Test 1

A  leftward shift in demand keeping supply constant.

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

C  leftward shift in supply keeping demand constant.

D  rightward shift in supply and demand.

A  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.

B  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.

C  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.

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

B  Not enough information provided to answer the question

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

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

A  a surplus of apartments

B  no effect

C  a shortage of apartments

D  excess supply

A  the market price is above equilibrium

B  price is most likely going to decline

C  the market price is below equilibrium

D  the market price is at the equilibrium price

A  a surplus

B  excess demand

C  excess supply

D  no effect

A  the equilibrium price will decrease

B  the equilibrium price will increase

C  the supply curve will shift again after demand meets supply

D  the equilibrium quantity will fall

A  None of the available answers

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

C  A change in income

D  A change in taxes on consumers

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 increase

D  Total expenditures will decline

A  TRUE

B  FALSE

A  quantity of natural gas exports produced to increase.

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

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

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

A  A change in the price of a substitute good

B  A change in the price of the good

C  A change in advertising expenditures

D  A change in society’s income

A  includes only monetary outlays.

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

C  is nonexistent for some choices.

D  is the same as sunk cost.

A  up, the quantity demanded goes down.

B  up, the quantity demanded also goes up.

C  down, the quantity demanded goes down.

D  down, the quantity demanded stays the same.

A  falls, lowering their equilibrium price and quantity.

B  rises, raising their equilibrium price and quantity.

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

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

A  an equilibrium price has been reached.

B  we are considering changes in just one factor.

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

D  an equilibrium quantity has been reached.

A  FALSE

B  TRUE

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  total cost and total benefit.

B  marginal cost and marginal benefit.

C  sunk cost and marginal cost.

D  marginal cost, sunk cost, and total benefit.

A  a shortage will develop.

B  the supply curve will shift to the right.

C  the demand curve will shift to the left.

D  a surplus will develop.