Test 1

A  leftward shift in demand keeping supply constant.

B  rightward shift in demand and a leftward shift in supply.

C  rightward shift in supply and demand.

D  leftward shift in supply keeping demand constant.

A  The equilibrium price decreased, but we can’t tell what happened to the equilibrium quantity because we aren’t given any information about the relative size of the shifts in supply and demand in the market.

B  The equilibrium quantity decreased, but we can’t tell what happened to the equilibrium price because we aren’t given any information about the relative size of the shifts in supply and demand in the market.

C  The equilibrium quantity increased, but we can’t tell what happened to the equilibrium price because we aren’t given any information about the relative size of the shifts in supply and demand in the market.

D  The equilibrium price increased, but we can’t tell what happened to the equilibrium quantity because we aren’t given any information about the relative size of the shifts in supply and demand in the market.

A  excess supply

B  excess production

C  not enough information provided to answer the question

D  Excess demand

A  Chanel Shoes

B  Student slot into Harvard Medical School

C  Lamborghini

D  Rare metal coins

A  Not enough information provided to answer the question

B  No, because Nike already lost $30,000,000 and it should cut its losses and look for additional opportunities

C  Yes, because the marginal revenue from producing the additional shoe is greater than the marginal costs

D  No, because the additional profits from the sale of the shoe are miniscule compared to the losses in that year

A  a shortage of apartments

B  no effect

C  excess supply

D  a surplus of apartments

A  price is most likely going to decline

B  the market price is at the equilibrium price

C  the market price is above equilibrium

D  the market price is below equilibrium

A  no effect

B  excess supply

C  a surplus

D  excess demand

A  the equilibrium price will decrease

B  the supply curve will shift again after demand meets supply

C  the equilibrium price will increase

D  the equilibrium quantity will fall

A  A change in the price of the good in the model

B  A change in income

C  A change in taxes on consumers

D  None of the available answers

A  The total quantity will decline

B  Demand will decrease in the medical care market initially due to insurance premium costs, but will increase over the long term

C  Total expenditures will decline

D  Total expenditures will increase

A  TRUE

B  FALSE

A  supply of natural gas exports to shift to the right.

B  demand for natural gas exports to shift to the right.

C  quantity of natural gas exports produced to increase.

D  supply of natural gas exports to shift to the left.

A  A change in advertising expenditures

B  A change in the price of a substitute good

C  A change in society’s income

D  A change in the price of the good

A  is the net benefit forgone by not undertaking the next best alternative.

B  is nonexistent for some choices.

C  is the same as sunk cost.

D  includes only monetary outlays.

A  down, the quantity demanded stays the same.

B  up, the quantity demanded goes down.

C  down, the quantity demanded goes down.

D  up, the quantity demanded also goes up.

A  rises, raising their equilibrium price and quantity.

B  falls, lowering their equilibrium price and raising equilibrium quantity.

C  falls, raising their equilibrium price and lowering equilibrium quantity.

D  falls, lowering their equilibrium price and quantity.

A  an equilibrium quantity has been reached.

B  we are considering changes in just one factor.

C  an equilibrium price has been reached.

D  we are considering all the changes which might take place in actual markets.

A  TRUE

B  FALSE

A  demand is represented graphically by a curve and quantity demanded as a point on that curve.

B  the quantity demanded is represented graphically by a curve and demand as a point on that curve.

C  the quantity demanded is in a direct relation with prices, whereas demand is in an inverse relation.

D  the quantity demanded is in an inverse relation with prices, whereas demand is in a direct relation.

A  marginal cost and marginal benefit.

B  total cost and total benefit.

C  marginal cost, sunk cost, and total benefit.

D  sunk cost and marginal cost.

A  the demand curve will shift to the left.

B  a surplus will develop.

C  a shortage will develop.

D  the supply curve will shift to the right.