1、117Chapter 4The Market Forces of Supply and DemandMultiple Choice1. The forces that make market economies work area. work and leisure.b. demand and supply.c. regulation and restraint.d. taxes and government spending.ANS: B PTS: 1 DIF: 1 REF: 4-0TOP: Market economy MSC: Interpretive2. Which of the fo
2、llowing are the words most commonly used by economists?a. surplus and shortageb. resources and allocationc. supply and demandd. theory and practiceANS: C PTS: 1 DIF: 1 REF: 4-0TOP: EconomistsMSC: Interpretive3. In a market economy,a. supply determines demand and, in turn, demand determines prices.b.
3、 demand determines supply and, in turn, supply determines prices.c. the allocation of scarce resources determines prices and, in turn, prices determine supply and demand.d. supply and demand determine prices and, in turn, prices allocate scarce resources.ANS: D PTS: 1 DIF: 2 REF: 4-0TOP: Market econ
4、omy MSC: Interpretive4. In a market economy, supply and demand are important because theya. play a critical role in the allocation of the economys scarce resources.b. determine how much of each good gets produced.c. can be used to predict the impact on the economy of various events and policies.d. A
5、ll of the above are correct.ANS: D PTS: 1 DIF: 1 REF: 4-0TOP: Market economy MSC: Interpretive5. A market is aa. group of buyers and sellers of a particular good or service.b. group of people with common economic characteristics.c. place where buyers and sellers come together to engage in trade.d. p
6、lace where an auctioneer helps set prices and arrange sales.ANS: A PTS: 1 DIF: 1 REF: 4-1TOP: Markets MSC: Definitional6. For a market for a good or service to exist,a. there must be a group of buyers and sellers.b. there must be a specific time and place at which the good or service is traded.c. th
7、e price of the good must be determined by the sellers.d. All of the above are correct.ANS: A PTS: 1 DIF: 1 REF: 4-1TOP: Market(s MSC: Definitional7. The term market always refers toa. an arrangement in which buyers and sellers meet at a specific time and place.b. an arrangement in which an auctionee
8、r plays at least a limited role in setting prices.c. a group of buyers and sellers of a particular good or service.d. All of the above are correct.ANS: C PTS: 1 DIF: 1 REF: 4-1TOP: Markets MSC: Definitional118 Chapter 4/The Market Forces of Supply and Demand8. A group of buyers and sellers of a part
9、icular good or service is called aa. coalition.b. partnership.c. market.d. union.ANS: C PTS: 1 DIF: 1 REF: 4-1TOP: Markets MSC: Definitional9. A market is always characterized bya. a high degree of organization.b. an individual or small group of individuals who set the price of the product for all b
10、uyers and sellers.c. the presence of buyers and sellers.d. All of the above are correct.ANS: C PTS: 1 DIF: 2 REF: 4-1TOP: Markets MSC: Interpretive10. Which of the following statements is correct?a. Buyers determine supply and sellers determine demand.b. Buyers determine demand and sellers determine
11、 supply.c. Buyers and sellers as one group determine supply, but only buyers determine demand.d. Buyers and sellers as one group determine demand, but only sellers determine supply.ANS: B PTS: 1 DIF: 2 REF: 4-1TOP: Demand | Supply MSC: Interpretive11. For each good produced in a market economy, the
12、interaction of demand and supply determinesa. the price of the good, but not the quantity.b. the quantity of the good, but not the price.c. both the price of the good and the quantity of the good.d. neither price nor quantity, because prices and quantities are determined by the sellers of the goods
13、alone.ANS: C PTS: 1 DIF: 2 REF: 4-1TOP: Market economy MSC: Interpretive12. A competitive market is a market in whicha. an auctioneer helps set prices and arrange sales.b. there are only a few sellers.c. the forces of supply and demand do not apply.d. no individual buyer or seller has any significan
14、t impact on the market price.ANS: D PTS: 1 DIF: 1 REF: 4-1TOP: Competitive markets MSC: Definitional13. The demand for a good or service is determined bya. those who buy the good or service.b. the government.c. the producers who create the good or service.d. those who supply the raw materials used i
15、n the production of the good or service.ANS: A PTS: 1 DIF: 2 REF: 4-1TOP: Demand MSC: Interpretive14. A competitive market is one in whicha. there is only one seller, but there are many buyers.b. there are many sellers and each seller has the ability to set the price of his product.c. there are many
16、 sellers and they compete with one another in such a way that some sellers are always being forced out of the market.d. there are so many buyers and so many sellers that each has a negligible impact on the price of the product.ANS: D PTS: 1 DIF: 2 REF: 4-1TOP: Competitive markets MSC: DefinitionalCh
17、apter 4/The Market Forces of Supply and Demand 11915. In a competitive market,a. only a few sellers sell the same product.b. each seller has a limited degree of control over the price of his product.c. if one buyer chooses to purchase a large quantity of the product, the price will rise.d. if one se
18、ller withholds his product from the market, prices will rise.ANS: B PTS: 1 DIF: 2 REF: 4-1TOP: Competitive markets MSC: Interpretive16. In a competitive market, each seller has limited control over the price of his product becausea. other sellers are offering similar products.b. buyers exert more co
19、ntrol over the price than do sellers.c. these markets are highly regulated by government.d. sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.ANS: A PTS: 1 DIF: 2 REF: 4-1TOP: Competitive markets MSC: Interpretive17. Most markets in the economy area
20、. markets in which sellers, rather than buyers, control the price of the product.b. markets in which buyers, rather than sellers, control the price of the product.c. markets in which each seller of the product is aware that there are few, if any, similar products offered by other sellers.d. highly c
21、ompetitive.ANS: D PTS: 1 DIF: 2 REF: 4-1TOP: Markets MSC: Interpretive18. For a competitive market, which of the following statements is correct?a. A seller can always increase her profit by raising the price of her product.b. If a seller charges more than the going price, buyers will go elsewhere t
22、o make their purchases.c. A seller often charges less than the going price to increase sales and profit.d. A single buyer can influence the price of the product, but only when purchasing from several sellers in a short period of time.ANS: B PTS: 1 DIF: 2 REF: 4-1TOP: Competitive markets MSC: Interpr
23、etive19. Assume Teresa buys computers in a competitive market. Thena. Teresa has a limited number of sellers to turn to when she buys a computer.b. Teresa will find herself negotiating with sellers whenever she buys a computer.c. if Teresa buys a large number of computers, the price of computers wil
24、l rise noticeably.d. None of the above is correct.ANS: D PTS: 1 DIF: 2 REF: 4-1TOP: Competitive markets MSC: Interpretive20. The highest form of competition is calleda. absolute competition.b. cutthroat competition.c. perfect competition.d. market competition.ANS: C PTS: 1 DIF: 1 REF: 4-1TOP: Perfec
25、t competition MSC: Definitional21. Which of the following is not a characteristic of a perfectly competitive market?a. Different sellers sell identical products.b. There are many sellers.c. Sellers must accept the price the market determines.d. All of the above are characteristics of a perfectly com
26、petitive market.ANS: D PTS: 1 DIF: 2 REF: 4-1TOP: Perfect competition MSC: Interpretive120 Chapter 4/The Market Forces of Supply and Demand22. Which of the following is not a characteristic of a perfectly competitive market?a. Sellers possess market power.b. There are many sellers.c. Buyers must acc
27、ept the price the market determines.d. All of the above are characteristics of a perfectly competitive market.ANS: A PTS: 1 DIF: 2 REF: 4-1TOP: Perfect competition MSC: Interpretive23. The term price takers refers to buyers and sellers ina. perfectly competitive markets.b. monopolies.c. markets that
28、 are regulated by government.d. markets in which buyers cannot buy all they want and/or sellers cannot sell all they want.ANS: A PTS: 1 DIF: 2 REF: 4-1TOP: Perfect competition MSC: Interpretive24. Buyers and sellers who have no influence on market price are referred to asa. market pawns.b. marginali
29、sts.c. price takers.d. price makers.ANS: C PTS: 1 DIF: 1 REF: 4-1TOP: Perfect competition MSC: Definitional25. Price takers have no influence over prices in markets that featurea. only a few buyers and a few sellers.b. numerous sellers but only a few buyers.c. numerous buyers but only a few sellers.
30、d. numerous buyers and numerous sellers.ANS: D PTS: 1 DIF: 1 REF: 4-1TOP: Perfect competition MSC: Interpretive26. An example of a perfectly competitive market would be thea. cable TV market.b. soybean market.c. new car market.d. blue jean market.ANS: B PTS: 1 DIF: 2 REF: 4-1TOP: Perfect competition
31、 MSC: Interpretive27. The market for ice cream isa. a monopolistic market.b. a competitive market.c. a highly organized market.d. a market in which there is no connection whatsoever between buyers and sellers.ANS: B PTS: 1 DIF: 1 REF: 4-1TOP: Markets MSC: Interpretive28. If a seller in a competitive
32、 market chooses to charge more than the market price, thena. the sellers profits definitely would increase.b. the owners of the raw materials used in production would raise the prices for the raw materials.c. other sellers would also raise their prices.d. buyers will tend to make purchases from othe
33、r sellers.ANS: D PTS: 1 DIF: 2 REF: 4-1TOP: Competitive markets MSC: InterpretiveChapter 4/The Market Forces of Supply and Demand 12129. If buyers and sellers in a certain market are price takers, then individually a. they have no influence on market price.b. they have some influence on market price
34、, but that influence is limited.c. buyers will be able to find prices lower than those determined in the market.d. sellers will find it difficult to sell all they want to sell at the market price.ANS: A PTS: 1 DIF: 2 REF: 4-1TOP: Perfect competition MSC: Interpretive30. A monopoly is a marketa. with
35、 one seller, and that seller is a price taker.b. with one seller, and that seller sets the price.c. with one buyer.d. in which competition has reached its highest form.ANS: B PTS: 1 DIF: 1 REF: 4-1TOP: Monopoly MSC: Definitional31. Which of the following would most likely serve as an example of a mo
36、nopoly?a. a bakery in a large cityb. a bank in a large cityc. a local cable television companyd. a small group of corn farmersANS: C PTS: 1 DIF: 1 REF: 4-1TOP: Monopoly MSC: Interpretive32. Despite the fact that not all markets are perfectly competitive, the study of perfect competition is worthwhil
37、e, in part becausea. buyers and sellers are price takers in all markets, not just in perfectly competitive markets.b. buyers find it difficult to buy all they want to buy, and sellers find it difficult to sell all they want to sell, in all markets, not just in perfectly competitive markets.c. some d
38、egree of competition is present in most markets, not just in perfectly competitive markets.d. perfectly competitive markets are the most difficult markets to analyze, and this makes the study of other types of markets easy in comparison.ANS: C PTS: 1 DIF: 2 REF: 4-1TOP: Perfect competition MSC: Inte
39、rpretive33. To say that the quantity demanded of a good is negatively related to the price of the good is to say thata. an increase in the quantity demanded of the good leads to a decrease in the price of the good.b. an increase in the price of the good leads to a decrease in the quantity demanded o
40、f the good.c. there is a weak relationship between the quantity demanded of a good and the price of the good.d. there is no relationship between the quantity demanded of a good and the price of the good.ANS: B PTS: 1 DIF: 2 REF: 4-2TOP: Price | Quantity demanded MSC: Interpretive34. Quantity demande
41、d falls as the price rises and rises as the price falls, so we say thata. quantity demanded is determined by quantity supplied.b. price is determined by quantity demanded.c. quantity demanded is a function of demand.d. quantity demanded is negatively related to the price.ANS: D PTS: 1 DIF: 2 REF: 4-
42、2TOP: Price | Quantity demanded MSC: Interpretive35. The negative relationship between price and quantity demandeda. applies to most goods in the economy.b. is represented by a downward-sloping demand curve.c. is referred to as the law of demand.d. All of the above are correct.ANS: D PTS: 1 DIF: 1 R
43、EF: 4-2TOP: Negative relationships | Law of demand MSC: Interpretive122 Chapter 4/The Market Forces of Supply and Demand36. Which of the following would not be a determinant of the demand for a particular good?a. prices of related goodsb. incomec. tastesd. the prices of the inputs used to produce th
44、e goodANS: D PTS: 1 DIF: 2 REF: 4-2TOP: Demand MSC: Interpretive37. Each of the following is a determinant of demand excepta. tastes.b. technology.c. expectations.d. the prices of related goods.ANS: B PTS: 1 DIF: 2 REF: 4-2TOP: Demand MSC: Interpretive38. The amount of the good buyers are willing an
45、d able to purchase is called thea. demand.b. quantity demanded.c. supply.d. quantity supplied.ANS: B PTS: 1 DIF: 1 REF: 4-2TOP: Quantity demanded MSC: Definitional39. If a good is normal, then an increase in income will result ina. an increase in the demand for the good.b. a decrease in the demand f
46、or the good.c. a movement down and to the right along the demand curve for the good.d. a movement up and to the left along the demand curve for the good.ANS: A PTS: 1 DIF: 2 REF: 4-2TOP: Normal goods MSC: Interpretive40. If Francis experiences a decrease in his income, we would expect that, as a res
47、ult, Franciss demand fora. each good he purchases will remain unchanged.b. normal goods will decrease.c. luxury goods will increase.d. inferior goods will decrease.ANS: B PTS: 1 DIF: 2 REF: 4-2TOP: Normal goods MSC: Interpretive41. You lose your job and as a result you buy fewer romance novels. This
48、 shows that you consider romance novels to be a(n)a. luxury good.b. inferior good.c. normal good.d. complementary good.ANS: C PTS: 1 DIF: 2 REF: 4-2TOP: Normal goods MSC: Interpretive42. Currently you purchase 6 packages of hot dogs a month. You will graduate from college in December and you will st
49、art a new job in January. You have no plans to purchase hot dogs in January. For you, hot dogs area. a substitute good.b. a normal good.c. an inferior good.d. a law-of-demand good.ANS: C PTS: 1 DIF: 2 REF: 4-2TOP: Inferior goods MSC: InterpretiveChapter 4/The Market Forces of Supply and Demand 12343. Two goods are substitutes if a decrease in the price of one gooda. decreases the demand for the other good.b. decreases the quantity demanded of the other good.c. increases the demand for the other good.d. increases the quantity demanded of the other good.ANS: A PTS: 1 DIF: 2 REF: 4
