Chapter 4 Checkpoint Questions
Jeb makes the following four statements about peanuts. Which statement best describes his quantity demanded in the peanut market? A. At a price of $1 per pack, I plan to buy 2 packs of peanuts per week. B. If peanuts were less expensive, I'd buy them more often. C. I eat peanuts to complement cola. D. I'll stop eating peanuts when I can afford to buy walnuts.
A. At a price of $1 per pack, I plan to buy 2 packs of peanuts per week.
In market equilibrium, at the equilibrium price and equilibrium quantity, _____ . A. the quantity demanded equals the quantity supplied and equals the quantity bought and sold B. demand is not greater than supply C. demand equals supply D. both the quantity demanded equals the quantity supplied and demand equals supply.
A. the quantity demanded equals the quantity supplied and equals the quantity bought and sold
Which of the following is an example of a price ceiling or price cap? A. Walmart promises to have the lowest prices. B. A regulation sets the minimum price of ethanol at 50 cents per gallon. C. WinCo Foods sells organic milk at $8 per gallon. D. A regulation requires cable service to be provided for no more than $30 a month.
D. A regulation requires cable service to be provided for no more than $30 a month.
Which of the following statements describes the law of market forces? A. When the price of corn fell, nothing else changed and farmers planted fewer acres with corn. B. A rise in the price of cabbage creates a surplus of cabbage and a fall in the price of corn creates a shortage of corn. C. When the price of cabbage increased, nothing else changed and people bought less cabbage. D. A shortage of cabbage increased the price of cabbage and a surplus of corn lowered its price.
D. A shortage of cabbage increased the price of cabbage and a surplus of corn lowered its price.
Aqua Springs makes the following four statements about bottled spring water. Which statement best describes the firm's quantity supplied in the bottled water market? A. We would sell more water if the demand for it were greater. B. We'll switch from plain water to flavored water is flavored is more profitable. C. If we could get a higher price, we'd bottle more water. D. At a price of $1 gallon, we plan to sell 2,000 gallons per day.
D. At a price of $1 gallon, we plan to sell 2,000 gallons per day.
Which of the following statements about the market for chicken describes a change in the quantity demanded and which describes a change in demand? I People are buying less chicken because the price of beef has fallen. II People are buying less chicken because the price of chicken has increased. III People are buying more chicken because the price of chicken has fallen. IV The cost of chicken feed has increased. A. I, II, and III are changes in demand and IV is a change in the quantity demanded. B. I is a change in the quantity demanded and II and III are changes in demand. C. I, II, and III are changes in the quantity demanded and IV is a change in demand. D. I is a change in demand and II and III are changes in the quantity demanded.
D. I is a change in demand and II and III are changes in the quantity demanded.
Which of the following statements by Aqua Springs demonstrates that the firm's selling plans obey the law of supply? A. We can easily decrease the production of plain water and increase the production of flavored water. B. We've been hit by a rise in the price of plastic bottles and will lower production. C. At a price of $1 gallon, we plan to sell 2,000 gallons per day. D. If the price of bottled water falls and all the other influences on our selling plans remain the same, we will cut back on production and lay off some workers
D. If the price of bottled water falls and all the other influences on our selling plans remain the same, we will cut back on production and lay off some workers
Which of the following is an example of a price floor? A. The lowest price of gasoline this year was $2 per gallon. B. Safeway charges $1 more than Fred Meyer charges for a 5 pound bag of sugar. C. Stock prices hit a floor last week. D. The government guarantees that potato farmers will receive at least $50 a ton.
D. The government guarantees that potato farmers will receive at least $50 a ton.
Which of the following statements is about a normal good, which is about an inferior good, which is about both, and which is about neither? I With incomes falling in the recession, people are buying more chicken. II People are buying more beef now that incomes have increased. III People are buying more chicken because the price of chicken has fallen. IV With higher incomes people are switching from chicken to beef. A. IV is inferior, III is normal, II is neither, and I is both B. I is inferior, II is normal, III is neither, and IV is both C. III is inferior, II is normal, IV is neither, and I is both D. II is inferior, I is normal, III is neither, and IV is both
B. I is inferior, II is normal, III is neither, and IV is both
A minimum wage law is a government regulation that makes hiring labor services for _____ than a specified wage _____. A. less; inefficient B. less; illegal C. more; efficient D. more; illegal
B. less; illegal
A substitute in production is a good that is _____ another good, and a complement in production is a good that is _____ another good. A. consumed in place of; produced together with B. produced in place of; produced together with C. produced in place of; consumed with D. produced together with; produced in place of
B. produced in place of; produced together with
A demand schedule is a list of the ______ at each different price when all other influences on buying plans remain the same. A demand curve is a graph of _____ . A. quantities actually bought; quantities demanded B. quantities demanded; a demand schedule C. surpluses; price falls D. shortages; price rises
B. quantities demanded; a demand schedule
Demand is _____, when all other influences on buying plans remain the same. A. the relationship between the quantity demanded of a good and income B. the relationship between the quantity demanded of a good and the price of the good C. the quantity of a good that people plan to buy D. the is the quantity of a good that people want but can't afford
B. the relationship between the quantity demanded of a good and the price of the good
Supply is _____, when all other influences on buying plans remain the same. A. the quantity of a good that producers plan to sell B. the relationship between the quantity supplied of a good and the price of the good C. the relationship between the quantity supplied of a good and the cost of labor used to produce it D. the is the quantity of a good that producers would be willing to sell if costs were lower Excellent!
B. the relationship between the quantity supplied of a good and the price of the good
Which of the following statements describes a change in quantity supplied and which describes a change in supply? I Farms are selling less chicken because the price of turkey has increased. II Farms are selling less chicken because the price of chicken has fallen. III Farms are selling more chicken because the price of chicken has risen. IV Farms are selling more chicken because the cost of chicken feed has fallen. A. I, II, and III are changes in supply and IV is a change in the quantity supplied. B. I, II, and III are changes in the quantity supplied and IV is a change in supply C. I and IV are changes in supply and II and III are changes in the quantity supplied. D. I is a change in the quantity supplied and II, III, and IV are changes in supply.
C. I and IV are changes in supply and II and III are changes in the quantity supplied.
Which of the following statements by Tom demonstrates that his buying plans obey the law of demand? A. For me, a good course website is a substitute for a textbook. B. I can't afford as many textbooks because my rent has increased. C. The only thing that's changed is the price of textbooks: they've become more expensive and now I'm not buying as many. D. At an average price of $80 per text book, I plan to buy 5 text books per semester.
C. The only thing that's changed is the price of textbooks: they've become more expensive and now I'm not buying as many.
A supply schedule is a list of the ______ at each different price when all other influences on selling plans remain the same. A supply curve is a graph of _____ . A. quantities actually sold; a supply schedule B. quantities actually sold; quantities supplied C. quantities supplied; a supply schedule D. quantities supplied; quantities supplied
C. quantities supplied; a supply schedule
A substitute is a good that is _____ another good, and a complement is a good that is _____ another good. A. consumed together with; consumed in place of B. consumed in place of; produced with C. produced in place of; sold with D. consumed in place of; consumed together with
D. consumed in place of; consumed together with
