ECON 247 questions with correct answers new updated solution 2020 docs

Document Content and Description Below

ECON 247 questions with correct answers new updated solution 2020 docs Question 1 If a seller in a competitive market chooses to charge more than the market price, what is likely to happen? Sel... ect one: a. The owners of the raw materials used in production would raise the prices for the raw materials. b. Buyers will tend to buy more from this seller. c. Buyers will tend to make purchases from other sellers. d. Other sellers will also raise their prices. Question 2 What does the number of buyers affect? Select one: a. the market demand curve b. all individual supply curves c. the market supply curve d. all individual demand curves Question 3 What are the forces that make market economies work? Select one: a. cost and benefit b. demand and supply c. employment and income d. price and quantity Question 4 What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers rose and the price of tea rose? Select one: a. Price will fall and the effect on quantity is ambiguous. b. Quantity will fall and the effect on price is ambiguous. c. Quantity will rise and the effect on price is ambiguous. d. Price will rise and the effect on quantity is ambiguous. The supply schedule shows a relationship between Select one: a. profit and price. b. price and quantity supplied. c. price and quantity demanded. d. supply and quantity. Question 6 A technological advancement will Select one: a. shift the supply curve to the right. b. shift the demand curve to the left. c. shift the supply curve to the left. d. shift the demand curve to the right. Question 7 What would happen if both supply and demand increased? Select one: a. Equilibrium price would definitely decrease. b. Equilibrium price would definitely increase. c. Equilibrium quantity would definitely decrease. d. Equilibrium quantity would definitely increase. Question 8 Recent pine beetle infestations that are destroying trees in the western provinces are expected to cause the price of lumber to rise in the next six months. As a result, what can we expect to happen to the supply of lumber? Select one: a. It will increase now to meet as much demand as possible. b. It will fall now. c. It will increase in six months when the price goes up. d. It will fall in six months, but not now. Which of the following will definitely cause equilibrium quantity to fall? Select one: a. demand increases and supply decreases b. demand decreases and supply decreases c. demand decreases and supply increases d. demand increases and supply increases Question 10 Suppose that the number of buyers in a market increases and a technological advancement occurs. What would we expect to happen in the market? Select one: a. The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous. b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. c. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. d. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. Question 11 Which of the following reflects the downward-sloping demand curve? Select one: a. When the price falls, buyers willingly buy less. b. There is an inverse relationship between price and quantity demanded. c. There is a direct relationship between price and quantity demanded. d. Price is positively related to quantity supplied. Question 12 What does supply-and-demand analysis involve? Select one: a. comparing the old equilibrium and the new equilibrium b. evaluating buyers' reluctance to pay the market price c. evaluating the friction that develops between buyers and sellers d. comparing products in different markets Suppose donuts are currently selling for $14 per dozen, but the equilibrium price of donuts is $12 per dozen. What would we expect? Select one: a. a surplus to exist and the market price of donuts to increase b. a surplus to exist and the market price of donuts to decrease c. a shortage to exist and the market price of donuts to increase d. a shortage to exist and the market price of donuts to decrease Question 14 If the demand for a product decreases, we expect Select one: a. equilibrium price and equilibrium quantity to both increase. b. equilibrium price to decrease and equilibrium quantity to increase. c. equilibrium price and equilibrium quantity to both decrease. d. equilibrium price to increase and equilibrium quantity to decrease. Question 15 If suppliers expect the price of their product to fall in the future, what will they normally do? Select one: a. increase supply now b. increase supply in the future c. decrease supply now d. increase supply now and decrease it in the future Question 16 Which of the following is an example of complementary goods? Select one: a. lawnmowers and automobiles b. wine and beer c. cereal and milk d. hamburgers and hot dogs Wheat is the main input in the production of flour. All other things being equal, if the price of wheat increases, we would expect Select one: a. the supply of flour to decrease. b. the demand for flour to decrease. c. the supply of flour to increase. d. the demand for flour to increase. Question 18 How is a market supply curve constructed? Select one: a. by finding the average quantity supplied by the market's individual supply curves b. by vertically summing individual supply curves c. by horizontally summing individual supply curves d. by summing a consumer's demands for all goods Question 19 If Francis receives an increase in his pay, we would expect Select one: a. Francis's demand for inferior goods to increase. b. Francis's demand for normal goods to decrease. c. Francis's demand for each good he purchases to remain unchanged. d. Francis's demand for luxury goods to increase. Question 20 Wheat is the main input in the production of flour. All other things being equal, if the price of wheat decreases, we would expect Select one: a. the demand for flour to increase. b. the demand for flour to decrease. c. the supply of flour to increase. d. the supply of flour to decrease. If the number of buyers in the housing market decreases, Select one: a. demand in the market will increase. b. demand in the market will decrease. c. supply in the market will decrease. d. supply in the market will increase. Question 22 Which of the following would be most likely to increase the price of a new house? Select one: a. lower wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population, and expectations of lower house prices in the future b. lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population, and expectations of higher house prices in the future c. higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future d. lower wages for carpenters, lower wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future Question 23 Suppose you make jewellery. If the price of silver increases, we would expect you Select one: a. to be willing and able to produce more jewellery than before at each possible price. b. to be willing and able to produce less jewellery than before at each possible price. c. to face a greater demand for your jewellery. d. to face a weaker demand for your jewellery. Question 24 When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, we know that Select one: a. both are movements along the curve. b. an increase in supply is a movement along the curve, and an increase in quantity supplied is a shift of the curve. c. both are shifts of the supply curve. d. an increase in supply is a shift of the curve, and an increase in quantity supplied is a movement along htttphse://wcwuwrv.ceou.rsehero.com/file/58968479/econ247-quIz-2-answeredpdf/ What might be the reason behind quantity demanded having been increased at every price? Select one: a. The consumer prefers another good more than this good. b. The number of buyers in the market has decreased. c. The price of a substitute good has increased. d. Income has increased, and this good is an inferior good. Question 26 New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public transportation becomes cheaper and more comfortable, auto workers accept lower wages, and automobile insurance becomes more expensive? Select one: a. the price change will be ambiguous b. the price will rise c. the price will stay exactly the same d. the price will fall Question 27 What would an early frost in the vineyards of the Okanagan Valley cause? Select one: a. an increase in the demand for wine, increasing price b. an increase in the supply of wine, decreasing price c. a decrease in the demand for wine, decreasing price d. a decrease in the supply of wine, increasing price Question 28 When there is a surplus in a market, Select one: a. there are too many buyers chasing too few goods. b. the market is operating below the equilibrium level. c. there is upward pressure on price. d. there is downward pressure on price. Which of the following would result in an increase in equilibrium price and an ambiguous change in equilibrium quantity? Select one: a. a decrease in supply and an increase in demand b. a decrease in supply and demand c. an increase in supply and demand d. an increase in supply and a decrease in demand Question 30 What is another term for equilibrium price? Select one: a. market-clearing price b. balancing price c. reservation price d. cooperative pric [Show More]

Last updated: 2 years ago

Preview 1 out of 8 pages