29. Important factors that can cause supply curves to shift include input prices
ID: 2439348 • Letter: 2
Question
29. Important factors that can cause supply curves to shift include input prices, technology,
and
A. consumer preferences.
B. imports.
C. taxes.
D. demand.
30.
If the economy booms and peoples' incomes rise, then the demand curve for a normal good like new houses will ________ and the equilibrium quantity of new houses produced will ________.
A)
shift to the right; increase
B)
not shift; not change
C)
not shift; increase
D)
shift to the left; decrease
31.
A decrease in supply, with no change in demand, will lead to ________ in equilibrium quantity and ________ in equilibrium price.
A)
an increase; an increase
B)
an increase; a decrease
C)
a decrease; an increase
D)
a decrease; a decrease
The market for corn is in equilibrium. Which of the following is most likely to increase the equilibrium price of corn?
A)
a bountiful harvest
B)
increasing production of corn-based ethanol
C)
decreasing household incomes and corn is a normal good
D)
a subsidy given by the government to growers of corn
33.
A decrease in demand and a decrease in supply will lead to ________ in equilibrium quantity and ________ in equilibrium price.
A)
a decrease; an indeterminate change
B)
an indeterminate change; an increase
C)
an indeterminate change; a decrease
D)
an increase; an indeterminate change
A decrease in the price of eggs will result in:
A)
an increase in the demand for eggs.
B)
an increase in the supply of eggs.
C)
a shift in the supply curve for eggs.
D)
a movement along the demand curve for eggs.
35.
Consumer surplus for an individual buyer is equal to:
A)
the consumer's willingness to pay for the good minus the marginal cost of producing the good.
B)
the price of the good minus the marginal cost of producing the good.
C)
the consumer's willingness to pay for the good minus the price of the good.
36.
A long the supply curve for brownies, a decrease in the price of brownies will:
A)
increase producer surplus.
B)
decrease producer surplus.
C)
increase consumer surplus.
D)
increase producer surplus and consumer surplus.
Rapidly increasing health costs have been a major political concern since at least 1992. Suppose the government sets the maximum price for a normal doctor's visit at $20 to control rising health costs but the current market price is $40. What will happen?
A)
More people will try to visit the doctor, but there will be fewer doctors willing to see patients at that price.
B)
The same number of people will try to visit the doctor, and the same number of doctors are willing to see patients at that price.
C)
More people will be able to see the doctor, since the price is lower.
D)
Fewer people will try to see the doctor, and fewer doctors are willing to see patients at that price.
38.
To be binding, a price ceiling must be set at a price:
A)
lower than the equilibrium price.
B)
higher than the equilibrium price.
C)
the same as the equilibrium price.
D)
any price ceiling is binding.
39.
Hugo Chávez is the president of Venezuela. Venezuela is a major producer of oil products, which remain the keystone of Venezuela's economy. Suppose President Chávez wants to increase his popularity with the citizens of Venezuela and enacts a government policy that reduces the customer price of gasoline sold at state-owned gas stations to 50% of the previous price. This policy is called a:
A)
price control.
B)
price floor.
C)
price ceiling.
D)
quota.
40.
Rent controls usually set a price ceiling below the equilibrium price and therefore:
A)
quantity supplied exceeds the quantity demanded.
B)
quantity demanded exceeds the quantity supplied.
C)
a surplus of rental units will result.
D)
all low-income recipients will clearly be helped.
45.
A price floor is likely to cause deadweight loss because:
A)
buyers incur additional search costs looking for the scarce good.
B)
the quantity of the good being bought and sold is less than the equilibrium quantity.
C)
a black market emerges and sellers sell the good at prices above the price floor.
D)
some buyers who want to buy at the controlled price are unable to find a seller willing to sell at that price.
46. The minimum wage law has the most impact for
A. skilled workers.
B. professionals.
C. white-collar workers.
D. unskilled workers.
The type of economy a country has is determined by the amount of _______.
A. circular flow
B. economic interest
C. judicial review
D. government involvement
What type of economic system does the United States have?
A. traditional economy
B. free market economy
C. command economy
D. mixed economy
D)the marginal cost of the good minus the consumer's willingness to pay for the good.
30.
If the economy booms and peoples' incomes rise, then the demand curve for a normal good like new houses will ________ and the equilibrium quantity of new houses produced will ________.
A)
shift to the right; increase
B)
not shift; not change
C)
not shift; increase
D)
shift to the left; decrease
Explanation / Answer
29) C. Taxation. Taxation reduces supply and the supply curve shifts to the left.
30) A. Increase in demand will shift the demand curve to the right. Since supply remains the same, the equilibrium quantity and price will increase.
31) A. An increase in demand with supply remaining the same will cause the demand curve to shift left, leading to an increase in equilibrium price and quantity.
32) B. The demand for corn will go up, supply being the same which will lead to increase in equilibrium price.
Options A, C and D will lead to an increase in supply and lower market price.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.