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phasic · 02-06-2007, 05:57 PM

Question 25 (2 points)
Suppose a gardener produces both green beans and corn in her garden. If the opportunity cost of one bushel of corn is 3/5 bushel of green beans, then the opportunity cost of 1 bushel of green beans is

a. 5/3 bushels of corn.
b. 2/5 bushel of corn.
c. 5/2 bushels of corn.
d. 8/5 bushels of corn.

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Question 26 (2 points)
What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly (a complementary good) fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you?

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. The effect on both price and quantity is ambiguous.

Save answer
Question 27 (2 points)
Which of the following changes would not shift the demand curve for a good or service?

a. a change in income
b. a change in the price of the good or service
c. a change in expectations about the future price of the good or service
d. a change in the price of a related good or service

Save answer
Question 28 (2 points)
If, at the current price, there is a shortage of a good,

a. sellers are producing more than buyers wish to buy.
b. the market must be in equilibrium.
c. the price is below the equilibrium price.
d. quantity demanded equals quantity supplied.

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Question 29 (2 points)
When we move along a given demand curve,

a. only price is held constant.
b. income and the price of the good are held constant.
c. all nonprice determinants of demand are held constant.
d. all determinants of quantity demanded are held constant.

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Question 30 (2 points)
The side of the market that deals with the willingness and ability to produce and sell is

a. demand.
b. competition.
c. supply.
d. monopoly.

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Question 31 (2 points)
Figure 4-5
Chapter_04-MC1-3_nar005-1.jpg

Refer to Figure 4-5. The movement from point A to point B on the graph represents

a. an increased willingness and ability on the part of suppliers to supply the good at each possible price.
b. an increase in the number of suppliers.
c. a decrease in the price of a relevant input.
d. an increase in the price of the good that is being supplied and suppliers’ response to that price change.

Save answer
Question 32 (2 points)
A market supply curve is determined by

a. vertically summing individual supply curves.
b. horizontally summing individual supply curves.
c. finding the average quantity supplied by sellers at each possible price.
d. finding the average price at which sellers are willing and able to sell a particular quantity of the good.

Save answer
Question 33 (2 points)
In a given market, how are the equilibrium price and the market-clearing price related?

a. There is no relationship.
b. They are the same price.
c. The market-clearing price exceeds the equilibrium price.
d. The equilibrium price exceeds the market-clearing price.

Save answer
Question 34 (2 points)
A table that shows the relationship between the price of a good and the quantity demanded of that good is called a(n)

a. price-quantity table.
b. complementary table.
c. demand schedule.
d. equilibrium schedule.

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Question 35 (2 points)
A downward-sloping demand curve reflects

a. the idea that the demand for the good in question is decreasing as time goes by.
b. the idea that there are fewer suppliers of the good as time goes by.
c. the idea that there exists a substitute for the good in question and the price of that substitute is decreasing.
d. the law of demand.

Save answer
Question 36 (2 points)
To find the market demand for a product, individual demand curves are summed

a. vertically.
b. diagonally.
c. horizontally.
d. and then averaged.

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Question 37 (2 points)
A downward-sloping demand curve illustrates the

a. relationship between consumers’ income and their willingness to purchase the good in question, provided the good is inferior.
b. negative relationship between quantity demanded and quantity supplied.
c. idea that the more of one good that a consumer buys, the less income she has to spend on other goods.
d. law of demand.

Save answer
Question 38 (2 points)
The price at which quantity supplied equals quantity demanded is called the

a. coordinating price.
b. monopoly price.
c. equilibrium price.
d. All of the above are correct.

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Question 39 (2 points)
The demand curve for a good is

a. a line that relates the price to quantity demanded.
b. a line that relates income to quantity demanded.
c. a line that will shift only if the price of a related good changes.
d. the same thing as a production possibilities frontier, except the axes are labeled differently.

Save answer
Question 40 (2 points)
If the supply of a product increases, we would expect

a. equilibrium price to increase and equilibrium quantity to decrease.
b. equilibrium price to decrease and equilibrium quantity to increase.
c. equilibrium price and equilibrium quantity both to increase.
d. equilibrium price and equilibrium quantity both to decrease.

Save answer
Question 41 (2 points)
Which of the following events could shift the demand curve for gasoline to the left?

a. Income of gasoline buyers rises, and gasoline is a normal good.
b. Income of gasoline buyers falls, and gasoline is an inferior good.
c. Public service announcements are run on television, encouraging people to walk or ride bicycles instead of driving cars.
d. The price of gasoline rises.

Save answer
Question 42 (2 points)
Figure 4-6
Chapter_04-MC1-3_nar006-1.jpg

Refer to Figure 4-6. Suppose the supply curves that are drawn represent supply curves for single-family residential houses. Then the movement from S to S1 could be caused by

a. an increase in the price of apartments (a substitute for single-family houses for many people looking for a place to live).
b. a newly-formed expectation by house-builders that prices of houses will increase significantly in the next six months.
c. a decrease in the price of lumber.
d. All of the above are correct.

Save answer
Question 43 (2 points)
Which of the following would most likely serve as an example of a monopoly?

a. a bakery in a large city
b. a bank in a large city
c. a local cable television company
d. a small group of corn farmers

Save answer
Question 44 (2 points)
For each good produced in a market economy, the interaction of demand and supply determines

a. the price of the good, but not the quantity.
b. the quantity of the good, but not the price.
c. both the price of the good and the quantity of the good.
d. neither price nor quantity, because prices and quantities are determined by the sellers of the goods alone.

Save answer
Question 45 (2 points)
Each of the following is a determinant of demand except

a. tastes.
b. technology.
c. expectations.
d. the prices of related goods.

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Question 46 (2 points)
Suppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. How would this price increase affect your demand for vanilla pudding?

a. It would decrease.
b. It would increase.
c. It would be unaffected.
d. There is insufficient information given to answer the question.

Save answer
Question 47 (2 points)
What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties and fewer used textbooks are sold?

a. Price will rise.
b. Price will fall.
c. Price will stay exactly the same.
d. The price change will be ambiguous.

Save answer
Question 48 (2 points)
Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes (an inferior good) to increase?

a. an increase in consumer income
b. a decrease in consumer income
c. greater government restrictions on agricultural chemicals
d. fewer government restrictions on agricultural chemicals

Save answer
Question 49 (2 points)
Figure 4-8
Chapter_04-MC4-5_nar002-1.jpg

Refer to Figure 4-8. In this market, equilibrium price and quantity, respectively, are

a. $14 and 70.
b. $12 and 40.
c. $10 and 50.
d. $8 and 50.

Save answer
Question 50 (2 points)
If the demand for a product decreases, we would expect

a. equilibrium price to increase and equilibrium quantity to decrease.
b. equilibrium price to decrease and equilibrium quantity to increase.
c. equilibrium price and equilibrium quantity to both increase.
d. equilibrium price and equilibrium quantity to both decrease.

Save answer

Finish

02-06-2007, 05:57 PM
phasic Confirmed User Industry Role: Join Date: Jul 2005 Location: US Posts: 2,104	Question 25 (2 points) Suppose a gardener produces both green beans and corn in her garden. If the opportunity cost of one bushel of corn is 3/5 bushel of green beans, then the opportunity cost of 1 bushel of green beans is a. 5/3 bushels of corn. b. 2/5 bushel of corn. c. 5/2 bushels of corn. d. 8/5 bushels of corn. Save answer Question 26 (2 points) What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly (a complementary good) fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you? 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. The effect on both price and quantity is ambiguous. Save answer Question 27 (2 points) Which of the following changes would not shift the demand curve for a good or service? a. a change in income b. a change in the price of the good or service c. a change in expectations about the future price of the good or service d. a change in the price of a related good or service Save answer Question 28 (2 points) If, at the current price, there is a shortage of a good, a. sellers are producing more than buyers wish to buy. b. the market must be in equilibrium. c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied. Save answer Question 29 (2 points) When we move along a given demand curve, a. only price is held constant. b. income and the price of the good are held constant. c. all nonprice determinants of demand are held constant. d. all determinants of quantity demanded are held constant. Save answer Question 30 (2 points) The side of the market that deals with the willingness and ability to produce and sell is a. demand. b. competition. c. supply. d. monopoly. Save answer Question 31 (2 points) Figure 4-5 Chapter_04-MC1-3_nar005-1.jpg Refer to Figure 4-5. The movement from point A to point B on the graph represents a. an increased willingness and ability on the part of suppliers to supply the good at each possible price. b. an increase in the number of suppliers. c. a decrease in the price of a relevant input. d. an increase in the price of the good that is being supplied and suppliers’ response to that price change. Save answer Question 32 (2 points) A market supply curve is determined by a. vertically summing individual supply curves. b. horizontally summing individual supply curves. c. finding the average quantity supplied by sellers at each possible price. d. finding the average price at which sellers are willing and able to sell a particular quantity of the good. Save answer Question 33 (2 points) In a given market, how are the equilibrium price and the market-clearing price related? a. There is no relationship. b. They are the same price. c. The market-clearing price exceeds the equilibrium price. d. The equilibrium price exceeds the market-clearing price. Save answer Question 34 (2 points) A table that shows the relationship between the price of a good and the quantity demanded of that good is called a(n) a. price-quantity table. b. complementary table. c. demand schedule. d. equilibrium schedule. Save answer Question 35 (2 points) A downward-sloping demand curve reflects a. the idea that the demand for the good in question is decreasing as time goes by. b. the idea that there are fewer suppliers of the good as time goes by. c. the idea that there exists a substitute for the good in question and the price of that substitute is decreasing. d. the law of demand. Save answer Question 36 (2 points) To find the market demand for a product, individual demand curves are summed a. vertically. b. diagonally. c. horizontally. d. and then averaged. Save answer Question 37 (2 points) A downward-sloping demand curve illustrates the a. relationship between consumers’ income and their willingness to purchase the good in question, provided the good is inferior. b. negative relationship between quantity demanded and quantity supplied. c. idea that the more of one good that a consumer buys, the less income she has to spend on other goods. d. law of demand. Save answer Question 38 (2 points) The price at which quantity supplied equals quantity demanded is called the a. coordinating price. b. monopoly price. c. equilibrium price. d. All of the above are correct. Save answer Question 39 (2 points) The demand curve for a good is a. a line that relates the price to quantity demanded. b. a line that relates income to quantity demanded. c. a line that will shift only if the price of a related good changes. d. the same thing as a production possibilities frontier, except the axes are labeled differently. Save answer Question 40 (2 points) If the supply of a product increases, we would expect a. equilibrium price to increase and equilibrium quantity to decrease. b. equilibrium price to decrease and equilibrium quantity to increase. c. equilibrium price and equilibrium quantity both to increase. d. equilibrium price and equilibrium quantity both to decrease. Save answer Question 41 (2 points) Which of the following events could shift the demand curve for gasoline to the left? a. Income of gasoline buyers rises, and gasoline is a normal good. b. Income of gasoline buyers falls, and gasoline is an inferior good. c. Public service announcements are run on television, encouraging people to walk or ride bicycles instead of driving cars. d. The price of gasoline rises. Save answer Question 42 (2 points) Figure 4-6 Chapter_04-MC1-3_nar006-1.jpg Refer to Figure 4-6. Suppose the supply curves that are drawn represent supply curves for single-family residential houses. Then the movement from S to S1 could be caused by a. an increase in the price of apartments (a substitute for single-family houses for many people looking for a place to live). b. a newly-formed expectation by house-builders that prices of houses will increase significantly in the next six months. c. a decrease in the price of lumber. d. All of the above are correct. Save answer Question 43 (2 points) Which of the following would most likely serve as an example of a monopoly? a. a bakery in a large city b. a bank in a large city c. a local cable television company d. a small group of corn farmers Save answer Question 44 (2 points) For each good produced in a market economy, the interaction of demand and supply determines a. the price of the good, but not the quantity. b. the quantity of the good, but not the price. c. both the price of the good and the quantity of the good. d. neither price nor quantity, because prices and quantities are determined by the sellers of the goods alone. Save answer Question 45 (2 points) Each of the following is a determinant of demand except a. tastes. b. technology. c. expectations. d. the prices of related goods. Save answer Question 46 (2 points) Suppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. How would this price increase affect your demand for vanilla pudding? a. It would decrease. b. It would increase. c. It would be unaffected. d. There is insufficient information given to answer the question. Save answer Question 47 (2 points) What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties and fewer used textbooks are sold? a. Price will rise. b. Price will fall. c. Price will stay exactly the same. d. The price change will be ambiguous. Save answer Question 48 (2 points) Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes (an inferior good) to increase? a. an increase in consumer income b. a decrease in consumer income c. greater government restrictions on agricultural chemicals d. fewer government restrictions on agricultural chemicals Save answer Question 49 (2 points) Figure 4-8 Chapter_04-MC4-5_nar002-1.jpg Refer to Figure 4-8. In this market, equilibrium price and quantity, respectively, are a. $14 and 70. b. $12 and 40. c. $10 and 50. d. $8 and 50. Save answer Question 50 (2 points) If the demand for a product decreases, we would expect a. equilibrium price to increase and equilibrium quantity to decrease. b. equilibrium price to decrease and equilibrium quantity to increase. c. equilibrium price and equilibrium quantity to both increase. d. equilibrium price and equilibrium quantity to both decrease. Save answer Finish __________________ Brief revisit. (mic drop)