QUESTION 1

1. An increase in professors' salaries increases the supply of college education.
2. A.True
3. B.False

9 points

QUESTION 2

1. If the price of labor increases, employers will hire more labor because it is more valuable.
2. A.True
3. B.False

9 points

QUESTION 3

1. If supply increases, then quantity demanded decreases.
2. A.True
3. B.False

9 points

QUESTION 4

1. As the price of milk increases, producers are normally willing to supply greater quantities. This response is known as the law of
2. A.supply
3. B.demand
4. C.averages
5. D.variable proportions
6. E.increasing costs

9 points

QUESTION 5

1. Suppose sales of a product depend directly on economic growth. If producers of that product expect an economic recession in the near future, there is likely to be
2. A.a rightward shift of the supply curve.
3. B.a movement to the left along the supply curve.
4. C.a leftward shift of the supply curve.
5. D.a movement to the right along the supply curve.
6. E.None of these.

9 points

QUESTION 6

1. If suppliers expect an increase in price, they will reduce the current supply of a good.
2. A.True
3. B.False

9 points

QUESTION 7

1. A paper mill discovers that burning old tires is a far cheaper way to get power than using coal, and they quickly adopt the new technology. We can assume which of the following will happen in the market for paper?
2. A.The demand for paper will increase.
3. B.The supply of paper will increase.
4. C.The demand for paper will decrease.
5. D.The supply for paper will decrease.

9 points

QUESTION 8

1. An increase in a product supply curve might be caused by
2. A.some firms entering an industry.
3. B.an increase in the price of an input (resource).
4. C.an increase in the price of the product.
5. D.a decrease in consumer incomes.
6. E.some firms leaving an industry.

9 points

QUESTION 9

1. Assume that Ford Motor Company engineers achieve a revolutionary technological advance in the production process of automobiles. Which of the following events would you expect to occur?
2. A.A movement up along an existing supply curve for Ford automobiles
3. B.A movement down along an existing supply curve for Ford automobiles
4. C.A shift inward of the supply curve for Ford automobiles
5. D.A shift outward of the supply curve for Ford automobiles
6. E.No change in supply

9 points

QUESTION 10

1. Assume the supply curve of sirloin steak is upward sloping. If the price increases from $4.25 to $8.60 per pound,
2. A.the supply of sirloin steak will rise.
3. B.a greater quantity of sirloin steak will be supplied.
4. C.a small quantity of sirloin steak will be supplied.
5. D.the demand for sirloin steak will decrease.
6. E.the supply of sirloin steak will decrease.

9 points

QUESTION 11

1. Studies show that the supply curve for oranges has shifted. Which of the following couldnotexplain the shift of the supply curve?
2. A.Weather conditions have changed.
3. B.The price of fertilizer has changed.
4. C.The wage paid to orange pickers has changed.
5. D.The price of oranges has changed.
6. E.The demand for grapefruit has changed.

9 points

QUESTION 12

Supply 1 Supply 2 Supply 3 Price per CD

60 30 12 $5

50 25 9 4

40 20 6 3

30 15 3 2

20 10 0 1

1. According to the table above, if the supply schedules 1, 2, and 3 are the market supply schedules for DVDs in three different time periods, what could explain the change from the Supply 1 schedule to the Supply 2 schedule?
2. A.A decrease in the price
3. B.An increase in the price
4. C.A change in consumer tastes
5. D.A change in consumer income
6. E.An increased cost of DVD supplies

9 points

QUESTION 13

1. The supply curve is a __________ line that reflects the _______ relationship between price and quantity supplied.
2. A.downward-sloping; inverse
3. B.upward-sloping; inverse
4. C.downward-sloping; direct
5. D.upward-sloping; direct

9 points

QUESTION 14

1. A reduction in the wage rate for farm workers will cause the supply of agricultural products to:
2. A.rise.
3. B.fall.
4. C.remain unchanged.
5. D.change in an unpredictable manner.

QUESTION 3

1. The amount of one good or service that must be forgone to obtain an additional unit of another good is known as the
2. A.marginal benefit.
3. B.marginal opportunity cost.
4. C.comparative advantage.
5. D.marginal expansion condition.
6. E.tradeoff quotient.

?QUESTION 10

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