Question 1

If market price is below equilibrium price,

Accepted Answer

A)  equilibrium price will rise.
B)  equilibrium price will fall.
C)  market price will rise.
D)  market price will fall.

Question 2

-If price were $190,there would be a _____ (shortage or surplus)of _____.

Accepted Answer

The answer of 
-If price were $190,there would be a...

Question 3

When equilibrium price is higher than market price,quantity demanded is ________ quantity supplied.

Accepted Answer

The answer of When equilibrium price is higher than market...

Question 4

The law of supply

Accepted Answer

A)  states that price and quantity supplied are inversely related.
B)  states that price and quantity supplied are directly related.
C)  is identical to the law of demand.
D)  None of these choices are correct.

Question 5

-If the equilibrium price of an hour with a tax accountant is $65 and the market price is currently $55,then there is a

Accepted Answer

A)  surplus of accountants
B)  shortage of accountants
C)  equilibrium

Question 6

The demand and supply curves cross at the _____ point.

Accepted Answer

The answer of The demand and supply curves cross at...

Question 7

When the market price is above equilibrium price,the market price will be driven

Accepted Answer

A)  up by buyers.
B)  up by sellers.
C)  down by buyers.
D)  down by sellers.

Question 8

When supply falls and demand stays the same,

Accepted Answer

A)  equilibrium quantity rises.
B)  equilibrium quantity falls.
C)  equilibrium quantity stays the same.

Question 9

-The price of $4 in the graph above represents

Accepted Answer

A)  a price floor.
B)  a price ceiling.
C)  either a price floor or a price ceiling.
D)  neither a price floor nor a price ceiling.

Question 10

If demand falls and supply falls,equilibrium price will _____ and equilibrium quantity will _____.

Accepted Answer

rise,fall,...

Question 11

Which statement is false?

Accepted Answer

A)  Rent control is a price ceiling.
B)  Usury laws can lead to a surplus of loanable funds.
C)  The government,to encourage family farms to stay in business,created price supports for corn and wheat.
D)  Price ceilings prevent prices from rising.

Question 12

Most economists believe price ceilings ______________

Accepted Answer

A)  do more harm than good.
B)  have no impact on the market.
C)  do more good than harm.
D)  are necessary to protect consumers.

Question 13

During World War II,there was an extensive black market for tires in the United States.The most likely explanation for the existence of the black market was that

Accepted Answer

A)  the price of tires was artificially held down by price controls.
B)  the price of tires was artificially increased by price controls.
C)  tires were one of the few goods not subject to price controls.
D)  gasoline rationing greatly restricted civilian driving.

Question 14

-When price is $10

Accepted Answer

A)  there is a surplus.
B)  there is a shortage.
C)  quantity demanded is greater than quantity supplied.
D)  quantity supplied is greater than quantity demandeD.
E)  there is a surplus and quantity supplied is greater than quantity demanded,but there is not a shortage and quantity demanded is not greater than quantity supplied.

Question 15

"The higher the price of a good or service,the greater the quantity that people are willing to sell" is

Accepted Answer

A)  the law of demand
B)  the law of supply
C)  neither the law of demand or the law of supply

Question 16

-A shift from S1 to S2 causes equilibrium price to __________ and quantity to __________.

Accepted Answer

A)  rise;rise
B)  fall;fall
C)  rise;fall
D)  fall;rise

Question 17

Statement I: In 1973 and 1979 the United States dealt with a decrease in the supply of oil by letting the market solve the problem.
Statement II: In 2005 the government avoided the problems of long gas lines by allowing the price of gasoline to rise.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 18

The way the government keeps price floors in effect is by _____.

Accepted Answer

buying up ...

Question 19

When market price is higher than equilibrium price,quantity demanded is ______ quantity supplied.

Accepted Answer

The answer of When market price is higher than equilibrium...

Question 20

When supply falls and demand stays the same,

Accepted Answer

A)  equilibrium price rises.
B)  equilibrium price falls.
C)  equilibrium price stays the same.

Exam 4: Supply and Demand

The way the government keeps price floors in effect is by _____.

Correct Answerverifiedbuying up ...View AnswerShow Answer

The law of supply

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When supply falls and demand stays the same,

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-If the equilibrium price of an hour with a tax accountant is $65 and the market price is currently $55,then there is a

Correct AnswerverifiedShow Answer

When market price is higher than equilibrium price,quantity demanded is ______ quantity supplied.

Correct AnswerverifiedShow Answer

If market price is below equilibrium price,

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The demand and supply curves cross at the _____ point.

Correct AnswerverifiedShow Answer

When the market price is above equilibrium price,the market price will be driven

Correct AnswerverifiedShow Answer

If demand falls and supply falls,equilibrium price will _____ and equilibrium quantity will _____.

Correct Answerverifiedrise,fall,...View AnswerShow Answer

"The higher the price of a good or service,the greater the quantity that people are willing to sell" is

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-When price is $10

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-If price were $190,there would be a _____ (shortage or surplus)of _____.

Correct AnswerverifiedShow Answer

When equilibrium price is higher than market price,quantity demanded is ________ quantity supplied.

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Most economists believe price ceilings ______________

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During World War II,there was an extensive black market for tires in the United States.The most likely explanation for the existence of the black market was that

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When supply falls and demand stays the same,

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Which statement is false?

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-A shift from S1 to S2 causes equilibrium price to __________ and quantity to __________.

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Statement I: In 1973 and 1979 the United States dealt with a decrease in the supply of oil by letting the market solve the problem. Statement II: In 2005 the government avoided the problems of long gas lines by allowing the price of gasoline to rise.

Correct AnswerverifiedShow Answer

-The price of $4 in the graph above represents

Correct AnswerverifiedShow Answer

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buying up ...
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If demand falls and supply falls,equilibrium price will _ and equilibrium quantity will _.

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rise,fall,...
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-If price were $190,there would be a _ (shortage or surplus)of _.

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-A shift from S1 to S2 causes equilibrium price to and quantity to .

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