C11 Lesson 2 Exam SCORE 95 PERCENT

Question   1

5 / 5 points

If a competitive market operates perfectly, it relies on __________.

Question options:

the   number of people buying goods

the laws of supply and demand

how   many products can be produced for sale

how   much people are willing to pay for the products

Question   2

5 / 5 points

Refer to Figure 4.6, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, what is the market quantity supplied at a price of $30?

Question options:

200

250

300

350

Question   3

5 / 5 points

The big tradeoff is the tradeoff between __________.

Question options:

quantity   demanded and quantity supplied

price   and quantity demanded

efficiency and equity

total   surplus and deadweight loss

Question   4

5 / 5 points

A change in the quantity demanded of a product is the result of a change in __________.

Question options:

the price of the product

the   price of related goods

consumer   income

the   cost of producing the product

Question   5

5 / 5 points

What happens if the price of a product is below the equilibrium price?

Question options:

The   buyers will stop purchasing a "cheap" product.

The   producer will lower the price to sell more product.

There will be an excess demand for   the product.

There   will be a surplus of the product.

Question   6

5 / 5 points

If the equilibrium price of a good increases and the equilibrium quantity of the good decreases, we can conclude that __________.

Question options:

demand   increased

demand   decreased

supply   increased

supply decreased

Question   7

5 / 5 points

A supply curve is defined as the relationship between __________.

Question options:

the   price of a good and the quantity that consumers are willing to buy

the price of a good and the quantity   that producers are willing to sell

the   income of consumers and the quantity of a product that consumers are willing   to buy

the   income of consumers and the quantity of a product that producers are willing   to sell

Question   8

5 / 5 points

Refer to Figure 4.6, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, if the market quantity supplied is 50, the price must be __________.

Question options:

$0

$10

between $10 and $20

$30

Question   9

5 / 5 points

The market demand curve __________.

Question options:

shows the relationship between the   price of a good and the quantity that all consumers together arewilling to buy

is   drawn assuming that variables such as income and tastes are variable

is   drawn assuming that the number of consumers is variable

is   drawn assuming that the selling price is fixed

Question   10

5 / 5 points

When consumers are willing to buy more than producers are willing to sell, __________.

Question options:

there   is excess supply of the product in the market

there is excess demand for the   product in the market

the   market is in equilibrium

the   demand curve will shift until the quantity supplied equals the quantity   demanded

Question   11

5 / 5 points

When there is a change in the quantity demanded it means that __________.

Question options:

the   hours the customer can buy products each day have increased

the   number of products in inventory have increased

the quantity a consumer is willing   to buy changes when the price changes

the   selling price of the products has not changed

Question   12

5 / 5 points

Quantity of Frozen Latte-On-A-Stick Supplied

Price

Flo's   Supply

Rita's   Supply

1

0

0

2

0

3

3

4

6

4

9

9

5

15

12

Table 4.1

 Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, what is the market quantity supplied at a price of $2?

Question options:

0

2

3

5

Question   13

5 / 5 points

Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $3?

Question options:

6

9

15

20

Question   14

5 / 5 points

When the price of apples goes up, __________.

Question options:

the   demand for apples will decrease, ceteris paribus

the   demand for apples will increase, ceteris paribus

the quantity of apples demanded will   decrease, ceteris paribus

the   quantity of apples demanded will increase, ceteris paribus

Question   15

5 / 5 points

A demand curve is defined as the relationship between __________.

Question options:

the price of a good and the quantity   of that good that consumers are willing to buy

the   price of a good and the quantity of that good that producers are willing to   sell

the   income of consumers and the quantity of a good that consumers are willing to   buy

the   income of consumers and the quantity of a good that producers are willing to   sell

Question   16

5 / 5 points

Figure 4.2 illustrates the supply and demand for T-shirts. If the actual price of T-shirts is $7, there is an __________.

Question options:

excess demand of 8 T-shirts

excess   supply of 8 T-shirts

excess   demand of 10 T-shirts

excess   supply of 10 T-shirts

Question   17

5 / 5 points

Suppose that the quantity of cars supplied exceeds the quantity of cars demanded. We would expect that __________.

Question options:

the   price of cars will increase

the price of cars will decrease

the   supply will increase (supply will shift to the right. to meet the demand

the   demand will decrease (demand will shift to the left. to meet the supply

Question   18

5 / 5 points

If there is an advancement in the technology used to produce a product, what is the likely effect it may have on the supply?

Question options:

The   company would not change its manufacturing.

More   people would be needed to produce the product.

It   would decrease the supply.

It would increase the supply.

Question   19

0 / 5 points

When demand increases and the demand curve shifts to the right, equilibrium price __________ and equilibrium quantity __________.

Question options:

increases; increases (Incorrect)

increases;   decreases

decreases;   increases

decreases;   decreases

Question   20

5 / 5 points

A change in quantity supplied of a product is the result of a change in __________.

Question options:

consumer   income

the   state of production technology

the   cost of producing the product

the price of the product