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You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes
music downloads to be a(n)
Q
Select one:
u
e
a.
complementary good. X s
b. t
normal good. i
c. o
inferior good. n
d.
luxury good.
t
e
Question 9 x
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The demand curve for a good is a line that relates

Q
Select one:
u
e
a.
price and income. s
b. t
quantity demanded and quantity supplied. X i
c. o
price and quantity demanded. n
d.
income and quantity demanded.
t
e
Question 8 x
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A likely example of substitute goods for most people would be
Q
u
e
s
 Select one:
a.
tennis balls and tennis rackets.
b.
pencils and pens.
c.
peanut butter and jelly.
d.
televisions and subscriptions to cable television services. X

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Table 4-3
Q
Bert's Ernie's Grover's Oscar's
u
Quantity Quantity Quantity Quantity
Price e
Demande Demande Demande Demande
d s d d d
$0.0 t
20 16 4 8
0 i
$0.5
18 o 12 6 6
0 n
$1.0
14 10 2 5
0
t
$1.5
12 e 8 0 4
0
x
$2.0
6 t 6 0 2
0
$2.5
0 4 0 0
0

Refer to Table 4-3. Whose demand does not obey the law of demand?
Select one:
a.
Grover's
b.
Oscar's X
c.

Bert's
d.
Ernie's

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Table 4-3
Q
Bert's Ernie's Grover's Oscar's
u
Quantity Quantity Quantity Quantity
Price e
Demande Demande Demande Demande
d s d d d
$0.0 t
20 16 4 8
0 i
$0.5
18 o 12 6 6
0 n
$1.0
14 10 2 5
0
t
$1.5
12 e 8 0 4
0
x
$2.0
6 t 6 0 2
0
$2.5
0 4 0 0
0

Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to
$1.50, the market quantity demanded
Select one:
a.
decreases by 1.75 units.
b.
decreases by 7 units. Đ
c.
decreases by 24 units.
d.
increases by 2 units.

Question 5
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Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the
Q
u
e
s
 Select one:
a.
demand curve for Matthew's pies will decrease.
b.
supply curve for Matthew's pies will increase.
c.
supply curve for Matthew's pies will decrease. Đ
d.
demand curve for Matthew's pies will increase.

Question 4
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Which of the following is an example of a normative statement? Q
Select one: u
a. Gasoline prices ought to be lower than they are now. e
s
b. The social security system is a good system and it deserves to be
t
preserved as it is. X
i
c. The government should raise taxes on wealthy people.
o
d. All of the above are normative statements. n
Question 3
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Which of the following demonstrates the law of demand?
Q
Select one: u
a. e
Melissa buys fewer muffins at $0.75 per muffin than at $1 persmuffin, other things equal.
b. t
Dave buys more donuts at $0.25 per donut than at $0.50 per donut,
i other things equal.
c. o
Kendra buys fewer Snickers at $0.60 per Snickers after the price
n of Milky Ways falls to $0.50 per Milky Way. x
d.
After Jon got a raise at work, he bought more pretzels at $1.50t per pretzel than he did before his raise.

Question 2 e
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Table 4-1
Q
Quantity Quantity Quantity
Pric u
Demanded Demanded Demanded
e
byeMichelle by Laura by Hillary
$5 5 s 4 11
$4 6 t 6 13
$3 7 i 8 15
$2 8 o 10 17
$1 9 n 12 19
$0 10 14 21
t
e
Refer to Table 4-1. If the market consists of Michelle and Hillary only and the price falls by $1, the quantity
demandedxin the market increases by
Selectt one:
a.
3 units.
b.
2 units.
c.
4 units.
d.
5 units. x

Question 1
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A macroeconomist — as opposed to a microeconomist — might
studyQ
Selectu one:
a. the effect
e on U.S. steel producers of an import quota imposed on
s steel
foreign
t
b. the effect of an increase in the price of imported coffee beans on
i
the U.S. coffee industry x
o
c. the effect
n of an increasing inflation rate on national living standards
d. the effect of agricultural price support programs on the cotton
industry
t
e
x
t
 Question 1
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A shortage exists in a market if
Q
Select one: u
a. e
quantity supplied exceeds quantity demanded.
s
t
i
o
n
b.
the current price is below its equilibrium price.
c.
All of the above are correct.
d.
there is an excess supply of the good.
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A decrease in the number of sellers in the market causes
Q
Select one: u
a. e
a movement up and to the right along a stationary supply curve.
s
b. t
the supply curve to shift to the right. i
c. o
a movement downward and to the left along a stationary supply
n curve.
d.
the supply curve to shift to the left. t
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Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a
result of these two events, the demand for tires
Q
Select one: u
a. e
is unaffected, and the supply of tires decreases. s
b. t
is unaffected, and the supply of tires increases. i
c. o
decreases, and the supply of tires increases. n
d.
None of the above is necessarily correct. t
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 Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months.
As a result, we can expect the supply of lumber to
Q
Select one: u
a. e
fall now. s
b. t
increase now to meet as much demand as possible. i
c. o
fall in six months but not now. n
d.
increase in six months when the price goes up. t
Question 5 e
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A table that shows the relationship between the price of a good and the quantity demanded of that good is called
a
Q
Select
u
one:
a. e
buyersschedule.
b. t
demand
i curve.
c. o
demand
n schedule.
d.
price-quantity
t schedule.
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e 6
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If there is a shortage of farm laborers, we would expect
Q
Select one: u
a. e
a decrease in the demand for substitutes for farm labor. s
b. t
the wage of farm laborers to increase. i
c. o
the price of farm commodities to decrease. n
d.
the wage of farm laborers to decrease. t
e
x
t
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If sellers expect higher basket prices in the near future, the current
Q
Select one: u
a. e
supply of baskets will decrease. s
b. t
supply of baskets will increase. i
c. o
demand for baskets will decrease. n
d.
supply of baskets will be unaffected. t
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Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We
would expect a
Q
Select one:
u
a. e
surplus to exist andsthe market price of roses to decrease.
b. t
shortage to exist andi the market price of roses to increase.
c. o
shortage to exist andn the market price of roses to decrease.
d.
surplus to exist andtthe market price of roses to increase.
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Table 4-1
Q
Quantity Quantity Quantity
Pric u
Demanded Demanded Demanded
e
byeMichelle by Laura by Hillary
$5 5 s 4 11
$4 6 t 6 13
$3 7 i 8 15
o
n

t
 $2 8 10 17
$1 9 12 19
$0 10 14 21

Refer to Table 4-1. Which of the following illustrates the market demand curve?
Select one:
a.

b.

c.

d.

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If Max experiences a decrease in his income, then we would expect Max's demand for
Q
Select one: u
a. e
each good he purchases to remain unchanged. s
b. t
normal goods to decrease. i
c. o
luxury goods to increase. n
d.
inferior goods to decrease. t
e
x
t

Question 1
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Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack
than people who do not drink energy drinks. We would expect to see
Q
Select one: u
a. e
a decrease in the supply of energy drinks. s
b. t
an increase in the demand for energy drinks. i
c. o
no change in the demand for energy drinks. n
d.
a decrease in the demand for energy drinks. t
Question 2 e
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 An economic outcome is said to be efficient if the economy is Q
Select one: u
a. able to produce more than what is currently being produced without
e
additional resources. s
t
b. conserving on resources, rather than using all available resources
i
c. getting all it can get from the scarce resources it has available.
o
d. using all of the scarce resources it has available. n
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If suppliers expect the price of their product to fall in the future, then they will t
Q
Select one: u
a. e
decrease supply now. s
b. t
decrease supply in the future but not now. i
c. o
increase supply now. n
d.
increase supply in the future but not now. t
Question 4 e
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Today's demand curve for gasoline could shift in response to a change in
Q
Select one: u
a. e
the expected future price of gasoline. s
b. t
All of the above are correct. i
c. o
today's price of gasoline. n
d.
the number of sellers of gasoline. t
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 Flag question
Table 4-11
Q
Quantit
u
Quantity
Pric y
Demande
e
e Supplie
d s
d
$10 10 t 60
$8 20 i 45
$6 30 o 30
$4 40 n 15
$2 50 0
t
Refer to Table
e 4-11. The equilibrium price and quantity, respectively, are
Select xone:
a. t
$12 and 30 units.
b.
$6 and 30 units.
c.
$6 and 60 units.
d.
$2 and 50 units.
Question 6
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Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this case, we know
doctor's visits are
Q
Select one:u
a. e
inferior goods. s
b. t
durable goods. i
c. o
perfectly competitive n
goods.
d.
normal goods. t
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 Flag question
Which of the following is not an example of a positive statement?Q
Select one: u
a. Higher gasoline prices will reduce gasoline consumption. e
b. Equality is more important than efficiency. s
t
c. Reducing emissions reduces days missed from school due to
i
asthma
o
d. Trade restrictions lower our standard of living n
Question 8
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When a shortage exists in a market, sellers t
Q
Select one: u
a. e
lower price, which decreases quantity demandeds and increases quantity supplied until the shortage is eliminated.
b. t
raise price, which decreases quantity demandedi and increases quantity supplied until the shortage is eliminated.
c. o
lower price, which increases quantity demandedn and decreases quantity supplied until the shortage is eliminated.
d.
raise price, which increases quantity demandedtand decreases quantity supplied until the shortage is eliminated.
Question 9 e
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The following table contains a demand schedule for a good.
Q
Pric Quantity
u
e Demanded
e
$10 100
s
$20 Q1
If the law of demand applies to this good, then Q1 could be t
Select one: i
o
a.
n
200.
b.
t
100.
e
c.
x
400.
t
d.
0.
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Any point on a country's production possibilities frontier represents
a combination of two goods that an economyQ
Select one: u
a. may be able to produce in the future with moree resources and/or
superior technology s
t
b. can produce using some portion, but not all, of its resources and
i
technology
o
c. will never be able to produce n
d. can produce using all available resources and technology
t
e
x
t