Macro Exam
A surplus occurs when the quantity that individuals wish to purchase is greater than the amount that sellers offer for sale. True False
False
Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be An increase in the demand for airline tickets. No change in the demand for airline tickets because the price is not changing right now. A decrease in the quantity demanded of airline tickets A decrease in the demand for airline tickets.
A decrease in the demand for airline tickets.
Ceteris paribus, which of the following is most likely to cause an increase in the quantity demanded of perfume? A decrease in tastes for perfume. An increase in the price of electricity. An increase in income. A decrease in the price of perfume.
A decrease in the price of perfume.
A decrease in quantity demanded is illustrated graphically as: A leftward shift of the demand curve A rightward shift of the demand curve A movement down along the demand curve to the right. A movement up along the demand curve to the left.
A movement up along the demand curve to the left.
Which of the following would cause an increase in the supply curve for pickup trucks? The cost of labor at truck assembly plants rises. A reorganization of labor at the truck factory leads to a reduction in the cost of making pickup trucks. Some manufacturers close their facilities due to labor shortages. Shipping costs for transporting pickups rise. Nice choice. Remember to ask if the change in technology caused the cost of production to rise or fall.
A reorganization of labor at the truck factory leads to a reduction in the cost of making pickup trucks.
Following a decrease in the price of inputs, we would expect a movement from A to B B to A S1 to S2 S2 to S1
A to B S1 to S2
The first step in the four-step process to find a new equilibrium price and quantity is Decide if the curve shifted to the right or the left. Determine if the change altered the demand curve or the supply curve. Draw the demand and supply model before the economic change occurred. Identify the new equilibrium.
Draw the demand and supply model before the economic change occurred.
Which of the following are scarce. Select all that apply. Drinkable water Safe neighborhoods Measles virus Emerald Ash Bore (it's bug that is killing Ash trees.) Bananas
Drinkable water Safe neighborhoods Bananas
Which of the following are examples of models that your instructor might use to teach economics? Select all that apply. A statement of a problem Graphs Equations Definitions Stories
Graphs Equations Stories
How we make choices is at the root of what eonomists study. True False
True
Yael lists the possible activities for this evening from most preferred to least preferred as (1) clean her apartment, (2) join her sister for a spa treatment, and (3) study for economics. If she decides to clean her apartment, then the opportunity cost is The higher grade that she would have earned on the quiz tomorrow. The pleasure that she receives from having a really clean apartment. The joy that she gets from spending quality time with her sister. The total of (a) plus (b).
The joy that she gets from spending quality time with her sister.
Michael lists the possible activities for this evening from most preferred to least preferred as (1) study for the economics exam, (2) join friends for a poker game, and (3) attend a concert. If he decides to study for the economics exam, then the opportunity cost is The higher grade that he will make on the exam. The pleasure that he would have received from an evening playing poker with friends. The stories that he'll be able to tell about the concert. The total of (b) plus (c).
The pleasure that he would have received from an evening playing poker with friends.
Which of the following would increase the demand curve for grade school sports equipment, a normal good? (Select all that apply.) The population of grade-school aged children grows. Family incomes fall. Parents increasingly believe that team sports help children learn valuable skills, e.g., patience and teamwork. The price of sports equipment falls.
The population of grade-school aged children grows. Parents increasingly believe that team sports help children learn valuable skills, e.g., patience and teamwork.
A decrease in the supply curve causes equilibrium price to rise, while a decrease in the demand curve causes equilibrium price to fall. True False
True
A shortage happens when the quantity demanded exceeds the quantity supplied. True False
True
Economists make a ceteris paribus assumption when drawing demand and supply curves. True False
True
Figure 3.9 lists the factors that shift the demand curve and illustrates the direction of the shifts. Figure 3.15 provides parallel information related to the supply curve. True False
True
Which of the following is not scarce? Select all that apply. Affordable housing in metropolitan areas Unsafe public schools Polio virus Emerald Ash Bore (bug that is killing Ash trees.) Sweet potatoes
Unsafe public schools Polio virus Emerald Ash Bore (bug that is killing Ash trees.)
Which of the following are problems that microeconomics will address? (Select all that apply.) What is your cost of attending college? What will happen to prices over the next year? When will the U.S. unemployment rate fall below 5%? How will a change in tuition at UMSL affect the willingness of STLCC students to transfer to UMSL?
What is your cost of attending college? How will a change in tuition at UMSL affect the willingness of STLCC students to transfer to UMSL?
Which of the following are problems that macroeconomics will address? Select all that apply. What is your cost of attending college? What will happen to average prices over the next year? When will the U.S. unemployment rate fall below 5%? How will a change in tuition at UMSL affect the willingness of STLCC students to transfer to UMSL?
What will happen to average prices over the next year? When will the U.S. unemployment rate fall below 5%?
An increase in the demand curve will cause a surplus, and the price should rise to eliminate the surplus. a surplus, and the price should fall to eliminate the surplus. a shortage, and the price should rise to eliminate the shortage. a shortage, and the price should fall to eliminate the shortage.
a shortage, and the price should rise to eliminate the shortage.
Refer to the graph in the previous questions. Which of the following would cause a movement from Point A to Point C? A decrease in the price of salads, a complement for pizza. A decrease in the price of calzones, a substitute for pizza. A decrease in the price of pizza. A decrease in income, assuming that pizza is a normal good.
A decrease in the price of salads, a complement for pizza.
Ceteris paribus, if the price of a digital camera rises, then we can expect An increase in the demand for digital cameras. An increase in the quantity demanded of digital cameras. A decrease in the demand for digital cameras. A decrease in the quantity demanded of digital cameras.
A decrease in the quantity demanded of digital cameras.
Which of the following would decrease the demand curve for movie theater popcorn, a normal good? (Select all that apply.) A pandemic closes movie theaters. Family incomes fall. The price of movie tickets, a complement, rises. The price of movie tickets falls.
A pandemic closes movie theaters. Family incomes fall. The price of movie tickets, a complement, rises.
Which of the following correctly describes how price adjustments eliminate a surplus? As the price rises, the quantity demanded increases and the quantity supplied decreases. As the price falls, the quantity demanded increases and the quantity supplied decreases. As the price falls, the quantity demanded decreases and the quantity supplied increases. As price rises, the quantity demanded decreases and the quantity supplied increases.
As the price falls, the quantity demanded increases and the quantity supplied decreases.
A consequence of the economic problem of scarcity is that There is never too much of any good or service produced. The production of goods and services must be controlled by the government. Choices have to be made about how resources are used. The production possibilities curve is bowed outward.
Choices have to be made about how resources are used.
Demand curves are positively sloped and supply curves are negatively sloped. True False
False
If individuals are acting rationally, they consider the expected total benefit and expected total cost of a choice. True False
False
In the demand and supply graphs, the x-axis is price and the y-axis is quantity. True False
False
The first chapter introduces the production possibilities model. True False
False
Which determinant of demand changes in the beer market when the legal drinking age is lowered to eighteen years old? Income. Expectations. Number of buyers. Cost of factors of production.
Number of buyers.
Which of the following is not held constant along a given demand curve for a good? Consumer's income. The price of substitute goods. Consumer tastes. Price of the good itself (own price).
Price of the good itself (own price).
Which of the following is a microeconomic topic? The reasons for a decline in the average level of prices in the economy. The reasons why total employment rose. The effect of the government budget deficit on inflation. The reasons why your professor is buying less coffee.
The reasons why your professor is buying less coffee.
Which of the following is a normative statement? (Select all that apply.) The moon is made of green cheese. Recall practice is an affective learning tool. Reading the textbook is your best strategy for learning material in an online class. The federal government should make decisions about what is taught in local school districts. Studying economics in small batches—spaced practice—is more effective than cramming.
Reading the textbook is your best strategy for learning material in an online class. The federal government should make decisions about what is taught in local school districts.
Which of the following represent factors that influence the possible outcomes in this class? (Select all that apply.) Tests Policy on cheating Data and writing assignments The weights given to individual activities The date of the final exam
Tests Policy on cheating Data and writing assignments The weights given to individual activities The date of the final exam
Which of the following represent factors that influence the possible outcomes in this class? Select all that apply. Tests Policy on cheating Data and writing assignments The weights given to individual activities The date of the final exam
Tests Policy on cheating Data and writing assignments The weights given to individual activities The date of the final exam
Which of the following will cause a decrease in the supply curve for ice cream at local grocery stores? (Select all that apply.) The cost of packaging ice cream rises. You Answered Prairie Farms, a major producer of ice cream, invents a new cost-saving process for freezing ice cream. The price of fuel used to deliver the ice cream to grocery stores decreases The regulations governing ice cream production become more stringent, raising the cost of production. The price of ice cream falls.
The cost of packaging ice cream rises. The regulations governing ice cream production become more stringent, raising the cost of production.
An inferior good is one for which (select all that apply) The demand curve increases as income rises. The demand curve decreases as income rises. The demand curve increases as income falls. The demand curve decreases as income falls.
The demand curve decreases as income rises. The demand curve increases as income falls.
Microeconomics is concerned with issues such as The level of inflation in the economy. Maintaining a strong level of economic growth. All of the choices are correct. The demand for bottled water by individuals.
The demand for bottled water by individuals.
Consider the market for the Euro. The price is U.S. dollars per Euro or the exchange rate. If more people from the U.S. decide they want to visit Europe, what happens to the exchange rate and the quantity of Euros purchased? The equilibrium exchange rate ($/euro) and the quantity of Euros purchased both rise. The equilibrium exchange rate ($/euro) rises and the quantity of Euros falls. The equilibrium exchange rate ($/euro) and the quantity of Euros both fall. The equilibrium exchange rate ($/euro) falls and the equilibrium quantity of Euros rises.
The equilibrium exchange rate ($/euro) and the quantity of Euros purchased both rise.
Which of the following is an example of a theory? Graph used to illustrate the behavior of gross domestic product. The quote from the Mikado illustrating normative statements. The statement that using recall practice while studying improves long term memory. An equation illustrating a demand curve.
The statement that using recall practice while studying improves long term memory.
Which of the following is the definition of economics that appears in your textbook? Economics is the study of man in the ordinary business of life. The study of how humans make choices under conditions of scarcity. Economics is a method rather than a doctrine, an apparats of the mind, a technique of thinking. Economics describes household management.
The study of how humans make choices under conditions of scarcity.
Assume that steel is used to produce monkey wrenches. Ceteris paribus, if the price of steel rises, then There will be a leftward movement along the initial supply curve for monkey wrenches. The supply curve for monkey wrenches will shift to the right. The supply curve for monkey wrenches will shift to the left. There will be a rightward movement along the initial supply curve for monkey wrenches.
The supply curve for monkey wrenches will shift to the left.
Which of the following is a positive statement? Summer evenings are nice when it cools off to around 70 degrees. It is too hot to run outside when the temperature exceeds 80 degrees. A humidity level of 90 percent is too high. It should be cooler. The temperature is 92 degrees today.
The temperature is 92 degrees today.
If individuals are acting rationally, they consider the expected marginal benefit and expected marginal cost of a choice. True False
True
Scarcity is an important concept in economics. True False
True
Section 3.1 asks "Is demand the same as quantity demanded?" The answer is an emphatic NO. True False
True
The factors that increase demand are the opposite of the factors that decrease demand. True False
True
When there is an increase in the supply curve, the supply curve shifts to the right. True False
True
When quantity supplied is less than the quantity demanded, the market is said to exhibit: a surplus, and the price should rise to eliminate the surplus. a surplus, and the price should fall to eliminate the surplus. a shortage, and the price should rise to eliminate the shortage. a shortage, and the price should fall to eliminate the shortage.
a shortage, and the price should rise to eliminate the shortage.
An increase in the supply curve will cause a surplus, and the price should rise to eliminate the surplus. a surplus, and the price should fall to eliminate the surplus. a shortage, and the price should rise to eliminate the shortage. a shortage, and the price should fall to eliminate the shortage.
a surplus, and the price should fall to eliminate the surplus.
When quantity supplied is greater than the quantity demanded, the market is said to exhibit: a surplus, and the price should rise to eliminate the surplus. a surplus, and the price should fall to eliminate the surplus. a shortage, and the price should rise to eliminate the shortage. a shortage, and the price should fall to eliminate the shortage.
a surplus, and the price should fall to eliminate the surplus.
An increase in the price of Coke Zero will (select all that apply) cause a decrease in the quantity demanded of Coke Zero. cause a decrease in the demand curve of Coke Zero. cause an increase in the demand curve for Diet Pepsi, a substitute for Coke Zero. cause an increase in the demand curve for Diet Mountain Dew, a complement of Coke Zero.
cause a decrease in the quantity demanded of Coke Zero. cause an increase in the demand curve for Diet Pepsi, a substitute for Coke Zero.
After reading "Reaping the Rewards of Trade," what do you predict will happen in the market for tomatoes because "culinary tastes" of U.S. consumers changed? quantity demanded will increase demand will increase quantity demanded will decrease demand will decrease
demand will increase
Which of the following does NOT meet the economic definition of capital? Baseball diamonds in a municipal park piano lessons government bonds railroad tracks
government bonds
When firms advertise their products, they are attempting to increase quantity demanded increase demand decrease quantity demanded decrease demand
increase demand
Which of the following might cause the demand curve for calculators to increase? an increase in the price of calculators. an increase in the cost of components for calculators following a decision to move production to the U.S., the firm experiences an increase in the cost of labor needed to produce the calculators consumers find that cell phones provide an inexpensive substitute for calculators more students enter the field of engineering and need calculators HP opens two new plants to build calculators
more students enter the field of engineering and need calculators
Stan the news man on Channel 5 reports that the automobile prices were unchanged over the last year, yet automobile sales incread by 5 percent. In the same year, incomes rose by 2.5 percent. Based on this information, you could reasonabley conclude that automobiles are substitute goods complementary goods normal goods inferior goods suplementary goods
normal goods
There is a ________ relationship between quantity supplied and the price. This illustrates the ______. negative; Law of Demand negative; Law of Supply positive; Law of Demand positive; Law of Supply
positive; Law of Supply
The demand curve for Cardinal baseball tickets shows the relationship between the price of baseball tickets and the quantity of baseball tickets that sellers are willing and able to produce at various prices. is upward sloping. shows the quantity of baseball tickets that consumers are willing and able to produce at the current price. shows the quantity of baseball tickets that consumers are willing and able to buy at any given price, all other factors held constant.
shows the quantity of baseball tickets that consumers are willing and able to buy at any given price, all other factors held constant.
After reading "Reaping the rewards of trade," what will happen to the supply curve of tomatoes after Mexican farmers implement new farming methods? quantity supplied will increase supply will increase quantity supplied will decrease supply will decrease
supply will increase
Which of the following are not complementary goods? golf clubs and golf balls toothbrush and toothpaste printer and ink cartridge text and e-mail
text and e-mail
If electricity is an inferior good, then an increase in income will cause the quantity demanded of electricity to increase. the quantity demanded of electricity to decrease. the demand curve for electricity to increase. the demand curve for electricity to decrease.
the demand curve for electricity to decrease.
If steaks are normal goods, then an increase in income will cause the quantity demanded of steaks to increase. the quantity demanded of steaks to decrease. the demand curve for steaks to increase. the demand curve for steaks to decrease.
the demand curve for steaks to increase.
Consider the market for new textbooks, a normal good. The income of students decreases. What will happen to the equilibrium price and quantity? the equilibrium price and quantity both decrease. the equilibrium price and quantity both increase. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price and quantity both decrease.
Consider the market for pumpkin pies, a traditional dessert at Thanksgiving dinners. What will happen to the equilibrium price and quantity in the market for pies if households decide to try sweet potato pies instead of pumpkin? the equilibrium price and quantity both decrease. the equilibrium price and quantity both increase. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price and quantity both decrease.
The equilibrium price is the price at which the quantity sold equals the quantity bought. the quantity demand equals the quantity sold. the quantity demanded equals the quantity supplied. the quantity supplied equals the quantity bought.
the quantity demanded equals the quantity supplied.
If the price of Pepsi increases today, the demand curve for Pepsi will increase. the demand curve for Pepsi will decrease. the quantity demanded of Pepsi will increase. the quantity demanded of Pepsi will decrease.
the quantity demanded of Pepsi will decrease.
If the price of Pepsi decreases today: the supply curve for Pepsi will increase the supply curve for Pepsi will decrease. the quantity supplied of Pepsi will increase. the quantity supplied of Pepsi will decrease.
the quantity supplied of Pepsi will decrease.
If the price of Pepsi increases today: the supply curve for Pepsi will increase the supply curve for Pepsi will decrease. the quantity supplied of Pepsi will increase. the quantity supplied of Pepsi will decrease.
the quantity supplied of Pepsi will increase.
Which of the following is a determinant of supply? Number of buyers. The prices of the factors of production. Consumer tastes or preferences. Consumers' income.
The prices of the factors of production.
An increase in the demand curve is illustrated graphically as: A leftward shift of the demand curve A rightward shift of the demand curve A movement down along the demand curve to the right. A movement up along the demand curve to the left.
A rightward shift of the demand curve
Which of the following events would cause a rightward shift in the market supply curve for automobiles? A decrease in the number of sellers. A technological improvement that reduces the cost of production. A higher sales tax on automobiles. An increase in the wages of autoworkers.
A technological improvement that reduces the cost of production.
Macroeconomics is concerned with Individual consumers. Government decision making about price supports for farmers. The effects of a strike by public school teachers on individual households. Aggregate, economy-wide variables.
Aggregate, economy-wide variables.
Which of the following would cause an increase in the supply curve of pickup trucks? The cost of labor at truck assembly plants falls. A reorganization of labor at the truck factory leads to a reduction in the cost of making pickup trucks. Some manufacturers open new facilities in response to expected increases in demand. Shipping costs for transporting pickups falls. All of these will cause the supply curve to increase.
All of these will cause the supply curve to increase.
What is the difference between an "increase in supply" and an "increase in quantity supplied"? There is no difference between the two terms; they both refer to a movement downward along a given supply curve. There is no difference between the two terms; they both refer to a shift of the supply curve. An "increase in supply" is represented by a movement along a given supply curve, while an "increase in quantity supplied" is represented by a rightward shift of the supply curve. An "increase in supply" is represented by a rightward shift of the supply curve while an "increase in quantity supplied" is represented by a movement along a given supply curve.
An "increase in supply" is represented by a rightward shift of the supply curve while an "increase in quantity supplied" is represented by a movement along a given supply curve.
Ceteris paribus, which of the following would generally cause an increase in the demand curve for new automobiles? The new models being perceived as ugly compared with old models. A decrease in the price of new automobiles. Consumer expectations that the price of new automobiles will be lower next year. An increase in consumers' income.
An increase in consumers' income.
Ceteris paribus, which of the following is most likely to cause a decrease in the supply of skateboards? An increase in the price of skateboards. An increase in the cost of materials used to produce skateboards. An improvement in skateboard-making technology. All of the choices are correct.
An increase in the cost of materials used to produce skateboards.
Ceteris paribus, which of the following would you expect to have no effect on the demand curve for new automobiles? An increase in the price of new automobiles. Consumer expectations that a significant recession will develop and last for a year. Consumer expectations that the price of new automobiles will be lower next year. A rise in the price of gasoline.
An increase in the price of new automobiles.
Which of the following is an example of a theory? The riddles that the class uses in the introductory material. An increase in the price of potatoes will cause a decrease in the quantity of potatoes purchased. Graph used to illustrate a supply curve. Equation illustrating the definition of GDP.
An increase in the price of potatoes will cause a decrease in the quantity of potatoes purchased.
Which of the following will cause an increase in the quantity of action adventure movies supplied? A change in the cost of producing films. An increase in the price of the movies. a decrease in the number of movie production companies A decrease in the income of movie goers.
An increase in the price of the movies.
Which of the following correctly describes how price adjustments eliminate a shortage? As the price rises, the quantity demanded increases and the quantity supplied decreases. As the price falls, the quantity demanded increases and the quantity supplied decreases. As the price falls, the quantity demanded decreases and the quantity supplied increases. As price rises, the quantity demanded decreases and the quantity supplied increases.
As price rises, the quantity demanded decreases and the quantity supplied increases.
How does the reading from the Mikado illustrate normative statements? Use specific examples from the reading to illustrate your response.
At the end of the reading, Pooh Bah says,"I don't say that all these distinguished people couldn't be squared; but it is right to tell you that they wouldn't be sufficiently degraded in their own estimation unless they are insulted with a very considerable bribe." In his own opinion, these people can't be insulted or offended unless he bribed them in order for them to be "squared," so to look the other way from the truth. Another example is from Pooh Bah, "Speaking as your Private Secretary, I should say that as the city will have to pay for it, don't stint yourself, do it well." Pooh Bah is recommending Ko Ko to make the city pay the fees for the marriage and festival instead of Ko Ko paying it out of pocket.
Which of the following meets the economic definition of capital? Desks in the classroom Treasury bonds Corporate stocks Certificates of deposit
Desks in the classroom
Which of the following individuals is acting rationally? (Select all that apply.) Noam purchased a new Iphone after carefully assessing the benefits of the added features against the cost of the new phone. Someone not caring about their optimal level of benefit or utility. Many individuals choose not to wear a mask because the expected added benefit of reducing the risk of infection is smaller than the expected cost not using facial expressions to communicate. You completed this quiz on time because the benefit of receiving a grade was greater than the expected value of attending a block party.
Many individuals choose not to wear a mask because the expected added benefit of reducing the risk of infection is smaller than the expected cost not using facial expressions to communicate. You completed this quiz on time because the benefit of receiving a grade was greater than the expected value of attending a block party. Noam purchased a new Iphone after carefully assessing the benefits of the added features against the cost of the new phone.
Which of the following individuals is acting rationally? (Select all that apply.) Noam purchased a new IPhone after carefully assessing the benefits of the added features against the cost of the new phone. Someone not caring about their optimal level of benefit or utility. Many individuals choose to wear a mask because the benefit of reducing the risk of infection outweighs the lost opportunity to express emotions using facial expressions. The opportunity cost of taking this quiz is the value to you of the activity you would have done instead.
Noam purchased a new IPhone after carefully assessing the benefits of the added features against the cost of the new phone. Many individuals choose to wear a mask because the benefit of reducing the risk of infection outweighs the lost opportunity to express emotions using facial expressions. The opportunity cost of taking this quiz is the value to you of the activity you would have done instead.
Given that resources are scarce, Poor countries must make choices, but rich countries with abundant resources do not have to make choices. Opportunity costs are experienced whenever choices are made. Some choices involve opportunity costs while other choices do not. A "free lunch" is possible, but only for a limited number of people.
Opportunity costs are experienced whenever choices are made.
Which of the following will cause an increase in the supply curve for ice cream at local grocery stores? Select all that apply. The cost of cream, an input to the production of ice cream, rises. Prairie Farms, a major producer of ice cream, invents a new cost-saving process for freezing ice cream. The price of fuel used to deliver the ice cream to grocery stores falls. The price of frozen custard, a substitute for ice cream in the minds of many consumers, falls. The price of ice cream rises.
Prairie Farms, a major producer of ice cream, invents a new cost-saving process for freezing ice cream. The price of fuel used to deliver the ice cream to grocery stores falls.
If the quantity demanded of a good is greater than the quantity supplied of the good at the current price, then The demand curve will shift to the left to create equilibrium. Price will increase until it reaches the equilibrium price. The supply curve will shift to the right to create equilibrium. There is a surplus of the good.
Price will increase until it reaches the equilibrium price.
When drawing a demand curve, _____ appears on the vertical axis, ______ appears on the horizontal axis, and the curve is _________. (Fill in the blanks before reading the possible answers.) Quantity; Price; upward sloping Price; quantity; upward sloping Quantity; Price; downwardward sloping Price; quantity; downward sloping
Price; quantity; downward sloping
When drawing a supply curve, _____ appears on the vertical axis, ______ appears on the horizontal axis, and the curve is _________. (Fill in the blanks before reading the possible answers.) Quantity; Price; upward sloping Price; quantity; upward sloping Quantity; Price; downwardward sloping Price; quantity; downward sloping
Price; quantity; upward sloping
Price. Quantity Demanded $100 5 85 20 70 40 50 60 25 85 5 105 Based on the demand schedule above, when price rises from $50 to $85, Quantity demanded falls by 40 units Demand curve falls by 40 units Quantity demanded rises by 40 units Demand curve rises by 40 units
Quantity demanded falls by 40 units
Based on the demand schedule below, when price falls from $50 to $25, Price. Quantity Demanded $100 5 85 20 70 40 50 60 25 85 5 105 Quantity demanded falls by 25 units Demand falls by 25 units Quantity demanded rises by 25 units Demand rises by 5 units
Quantity demanded rises by 25 units
Two goods, A and B, are complements if (select all that apply) The demand curve for good A increases when the price of good B increases. The demand curve for good A increases when the price of good B decreases. The demand curve for good B decreases when the price of good A decreases. The demand curve for good B decreases when the price of good A increases.
The demand curve for good A increases when the price of good B decreases. The demand curve for good B decreases when the price of good A increases.
Consider the market for loanable funds. What will happen to the equilibrium interest rate and quantity of loans if banking regulators impose more stringent regulatory requirements on banks? The equilibrium interest rate and quantity of loans both increase. The equilibrium interest rate rises and the equilibrium quantity of loans falls. The equilibrium interest rate and quantity of loans both decrease. The equilibrium interest rate falls and the equilibrium quantity of loans rises.
The equilibrium interest rate rises and the equilibrium quantity of loans falls.
Which of the following is NOT an example of a model? The law of demand statements that when price rises, the quantity demanded decreases, all other nonprice determinants of demand held constant. The graph of a demand curve. The algebraic equation for a demand curve. A demand schedule, that is, a table of price and quantity combinations.
The law of demand statements that when price rises, the quantity demanded decreases, all other nonprice determinants of demand held constant.
Which of the following is a positive statement? Select all that apply. The moon is made of green cheese. Recall practice is an affective learning tool. Reading the textbook is your best strategy for learning material in an online class. SpaceX has developed reusable rockets. Studying economics in small units throughout the week is called spaced practice.
The moon is made of green cheese. Recall practice is an affective learning tool. Reading the textbook is your best strategy for learning material in an online class. SpaceX has developed reusable rockets. Studying economics in small units throughout the week is called spaced practice.
Which of the following will cause an increase in the quantity supplied of ice cream at local grocery stores? The cost of cream, an input to the production of ice cream, rises. Prairie Farms, a major producer of ice cream, invents a new cost-saving process for freezing ice cream. The price of ice cream falls. The price of frozen custard, a substitute for ice cream in the minds of many consumers, falls. The price of ice cream rises.
The price of ice cream rises.
Which of the following can change without shifting demand, ceteris paribus? Incomes. The prices of other goods. Expectations. The price of the good itself.
The price of the good itself.
If corn and wheat are alternative pursuits for a farmer, a change in the supply of corn will take place when, ceteris paribus, Consumers want to buy more corn at the same price. The demand for corn changes. The price of wheat changes. The price of corn changes.
The price of wheat changes.
Which of the following best describes the market for apple butter following an increase in the cost of raw apples, an ingredient in apple butter? The supply curve shifts to the left or decreases. The supply curve shfits to the right or decreases. The supply curve shifts to the left or increases. The supply curve shifts to the right or increases.
The supply curve shifts to the left or decreases.
Which of the following best describes the market for applebutter following a decrease in the cost of raw apples, an ingredient in applebutter? The supply curve shifts to the left or decreases. The supply curve shfits to the right or decreases. The supply curve shifts to the left or increases. The supply curve shifts to the right or increases.
The supply curve shifts to the right or increases.
Which of the following statements is not a normative statement? Low-income individuals ought to be exempt from income taxes. Unemployment and inflation should be minimized. The unempolyment rate is 10 percent. The government should cut funding for the arts. The money supply should grow at a constant rate.
The unempolyment rate is 10 percent.
Which of the following might cause the supply curve for calculators to decrease? an increase in the price of calculators. an increase in the cost of components for calculators following a decision to move production to the U.S., the firm experiences an increase in the cost of labor needed to produce the calculators consumers find that cell phones provide an inexpensive substitute for calculators more students enter the field of engineering and need calculators HP opens two new plants to build calculators
an increase in the cost of components for calculators following a decision to move production to the U.S., the firm experiences an increase in the cost of labor needed to produce the calculators
A decrease in the price of waffle fries will (select all that apply) cause a decrease in the quantity demanded of waffle fries. cause an increase in the quantity demanded curve for waffle fries. cause an increase in the demand curve for Mountain Dew, a complement for wafffle fries. cause a decrease in the demand curve for crinkle-cut fries, a substitute for waffle fries.
cause an increase in the quantity demanded curve for waffle fries. cause an increase in the demand curve for Mountain Dew, a complement for wafffle fries. cause a decrease in the demand curve for crinkle-cut fries, a substitute for waffle fries.
Which of the following is a determinant of supply? consumer income prices of the factors of production consumer tastes or preferences number of buyers
prices of the factors of production
Ceteris paribus, according to the law of supply, if the price of product Z increases from $6 to $8, then the quantity supplied of Z will increase. supply curve for Z will shift to the right. quantity supplied of Z will decrease. quantity supplied will not be affected.
quantity supplied of Z will increase.
If the price of lawn mowing services decreases from $50 per lawn to $45 per lawn, then the supply curve for lawn mowing will increase supply curve for lawn mowing will decrease quantity supplied of lawn mowing will decrease. quantity supplied of lawn mowing will increase.
quantity supplied of lawn mowing will decrease.
Consider the market for St. Louis City SC Soccer jerseys. If the new team has a winning first season, what will happen to the equilibrium price and quantity of jerseys? the equilibrium price and quantity both decrease. the equilibrium price and quantity both increase. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price and quantity both increase.
Consider the market for airline flights to Europe. What will happen to the equilibrium price and quantity if the cost of long-term parking, a complement, falls? the equilibrium price and quantity both decrease. the equilibrium price and quantity both increase. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price and quantity both increase.
Consider the market for pumpkin pies, a traditional dessert at Thanksgiving dinners. What will happen to the equilibrium price and quantity in the market for pies if household incomes rise and pumpkin pie is a normal good? the equilibrium price and quantity both decrease. the equilibrium price and quantity both increase. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price and quantity both increase.
Assume that the 2020 pandemic caused Tennessee distilleries to switch from producing Bourbon to hand sanitizer. What will happen to the equilibrium price and quantity in the market for hand sanitizer? the equilibrium price and quantity both increase. the equilibrium price and quantity both decrease. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price decreases and the equilibrium quantity increases.
Consider the market for milk. If the cost of bottling milk falls, what happens to the equilibrium price and quantity? the equilibrium price and quantity both increase. the equilibrium price and quantity both decrease. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price decreases and the equilibrium quantity increases.
Assume electricity is a significant input to the production of batteries. If the price of electricity increases sharply then: the equilibrium price and quantity both increase. the equilibrium price and quantity both decrease. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price increases and the equilibrium quantity decreases.
Consider the market for goods from Amazon. If the cost of fuel for delivery vans rises, what happens to the equilibrium price and quantity? the equilibrium price and quantity both increase. the equilibrium price and quantity both decrease. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases.
the equilibrium price increases and the equilibrium quantity decreases.
Consider the market for new textbooks, a normal good. Assume that the cost of shipping textbooks from the warehouse to the buyer rises. What will happen to the equilibrium price and quantity? the equilibrium price and quantity both decrease. the equilibrium price and quantity both increase. the equilibrium price increases and the equilibrium quantity decreases. the equilibrium price decreases and the equilibrium quantity increases. none of the answers
the equilibrium price increases and the equilibrium quantity decreases.
