Chapter 3 Economics Quiz

Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates the:

College Studentsliving off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed macaroni and cheese are:

Other things equal, if the price of a key resource used to produce product X falls, the:

In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by:

An increase in the quantity demanded means that:

An improvement in production technology will:

The law of demand states that, other things equal:

A market in equilibrium:

In 2007, the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are:

A surplus of a product will arise when price is:

A firm's supply curve us upsweeping because:

Assuming conventional supply and demand curves, changes in the determinants of both supply and demand will generally:

A leftward shift of a product supply curve might be caused by:

Black markets are associated with:

The law of supply indicates that, other things equal:

A price ceiling means that:

An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This production assumes that:

Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity? A-An increase in demand. B-A decrease in supply. C-An increase in supply. D- A decrease in demand.

Which of the following would most likely increase the demand for gasoline? A- A decrease in the price of public transportation. B- A widespread shift in car ownership from SUVs to hybrid sedans. C- The expectation by consumers that gasoline prices will be lower in the future. D- The expectation by consumers that gasoline prices will be higher in the future.

If the supply of a product decreases and the demand for that product simultaneously increases, then equilibrium:

A price floor means that:

If there is a shortage of product X, and the price is free to change:

A recent study found that an increase in the federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:

In which of the following instances is the effect on equilibrium price dependent on the magnitude of the shifts in supply and demand? A-Demand rises and supply falls. B-Demand rises and supply rises. C-Supply rises and demand falls. D-Supply falls and demand remains constant.

Allocative efficiency is concerned with:

Productive efficiency refers to:

When an economist says that the demand for a product has increased, this means that:

A government subsidy to the producers of a product:

Since their introduction, prices of Blu-ray players have fallen and the quantity purchased has increased. This statement: