1
Which of the following influences does NOT shift the
supply curve?
a)
b)
c)
d)
an increase in consumer income
a decrease in the price firms expect to
receive in the future
a rise in the wages paid workers
development of new technology
2
Market equilibrium is a situation in which:
a)
b)
c)
d)
consumers obtain the highest quantity at
the lowest prices
producers obtain the highest price for a
given quantity sold
quantity supplied equals quantity
demanded at a single price
the market yields a substantial surplus of
goods produced
3
The number of people seeking to obtain tickets to an OSU football
game is nearly always larger than the number of available tickets
(and seats) to the game. This is evidence that the price of the ticket
is
a)
b)
c)
d)
above the equilibrium level
below the equilibrium level
too high for many to afford
at the equilibrium level because the
number of tickets bought always equals
the number of tickets for sale.
4
Which of the following statements uses incorrect terminology:
A: "The recent fare war among the major airlines has increased the
demand for air travel.“
B: "The terrorist attack on America has caused the demand for air travel
to fall."
a)
b)
c)
d)
A is incorrect; B is correct
A is correct; B is incorrect
A and B are correct
A and B are incorrect
5
Which of the graphs below best illustrates a situation in which
price will fall?
a)
b)
c)
d)
The graph on the left
The graph on the right
Both graphs
Neither graph
6
Between 2002 and 2003 bad weather affected the area where most of
the world’s vanilla is grown. Which of the graphs below best depicts
that situation?
a)
b)
c)
d)
A
B
C
D
7
After bad weather affected most of the world’s natural vanilla,
which of the graphs below best depicts what happened in the
market for synthetic vanilla?
a)
b)
c)
d)
A
B
C
D
8
You notice that the price of DVD players falls and the quantity
of DVD players sold increases. This set of observations can be
the result of:
a)
b)
c)
d)
a shift of the demand curve for DVD
players to the right
a shift of the demand curve for DVD
players to the left
a shift of the supply curve of DVD players
to the right
a shift of the supply curve of DVD players
to the left
9
Most economists believe that the U.S. minimum
wage has relatively little effect because it is set too:
a)
b)
c)
d)
low and therefore is nonbinding
high and therefore is nonbinding
low and therefore is binding
high and therefore is binding
10
Assume that beer and nachos are complements. If
the price of beer falls, we may predict that:
a)
b)
c)
d)
the demand for beer will increase, which will then
force the price of beer back up.
the demand for nachos will decrease.
the demand for nachos will increase.
(a) and (c).
11
Which of the following is an example of a black
market?
a)
b)
c)
d)
a tenant in a rent controlled apartment
subletting at a higher rent
the purchase of an inferior radio at a
department store
waiting in line during the oil shortages of the
1970s
none of the above
12
A consumer's willingness to pay for a surfboard is the
minimum price at which he or she would buy the surfboard
a)
b)
True
False
13
To the extent that eBay moves the markets for collectibles and
other items to equilibrium, it can be said to:
a)
b)
c)
d)
maximize consumer surplus
maximize producer surplus
maximize total surplus
create a market failure
14
Equilibrium in the fish market is disturbed by two different events: (i) a report
by the American Medical Association announces that increased consumption
of fish is associated with lower heart disease, and (ii) fisherman are banned
from fishing in environmentally sensitive areas that previously were
important sources for their catch. In the market for fish,
a)
b)
c)
d)
Equilibrium price will increase and equilibrium output
will decrease
Both equilibrium price and output will increase
Equilibrium quantity will decrease but we don’t have
enough information to determine the change in
equilibrium price
Equilibrium price will increase but we don’t have
enough information to determine the change in
equilibrium quantity