Question 1

The amount of a particular good that sellers in a market will sell at a given price during a specified period is called:

Accepted Answer

A)  quantity demanded.
B)  quantity supplied.
C)  demand.
D)  supply.E) All of the above
F) A) and D)

Question 2

The best example of a perfectly competitive market would be the market for:

Accepted Answer

A)  grain.
B)  shoes.
C)  coffee.
D)  cameras.E) B) and C)
F) A) and D)

Question 3

A surplus will occur in a market if:

Accepted Answer

A)  the quantity being supplied at a given price exceeds the quantity demanded at that price.
B)  the quantity being demanded at a given price is less than the quantity supplied at that price.
C)  there are not enough buyers.
D)  there are only secondary goods being sold.E) A) and D)
F) A) and B)

Question 4

The law of supply can be stated as:

Accepted Answer

A)  all else equal,quantity supplied rises as price falls.
B)  all else equal,quantity supplied rises as price rises.
C)  all else equal,quantity supplied rises as income rises.
D)  all else equal,quantity supplied rises as income falls.E) None of the above
F) A) and B)

Question 5

This table shows the demand and supply schedule of a good. 
According to the table shown,at a price of $0.50:

Accepted Answer

A)  quantity demanded exceeds quantity supplied and a shortage exists.
B)  quantity demanded is less than quantity supplied and a shortage exists.
C)  quantity demanded exceeds quantity supplied and a surplus exists.
D)  quantity demanded is less than quantity supplied and a surplus exists.E) A) and C)
F) C) and D)

Question 6

Junie is shopping for dinner.She picks up a package of hot dogs on sale,instead of the burgers she was intending to buy.She then heads over to buy a package of hot dog buns.Junie's change in the demand for hot dog buns is due to:

Accepted Answer

A)  a change in the price of related goods.
B)  a change in Junie's income.
C)  a change in Junie's preferences.
D)  a change in Junie's expectation of future prices.E) None of the above
F) B) and C)

Question 7

The market clearing price refers to:

Accepted Answer

A)  the equilibrium price.
B)  the price where quantity demanded and quantity supplied are the same.
C)  the price at which all items are sold and all those willing to buy at that price are satisfied.
D)  All of these statements are true.E) C) and D)
F) All of the above

Question 8

The demand schedule assumes:

Accepted Answer

A)  that factors other than price remain the same.
B)  that factors other than price must also be in the table.
C)  that factors other than price remain separate in the table.
D)  that price remains the same while all other factors change.E) C) and D)
F) All of the above

Question 9

The city of Burlington is a very popular town for tourists to visit in the summer.We would expect:

Accepted Answer

A)  the demand for normal goods to increase each summer.
B)  the demand for normal goods to decrease each summer.
C)  the prices of all normal goods to decrease each summer.
D)  the demand curve for normal goods to shift to the left.E) A) and B)
F) A) and C)

Question 10

A paper mill discovers that burning old tires is a far cheaper way to get power than using coal,and they quickly adopt the new technology.We can assume which of the following will happen in the market for paper?

Accepted Answer

A)  The demand for paper will increase.
B)  The supply of paper will increase.
C)  The demand for paper will decrease.
D)  The supply for paper will decrease.E) A) and D)
F) None of the above

Question 11

The market for used cars is not considered perfectly competitive because:

Accepted Answer

A)  there is incomplete information.
B)  the buyers are not price takers.
C)  the good is not standardized.
D)  All of these are reasons why the used car market is not considered perfectly competitive.E) B) and C)
F) A) and C)

Question 12

Ceteris paribus is:

Accepted Answer

A)  the Latin term for "all other things being the same."
B)  necessary for the definition of the law of demand.
C)  often used by economists to isolate the effect of a single change.
D)  All of these statements are true.E) A) and B)
F) B) and C)

Question 13

A standardized good or service is one:

Accepted Answer

A)  for which any two units of it have the same features and are interchangeable.
B)  for which any two units of it have similar features that could be considered close substitutes.
C)  for which any two units of it have different,unique features.
D)  that has very distinguishable characteristics,with each unit being economically unique.E) A) and C)
F) B) and C)

Question 14

The amount of a particular good that buyers in a market will purchase at a given price during a specified period is called:

Accepted Answer

A)  quantity demanded.
B)  quantity supplied.
C)  demand.
D)  supply.E) None of the above
F) A) and D)

Question 15

A change in a nonprice factor of supply will cause:

Accepted Answer

A)  a movement along the supply curve.
B)  a shift of the supply curve.
C)  the supply curve to rotate inward.
D)  the supply curve to rotate outward.E) A) and B)
F) A) and C)

Question 16

A change in a nonprice factor of demand will cause:

Accepted Answer

A)  a movement along the demand curve.
B)  a shift of the demand curve.
C)  the demand curve to rotate inward.
D)  the demand curve to rotate outward.E) B) and D)
F) A) and B)

Question 17

This table shows individual demand schedules for a market. 
According to the table shown,at a price of $1.00,how much of the good will be demanded by Betty?

Accepted Answer

A)  16
B)  11
C)  46
D)  30E) B) and C)
F) A) and D)

Question 18

What happens to the demand curve when a nonprice determinant of demand changes?

Accepted Answer

A)  The demand curve shifts horizontally.
B)  There is a movement along the demand curve.
C)  The consumer moves to a different price point.
D)  Nothing changes in this situation.E) A) and C)
F) B) and C)

Question 19

Consider a market that is in equilibrium.If it experiences a decrease in supply,what will happen?

Accepted Answer

A)  The supply curve will shift to the left and the equilibrium price and quantity will rise.
B)  The supply curve will shift to the left and the equilibrium price will increase and the equilibrium quantity will decrease.
C)  The supply curve will shift to the left and the equilibrium price and quantity will fall.
D)  The supply curve will shift to the right and the equilibrium price and quantity will fall.E) None of the above
F) C) and D)

Question 20

An increase in the price of Heinz ketchup is likely to cause:

Accepted Answer

A)  an increase in the demand for Hunt's catsup,due to a change in preferences.
B)  an increase in the demand for Hunt's catsup,due to a change in the price of a substitute good.
C)  a decrease in the demand for Hunt's catsup,due to a change in preferences.
D)  an increase in the demand for Hunt's catsup,due to a change in the price of a complementary good.E) B) and D)
F) B) and C)

Exam 3: Markets

The best example of a perfectly competitive market would be the market for:

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A change in a nonprice factor of demand will cause:

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The demand schedule assumes:

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A change in a nonprice factor of supply will cause:

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A standardized good or service is one:

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The market clearing price refers to:

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Consider a market that is in equilibrium.If it experiences a decrease in supply,what will happen?

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What happens to the demand curve when a nonprice determinant of demand changes?

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The amount of a particular good that sellers in a market will sell at a given price during a specified period is called:

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An increase in the price of Heinz ketchup is likely to cause:

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This table shows individual demand schedules for a market. According to the table shown,at a price of $1.00,how much of the good will be demanded by Betty?

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The law of supply can be stated as:

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The city of Burlington is a very popular town for tourists to visit in the summer.We would expect:

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A surplus will occur in a market if:

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This table shows the demand and supply schedule of a good. According to the table shown,at a price of $0.50:

Correct AnswerverifiedShow Answer

The market for used cars is not considered perfectly competitive because:

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A paper mill discovers that burning old tires is a far cheaper way to get power than using coal,and they quickly adopt the new technology.We can assume which of the following will happen in the market for paper?

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Junie is shopping for dinner.She picks up a package of hot dogs on sale,instead of the burgers she was intending to buy.She then heads over to buy a package of hot dog buns.Junie's change in the demand for hot dog buns is due to:

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Ceteris paribus is:

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The amount of a particular good that buyers in a market will purchase at a given price during a specified period is called:

Correct AnswerverifiedShow Answer

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