Chapter 4
The Market Forces of Supply and Demand
TRUE/FALSE
1. Prices allocate a market economy’s scarce resources.ANS: T DIF: 1 REF: 4-0 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Market economies MSC: Definitional
2.
In a market economy, supply and demand determine both the quantity of each good produced and the price at
which it is sold.ANS: T DIF: 1 REF: 4-0 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Market economies MSC: Definitional
3. A market is a group of buyers and sellers of a particular good or service.ANS: T DIF: 1 REF: 4-1 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Markets MSC: Definitional
4.
Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a
product.ANS: F DIF: 1 REF: 4-1 NAT: Analytic LOC: Supply and demand TOP: Demand | Supply MSC: Definitional
5. A yard sale is an example of a market.ANS: T DIF: 2 REF: 4-1 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Markets MSC: Applicative
6. A newspaper’s classified ads are an example of a market.ANS: T DIF: 2 REF: 4-1 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Markets MSC: Applicative
7. Most markets in the economy are highly competitive.ANS: T DIF: 1 REF: 4-1 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Markets MSC: Definitional
8.
In a competitive market, the quantity of each good produced and the price at which it is sold are not
determined by any single buyer or seller.ANS: T DIF: 1 REF: 4-1 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Competitive markets MSC: Definitional
9.
In a competitive market, there are so few buyers and so few sellers that each has a significant impact on the
market price.ANS: F DIF: 1 REF: 4-1 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Competitive markets MSC: Definitional
10. In a perfectly competitive market, the goods offered for sale are all exactly the same.ANS: T DIF: 1 REF: 4-1 NAT: Analytic LOC: Perfect competition TOP: Perfect competition MSC: Definitional
202
11. In a perfectly competitive market, buyers and sellers are price setters.ANS: F DIF: 1 REF: 4-1 NAT: Analytic LOC: Perfect competition TOP: Perfect competition MSC: Definitional
12. All goods and services are sold in perfectly competitive markets.ANS: F DIF: 1 REF: 4-1 NAT: Analytic LOC: Perfect competition MSC: Definitional
TOP: Perfect competition
13. If a good or service has only one seller, then the seller is called a monopoly.ANS: T DIF: 1 REF: 4-1 NAT: Analytic LOC: Monopoly TOP: Monopoly MSC: Definitional
14. Monopolists are price takers.ANS: F DIF: 2 NAT: Analytic LOC: Monopoly
REF: 4-1
TOP: Monopoly
MSC: Interpretive
15. Local cable TV companies frequently are monopolists.ANS: T DIF: 1 REF: 4-1 NAT: Analytic LOC: Monopoly TOP: Monopoly
MSC: Definitional
16. The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular
price.ANS: T DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Quantity demanded MSC: Definitional
17. The law of demand is true for most goods in the economy.ANS: T DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand MSC: Definitional
TOP: Law of demand
18. The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the
good rises, and when the price falls, the quantity demanded falls.ANS: F DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Law of demand MSC: Definitional
19. The demand curve is the upward-sloping line relating price and quantity demanded.ANS: F DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Demand curve MSC: Definitional
20. Individual demand curves are summed horizontally to obtain the market demand curve.ANS: T DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Market demand curve MSC: Definitional
21. The market demand curve shows how the total quantity demanded of a good varies as the income of buyers
varies, while all the other factors that affect how much consumers want to buy are held constant.ANS: F DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Market demand curve MSC: Definitional
22. If something happens to alter the quantity demanded at any given price, then the demand curve shifts.ANS: T DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Demand curve MSC: Definitional
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204 ? Chapter 4 /The Market Forces of Supply and Demand
23. A movement upward and to the left along a given demand curve is called a decrease in demand..ANS: F DIF: 2 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Demand curve MSC: Interpretive
24. An increase in demand shifts the demand curve to the left.ANS: F DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand MSC: Definitional
TOP: Demand curve
25. If the demand for a good falls when income falls, then the good is called an inferior good.ANS: F DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Normal goods MSC: Definitional
26. When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.ANS: F DIF: 2 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Inferior goods MSC: Applicative
27. A decrease in income will shift the demand curve for an inferior good to the right.ANS: T DIF: 2 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Inferior goods MSC: Interpretive
28. An increase in the price of a substitute good will shift the demand curve for a good to the right.ANS: T DIF: 2 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Substitutes MSC: Interpretive
29. Baseballs and baseball bats are substitute goods.ANS: F DIF: 2 REF: 4-2 NAT: Analytic LOC: Supply and demand MSC: Applicative
TOP: Complements
30. A decrease in the price of a complement will shift the demand curve for a good to the left.ANS: F DIF: 2 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Complements MSC: Interpretive
31. When an increase in the price of one good lowers the demand for another good, the two goods are called
complements.ANS: T DIF: 1 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Complements MSC: Definitional
32. Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the
demand for marshmallows.ANS: T DIF: 2 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Complements MSC: Applicative
33. If a person expects the price of socks to increase next month, then that person’s current demand for socks will
increase.ANS: T DIF: 2 REF: 4-2 NAT: Analytic LOC: Supply and demand TOP: Expectations MSC: Applicative
5学原理》(微观)第五版测试题库 (04) 曼昆经济学原理第五版测试题库(微观) .doc
