Multiple Choice Questions

Tennis rackets and ballpoint pens are:
  • increase its price.
  • the substitution effect.
  • independent goods.
  • shift to the right.
Other things equal, an excise tax on a product will:
  • shift to the right.
  • increase its price.
  • independent goods.
  • The development of a low-cost electric automobile.
Refer to the diagram. A government-set price ceiling is best illustrated by:
  • a shortage of 40 units would occur.
  • 0F represents a price that would result in a shortage of AC.
  • price A.
  • an increase in demand has been more than offset by an increase in supply.
Refer to the table. Suppose that demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5). If the price were artificially set at $6:
  • an increase in demand has been more than offset by an increase in supply.
  • 0F represents a price that would result in a shortage of AC.
  • a shortage of 40 units would occur.
  • A change in the price of product K.
If the supply of a product decreases and the demand for that product simultaneously increases, then equilibrium:
  • increase, quantity demanded to decrease, and quantity supplied to increase.
  • an increase in demand has been more than offset by an increase in supply.
  • shift to the right.
  • price must rise, but equilibrium quantity may rise, fall, or remain unchanged.
Graphically, the market demand curve is:
  • The development of a low-cost electric automobile.
  • the supply to increase as farmers plant more corn.
  • reselling a ticket at a price above its original purchase price.
  • the horizontal sum of individual demand curves.
If an economy produces its most wanted goods but uses outdated production methods, it is:
  • A change in the price of product K.
  • The development of a low-cost electric automobile.
  • not achieving productive efficiency.
  • consumers are now willing to purchase more of this product at each possible price.
At the current price there is a shortage of a product. We would expect price to:
  • increase, quantity demanded to decrease, and quantity supplied to increase.
  • an increase in demand has been more than offset by an increase in supply.
  • price must rise, but equilibrium quantity may rise, fall, or remain unchanged.
  • increase the supply of B and increase the demand for C.
When an economist says that the demand for a product has increased, this means that:
  • increase, quantity demanded to decrease, and quantity supplied to increase.
  • consumers are now willing to purchase more of this product at each possible price.
  • an increase in demand has been more than offset by an increase in supply.
  • not achieving productive efficiency.
When the price of a product rises, consumers with a given money income shift their purchases to other products whose prices are now relatively lower. This statement describes:
  • shift to the right.
  • a shortage of 40 units would occur.
  • the substitution effect.
  • the supply to increase as farmers plant more corn.
If the price of product L increases, the demand curve for close-substitute product J will:
  • shift to the right.
  • price must rise, but equilibrium quantity may rise, fall, or remain unchanged.
  • the substitution effect.
  • increase its price.
(Consider This) Ticket scalping refers to:
  • the horizontal sum of individual demand curves.
  • The development of a low-cost electric automobile.
  • The price of the product for which the supply curve is relevant.
  • reselling a ticket at a price above its original purchase price.
In moving along a supply curve, which of the following is not held constant?
  • The price of the product for which the supply curve is relevant.
  • A change in the price of product K.
  • increase, quantity demanded to decrease, and quantity supplied to increase.
  • The development of a low-cost electric automobile.
Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. If supply is S1 and demand D0, then
  • the supply to increase as farmers plant more corn.
  • an increase in demand has been more than offset by an increase in supply.
  • 0F represents a price that would result in a shortage of AC.
  • a shortage of 40 units would occur.
Which of the following will not cause the demand for product K to change?
  • The price of the product for which the supply curve is relevant.
  • A change in the price of product K.
  • not achieving productive efficiency.
  • a shortage of 40 units would occur.
Assume product A is an input in the production of product B. In turn, product B is a complement to product C. We can expect a decrease in the price of A to:
  • 0F represents a price that would result in a shortage of AC.
  • an increase in demand has been more than offset by an increase in supply.
  • increase, quantity demanded to decrease, and quantity supplied to increase.
  • increase the supply of B and increase the demand for C.
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Multiple Choice Questions
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