Chapter 3 Macroeconomics
Which of the following will not cause the demand for product K to change? a. A change in the price of close-substitute product J. b. An increase in incomes of buyers of product K. c. A change in the price of product K. d. A change in consumer tastes for product K.
c
College students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed macaroni and cheese are: a. inferior goods. b. normal goods. c. complementary goods. d. substitute goods.
a
Other things equal, if the price of a key resource used to produce product X falls, the: a. product supply curve of X will shift to the right. b. product demand curve of X will shift to the right. c. product supply curve of X will shift to the left. d. product supply curve of X will not shift.
a
The relationship between quantity supplied and price is _____ and the relationship between quantity demanded and price is _____. a. direct; inverse b. inverse; direct c. inverse; inverse d. direct; direct
a
Which of the diagrams illustrate(s) the effect of a decrease in incomes on the market for secondhand clothing? a. A and C. b. A only. c. B only. d. C only.
b
A market: a. reflects upsloping demand and downsloping supply curves. b. entails the exchange of goods, but not services. c. is an institution that brings together buyers and sellers. d. always requires face-to-face contact between buyer and seller.
c
Answer the question on the basis of the given supply and demand data for wheat: Refer to the data. Equilibrium price will be: a. $4. b. $3. c. $2. d. $1.
c
Answer the question on the basis of the given supply and demand data for wheat: Refer to the data. If the price in this market was $4: a. the market would clear; quantity demanded would equal quantity supplied. b. buyers would want to purchase more wheat than is currently being supplied. c. farmers would not be able to sell all their wheat. d. there would be a shortage of wheat.
c
If the price of product L increases, the demand curve for close-substitute product J will: a. shift downward toward the horizontal axis. b. shift to the left. c. shift to the right. d. remain unchanged.
c
Refer to the diagram. A decrease in demand is depicted by a: a. move from point x to point y. b. shift from D1 to D2. c. shift from D2 to D1. d. move from point y to point x.
c
A leftward shift of a product supply curve might be caused by: a. an improvement in the relevant technique of production. b. a decline in the prices of needed inputs (resources). c. an increase in consumer incomes. d. some firms leaving an industry.
d
If X is a normal good, a rise in money income will shift the: a. supply curve for X to the left. b. supply curve for X to the right. c. demand curve for X to the left. d. demand curve for X to the right.
d
In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by: a. an increase in the cost of making donuts. b. an increase in the price of coffee. c. consumers expecting donut prices to fall. d. a change in buyer tastes.
d
Refer to the diagram. A decrease in quantity demanded is depicted by a: a. move from point x to point y. b. shift from D1 to D2. c. shift from D2 to D1. d. move from point y to point x.
d
Which of the diagrams illustrates the effect of an increase in automobile worker wages on the market for automobiles? a. A only. b. B only. c. C only. d. D only.
d