typical credit card interest rate ranges from ______________ per year. a. .2% to .8% b. 2% to 8% c. 12% to 18% d. 22% to 28%

12% to 18%

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

180

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

900 billion

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 an increase in the cost of producing steel, which shifts the supply curve of steel to the right, thereby increasing the price of steel. b. 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. c. 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. d. The increase in wage costs will shift the demand curve for steel to the left, increasing the cost of steel.

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.

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

a sharp increase in the demand for and construction fo woodframe homes

After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is: a. no change; only the supply curve for beef is likely to be affected. b. a shift of the demand curve for beef to the left.. c. a movement down along the demand curve for beef to the right. d. a shift of the demand curve for beef to the right.

a shift of the demand curve for beef to the left

The term "ceteris paribus" means that: a. everything is variable. b. all variables except those specified are constant. c. no one knows which variables will change and which will remain constant. d. what is true for the individual is not necessarily true for the whole.

all variables except those specified are constant.

Which of the following results in a rightward shift of the market demand curve for labor? a. a decrease in labor productivity b. a decrease in the firm's product price c. an increase in the wage rate d. an increase in demand for the firm's product

an increase in demand for the firm's product

Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine: a. the equilibrium price will fall and the equilibrium quantity will fall. b. the equilibrium price will rise and the equilibrium quantity will rise. 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.

b. the equilibrium price will rise and the equilibrium quantity will rise.

The nature of demand indicates that as the price of a good increases: a. suppliers wish to sell less of it. b. buyers desire to purchase less of it c. more of it is desired. d. more of it is produced.

buyers desire to purchase less of it

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, increasing the price of the drug. b. shift to the left, increasing the price of the drug. c. shift to the right, decreasing the price of the drug d. shift to the left, decreasing the price of the drug

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

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; left b. supply; left c. demand; right d. supply; right

demand; right

The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price. a. quantity demanded b. equilibrium quantity c. demand schedule d. supply schedule

equilibrium quantity

The demand curve for a typical good has a(n): a. negative slope because some consumers switch to other goods as the price rises. b. negative slope because consumer incomes fall as the price of the good rises. c. negative slope because the good has less "snob appeal" as its price falls. d. inverse slope because as the price goes up, the good has more profitability.

negative slope because some consumers switch to other goods as the price rises.

The downward slope of the demand curve again illustrates the pattern that as _____________ rises, _________________ decreases. a. quantity supplied, quantity demanded b. price, quantity supplied c. price, quantity demanded d. quantity demanded, price

price, quantity demanded

A supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and ____________, shown on the horizontal axis. a. demand b. quantity c. quantity supplied d. quantity demanded

quantity

A demand curve shows the relationship between price and _________________ on a graph. a. quantity demanded b. quantity produced c. economies of scale d. costs

quantity demanded

When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _________________. a. demand schedule b. market price c. quantity supplied d. demand curve

quantity supplied

A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the __________________ . a. demand curve to the right b. supply curve to the left c. supply curve to the right d. demand curve to the left

supply curve to the right

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

the quantity supplied at that price.

If new manufacturers enter the computer industry, then (ceteris paribus): a. the supply curve shifts to the left. b. the supply curve shifts to the right. c. the demand curve shifts to the left. d. some established manufacturers must exit the industry.

the supply curve shifts to the right.

When quantity demanded decreases in response to a change in price: a. the demand curve shifts to the right. b. the demand curve shifts to the left. c. there is a movement down along the demand curve. d. there is a movement up along the demand curve.

there is a movement up align the demand curve

But nearly all supply curves share a basic similarity: they slope _______________. a. down from left to right b. up from left to right c. up from right to left d. down from right to left

up from left to right

In economics, the demand for a good refers to the amount of the good that people: a. would like to have if the good were free. b. will buy at various prices c. need to achieve a minimum standard of living. d. will buy at alternative income levels.

will buy at various prices