Download CH 3 QUIZ

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Macroeconomics
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QUIZ: Chapter Three
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Macroeconomics
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QUIZ: Chapter Three
NAME:_____________________________
Macroeconomics
DATE:_____________
QUIZ: Chapter Three
1. If the quantity supplied for oranges greatly outweighs the quantity demanded for oranges and the
market price is freely determined,
a)
b)
c)
d)
e)
then the market is in equilibrium.
then the market will reach equilibrium because the demand curve will shift to the left.
then the market will reach equilibrium because the demand curve will shift to the right.
then the market will reach equilibrium because the price of oranges will decrease.
then the market will reach equilibrium because the price of oranges will increase.
2. Which of the following is not held constant when constructing a demand curve for digital cameras?
a) Price of digital cameras
b) Consumer preferences
c) Prices of film cameras (a substitute)
d) Consumer expectations
e) Consumer income
3. When incomes are rising, new car sales increase while used car sales decrease. This indicates that
a) used cars and new cars are both normal.
b) used cars are inferior goods and new cars are normal goods.
c) used cars and new cars are complements.
d) used cars and new cars are substitutes.
e) used cars are normal and new cars are inferior goods.
4. If the price of product X falls and this causes the demand for product Y to shift to the right, then we
can conclude
a)
b)
c)
d)
e)
X and Y are normal.
X and Y are inferior.
X and Y are complements.
X and Y are substitutes.
X and Y are not related.
5. According to the law of supply, if the price of personal computers increased, ceteris paribus,
a) the quantity supplied of personal computers would not change.
b) the quantity supplied of personal computers would decrease.
c) the supply of personal computers would decrease.
d) the quantity supplied of personal computers would increase.
e) the supply of personal computers would increase.
6. If a drought in Florida reduces the amount of oranges grown, then
a) the demand curve of Florida oranges shifts to the left.
b) the demand curve of Florida oranges shifts to the right.
c) the supply curve of Florida oranges shifts to the left.
d) the supply curve of Florida oranges shifts to the right.
e) both the supply and demand curve of Florida oranges shift to the right.
7. If there is a surplus of a product, we can conclude that
a) the product’s price is above equilibrium.
b) the product’s price is too low for equilibrium.
c) quantity demanded exceeds quantity supplied.
d) the product’s price will rise.
e) consumers want to buy more than is being made available by producers.
8. The U.S. surgeon general warns that animal fat in the diet is unhealthy. With the discovery that
longhorn beef cattle have little body fat, you would expect
a) ranchers will be more willing to produce longhorn cattle as the price rises.
b) the number of longhorn beef to dwindle as they are slaughtered.
c) the price of longhorn beef to fall as it becomes more popular.
d) it will become increasingly difficult to obtain longhorn beef.
e) little in the beef market to change.
9. Which of the following often occurs as a result of a price ceiling below the equilibrium?
a)
b)
c)
d)
e)
More of a product offered for sale than people are willing to buy.
The product becomes unavailable.
Long lines of consumers wanting to buy the product.
Poor people find it easier to obtain the product.
Black markets for the product disappear.
10. An increase in the price of steel will ultimately raise the price of cars because
a)
b)
c)
d)
e)
a higher price of steel will shift the demand curve of cars to the right.
a higher price of steel will shift the demand curve of cars to the left.
a higher price of steel will shift the supply curve of cars to the right.
a higher price of steel will shift the supply curve of cars to the left.
a higher price of steel will shift the demand and supply curve of cars to the right.
.
11. If the quantity supplied for oranges greatly outweighs the quantity demanded for oranges and the
market price is freely determined,
a) then the market is in equilibrium.
b) then the market will reach equilibrium because the demand curve will shift to the left.
c) then the market will reach equilibrium because the demand curve will shift to the right.
d) then the market will reach equilibrium because the price of oranges will decrease.
e) then the market will reach equilibrium because the price of oranges will increase