a. the quantity supplied falls when the price falls, and the quantity supplied rises when the price rises.
b. the quantity supplied falls when the price rises, and the quantity supplied rises when the price falls.
c. the supply falls when the price falls, and the demand rises when the price rises.
d. the supply falls when the price rises, and the demand rises when the price falls.
e. price and quantity are always negatively correlated.
ANS: A DIF: Easy REF: What Determines Supply?
TOP: III.A. MSC: Remembering
32. A supply schedule:
a. is a curve representing the relationship between the price of a good or service and the quantity supplied.
b. is a list of goods and services supplied at different prices.
c. is a table representing the relationship between the price of a good or service and the quantity supplied.
d. can be used only to analyze individuals’ supply for a good or service.
e. can be used only to analyze the entire market’s supply for a good or service.
ANS: C DIF: Easy REF: The Supply Curve
TOP: III.A. MSC: Remembering
33. Refer to the accompanying figure. When the price changes from P1 to P2, we will see a(n):
a. decrease in supply from Q1 to Q2 .
b. increase in supply from Q2 to Q1.
c. decrease in quantity supplied from Q1 to Q2.
d. increase in quantity supplied from Q2 to Q1.
e. shift of the supply curve.
ANS: C DIF: Medium REF: The Supply Curve
TOP: III.A. MSC: Analyzing
34.
Assume that the market for nachos has only two suppliers: Firm 1 and Firm 2. According to this table, if the price of nachos is $6, the market will supply:
a. 41 nachos.
b. 6 nachos.
c. 2 nachos.
d. 4 nachos.
e. 10 nachos.
ANS: E DIF: Medium REF: Market Supply
TOP: III.A. MSC: Analyzing
35. Assume there are 100 suppliers of widgets in the widget market. Half of these suppliers supply 35 widgets to the market each, a quarter of these suppliers supply 40 widgets to the market each, and a quarter of these suppliers supply 50 widgets to the market each. What is the market supply for widgets?
a. 100
b. 125
c. 400
d. 4,000
e. 1,750
ANS: D DIF: Medium REF: Market Supply
TOP: III.A. MSC: Analyzing
36. Which of the following is both a shift in supply and a shift in demand?
a. the number of firms in an industry
b. tastes and preferences
c. income changes
d. expectations of future prices
e. the number of buyers
ANS: D DIF: Easy REF: Shifts in the Supply Curve
TOP: II.B.4. MSC: Remembering
37. Which of the following will cause a movement along a good’s supply curve?
a. an increase in the price of an input
b. the price of the good increases
c. the production process of the good becomes more efficient
d. more firms enter the market
e. the government places a subsidy on the producer of the good
ANS: B DIF: Medium REF: Shifts in the Supply Curve
TOP: III.A. MSC: Remembering
38. A change in quantity supplied:
a. is represented by a shift in the supply curve.
b. is represented by a movement along the supply curve.
c. happens only when the price increases.
d. happens only when the price decreases.
e. is positive if the price of the good decreases.
ANS: B DIF: Medium REF: Shifts in the Supply Curve
TOP: III.A. MSC: Remembering
39. Inputs are:
a. goods that are used together.
b. goods that are used in place of one another.
c. goods that you demand more of as your income increases.
d. goods that you demand less of as your income increases.
e. resources that firms use in the production of final goods and services.
ANS: E DIF: Easy REF: Shifts in the Supply Curve
TOP: III.B.1. MSC: Remembering
40. Higher input costs:
a. reduce profits.
b. increase profits.
c. shift the demand curve.
d. always happen during a recession.
e. provide an incentive to hire more workers.
ANS: A DIF: Medium REF: Shifts in the Supply Curve
TOP: III.B.1. MSC: Understanding
41. If the cost of flour increases from $3 to $5 a bag, you could predict the supply curve for bagels to:
a. shift to the right.
b. shift to the left.
c. become steeper.
d. become flatter.
e. increase.
ANS: B DIF: Easy REF: Shifts in the Supply Curve
TOP: III.B.1. MSC: Applying
42. If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant, what would you expect to happen to the supply curve of tires that are sold separately from automobiles?
a. The supply curve would shift to the right.
b. The quantity supplied would increase.
c. The supply curve would shift to the left.
d. The supply curve would shift down.
e. Nothing; the cost of rubber has no impact on the supply of tires.
ANS: C DIF: Medium REF: Shifts in the Supply Curve
TOP: III.B.1. MSC: Applying
43. Which following change in the coffee market would shift the supply curve to the right?
a. A study finds that drinking coffee leads to higher grades.
b. The wage for employees in the coffee business decreases.
c. The income in the economy increases.
d. Firms expect the price of coffee to increase in the future.
e. Fifty Starbucks coffee shops close down.
ANS: B DIF: Medium REF: Shifts in the Supply Curve
TOP: III.B.1. MSC: Applying
44. An improvement in technology:
a. is one way to shift the demand curve.
b. always increases producers’ profits.
c. allows a producer to decrease output with the same amount of input.
d. allows a producer to increase output with the same amount of input.
e. shifts the supply curve to the left.
ANS: D DIF: Medium REF: Shifts in the Supply Curve
TOP: III.B.2. MSC: Remembering
45. If a new french fry–cutting machine works twice as fast as the old machine, McDonald’s would:
a. be willing to produce and sell fewer french fries at every price.
b. be making less profit.
c. be willing to produce and sell more french fries at every price.
d. lose customers.
e. pay its employees more.
ANS: C DIF: Medium REF: Shifts in the Supply Curve
TOP: III.B.2. MSC: Applying
46. Which of the following could cause the supply curve for the market for oranges to shift to the left?
a. an increase in the income of consumers of oranges
b. a decrease in the cost of workers
c. an increase in the price of orange juice
d. a new study saying that eating oranges will give you heart disease
e. a severe hurricane in Florida
ANS: E DIF: Medium REF: Shifts in the Supply Curve
TOP: III.B.2. MSC: Applying
47. A subsidy:
a. is a payment made by the government to encourage consumption or production of a good or service.
b. is a payment taken by the government to discourage consumption or production of a good or service.
c. shifts the demand curve of a product.
d. is designed to decrease the available supply of a good or service.
e. raises the cost of doing business.
ANS: A DIF: Easy REF: Shifts in the Supply Curve
TOP: III.B.3. MSC: Remembering
48. When the government places a tax on the producer of a good or service:
a. the demand curve for the good or service shifts to the right.
b. the demand curve for the good or service shifts to the left.
c. the supply curve for the good or service shifts to the right.
d. the supply curve for the good or service shifts to the left.
e. both the supply and demand curves for the good or service shifts to the left.
ANS: D DIF: Easy REF: Shifts in the Supply Curve
TOP: III.B.3. MSC: Applying
49. On January 30, 2012, Starbucks India announced plans to open 50 cafés. What would you expect to happen to the market for coffee in India, assuming all other factors are held constant?
a. The demand for coffee will increase in India.
b. The demand for coffee will decrease in India.
c. Both the supply and demand for coffee will increase in India.
d. The supply for coffee will increase in India.
e. The supply for coffee will decrease in India.
ANS: D DIF: Easy REF: Shifts in the Supply Curve
TOP: III.B.3. MSC: Applying
50. In 1993, the government increased the tax on gasoline producers from 14.1 cents per gallon to
18.4 cents per gallon. Our model of supply and demand predicts that:
a. the demand for gasoline decreased.
b. the supply for gasoline increased.
c. the demand for gasoline increased.
d. the supply for gasoline decreased.
e. both the supply and demand for gasoline decreased.
ANS: D DIF: Difficult REF: Shifts in the Supply Curve
TOP: III.B.3. MSC: Applying
No comments:
Post a Comment