Question 1

If a good or service has only one seller, then the seller is called a monopoly.

Accepted Answer

A) True 
 B)False

Question 2

Baseballs and baseball bats are substitute goods.

Accepted Answer

A) True 
 B)False

Question 3

Figure 4-10 
-Refer to Figure 4-10. The movement from Point A to Point B represents an)

Accepted Answer

A)   increase in the price.
B)   decrease in the quantity supplied.
C)   shift in the supply curve.
D)   Both a and b are correct.

Question 4

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of a highly organized market?

Accepted Answer

A)   the market for textbooks
B)   the market for spa services
C)   the market for soybeans
D)   the market for ice cream

Question 6

Figure 4-11 
-Refer to Figure 4-11. The movement from point A to point B on the graph is caused by

Accepted Answer

A)   a decrease in the price of the good.
B)   an increase in the price of the good.
C)   an advance in production technology.
D)   a decrease in input prices.

Question 7

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are

Accepted Answer

A)   complementary goods.
B)   normal goods.
C)   inferior goods.
D)   substitute goods.

Question 8

Figure 4-2 
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Accepted Answer

A)   4 units.
B)   6 units.
C)   8 units.
D)   12 units.

Question 9

When the price of a good is high, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 10

Table 4-10
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
 
-Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

Accepted Answer

A)   -200 cases
B)   -100 cases
C)   100 cases
D)   200 cases

Question 11

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

Accepted Answer

A)   Point A to Point B
B)   Point C to Point B
C)   Point C to Point D
D)   Point A to Point D

Question 12

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Accepted Answer

A) True 
 B)False

Question 13

Who gets scarce resources in a market economy?

Accepted Answer

A)   the government
B)   whoever the government decides gets them
C)   whoever wants them
D)   whoever is willing and able to pay the price

Question 14

Figure 4-11 
-Refer to Figure 4-11. The movement from point A to point B on the graph is called

Accepted Answer

A)   a decrease in supply.
B)   an increase in supply.
C)   an increase in the quantity supplied.
D)   a decrease in the quantity supplied.

Question 15

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

A)   substitutes.
B)   complements.
C)   unrelated because one good is legal while the other one is illegal.
D)   inferior goods.

Question 16

If the number of sellers in a market increases, then the

Accepted Answer

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.

Question 17

An increase in quantity supplied

Accepted Answer

A)   results in a movement downward and to the left along a fixed supply curve.
B)   results in a movement upward and to the right along a fixed supply curve.
C)   shifts the supply curve to the left.
D)   shifts the supply curve to the right.

Question 18

A decrease in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 19

Figure 4-20 
-Refer to Figure 4-20. At a price of $20, which of the following statements is not correct?

Accepted Answer

A)   The market is in equilibrium.
B)   Equilibrium price is equal to equilibrium quantity.
C)   There is no pressure for price to change.
D)   The quantity of the good that is bought and sold is 600 units.

Question 20

If a seller in a competitive market chooses to charge more than the going price, then

Accepted Answer

A)   the sellers' profits must increase.
B)   the owners of the raw materials used in production would raise the prices for the raw materials.
C)   other sellers would also raise their prices.
D)   buyers will make purchases from other sellers.

Exam 4: The Market Forces of Supply and Demand

Which of the following is an example of a highly organized market?

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Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are

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If a seller in a competitive market chooses to charge more than the going price, then

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An increase in quantity supplied

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If the number of sellers in a market increases, then the

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Figure 4-10 -Refer to Figure 4-10. The movement from Point A to Point B represents an)

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Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph is caused by

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Most studies indicate that tobacco and marijuana tend to be

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A decrease in demand shifts the demand curve to the left.

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Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

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Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph is called

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

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When the price of a good is high, selling the good is profitable, and so the quantity supplied is large.

Correct AnswerverifiedShow Answer

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

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If a good or service has only one seller, then the seller is called a monopoly.

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Correct AnswerverifiedShow Answer

Baseballs and baseball bats are substitute goods.

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Who gets scarce resources in a market economy?

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Figure 4-20 -Refer to Figure 4-20. At a price of $20, which of the following statements is not correct?

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Table 4-10 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

Correct AnswerverifiedShow Answer

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