ap microeconomics self assessment ch 4

a

If there is a shortage of farm laborers, we would expect _____________. a the wages of farm laborers to increase b the wages of farm laborers to decrease c the prices of farm commodities to decrease d a decrease in the demand for substitutes for farm labor

d

In a free market, who determines how much of a good will be sold and the price at which it is sold? a suppliers b demanders c the government d suppliers and demanders together

a

Refer to Figure 4-10. Which of the four graphs represents the market for pizza delivery in a college town in September? Figure 4-10.png A. B. C. D.

b

Refer to Figure 4-2. The movement from D to D1 is called ____________. Figure 4-2.png a an increase in demand b a decrease in demand c a decrease in quantity demanded d an increase in quantity demanded

c

Refer to Figure 4-6. The movement from S to S1 is called ________________. Figure 4-6.png a a decrease in supply b a decrease in quantity supplied c an increase in supply d an increase in quantity supplied

d

Refer to Figure 4-8. If price in this market is currently $14, there would be a ______________. Figure 4-8.png a shortage of 20 units and price would tend to rise b surplus of 20 units and price would tend to fall c shortage of 40 units and price would tend to rise d surplus of 40 units and price would tend to fall

a

Refer to Figure 4-8. If price in this market is currently $8, quantity supplied would be _____________. Figure 4-8.png a 40 and quantity demanded would be 60 b 60 and quantity demanded would be 40 c 50 and quantity demanded would be 50 d 70 and quantity demanded would be 30

b

Refer to Figure 4-9. If price is $15, quantity supplied would be ______________. Figure 4-9.png a 200 b 400 c 500 d 700

d

Suppose roses are currently selling for $40.00 per dozen. The equilibrium price of roses is $30.00 per dozen. We would expect a _____________. a shortage to exist and the market price of roses to increase b shortage to exist and the market price of roses to decrease c surplus to exist and the market price of roses to increase d surplus to exist and the market price of roses to decrease

b

Suppose that Carolyn receives a pay increase. We would expect ________________. a Carolyn's demand for normal goods to remain unchanged b Carolyn's demand for inferior goods to decrease c Carolyn's demand for luxury goods to decrease d Carolyn's demand for normal goods to decrease

b

Suppose that demand increases AND supply decreases. What would happen in the market for the good? a Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c Both equilibrium price and quantity would increase. d Both equilibrium price and quantity would decrease.

b

Suppose that the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for _____________. a hair gel to increase b razors to increase c combs to increase d hair dye for men to increase

b

Suppose that the incomes of buyers in a particular market for a normal good decline and there is also a reduction in input prices. What would we expect to occur in this market? a The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. b The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous. c Both equilibrium price and equilibrium quantity would increase. d Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

c

Buyers and sellers who have no influence on market price are referred to as _______________. a price makers b market pawns c price takers d powerless

c

Which of the following is NOT a characteristic of a perfectly competitive market? a similar products b numerous sellers c market power d numerous buyers

a

A monopoly is a market ________________. a with one seller b with few sellers c with one buyer d where the government sets the price

d

Alyssa rents 5 movies per month when the price is $3.00 each and 7 movies per month when the price is $2.50. Alyssa has demonstrated the ______________. a law of price b law of supply c actions of an irrational consumer d law of demand

c

Beef is a normal good. You observe that both the equilibrium price and quantity of beef has fallen over time. Which of the following would be most consistent with this observation? a Consumers have experienced an increase in income and beef-production technology has improved. b The price of chicken has risen and the price of steak sauce has fallen. c Consumer tastes have changed so as to prefer beef less than before. d The demand curve for beef must be positively sloped.

b

If a seller is supplying a product that is slightly different from that of many close competitors and is able to charge a different price than competitors, then the seller _______________. a is a monopolist b is participating in a monopolistically competitive market c will eventually have to decrease the price d is producing a homogeneous product

a

If a study by the AMA found that brown sugar caused weight loss while white sugar caused weight gain we would see _______________. a an increase in demand for brown sugar and a decrease in demand for white sugar b no change in either demand because weight loss is not a nonprice determinant of demand c an increase in demand for brown sugar, but no change in the demand for white sugar d a decrease in the demand for white sugar, but no change in the demand for brown sugar

a

If a surplus exists in a market we know that the actual price is ________________. a above equilibrium price and quantity supplied is greater than quantity demanded b above equilibrium price and quantity demanded is greater than quantity supplied c below equilibrium price and quantity demanded is greater than quantity supplied d below equilibrium price and quantity supplied is greater than quantity demanded

c

If the demand for a product increases, we would expect equilibrium price ____________. a to increase and equilibrium quantity to decrease b to decrease and equilibrium quantity to increase c and equilibrium quantity to both increase d and equilibrium quantity to both decrease

b

If the number of sellers in a market increases, the __________________. a demand in that market will increase b supply in that market will increase c supply in that market will decrease d demand in that market will decrease

b

If the price of a good is low ___________________. a firms would increase profit by increasing output b quantity supplied could be zero c the supply curve for the good will shift to the left d firms should raise the price of the product

d

The positive relationship between price and quantity supplied is called ______________. a a market b a change in supply c the demand curve d the law of supply

c

The side of the market that deals with the willingness and ability to produce and sell is _____________. a demand b competition c supply d a monopoly

a

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell? a Price will fall and the effect on quantity is ambiguous. b Price will rise and the effect on quantity is ambiguous. c Quantity will fall and the effect on price is ambiguous. d Quantity will rise and the effect on price is ambiguous.

b

When it comes to people's tastes, economists generally believe that _____________. a tastes are based on forces beyond the realm of economics b tastes are based on historical and psychological forces c tastes can only be studied through well-constructed, real-life models d since tastes do not directly affect demand, there is little need to explain people's tastes

a

Which of the following would be most likely to increase the price of a new house? a Higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future. b Lower wages for carpenters, lower wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future. c Lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population and expectations of higher house prices in the future. d Lower wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population and expectations of lower house prices in the future.

b

You love peanut butter. You hear on the news that 50 % of the peanut crop in the South has been wiped out, which will cause the price to double by the end of the year. As a result, __________________. a your demand for peanut butter will increase by the end of the year b your demand for peanut butter increases today c your demand for peanut butter falls as you look for a substitute good d you decide to give up peanut butter completely