Filters
Question type
Study Flashcards

If the decrease in supply is less than the decrease in demand, then the equilibrium price will decrease.

A) True
B) False

Correct Answer

verifed

verified

A headline reads, "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n)


A) increase in the price and quantity of new homes.
B) decrease in the price and quantity of new homes.
C) increase in the price of new homes and decrease in quantity.
D) decrease in the price of new homes and increase in quantity.

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

When tickets are "scalped," then in this market transaction


A) the buyer benefits, but the seller does not.
B) the seller benefits, but the buyer does not.
C) both the buyer and seller benefit.
D) neither the buyer nor seller benefit, because it is illegal.

E) A) and D)
F) B) and D)

Correct Answer

verifed

verified

The table below shows the weekly demand for hamburger in a market where there are just three buyers. The table below shows the weekly demand for hamburger in a market where there are just three buyers. Suppose now that there are 200 buyers in a market, each with a demand schedule identical to Buyer 2 in the table above (no one is similar to either Buyer 1 or Buyer 3) . What would the weekly quantity of hamburger demanded in the market at a price of $4 be? A) 8,000 B) 2,000 C) 7,400 D) 4,000 Suppose now that there are 200 buyers in a market, each with a demand schedule identical to Buyer 2 in the table above (no one is similar to either Buyer 1 or Buyer 3) . What would the weekly quantity of hamburger demanded in the market at a price of $4 be?


A) 8,000
B) 2,000
C) 7,400
D) 4,000

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

If we observe that the price of gold is rising and the quantity of gold traded in the market is falling, then this must be the result of an increase in the supply of gold.

A) True
B) False

Correct Answer

verifed

verified

Which of the following statements is correct? (Assume demand is interacting with an upward sloping supply curve.)


A) If demand increases, then price will decrease.
B) If demand decreases, then price will decrease.
C) If price increases, then demand will decrease.
D) If price decreases, then demand will decrease.

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

If the supply and demand curves for a product both decrease, then equilibrium


A) quantity must fall and equilibrium price must rise.
B) price must fall, but equilibrium quantity may rise, fall, or remain unchanged.
C) quantity must decline, but equilibrium price may rise, fall, or remain unchanged.
D) quantity and equilibrium price must both decline.

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

If a price ceiling is set below the equilibrium price in a market,


A) rationing will be unnecessary.
B) surpluses of the commodity will develop.
C) the quantity demanded will exceed the quantity supplied.
D) the quantity supplied will exceed the quantity demanded.

E) B) and D)
F) C) and D)

Correct Answer

verifed

verified

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the price of a product that is a close substitute for X will


A) decrease D, increase P, and decrease Q.
B) increase D, increase P, and decrease Q.
C) increase D, increase P, and increase Q.
D) increase D, decrease P, and increase Q.

E) None of the above
F) B) and D)

Correct Answer

verifed

verified

Which would best explain a decrease in both the price and the quantity of a product over a period of time?


A) a decrease in people's incomes, and the product is an inferior good
B) a long strike by workers who make the product
C) a decrease in the price of a substitute good
D) a technological improvement in production methods

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

If producers must obtain higher prices than before to produce a given level of output, then the following has occurred.


A) a decrease in demand
B) an increase in demand
C) a decrease in supply
D) an increase in supply

E) C) and D)
F) B) and D)

Correct Answer

verifed

verified

Which of the following would best be classified as a complement for new houses/homes?


A) lumber or steel
B) construction equipment
C) mortgage loans
D) rental apartments

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Assume that the graphs show a competitive market for the product stated in the question. Assume that the graphs show a competitive market for the product stated in the question. Select the graph that best shows the change in the market for Florida oranges, when a major frost damages the orange crop in California. A) Graph A B) Graph B C) Graph C D) Graph D Assume that the graphs show a competitive market for the product stated in the question. Select the graph that best shows the change in the market for Florida oranges, when a major frost damages the orange crop in California. A) Graph A B) Graph B C) Graph C D) Graph D Select the graph that best shows the change in the market for Florida oranges, when a major frost damages the orange crop in California.


A) Graph A
B) Graph B
C) Graph C
D) Graph D

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Over a period of time, the equilibrium price of a good increases and the quantity decreases. All of the following could account for this situation, except


A) an increase in the costs of production.
B) the removal of a subsidy on the good or service.
C) the imposition of a sales tax on the good or service.
D) a decrease in the price of an alternative good or service that producers could also produce.

E) A) and C)
F) None of the above

Correct Answer

verifed

verified

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?


A) Less rental housing is available, as prospective landlords find it unprofitable to rent at restricted prices.
B) The quality of rental housing declines as landlords lack the funds and incentive to maintain properties.
C) Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled.
D) All of these are consequences of rent controls.

E) A) and C)
F) None of the above

Correct Answer

verifed

verified

Assume that the graphs show a competitive market for the product stated in the question. Assume that the graphs show a competitive market for the product stated in the question. Select the graph above that best shows the change in the market for gasoline, when the price of oil, which is used to produce gasoline, increases because of reduced production by major oil-producing nations. A) Graph A B) Graph B C) Graph C D) Graph D Assume that the graphs show a competitive market for the product stated in the question. Select the graph above that best shows the change in the market for gasoline, when the price of oil, which is used to produce gasoline, increases because of reduced production by major oil-producing nations. A) Graph A B) Graph B C) Graph C D) Graph D Select the graph above that best shows the change in the market for gasoline, when the price of oil, which is used to produce gasoline, increases because of reduced production by major oil-producing nations.


A) Graph A
B) Graph B
C) Graph C
D) Graph D

E) All of the above
F) A) and C)

Correct Answer

verifed

verified

(Advanced analysis) The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. If demand changes from P = 10 - .2Q to P = 7 - .3Q, we can conclude that


A) demand has increased.
B) demand has decreased.
C) supply will increase.
D) supply will decrease.

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

A market is in equilibrium


A) provided there is no surplus of the product.
B) at all prices above that shown by the intersection of the supply and demand curves.
C) if the amount producers want to sell is equal to the amount consumers want to buy.
D) whenever the demand curve is downsloping and the supply curve is upsloping.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

The "dynamic pricing" model used by the ride-sharing firm Uber, along with a few other firms, illustrates which of the following?


A) When there is shortage in a market, the equilibrium price will rise.
B) Once the equilibrium price is reached, it will remain there for at least several days.
C) Since actual quantity bought always equals actual quantity sold, the market is always at equilibrium.
D) When there is surplus in a market, the equilibrium price will rise.

E) None of the above
F) A) and C)

Correct Answer

verifed

verified

Which of the following statements is true about productive and allocative efficiency?


A) Realizing allocative efficiency implies that productive efficiency has been realized.
B) Productive efficiency can only occur if there is also allocative efficiency.
C) Society can achieve either productive efficiency or allocative efficiency, but not both simultaneously.
D) Productive efficiency and allocative efficiency can only occur together; neither can occur without the other.

E) B) and D)
F) C) and D)

Correct Answer

verifed

verified

Showing 301 - 320 of 339

Related Exams

Exam 1

Limits, Alternatives, and Choices

398 Questions

Exam 2

The Market System and the Circular Flow

252 Questions

Exam 4

Market Failures: Public Goods and Externalities

235 Questions

Exam 5

Governments Role and Government Failure

275 Questions

Exam 6

Elasticity

255 Questions

Exam 7

Utility Maximization

256 Questions

Exam 8

Behavioral Economics

274 Questions

Exam 9

Businesses and the Costs of Production

307 Questions

Exam 10

Pure Competition in the Short Run

167 Questions

Exam 11

Pure Competition in the Long Run

182 Questions

Exam 12

Pure Monopoly

224 Questions

Exam 13

Monopolistic Competition

194 Questions

Exam 14

Oligopoly and Strategic Behavior

265 Questions

Exam 15

Technology, Rd, and Efficiency

231 Questions

Exam 16

The Demand for Resources

244 Questions

Exam 17

Wage Determination

308 Questions

Exam 18

Rent, Interest, and Profit

210 Questions

Exam 19

Natural Resource and Energy Economics

290 Questions

Exam 20

Public Finance: Expenditures and Taxes

232 Questions

Exam 21

Antitrust Policy and Regulation

237 Questions

Exam 22

Agriculture: Economics and Policy

217 Questions

Exam 23

Income Inequality, Poverty, and Discrimination

272 Questions

Exam 24

Health Care

240 Questions

Exam 25

Immigration

197 Questions

Exam 26

International Trade

241 Questions

Exam 27

The Balance of Payments, Exchange Rates, and Trade Deficits

252 Questions

Exam 28

The Economics of Developing Countries

249 Questions

Show Answer